Transaction costs are very low in Liechtenstein
July 21, 2017
How high are realtors’ and lawyers’ fees in Liechtenstein? What about other property purchase costs?
|Legal Fee & Notary Fee||0.90%||buyer|
|Real Estate Agent’s Fee||3.00%||buyer|
|Costs paid by buyer||0.90%|
|Costs paid by seller||3.00%|
|ROUNDTRIP TRANSACTION COSTS||3.90%|
| See Footnotes
Source: Global Property Guide
How difficult is the property purchase process in Liechtenstein?
There are some controls on the purchase of real estate by foreigners.
Buying property requires 3 years residency first. Since joining the European Economic Area, (an organization serving as a bridge between the European Free Trade Association (EFTA) and the European Union) in May1995, Liechtenstein has also imposed stringent rules on residency permits from people from the EU.
The EU has given Liechtenstein the freedom to restrict entrance due to its small size. Currently it allows 28 EU nationals every year without working permits, excluding multi national employees who can take up residence as long as they have a work permit.
Once the buyer decides on a property, the agent, through a lawyer, conducts the search and hands in details of the buyers to the concerning government agency (Grundbuchregistrar). Once the search has been completed and there was no formal objection to the buyer acquiring the property, the money is then transferred to a private account at a lawyer’s. The money is only transferred to the seller’s account when all bureaucratic steps have been completed, registration of the property and checking that it is clear of debts and taxes.