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If you are planning to settle an international dispute in Liechtenstein, you may find this material helpful.

To find an effective and mutually acceptable solution for the parties to resolve business disputes, it is not necessary to immediately go to court. One can and should first try to settle the matter peacefully.

Arbitration in Liechtenstein is seen as the main alternative mechanism for the resolution of international commercial disputes over conventional litigation. The mediation procedure, on the contrary, is of less practical importance. In this blog post, we'll try to figure out why.

Arbitration agreement

In order to commence arbitration in Liechtenstein, an arbitration agreement must be presented. When entering into such an agreement (or arbitration clause), particular attention should be paid to its drafting. It should be noted that the mandatory elements include the definition of the type of arbitration, including the correct name of the arbitration body and arbitration venue, as well as the range of disputes referred to arbitration. These are the mandatory elements but you can also add several additional ones, since by default these issues will be resolved in accordance with the rules of the arbitration body. For example, it is good to indicate the law applicable to the merits of the dispute. You can also regulate the number of arbitrators, their qualifications, language of proceedings. In addition, the parties can establish their own rules and procedures applied by the arbitration, for example, excluding the possibility of challenging the arbitral award.

We advise our clients to include arbitration clauses in the text of the contract, since it is very difficult to persuade a party to sign an arbitration record after a dispute has arisen. At the same time, even if you have not entered into an arbitration agreement with your counterparties, you still have a chance to refer the case to the international commercial arbitration of your choice. This may become possible if the other party has expressed "de facto" consent to the consideration of the case in this arbitration. Such consent may, in particular, be deemed to be the response to the claim provided by the defendant.

Arbitration in Liechtenstein has many advantages. Here’re just a few of them:

  • It is possible to settle an arbitration dispute in the Principality of Liechtenstein quite quickly: it takes up to 18 months on average but a number of arbitration rules provide for an expedited procedure, which allows the arbitration to be completed in 6-9 months;
  • the arbitral award can only be appealed to the Princely Court of Appeal on limited formal grounds;
  • arbitration proceedings in Liechtenstein are strictly confidential, which is a critical condition for many entrepreneurs.

Start arbitration in Liechtenstein

The Principality of Liechtenstein uses arbitration legislation which generally is a replica of the Austrian model. In some respects, it still has a number of differences that are designed to make the arbitration proceedings in Liechtenstein even more efficient and convenient for the parties.

One can considяr a commercial dispute in arbitration in Liechtenstein on the following issues:

  • Displacement of council members;
  • Appeal against decisions of the trustees (or the board of the foundation);
  • Conducting extraordinary audits.

Arbitration can be legally stipulated in the articles of association or corporation, articles of association or trust deeds, and is binding on all existing and future participants.

Before starting arbitration proceedings in Liechtenstein, please note that the court has the right to intervene and can take interim measures, early terminate the powers of arbitrators, apply protective measures, and, importantly, annul arbitral awards.

Settle a dispute through mediation in Liechtenstein

Mediation in Liechtenstein is available for all types of civil law issues. However, lawyers usually try to settle the case on a bilateral basis (without the participation of a mediator) before the start of the formal proceedings. Perhaps this is the secret of its unpopularity in the jurisdiction. The settlement of the dispute through mediation in the Principality of Liechtenstein is not binding on the parties. However, a conciliatory procedure with one mediator is quite often used. For this, a separate body has been created, which is responsible for the settlement of commercial conflicts in Liechtenstein between clients and various financial service providers. The parties have the right to refuse this procedure or terminate it when they deem it necessary. If no agreement is reached between the parties to the dispute during the pre-trial procedure, there will be no other option than to settle the dispute in the Principality of Liechtenstein in court.

NOTE: Companies operating in this jurisdiction are obliged to inform the public about the possibility of settling a dispute through ADR in Liechtenstein if they cannot reach an agreement.


Comfortable legislation, strict rules regarding the privacy of the process make this jurisdiction a preferred place for the settlement of international commercial claims through arbitration.

You can request advice from a specialist in the settlement of international disputes through ADR in Liechtenstein by contacting us at the contacts indicated on the website.