IFLR 1000
The Guide to the World's Leading Financial Law Firms

"The market has for sure been affected by the financial market, though we did a little better than other markets, all the banks had turned down [transactions], and we're now in a transition period, we'll see how we're going to develop."

This view of the market by one partner highlights where Liechtenstein finds itself in the post financial crisis world. The country's financial system remains relatively healthy, having not had the exposure to the toxic instruments that were the cause of much of the market distress. Capital markets also remain healthy and generally the jurisdiction has come through the last few years well.

However one consequence of the downturn that did hit home is how the international community viewed the jurisdiction. With regulation and transparency the order of the day, Liechtenstein's business practices and confidentiality regime have come under the microscope. It remains to be seen whether, like Switzerland, the country will be forced to provide more data in future on those who hold secretive bank accounts in the jurisdiction.

In truth, more disclosure is already being seen in the wake of the country's new tax regime, which came in in 2009. Essentially, companies pursuing commercial purposes will no longer benefit from the country's low tax regime, which will no doubt effect company redomiciliations. "The companies pursuing commercial purposes no longer get a favourable tax treatment which was before, normally, paying nothing or a lump sum of 1000 Swiss Francs, which is nothing," explains one partner. "I assume it will lead to a sharp decline in relation to work from this kind of company. In relation to other companies, for example like holding companies, they carry on as before."

Another partner agrees: "I'd expect rather a decrease [in work] in total and also in the past two years, there has been an substantial decrease of offshore companies [relocating] due to the huge developments about Liechtenstein, whether Liechtenstein will have tax information agreements or not and so on and this for sure will cause a lot of uncertainty."

Dr Dr Batliner & Dr Gasser remains one of the elite practices in the country.

There would be few in the market that would argue with the firm's position in tier one and it continues to offer the full range of financial and corporate services.

The two name partners and Peter Monauni are still regarded as the firm's key practitioners.

The firm acts as in-house advisor to the First Advisory Group

With 13 partners, three permanent counsel and a large team of associates behind it, Marxer & Partner is one of the largest firms in the country. Like the firms around it in the first tier it is more than capable of covering any area of client needs whether it be in finance, litigation or tax.

The firm is also the Liechtenstein member of Lex Mundi.

Walch & Schurti expanded last year with the hire of three new associates including Isabelle Emerich from her former position in the country's financial regulator.

Highlight work last year included acting for one of the country's largest industrial firms on a major corporate restructuring.

The team also worked with the International Swaps & Derivatives Association (Isda) in regard to the Liechtenstein version of the Association's master agreement.

Grabher Schallert Dür is ranked for the first time this year following its relatively recent spin out from Wanger. Johannes Grabher and Johannes Schallert established the practice in May 2010 and the firm has already picked up some notable mandates.

One deal involving both partners saw the firm advise a major car parts supplier on the termination of several supply contracts with the subsidiaries of an international automobile manufacturer.

Grabher was also active alongside Johannes Dür advising two parties on the liquidation of a supplementary liquidation of an Israeli land property.

Finally the team provided asset protection to a BVI company in regard to a number of law suits brought against the company.