Austria to Agree Tax Deal with Liechtenstein

Liechtenstein’s Prime Minister Klaus Tschütscher will hold talks with key officials from the Austrian chancellery and the finance ministry regarding a bilateral tax agreement between two countries.

The bilateral tax deal between Austria and Liechtenstein will resolve the issue of Austrian citizens’ undeclared and untaxed bank accounts in the banks of Liechtenstein. It will be similar to the deal concluded between Austria and Switzerland, which entered into force at the beginning of the year.

The Swiss-Austrian tax deal provides for a withholding tax to be levied on undisclosed assets held by Austrian residents in Swiss banks and imposes an annual withholding tax on future investment income.

Unlike the Swiss-Austrian deal, the treaty being negotiated by Austria and Liechtenstein is expected to cover undeclared assets held in both foundations and trusts in Liechtenstein. An agreement on a treaty is expected by the end of January.