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Payroll in LiLiechtenstein.






Country Capital



Swiss franc (CHF)

Consistently accurate, on-time payroll administration is essential no matter where companies are located. However, when navigating payroll regulations in another country, the process can be a bit more challenging. When companies partner with G-P as their global growth experts, our team will handle complexities around payroll setup and mitigate compliance risks so employers can focus on other aspects of company growth in Liechtenstein.

Taxation rules in Liechtenstein

Employers are responsible for withholding the required amount of income from employees’ paychecks. The taxation system is progressive based on individual income:

  • 1% tax: Income up to CFH 20,000
  • 3% tax: Income up to CFH 40,000
  • 4% tax: Income up to CFH 70,000
  • 5% tax: Income up to CFH 100,000
  • 6% tax: Income up to CFH 130,000
  • 6.5% tax: Income up to CFH 160,000
  • 7% tax: Income up to CFH 200,000
  • 8% tax: Income above CFH 200,000

Employers will pay approximately 4.9% of each paycheck toward social security contributions for employees. In addition, there is a family compensation fund of 1.9% that is paid by the employer.

Employees contribute 4.70% to the social security system.

Termination and entitlement terms

During the trial period of up to 3 months, companies may dismiss an employee with 7 days’ notice at any time. However, if employers terminate employment after this period, they will need to provide more advanced notice and have justified cause. Notice requirements are based on the length of service and range from 1 to 3 months.

If employers dismiss employees due to economic reasons outside their control, the employees are entitled to 4 weeks’ pay per year of service with the company.

How to establish payroll in Liechtenstein

Establishing a subsidiary is an option that some companies choose because it gives them a legal entity internationally to manage payroll and other critical requirements. If a company is looking for another option that can save on setup time and expenses, G-P can help. Our team of HR and legal experts will take on the time-consuming and costly tasks of payroll setup and management so companies can be confident that they’re following local employment laws.

Liechtenstein payroll options

Companies establishing an entity in another country can consider a few common choices for payroll administration:

  • Subsidiary: Setting up a subsidiary is one way to establish a legal presence in a new country. However, the process can take considerable resources and time, so it may not be the best option for all companies.
  • Internal payroll administration: Some companies use their own internal team to manage payroll to help reduce transactional expenses for the organization, but they face total liability for any potential processing errors.
  • Payroll processing company: Outsourcing to a Liechtenstein payroll processing company is also an option. Companies must keep in mind that they need to pay sizable fees for processing and that they will still be liable for any errors.
  • Employer of Record partnership: With G-P’s Global Growth Platform™, regardless of their entity status, companies can focus on growing their teams and ensuring successful business operations in Liechtenstein while we handle the complexities of payroll setup and management.

Streamline global payroll management with G-P.

G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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