2026 marks the centenary of Liechtenstein’s Persons and Companies Act (PGR). We are taking this opportunity to take a closer look at the foundation and two other legal forms, to highlight their differences and to explain their benefits. One legal form in particular is often overlooked, even though it deserves far more attention – the Liechtenstein Anstalt (establishment).
Liechtenstein foundation
A foundation is the most commonly chosen legal form; it is based on the civil law system and is an independent legal entity. A minimum capital of CHF/EUR/USD 30,000 is required for its establishment. The assets that founders dedicate to a foundation by means of an explicit declaration of intent are separated from their personal assets and become the legal property of the foundation.
Unless the structure is revocable, the founder’s intentions are set at the time the foundation is established and remain irrevocable thereafter, which underscores the long-term purpose of a foundation. A foundation may provide for discretionary attributions to a class of beneficiaries or have fixed attributions to individual bene-ficiaries. The foundation’s assets are managed by the foundation council in accordance with the founder’s intentions as set out in the foundation’s documents (articles, by-laws and other additional documents).
The foundation council manages the foundation’s affairs, represents it externally and is responsible for ensuring that the foundation’s purpose is fulfilled. Optionally, the foundation council may be assisted by an additional body (such as a protector or advisory board) with an advisory or monitoring function.
A foundation can be structured very flexibly and used for purely family-related purposes as well as for other private or charitable purposes. Furthermore, the Liechtenstein foundation law allows for a mixed foundation, which enables both private and charitable purposes to be combined.
The structure of the foundation determines the scope of beneficiaries’ rights to information and disclosure. Beneficiaries may be natural or legal persons, groups of persons or specific categories of persons, as well as other foundations or charitable organisations.
Liechtenstein trust
Conceptually, a foundation is very similar to a trust; legally, however, these two structures differ significantly. The trust is modelled on the Anglo-Saxon legal system (common law). It is not a legal entity, but rather constitutes a fiduciary relationship (a legal institution sui generis) between the settlor and the trustee. The assets transferred to the trustee (trust property) form a legally separate special fund. No minimum trust property is prescribed.
Liechtenstein’s trust legislation does not impose any restrictions on the duration of a trust (no rule against perpetuities) nor does it prohibit the accumulation of income (no rule against accumulations). Furthermore, a trust in Liechtenstein may be established in accordance with foreign law in its internal relationships (settlor – trustee – beneficiaries), thereby allowing for the structural options offered by a foreign trust law regime to be taken into account.
The settlor transfers the trust property to the trustee. The trustee administers the trust property in his/her own name, but for the purpose specified in the trust deed or in the interests of the beneficiaries. As with a foundation, a trust may also appoint an additional body (such as a protector or advisory board) to perform an advisory or monitoring function in relation to the trustee.
Trusts offer a very wide range of structuring options and provide the opportunity to engage in economic activities. They may be set up as revocable or irrevocable, discretionary or with fixed attributions to beneficiaries. Trusts may also be established purely as special-purpose trusts, so that the focus is on the specified purpose, for example the long-term funding of research programmes.
In principle, the settlor is free to determine the terms of beneficiaries’ rights. As part of a reform of the Liechtenstein trust law that came into force on 1 July 2026, the legislation now provides for the appointment of a person entitled to information in the case of private trusts, thereby strengthening trust governance.
Liechtenstein Anstalt
The Anstalt (establishment) is a creation of the Liechtenstein legislator and cannot be compared with public-law establishments in other jurisdictions. It constitutes an independent legal entity, adapts to a wide variety of requirements and considerations and offers a great deal of flexibility. The Anstalt can be structured in a manner similar to a foundation or a corporate body and, over the course of its existence, may, for example, evolve from a structure similar to that of a corporate body to one more akin to a foundation, or vice versa. It is particularly well-suited as a legal structure for holding assets and shareholdings, as well as for carrying out economic activities.
The minimum capital is CHF/EUR/USD 30,000. Unlike corporations such as a joint-stock company, the Anstalt does not have shareholders, but rather so-called bearer (or bearers) of the founder’s rights. The bearer of the founder’s rights generally constitutes the supreme governing body, unless the Anstalt is one without a bearer of the founder’s rights (similar to a foundation), in which case the board of directors acts as the supreme governing body.
Whilst a foundation is only required to be registered in the Liechtenstein Commercial Register under certain conditions, an Anstalt must be registered in order for it to come into existence legally. In the case of an Anstalt, the board of directors is responsible for managing the Anstalt’s affairs. It represents the Anstalt externally and is responsible for fulfilling its purpose. Here too, an additional body (supervisory board) may optionally be appointed to perform an advisory or monitoring function.
The founder defines the class of beneficiaries or designates individual beneficiaries. If no further provisions regarding beneficiaries are specified, there is a statutory presumption of the Liechtenstein Persons and Companies Act (PGR) that the bearer of the founder’s rights is the beneficiary.
Which legal form is right for whom?
Legal understanding:
Whilst a foundation or Anstalt is suitable for individuals familiar with the civil law system, those from the Anglo-Saxon and Anglo-American legal traditions tend to prefer a trust. When structuring a trust with a view to securing its recognition, it is essential to ensure that the country of domicile of a person connected with the trust has not merely signed the Hague Trust Convention, but also effectively applies its provisions.
Purpose and alignment:
A foundation is an independent legal entity which binds assets permanently to specific rules (purpose and beneficiaries) intentionally stipulated by the founder. It is particularly well suited to ensuring that the assets set aside are used in accordance with the purpose specified by the founder over the very long term, often spanning several generations (i.e. children, grandchildren and subsequent generations).
A trust, in turn, constitutes a fiduciary relationship between a settlor and a trustee. The assets are managed by the trustee in the interests of the beneficiaries or to fulfil a specific purpose. A trust may be established for a fixed or indefinite period and is particularly suitable where there is a strong international dimension. The trust deed provides the necessary flexibility to accommodate complex international asset and family structures.
The Anstalt is an independent legal entity offering considerable flexibility in its structure. It allows for different approaches (such as a foundation-like or corporate-like structure), which may change over time. This may be of particular interest to entrepreneurial families who wish to retain certain powers of participation and control over the Anstalt through the bearing of the founder’s rights.
Conclusion
The Liechtenstein company law offers a wide range of legal structures for international wealth, succession and business planning. The choice of the appropriate legal form depends on various factors, such as the intended purpose, the extent of cross-border involvement, the assets to be contributed, and the requirements regarding ongoing participation or monitoring rights.
The Liechtenstein financial centre distinguishes itself by its respect for property and its steadfast protection of property rights. It guarantees a reliable legal framework and planning certainty that spans generations. In the field of foundations, trusts and other legal structures, there is now a century of legislation and well established case law to draw upon. These provide the necessary basis for determining the long-term direction and use of assets with a view to the future, whilst taking due account of the legal, political, economic and family context.
Bearing in mind current developments, it is advantageous not to hold all one’s assets personally, but rather to separate certain assets and have them managed independently. For entrepreneurial families in particular, this allows for greater freedom and flexibility in their personal lives. At the same time, this approach helps to protect assets from fragmentation, keep them together and ensure they are aligned with long-term objectives.