Expand your business into Liechtenstein with or without a local entity
The tiny nation of Liechtenstein, with a population of under 40,000 people, is a surprisingly large draw for foreign investment. This is, in part, due to its central location in Europe, membership of the European Free Trade Association (EFTA), favorable tax laws, and strong economy.
However, the process of expanding into Liechtenstein can take time, with organizations having to follow a range of strict criteria and comply with complex legislation. These things can be very time-consuming and potentially cause a loss of revenue.
A popular way of bypassing the complex administrative procedures is to outsource the legwork to a global professional employer organization (PEO). At Horizons, our comprehensive PEO, employer of record, and payroll services are designed specifically to help businesses of all kinds expand abroad faster and more efficiently, including into Liechtenstein.
With a dedicated in-house recruitment team, we can also help you to find, hire, and onboard new employees in Liechtenstein. If you don’t have an established entity in Liechtenstein, you can even use our local subsidiary as employer of record, giving you all the benefits of hiring in Liechtenstein without any of the complex administration. Our outsourcing services could cut your expansion costs by thousands and give you greater flexibility for your Liechtenstein expansion.
Our Liechtenstein PEO simplifies your expansion
Horizons enables your business to expand its operations into Liechtenstein, without setting up a legal subsidiary.
Rapid Market Entry
Horizons will enable you to source, hire, and onboard professionals across Liechtenstein in as little as 48 hours.
Cost-Effective Expansion
Our PEO solution can help you benefit from cost savings of up to 85%, without the need to establish a Liechtenstein entity.
Payroll Outsourcing
Simplified Liechtenstein salary & payroll processing, including any tax, withholdings, and any other required contributions.
Employee Onboarding
Utilize the relevant provision for all types of Liechtenstein labor contracts, whether a fixed-term or open-ended contract.
Onsite Legal & HR Team
Full support for Liechtenstein-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.
Ensure Full Compliance
We ensure that employment contracts are fully compliant and adhere to Liechtenstein labor laws and best practices.
Hiring in Liechtenstein: Employment law overview
📝 Liechtenstein employment contracts
In Liechtenstein, contracts of employment can technically be verbal or written, but we always recommend putting a formal written contract in place when hiring employees. These contracts should provide all necessary details such as salary, expected duties, and any benefits and entitlements, be written in the German language, and use the local currency of the Swiss franc.
⏰ Working hours in Liechtenstein
The standard working week for employees in Liechtenstein is 45 hours, spread over five days.
📅 Public holidays in Liechtenstein
Date | Description | 1 Jan | New Year’s Day |
|---|---|
2 Jan | Berchtolds Day |
6Jan | Three King’s Day |
2 Feb | Candlemas |
25 Feb | Carnival |
19 Mar | St. Joseph’s Day |
10 Apr | Good Friday |
12 Apr | Easter |
13 Apr | Easter Monday |
1 May | Labour Day |
21 May | Ascension Day |
31 May | Whitsunday |
1 Jun | Whit Monday |
11 Jun | Corpus Christi |
15 Aug | National Day |
8 Sep | Nativity of Our Lady |
1 Nov | All Saints’ Day |
8 Dec | Immaculate Conception Day |
24 Dec | Christmas Eve |
25 Dec | Christmas Day |
26 Dec | St. Stephen’s Day |
31 Dec | New Year’s Eve |
🏖 Vacation in Liechtenstein
Employees in Liechtenstein are generally entitled to a minimum of four weeks (20 days) of paid vacation leave annually.
😷 Sick leave in Liechtenstein
Generally, employees in Liechtenstein receive sick pay of at least 80% of lost pay when unable to work through sickness. This compensation is paid by the state, and usually starts on the second day of absence up to a limit of 720 days in any 900-day period.
👶 Maternity and paternity leave in Liechtenstein
Female employees in Liechtenstein are entitled to 20 weeks of paid maternity leave, with a minimum of 16 weeks after birth.
💰 Employee severance and terminations in Liechtenstein
Employees in Liechtenstein are usually entitled to a notice period prior to termination from employment. The mandatory notice period varies from one month to three months, depending on the length of service.
Probation periods in Liechtenstein are usually roughly one month long, but may be as long as three months.
🏦 Taxation in Liechtenstein
The income tax system in Liechtenstein is progressive, with employees paying a higher percentage at higher income levels. This national tax, ranging from 0% to 8%, is very low relative to most countries, but there is also a communal tax which makes the actual total tax liability between 2.5% and 22.4%.
The corporate tax rate in Liechtenstein is 12.5%.
🏥 Health insurance in Liechtenstein
Liechtenstein has a public universal healthcare system, and all employees must contribute to national health insurance. For this reason, private insurance is not necessary, although some employers may choose to offer it as a benefit.
💳 Liechtenstein compensations & benefits
Compensation laws in Liechtenstein
There is no mandatory minimum wage in Liechtenstein.
Benefit management in Liechtenstein
Organizing a Liechtenstein benefits system for your employees can be a long and difficult process as a foreign company. You should be prepared to spend a significant amount of time setting up the system and keeping it compliant, which can cause delays in the hiring process.
Outsourcing your Liechtenstein benefits management is a fast, simple, and effective way to get everything up and running in full compliance with federal and provincial laws.
Request a Proposal
How can Horizons help you expand into Liechtenstein?
Horizons’ Liechtenstein employer of record, PEO, and payroll outsourcing services provide your organization with everything necessary to start trading in Liechtenstein as quickly as possible and in full compliance with local regulations. Our experienced team will ensure that you are set up and trading in Liechtenstein in as little as 48 hours, and could save you more than 80% in expenditure, even if you haven’t established an entity in Liechtenstein.
Our Liechtenstein experts will manage your company’s payroll, benefits, and expenses, as well as HR duties and compliance with local regulations. As the only global PEO with an in-house recruitment team, Horizons can also source, hire, and onboard your local workforce.
Contact us today to discover how our Liechtenstein-specific services can facilitate your successful expansion.
