Profits attained through the sale of property in Liechtenstein are subject to a special tax (real estate profit tax), not to general asset and income or capital and profit taxes. If a profit is attained through the sale of real property located in Liechtenstein, the seller must pay real estate profit tax. Sales include transfers through foreclosure sales or expropriation. Real estate profits are the amount by which the proceeds of the sale exceed the investment costs (purchase price and expenditures increasing value).

In the case of sales pursuant to a contract, the sales profit equals the purchase price including all further services of the buyer. 1,500 Swiss francs may be deducted from the real estate profits. The tax rate of the real estate profit tax depends substantially on the duration of the seller’s ownership of the real property before the sale: the longer the property belonged to the seller, the lower the tax rate. The minimum and maximum tax rates of the real estate profit tax are:

• for a duration of ownership over 10 years
            3,24% and 17,01%
• for a duration of ownership between 5 and 10 years
            4,32% and 22,68%
• for a duration of ownership between 3 and 5 years
            5,40% and 28,35%
• for a duration of ownership up to 3 years
            6,48% and 34,02%