Estonia, Liechtenstein sign convention on avoidance of double taxation

TALLINN - Mariin Ratnik, deputy secretary general of the Estonian Ministry of Foreign Affairs for economic and development affairs, and Sabine Monaun, deputy prime minister and minister of foreign affairs of Liechtenstein, on Thursday signed a convention on avoiding the double taxation of income between Estonia and Liechtenstein and preventing tax evasion and tax fraud.

The aim of the agreement is to avoid situations where the income of a company or person is taxed both in Estonia and Liechtenstein. This will create a more secure and stable tax environment for business and investment between the two countries and ensure that foreign investors are not taxed more than local companies in the destination country, ministry spokespeople said.

"The double taxation convention will help strengthen relations between Estonia and Liechtenstein and create new opportunities for economic cooperation. It will give businesses greater certainty and make investment in both countries more attractive," Ratnik said.

In addition to avoiding double taxation, the agreement also provides for the exchange of information to better prevent and detect tax fraud and tax evasion.

The agreement with Liechtenstein is an important step in Estonia’s international tax treaty network, supporting the competitiveness of Estonian companies on the global market and taking bilateral relations to a new level.