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Liechtenstein
Marsh Management Services, Vaduz Branch
Head of Office: Konrad Baumann
Sales Coordinator: Konrad Baumann / Alexandra Lüscher
Office Address
Marsh Management Services
Luxembourg S.A., Vaduz Branch
Kirchstrasse 12,
LI 9490 Vaduz
Liechtenstein |
Telephone: (423) 239 83 73
Facsimile: (423) 239 83 70
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Mailing Address
Marsh Management Services
Luxembourg S.A., Vaduz Branch
Kirchstrasse 12
LI 9490 Vaduz
Liechtenstein
Basic Information
| Location |
Liechtenstein is a landlocked country situated in west central Europe, sharing borders with Austria and Switzerland. Liechtenstein has an area of approximately 160 square kilometers (62 square miles) and a population of 341.000. |
| Accessibility |
Frequent flights from all major European cities are available through Zurich, as well as convenient road connections. |
| Applicable Legislation |
Law on the Supervision of Insurance Undertakings 1996 and Executive Order 1997. |
| Regulatory Agency |
FMA Financial Market Authority |
Regulatory Issues
| Acceptable Insurance Subsidiaries |
Pure and Association Captives |
| Acceptable Corporate Forms |
Joint stock company or co-operative |
| Permitted Business |
All commercial lines and personal lines |
| Direct Insurance Permitted |
Yes, with free access to the European market including Switzerland. |
| Reinsurance Permitted |
Related parent risk |
| Policy Form and Rate Approval |
Not required |
| Local Office Requirement |
Registered office
Minimum one director and one of the executive management must be resident in Liechtenstein. |
Capitalization & Solvency Requirements
| Capitalization: |
Direct captive: Minimum CHF 500,000 to 1,000,000 per line of insurance business.
Reinsurance capitve: Minimum CHF 1,000,000.
Organisation fund 20 - 50% of capital (Determined in each inividual case by the regulator, could be zero for a reinsurance captive).
Solvency margin for direct captive according to the EU Directives. For reinsurance captives no solvency margin applies. As a general rule normal commercial practice applies with capitalization appropriate to the net risk retention.
The EU directive on minimum capital requirements will be incorporated in the legislation, thus increasing the share capital to EUR 3M. |
| Premium Taxes |
None. Any direct writing insurance will incur the tax relevant to the country where the risk is situated. |
| Intercompany Loans |
Intercompany loans are allowed. |
| Investment Restrictions |
No specific restrictions; however the investments must be approved by the Financial Market Authority.
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| Taxation |
No Income tax. |
Tax on liquidation profit |
Capital tax of 0.1% up to equity CHF 50M, 0.075% for equity CHF 50M to CHF 100M and beyond that 0.050%.
In order to avoid a possible additional taxation pursuant to the tax law of the partent company, an income tax of up to 40% may be requested voluntarily.
All justifiable technical reserves may be established on a tax-free-basis. |
Double Taxation Treaty |
None |
| Reporting Requirements |
Financial year to end 31.12
No special accounting rules for insurance or reinsurance companies apply
Annual audit performed by an independent auditor recognized by Government
File a report with the Financial Market Authority before April 30
File a tax return |
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