Liechtenstein, Switzerland, Singapore or Dubai? The Most Important Financial Centres for High-Net-Worth Individuals Compared

Liechtenstein, Switzerland, Singapore or Dubai? The Most Important Financial Centres for High-Net-Worth Individuals Compared

Those who ask about exit taxation soon ask: so where to? A structured comparison of the four most relevant locations – without lifestyle clichés, with real tax substance.

By Global Wealth Protection | Reading time: approx. 10 minutes

The Choice of Financial Centre Is Not a Lifestyle Decision

Dubai for the warmth. Zurich for the quality of life. Singapore for its cosmopolitan feel. Those who decide this way pay for it – quite literally.

For high-net-worth individuals, the choice of future residence is one of the most consequential decisions they can make. It determines tax burden, structuring options, legal certainty, and crucially, how the departure from Germany is handled from a tax perspective.

As we explained in our previous article on exit taxation, not every destination country is equal. A country's status in relation to the EU and EEA determines whether the tax liability under § 6 AStG becomes due immediately or can be deferred. For shareholding values in the seven-figure range, this difference can amount to hundreds of thousands of euros.

Below, we compare four of the most relevant financial centres for German-speaking HNWIs: Liechtenstein, Switzerland, Singapore, and Dubai. Not a tourist comparison – but a decision framework.

The Criteria: What Should You Evaluate?

Before examining each location, it is worth clarifying the basis for assessment. For high-net-worth individuals, five dimensions are most relevant:

1. Overall tax burden – Income tax, capital gains tax, wealth tax, inheritance tax: the sum of all ongoing liabilities, not just the income tax rate.

2. EU/EEA status and exit taxation – Anyone leaving Germany while holding shares in a capital company is taxed under § 6 AStG. EU/EEA states allow deferral. Third countries – including Switzerland, Singapore, and Dubai – do not. This point is routinely underestimated.

3. Structuring options – Foundations, trusts, holdings: not every jurisdiction offers the same legal instruments, and not every instrument is equally recognised everywhere.

4. Legal certainty and political stability – Asset protection only works durably where the rule of law is reliable. Political instability, expropriation risks, or arbitrary tax changes are unacceptable variables for wealthy families.

5. Substance requirements – Many jurisdictions require a genuine, demonstrable presence of 183 days or more. Those who underestimate this risk remaining tax-resident in Germany.

Liechtenstein: The Discreet Foundation Jurisdiction at the Heart of Europe

Liechtenstein is not an EU member, but it is a member of the European Economic Area (EEA). This is of decisive importance from a tax law perspective: those who leave Germany for Liechtenstein may, under certain conditions, be able to defer the exit tax liability – an advantage that none of the other three options in this comparison can offer.

Tax overview:

• Income tax: flat 8% (national tax), plus municipal tax – effective rate 12–17% depending on municipality

• No capital gains tax on private disposals

• Inheritance tax: generally not applicable between spouses and direct descendants

• Wealth tax: none on private assets

Structuring options: Liechtenstein is the oldest and most established foundation jurisdiction in the German-speaking world. The Liechtenstein Law on Persons and Companies (PGR) offers a range of structures that do not exist, or exist only in limited form, in other jurisdictions: the family foundation, the Anstalt (establishment), and the trust modelled on common law principles.

For family wealth intended to be preserved across generations, Liechtenstein is hard to beat. Structural confidentiality is high, legal protection is reliable, and geographic proximity to Switzerland and Germany makes administration practical.

Substance requirements: A genuine place of residence is required – Liechtenstein is not a destination for tax nomads. The population is small, property prices are high, and access for non-EEA nationals is restricted. Those who move to Liechtenstein must mean it seriously.

Best suited for: Entrepreneurs and shareholders planning a long-term departure from Germany who wish to defer exit tax. Families seeking to build a durable, multi-generational structure.

Switzerland: Lump-Sum Taxation, Discretion and Cantonal Diversity

For many German-speaking HNWIs, Switzerland is the most obvious option – linguistically, culturally, geographically. From a tax perspective, it is more complex than it first appears.

Important upfront: Switzerland is neither an EU nor an EEA member. Anyone leaving Germany for Switzerland cannot defer exit taxation. The tax liability falls due immediately. In practice, this is one of the most common errors in exit planning.

The lump-sum taxation regime: Switzerland offers a special tax regime for wealthy foreigners who do not pursue gainful employment in Switzerland: taxation based on expenditure, commonly referred to as lump-sum taxation. Rather than actual income, a flat amount is used as the tax base – derived from the taxpayer's worldwide cost of living. From 1 January 2024, the minimum assessment basis for EU/EFTA nationals is CHF 429,100. For those with significant assets, the effective tax burden is substantially lower than under regular taxation.

Requirements:

• No gainful employment in Switzerland

• First-time residence or following a ten-year absence

• Residence in a canton that offers the lump-sum regime

• Proof of genuine domicile

Cantonal differences: Tax burdens in Switzerland vary considerably by canton and municipality. Cantons such as Zug, Schwyz, and Nidwalden are known for particularly favourable rates – not only for companies but also for private individuals.

Structuring options: Switzerland offers solid options for holdings and family companies. Swiss-law foundations are possible but less flexible than Liechtenstein structures. For complex succession planning, a combination of Swiss residence and a Liechtenstein or other structure is often used.

Best suited for: High-net-worth individuals who do not wish to pursue employment in Switzerland, seek a stable German-speaking rule-of-law environment, and are prepared to plan and finance exit taxation well in advance.

Singapore: Zero Tax on Capital and Global Openness

Over the past two decades, Singapore has established itself as one of the world's most important private wealth centres. For European HNWIs, the city-state offers a number of structural advantages – but also specific risks that must be carefully factored in.

Tax overview:

• No capital gains tax – private disposal gains are tax-free

• No inheritance tax – abolished in 2008

• No wealth tax

• Income tax: progressive up to a maximum of 24% on Singapore-sourced income

• Foreign income: since 2024, partially taxable if remitted to Singapore and derived from certain passive sources

Structuring options: Singapore offers a sophisticated legal system based on English common law. Family office structures are legally recognised and enjoy tax exemptions under certain conditions (Section 13O/13U programmes). This makes Singapore particularly attractive for internationally structured wealthy families.

Substance requirements: Residence in Singapore requires a valid permit – either through the Global Investor Programme (GIP), which requires a minimum investment of SGD 10 million, or through other visa categories. The 183-day rule for tax residency also applies.

Exit taxation: Singapore is not an EEA state. Deferral of German exit taxation is not possible. Those relocating with significant shareholding values must fully account for and finance the tax liability in advance.

Best suited for: Internationally positioned entrepreneurs and investors with global operations who seek a highly stable, legally secure, and tax-efficient environment and are prepared to establish a genuine centre of life in Asia.

Dubai / UAE: Zero Income Tax – But Proceed with Care

Dubai has in recent years become the preferred address for tax migrants from around the world – with good reason, but also with considerable potential for misunderstanding.

Tax overview:

• No personal income tax

• No capital gains tax

• No inheritance tax under UAE law (for non-Muslims; Islamic inheritance law may apply where Muslim heirs are involved)

• Corporate tax: since 2023, the UAE levies corporate tax of 9% on business profits exceeding AED 375,000

What many underestimate: Dubai is not a zero-tax jurisdiction at the push of a button. Anyone genuinely wishing to transfer their tax residence to the UAE must:

• Demonstrate genuine presence of at least 183 days per year

• Fulfil German exit conditions and pay exit tax (third-country status, no deferral possible)

• Actively sever ties with Germany – ongoing activities, properties, economic interests

German tax authorities scrutinise relocations to tax havens with particular rigour. Those who do not convincingly give up their German centre of life remain tax-resident in Germany – despite a Dubai address.

Infrastructure and legal certainty: Dubai has invested substantially in its financial infrastructure in recent years. The Dubai International Financial Centre (DIFC) offers a common law legal system modelled on English law, providing a solid foundation for international structures. Trusts and foundations are available within the DIFC.

The political stability of the UAE is high by Middle Eastern standards – but takes some adjustment for Europeans accustomed to different norms.

Best suited for: Entrepreneurs with international operations who wish to establish a genuine centre of life outside Europe and have no strong remaining ties to Germany. Not suitable as a tax letterbox alternative.

Comparison at a Glance

Criterion Liechtenstein Switzerland Singapore Dubai / UAE EU/EEA member EEA – Yes No No No Exit tax deferral possible Yes No No No Income tax 12–17% Lump sum from CHF 429k Up to 24% 0% Capital gains tax None None None None Inheritance tax None None None None Foundation / Trust Very strong Limited Family Office DIFC possible Legal certainty Very high Very high Very high Medium Substance requirements High High High Medium–high

Conclusion: There Is No "Best" Financial Centre – Only the Right One for Your Situation

Those searching for the "best" financial centre are asking the wrong question. The right question is: which financial centre fits my asset structure, my objectives, and my vision for life?

Liechtenstein is the first choice for anyone leaving Germany while holding shareholdings and wishing to defer exit taxation. For complex foundation structures, it is also hard to surpass.

Switzerland offers quality of life, stability, and the lump-sum taxation regime – but no deferral of German exit tax. Planning with sufficient lead time is essential.

Singapore suits internationally structured families with a global profile and the genuine intention to establish a centre of life in Asia.

Dubai offers tax attractiveness but less legal certainty and high substance requirements – not effortless, but the right solution for the right person.

What all four locations share: they only work with careful, early-stage planning. Anyone who speaks to an advisor for the first time three months before a planned departure has already lost significant room to manoeuvre.

If you are considering a change of residence abroad, begin planning now – not once the decision is already made. A confidential initial consultation will give you a clear picture of your individual situation and the options available.

Schedule a Consultation →TITEL: Liechtenstein, Switzerland, Singapore or Dubai? The Most Important Financial Centres for High-Net-Worth Individuals Compared

Subtitle / Introduction: Those who ask about exit taxation soon ask: so where to? A structured comparison of the four most relevant locations – without lifestyle clichés, with real tax substance.

By Global Wealth Protection | Reading time: approx. 10 minutes

The Choice of Financial Centre Is Not a Lifestyle Decision

Dubai for the warmth. Zurich for the quality of life. Singapore for its cosmopolitan feel. Those who decide this way pay for it – quite literally.

For high-net-worth individuals, the choice of future residence is one of the most consequential decisions they can make. It determines tax burden, structuring options, legal certainty, and crucially, how the departure from Germany is handled from a tax perspective.

As we explained in our previous article on exit taxation, not every destination country is equal. A country's status in relation to the EU and EEA determines whether the tax liability under § 6 AStG becomes due immediately or can be deferred. For shareholding values in the seven-figure range, this difference can amount to hundreds of thousands of euros.

Below, we compare four of the most relevant financial centres for German-speaking HNWIs: Liechtenstein, Switzerland, Singapore, and Dubai. Not a tourist comparison – but a decision framework.

The Criteria: What Should You Evaluate?

Before examining each location, it is worth clarifying the basis for assessment. For high-net-worth individuals, five dimensions are most relevant:

1. Overall tax burden – Income tax, capital gains tax, wealth tax, inheritance tax: the sum of all ongoing liabilities, not just the income tax rate.

2. EU/EEA status and exit taxation – Anyone leaving Germany while holding shares in a capital company is taxed under § 6 AStG. EU/EEA states allow deferral. Third countries – including Switzerland, Singapore, and Dubai – do not. This point is routinely underestimated.

3. Structuring options – Foundations, trusts, holdings: not every jurisdiction offers the same legal instruments, and not every instrument is equally recognised everywhere.

4. Legal certainty and political stability – Asset protection only works durably where the rule of law is reliable. Political instability, expropriation risks, or arbitrary tax changes are unacceptable variables for wealthy families.

5. Substance requirements – Many jurisdictions require a genuine, demonstrable presence of 183 days or more. Those who underestimate this risk remaining tax-resident in Germany.

Liechtenstein: The Discreet Foundation Jurisdiction at the Heart of Europe

Liechtenstein is not an EU member, but it is a member of the European Economic Area (EEA). This is of decisive importance from a tax law perspective: those who leave Germany for Liechtenstein may, under certain conditions, be able to defer the exit tax liability – an advantage that none of the other three options in this comparison can offer.

Tax overview:

• Income tax: flat 8% (national tax), plus municipal tax – effective rate 12–17% depending on municipality

• No capital gains tax on private disposals

• Inheritance tax: generally not applicable between spouses and direct descendants

• Wealth tax: none on private assets

Structuring options: Liechtenstein is the oldest and most established foundation jurisdiction in the German-speaking world. The Liechtenstein Law on Persons and Companies (PGR) offers a range of structures that do not exist, or exist only in limited form, in other jurisdictions: the family foundation, the Anstalt (establishment), and the trust modelled on common law principles.

For family wealth intended to be preserved across generations, Liechtenstein is hard to beat. Structural confidentiality is high, legal protection is reliable, and geographic proximity to Switzerland and Germany makes administration practical.

Substance requirements: A genuine place of residence is required – Liechtenstein is not a destination for tax nomads. The population is small, property prices are high, and access for non-EEA nationals is restricted. Those who move to Liechtenstein must mean it seriously.

Best suited for: Entrepreneurs and shareholders planning a long-term departure from Germany who wish to defer exit tax. Families seeking to build a durable, multi-generational structure.

Switzerland: Lump-Sum Taxation, Discretion and Cantonal Diversity

For many German-speaking HNWIs, Switzerland is the most obvious option – linguistically, culturally, geographically. From a tax perspective, it is more complex than it first appears.

Important upfront: Switzerland is neither an EU nor an EEA member. Anyone leaving Germany for Switzerland cannot defer exit taxation. The tax liability falls due immediately. In practice, this is one of the most common errors in exit planning.

The lump-sum taxation regime: Switzerland offers a special tax regime for wealthy foreigners who do not pursue gainful employment in Switzerland: taxation based on expenditure, commonly referred to as lump-sum taxation. Rather than actual income, a flat amount is used as the tax base – derived from the taxpayer's worldwide cost of living. From 1 January 2024, the minimum assessment basis for EU/EFTA nationals is CHF 429,100. For those with significant assets, the effective tax burden is substantially lower than under regular taxation.

Requirements:

• No gainful employment in Switzerland

• First-time residence or following a ten-year absence

• Residence in a canton that offers the lump-sum regime

• Proof of genuine domicile

Cantonal differences: Tax burdens in Switzerland vary considerably by canton and municipality. Cantons such as Zug, Schwyz, and Nidwalden are known for particularly favourable rates – not only for companies but also for private individuals.

Structuring options: Switzerland offers solid options for holdings and family companies. Swiss-law foundations are possible but less flexible than Liechtenstein structures. For complex succession planning, a combination of Swiss residence and a Liechtenstein or other structure is often used.

Best suited for: High-net-worth individuals who do not wish to pursue employment in Switzerland, seek a stable German-speaking rule-of-law environment, and are prepared to plan and finance exit taxation well in advance.

Singapore: Zero Tax on Capital and Global Openness

Over the past two decades, Singapore has established itself as one of the world's most important private wealth centres. For European HNWIs, the city-state offers a number of structural advantages – but also specific risks that must be carefully factored in.

Tax overview:

• No capital gains tax – private disposal gains are tax-free

• No inheritance tax – abolished in 2008

• No wealth tax

• Income tax: progressive up to a maximum of 24% on Singapore-sourced income

• Foreign income: since 2024, partially taxable if remitted to Singapore and derived from certain passive sources

Structuring options: Singapore offers a sophisticated legal system based on English common law. Family office structures are legally recognised and enjoy tax exemptions under certain conditions (Section 13O/13U programmes). This makes Singapore particularly attractive for internationally structured wealthy families.

Substance requirements: Residence in Singapore requires a valid permit – either through the Global Investor Programme (GIP), which requires a minimum investment of SGD 10 million, or through other visa categories. The 183-day rule for tax residency also applies.

Exit taxation: Singapore is not an EEA state. Deferral of German exit taxation is not possible. Those relocating with significant shareholding values must fully account for and finance the tax liability in advance.

Best suited for: Internationally positioned entrepreneurs and investors with global operations who seek a highly stable, legally secure, and tax-efficient environment and are prepared to establish a genuine centre of life in Asia.

Dubai / UAE: Zero Income Tax – But Proceed with Care

Dubai has in recent years become the preferred address for tax migrants from around the world – with good reason, but also with considerable potential for misunderstanding.

Tax overview:

• No personal income tax

• No capital gains tax

• No inheritance tax under UAE law (for non-Muslims; Islamic inheritance law may apply where Muslim heirs are involved)

• Corporate tax: since 2023, the UAE levies corporate tax of 9% on business profits exceeding AED 375,000

What many underestimate: Dubai is not a zero-tax jurisdiction at the push of a button. Anyone genuinely wishing to transfer their tax residence to the UAE must:

• Demonstrate genuine presence of at least 183 days per year

• Fulfil German exit conditions and pay exit tax (third-country status, no deferral possible)

• Actively sever ties with Germany – ongoing activities, properties, economic interests

German tax authorities scrutinise relocations to tax havens with particular rigour. Those who do not convincingly give up their German centre of life remain tax-resident in Germany – despite a Dubai address.

Infrastructure and legal certainty: Dubai has invested substantially in its financial infrastructure in recent years. The Dubai International Financial Centre (DIFC) offers a common law legal system modelled on English law, providing a solid foundation for international structures. Trusts and foundations are available within the DIFC.

The political stability of the UAE is high by Middle Eastern standards – but takes some adjustment for Europeans accustomed to different norms.

Best suited for: Entrepreneurs with international operations who wish to establish a genuine centre of life outside Europe and have no strong remaining ties to Germany. Not suitable as a tax letterbox alternative.

Comparison at a Glance

Criterion Liechtenstein Switzerland Singapore Dubai / UAE EU/EEA member EEA – Yes No No No Exit tax deferral possible Yes No No No Income tax 12–17% Lump sum from CHF 429k Up to 24% 0% Capital gains tax None None None None Inheritance tax None None None None Foundation / Trust Very strong Limited Family Office DIFC possible Legal certainty Very high Very high Very high Medium Substance requirements High High High Medium–high

Conclusion: There Is No "Best" Financial Centre – Only the Right One for Your Situation

Those searching for the "best" financial centre are asking the wrong question. The right question is: which financial centre fits my asset structure, my objectives, and my vision for life?

Liechtenstein is the first choice for anyone leaving Germany while holding shareholdings and wishing to defer exit taxation. For complex foundation structures, it is also hard to surpass.

Switzerland offers quality of life, stability, and the lump-sum taxation regime – but no deferral of German exit tax. Planning with sufficient lead time is essential.

Singapore suits internationally structured families with a global profile and the genuine intention to establish a centre of life in Asia.

Dubai offers tax attractiveness but less legal certainty and high substance requirements – not effortless, but the right solution for the right person.

What all four locations share: they only work with careful, early-stage planning. Anyone who speaks to an advisor for the first time three months before a planned departure has already lost significant room to manoeuvre.

If you are considering a change of residence abroad, begin planning now – not once the decision is already made. A confidential initial consultation will give you a clear picture of your individual situation and the options available.

Schedule a Consultation →https://info-kompassderfreiheit.zohobookings.com/#/beratung-online

This article is for general information purposes only and does not constitute tax or legal advice. For your individual situation, we recommend consulting a qualified tax adviser or lawyer.