Liechtenstein and Estonia signed their first income tax treaty on 10 July 2025, exempting withholding tax on dividends, interest, and royalties.
Liechtenstein and Estonia signed an income tax treaty on 10 July 2025. The agreement seeks to eliminate double taxation and prevent tax evasion.
The treaty covers Estonian income tax and Liechtenstein’s corporate income tax, personal income tax, real estate capital gains, and wealth taxes.
It exempts withholding tax on dividends, interest, and royalties paid between legal entities. If the exemption does not apply, the treaty sets withholding tax rates of 10% on dividends and interest, and 5% on royalties. The agreement was initialled on 17 November 2023 following the conclusion of negotiations.
Earlier, the Estonian government approved the signing of the income and capital tax treaty with Liechtenstein on 8 May 2025.
This is the first tax treaty between the two countries. It will come into force after the exchange of ratification instruments.
