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Employer of Record Liechtenstein
Hire staff and expand your business in Liechtenstein with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Liechtenstein designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Liechtenstein. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Liechtenstein takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Liechtenstein
A Brief Guide to Liechtenstein
Liechtenstein is a small, landlocked nation known for its stunning Alpine landscapes and medieval castles. As a constitutional monarchy, it is one of the few remaining countries ruled by a prince. Liechtenstein is a member of the European Free Trade Association (EFTA) and the European Economic Area (EEA) but is not a member of the European Union (EU) or the Schengen Area.
Location | Central Europe |
Capital | Vaduz |
Official Language | German |
Area | 160 square kilometers |
Population | Approximately 39,000 |
Currency | Swiss Franc (CHF) |
Major Cities | Vaduz, Schaan, Balzers |
GDP (2021) | $6.6 billion USD |
Major Industries | Financial services, manufacturing, agriculture |
Business Culture
Business Culture in Liechtenstein
In Liechtenstein, the business environment values professionalism, punctuality, and a degree of formality. Establishing trust and cultivating personal relationships are crucial for success.
Business etiquette includes exchanging business cards, addressing individuals by their titles, and dressing appropriately. Decision-making is typically hierarchical, and thorough preparation for meetings is appreciated.
Payroll and Taxes
Payroll and Taxes in Liechtenstein
Liechtenstein does not have the 13th or 14th-month salary payments like Italy. However, Liechtenstein’s income tax rates are progressive, with higher income levels subject to higher tax rates.
Employee Taxation
Income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income (CHF) | Rate (National Income Tax excluding Municipal Multipliers) |
Up to 15,000 | 0% |
15,001–20,000 | 1% |
20,001–40,000 | 3% |
40,001–70,000 | 4% |
70,001–100,000 | 5% |
100,001–130,000 | 6% |
130,001–160,000 | 6.5% |
160,001–200,000 | 7% |
Over 200,000 | 8% |
Employer Taxation
Employers are required to deduct 4.7% for social security from employees wages. The employer will also pay 4.9% themselves, and the total 9.6% will be sent to the administration.
Contribution | Employer | Employee |
AHV | 4.15% | 3.95% |
IV | 0.75% | 0.75% |
FAK | 1.9% | 0% |
VK | 0.3910% | 0% |
Furthermore, the employer will have to pay an additional 1.9% of your relevant salary to the FAK, as well as 0.391% of the employees relevant salary as administrative costs on the entire AHV-IV-FAK.
Pension and Healthcare
Liechtenstein Pensions
Liechtenstein has a mandatory state pension system, funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 8.1% for pension and disability insurance
- Employers: 8.1% for pension and disability insurance
Healthcare in Liechtenstein
Liechtenstein’s healthcare system provides comprehensive medical services to its residents. Both employees and employers contribute to the system through a percentage of their salaries. This mandatory contribution is collected by the Liechtenstein tax authorities and allocated to the healthcare system.
Employment Law
Employment Law in Liechtenstein
Relevant Legislation: Liechtenstein employment law is governed by various pieces of legislation, including:
- Labour Code
- Health and Safety at Work Act
- Ordinance on the Protection of Young Workers
- Maternity Protection Act
- Foreigners Act
Employment Contracts: Liechtenstein employment contracts should be in writing and include essential information such as duration of employment, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in Liechtenstein is 45 hours per week for office workers and 50 hours per week for other workers.
Leave: Employees in Liechtenstein are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year for employees over 20 years old), maternity leave, paternity leave, sick leave, and family care leave.
Overtime: Overtime work is regulated, with compensation for extra hours typically paid at a rate of 125% of the regular hourly wage.
Termination:Termination of employment in Liechtenstein requires proper notice, which varies depending on the length of employment. Employers can terminate an employee’s contract if there is a just cause, such as poor performance, misconduct, or redundancy. Employers must provide a written explanation for the termination based on just cause. Unjustified termination can lead to claims for damages or reinstatement.
Notice: Both employers and employees must give notice before terminating an employment contract. The notice period varies depending on the employee’s length of service. Generally, the notice period ranges from 1 month to 3 months.
Severance Pay: There is no general severance pay obligation in Liechtenstein. However, in cases of termination without just cause, employees may be entitled to damages.
IMMIGRATION
Work Permits in Liechtenstein
Liechtenstein’s immigration process is organized and systematic. Prospective immigrants usually need to apply for a specific visa or residency permit that corresponds to their reasons for relocating, such as work, education, or joining family members.
Liechtenstein offers several types of work permits for foreign nationals who wish to work in the country. The specific type of work permit required depends on the applicant’s qualifications, the nature of the job, and the intended duration of the stay. Some of the main types of work permits in Liechtenstein include:
- Residence Permit for Gainful Employment: This permit is designed for individuals who have a valid job offer from a Liechtenstein employer.
- Temporary Residence Permit: This permit is issued for short-term employment and is generally valid for up to 12 months. Temporary residence permits are typically granted for seasonal work, internships, or other temporary job opportunities.
- Family Reunification Permit: Foreign nationals who are married to or in a registered partnership with a Liechtenstein citizen or a person with a permanent residence permit may be eligible for a residence permit through family reunification.
Citizens of the European Economic Area (EEA) and Switzerland generally do not need a work permit to work in Liechtenstein. However, they are required to register with the local Liechtenstein authorities if they plan to work and stay in the country for more than three months.
Public Holidays
Liechtenstein Public Holidays
Holiday | Date |
New Year’s Day | 1st January |
Epiphany | 6th January |
Good Friday | Varies |
Easter Monday | Varies |
Labour Day | 1st May |
Ascension Day | Varies |
Whit Monday | Varies |
Corpus Christi | Varies |
Assumption Day | 15th August |
National Day | 15th August |
All Saints’ Day | 1st November |
Christmas Day | 25th December |
St. Stephen’s Day | 26th December |
Wondering if expanding
in Liechtenstein is right for you?
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The Benefits
Liechtenstein Employer of Record Benefits
When you choose Agility EOR to expand in Liechtenstein, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Liechtenstein so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Liechtenstein authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Liechtenstein payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
Public Holidays
Andorra Public Holidays
| New Year’s | 1st January |
| Epiphany | 6th January |
| Shrove Monday | 24th February |
| Andorran Constitution Day | 14th March |
| Good Friday | 10th April |
| Easter Monday | 13th April |
| Labor Day | 1st May |
| Whit Monday | 1st June |
| Assumption of Mary | 15th August |
| Feast of Our Lady of Meritxell | 8th September |
| Feast of the Immaculate Conception | 8th December |
| Christmas | 25th December |
| St. Stephen’s Day | 26th December |
Public Holidays
Andorra Public Holidays
| New Year’s | 1st January |
| Epiphany | 6th January |
| Shrove Monday | 24th February |
| Andorran Constitution Day | 14th March |
| Good Friday | 10th April |
| Easter Monday | 13th April |
| Labor Day | 1st May |
| Whit Monday | 1st June |
| Assumption of Mary | 15th August |
| Feast of Our Lady of Meritxell | 8th September |
| Feast of the Immaculate Conception | 8th December |
| Christmas | 25th December |
| St. Stephen’s Day | 26th December |