Setting up and managing payroll in Liechtenstein
The micro-nation of Liechtenstein has a population of under 40,000 people, but its strong economy attracts significant foreign investment.
If you are planning an expansion to Liechtenstein, an important early step will probably be registering a Liechtenstein entity, building an in-country payroll, and hiring locally. While this is possible to do independently, it can be a complicated process that could cause delays to your expansion efforts and even negatively impact your profits.
A popular solution to this problem is to outsource your Liechtenstein payroll setup and management to a specialist global PEO. At Horizons, we are experts in helping organizations expand into Liechtenstein as smoothly as possible. We’ll handle your payroll setup and management, whether or not you have an established presence in the country already.
Why choose the Horizons payroll solution?
If you have an entity
If your organization has already established an entity in Liechtenstein, our payroll team can handle all the administration and payroll management so you don’t have to tackle the complicated process yourself.
This outsourcing service is perfect for any organization looking to simplify their Liechtenstein payroll and focus on the important work of expanding into Liechtenstein successfully.
If you don’t have an entity
If you don’t yet have a registered entity in Liechtenstein, then we can provide a more comprehensive service option to get you up and running in the country. We can offer the use of our subsidiary in Liechtenstein to act as employer of record for your hires so you don’t have to establish a legal entity yourself, saving you time.
Additionally, we will set up and run your Liechtenstein payroll, handle any HR, compliance, and take care of all other associated work to ensure you can expand seamlessly into Liechtenstein.
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Liechtenstein payroll guide
What are the withholdings and tax regulations 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%.
Employee entitlements 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 in length but can be as long as three months.
How to establish a Liechtenstein payroll
Establishing a payroll in Liechtenstein for local employment can be a long and confusing process. Initially, you will need to register a Liechtenstein subsidiary to act as employer of record for any employees. You will then need to register with various official channels.
A simpler option is to outsource all of your Liechtenstein payroll setup and management to Horizons. Our experts will handle everything for you, from setup to HR and compliance work. We also offer our Liechtenstein subsidiary to act as employer of record for your in-country employees, so you can benefit from our outsourcing solutions even if you don’t have an entity in Liechtenstein.
Manage payroll in Liechtenstein
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.