Legal Guide to Liechtenstein Law
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Can I enforce a foreign court judgment in Liechtenstein?
Enforcement of foreign court judgments in Liechtenstein is very restricted. Liechtenstein is not a party to the common European recognition regimes (neither the EU Brussels Regulation nor the Lugano Convention). As a rule, a foreign civil judgment will only be recognized or enforced if a bilateral or multilateral treaty obliges Liechtenstein to do so. Liechtenstein has bilateral enforcement treaties with Switzerland and Austria, which allow certain judgments from those countries to be enforced under specified conditions. Outside such treaties (and a few specific conventions on matters like child support), a foreign judgment cannot be executed in Liechtenstein – the creditor would need to sue anew in Liechtenstein to obtain a local judgment. This strict approach (rooted in reciprocity and public policy concerns) has traditionally been part of Liechtenstein’s asset protection orientation.
Is arbitration enforceable in Liechtenstein?
Yes. Liechtenstein law fully recognizes and enforces arbitral awards and arbitration agreements. In 2011 Liechtenstein acceded to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, marking a major policy shift toward enforcement of international arbitration. Under Liechtenstein’s arbitration provisions (in the ZPO), an arbitral award – whether foreign or domestic – can be directly enforced by the Liechtenstein courts without a separate recognition (exequatur) process. The award creditor simply files for execution, and the court will review the award under the New York Convention criteria (e.g. jurisdiction, public policy) as a preliminary matter during enforcement. Notably, a certified German translation of the award must be provided to the court. Arbitration clauses are generally upheld by Liechtenstein courts, and a lawsuit brought in breach of a valid arbitration agreement will be dismissed if the defendant promptly objects. Exceptions: Like in most countries, certain disputes (such as some family law or inheritance matters) are not arbitrable by law, but the vast majority of commercial and civil disputes can be resolved via arbitration in Liechtenstein.
Does Liechtenstein have arbitration for resolving disputes?
Yes. Liechtenstein modernized its arbitration law in 2010, aligning it with international standards (inspired by the UNCITRAL Model Law). Parties can include arbitration clauses in contracts to have disputes decided by an arbitral tribunal instead of the state courts. Liechtenstein’s Arbitration Act allows a high degree of party autonomy and court support for arbitration. Combined with Liechtenstein’s New York Convention membership, this makes the country an arbitration-friendly jurisdiction for both local and international disputes.