Liechtenstein has enacted the Gesetz uber Token und VT-Dienstleister in 2020, making it the first jurisdiction in the world to create a comprehensive legal framework specifically governing tokenised assets. 

The TVTG applies a broad concept of a “token” that encompasses virtually any digital representation of rights or values on a blockchain, including cryptocurrencies, utility tokens, and security tokens. The Financial Market Authority (FMA) oversees token service providers under this framework.

Capital Gains Tax Rules

Liechtenstein does not impose a standalone capital gains tax on private individuals. 

Under the country’s Steuergesetz, private capital gains are not treated as taxable income. This means that an individual who holds cryptocurrency as a personal investment and later disposes of it at a profit does not pay tax on that gain, regardless of the size of the profit or the duration of the holding period. This is one of the most favourable tax treatments for crypto investors in Europe.

How CGT is Calculated

Because private capital gains are not taxable, there is no formal CGT calculation methodology for individual crypto investors in Liechtenstein. 

Record Keeping

Even though private crypto gains are generally not taxable, Liechtenstein residents are required to declare their crypto holdings as part of their annual wealth tax return, at market value. This means that accurate records of crypto holdings, including acquisition dates, quantities held, and current market values, must be maintained. 

For business entities, full accounting records of all crypto transactions are required. Individuals should retain records for a minimum period consistent with Liechtenstein’s general tax record retention requirements, typically five years.

Income Tax Rules

Where a Liechtenstein resident derives income from cryptocurrency in the course of a business or professional activity, that income is subject to income tax under the Steuergesetz. 

This applies to professional traders, crypto-asset service providers, fund managers holding crypto as part of their portfolio management activities, and any entity for which crypto constitutes a core business asset. The applicable rates are those for general business income or corporate income under Liechtenstein’s relatively low-tax regime.

Cryptocurrency received as employment remuneration is treated as employment income subject to income tax at its market value at the time of receipt. Self-employed individuals who accept cryptocurrency as payment for services likewise include the market value of the crypto received as business income at the time of receipt.

Liechtenstein also imposes a wealth tax on net assets, including cryptocurrency, at the market value held at the end of the tax year. The wealth tax rate is applied on the aggregate net wealth figure; the Steuergesetz sets out the applicable assessment basis and rate schedule. While not an income tax, the wealth tax means that even passive crypto holders face an ongoing annual tax obligation proportional to the value of their holdings.

Mining and Staking Treatment

Mining

Cryptocurrency mining conducted on a commercial scale in Liechtenstein is treated as a business activity generating business income subject to income tax and wealth tax. The market value of mined tokens at the time they are received is included in gross business income. Mining expenses, including electricity, hardware, and facilities costs, are deductible against this income under standard Liechtenstein business expense rules.

Where mining is conducted by an individual on a small, hobby-like scale, the Tax Administration may take a different view, though as of 2026, Liechtenstein has not published bright-line thresholds distinguishing hobby from commercial mining. 

Given the country’s general approach of taxing business income while exempting private capital gains, the business vs personal distinction is particularly important for miners. Any subsequent disposal of mined tokens would be assessed as private capital gain (tax-free) or business income depending on how the mining activity was classified.

Staking

As of 2026, the Liechtenstein Tax Administration has not published specific guidance on the tax treatment of staking rewards. Applying the general principles of the Liechtenstein tax system, staking rewards received in the course of a business activity would constitute business income taxable at the point of receipt. For a private individual staking their own crypto holdings, the position is less clear.

Given that passive investment income from private assets is generally not taxed in Liechtenstein in the same way as employment or business income, there is a credible argument that staking rewards received by a private individual represent a private capital receipt rather than taxable income. However, this treatment has not been confirmed by the Tax Administration.

NFT Taxation

The TVTG provides a legal foundation for the classification of tokens in Liechtenstein, including tokens representing unique digital assets such as NFTs. Under the TVTG’s flexible “token container” model, NFTs are treated as a form of token representing specific rights or assets on a blockchain. This legal clarity does not automatically resolve all tax questions, but it provides a framework for analysing the economic substance of NFT transactions under the Steuergesetz.

For individuals who invest in NFTs as private assets, gains from disposal would generally fall under the private capital gains exemption, provided the activity does not constitute a business. As with other crypto assets, the line between private investment and commercial activity is determined by examining the frequency, scale, and organisation of the transactions.

NFT creators who regularly mint and sell NFTs commercially are likely to be regarded as conducting a business, with proceeds from sales constituting taxable business income. VAT implications for NFT transactions follow Swiss VAT guidelines in Liechtenstein.

Reporting Requirements

Liechtenstein residents file annual income and wealth tax returns with the Steuerverwaltung. The return must include a declaration of all cryptocurrency holdings, valued at market value as at the relevant assessment date, as part of the individual’s total net wealth subject to wealth tax. Business entities must file accounts and income tax returns including full disclosure of crypto-related income and asset values.

No official data-matching programme specifically targeting crypto transactions has been publicly announced by the Liechtenstein tax authority as of 2026. However, Liechtenstein is a member of the EEA and participates in international information exchange frameworks, including the OECD Common Reporting Standard (CRS) and the global implementation of CARF. Crypto-asset service providers regulated by the FMA under the TVTG are subject to AML reporting obligations that create a transaction record accessible to regulators.

Amounts must be reported in Swiss francs, the currency of Liechtenstein. Cryptocurrency holdings are converted to CHF using the market rate prevailing at the assessment date. Taxpayers should maintain records of valuations used and the methodology applied. Given the wealth tax obligation, even individuals with no taxable income from crypto must accurately value and report their holdings annually.

Penalties

Non-compliance with Liechtenstein tax obligations, including failure to declare crypto holdings in the wealth tax return or to report business income from crypto activities, is subject to penalties under the Steuergesetz. These include financial surcharges on understated tax and interest on late payments. The Steuerverwaltung has the power to audit returns and to assess additional tax where omissions or errors are identified.

Deliberate tax evasion is treated more seriously and can result in criminal prosecution under Liechtenstein law, in addition to financial penalties. Given the country’s strong international reputation and participation in information exchange frameworks, deliberate concealment of offshore crypto assets is increasingly difficult.

Voluntary disclosure to the Steuerverwaltung before the initiation of an audit or investigation is treated as a mitigating factor and typically results in reduced penalties. Taxpayers who have not fully declared their crypto holdings in previous wealth tax returns are advised to seek legal advice on the process for voluntary regularisation.