Spain removes Liechtenstein from the blacklist
14 February 2023
Spain had been one of the final EU member states to still blacklist Liechtenstein. Following the publication of an updated list of non-cooperative tax jurisdictions, Liechtenstein has now been removed from this list. The revised list took effect on February 11, 2023.
According to a press release, Spain published a new list of non-cooperative tax jurisdictions on February 10, 2023. Liechtenstein no longer appears on this list. Spain had been one of the last countries in the European Union to remove Liechtenstein from this “blacklist”. Originally compiled by EU finance ministers in 2017, the list aims to combat tax evasion and avoidance.
The removal of Liechtenstein from the list of non-cooperative tax jurisdictions means that Spain no longer implements a range of tax measures against Liechtenstein. These include the elimination of increased withholding taxes and stricter documentation requirements in the area of transfer pricing as well as the lifting of deduction restrictions for operating expenses and special regulations regarding residency. A period of validity still has to be specified in implementing regulations.
The Ministry of Finance of Liechtenstein welcomes the new measures, describing them as offering “tangible relief for cross-border investments and services”.