Liechtenstein Proposes Tax Pact During First State Visit to India
Hereditary Prince Alois of Liechtenstein led the first state visit to India to propose a double taxation avoidance agreement and advance EFTA trade goals.
The Government of Liechtenstein has submitted a draft proposal for a Double Taxation Avoidance Agreement (DTAA) to India to prevent income from being taxed in both nations. The proposal was discussed during a four-day state visit by Hereditary Prince Alois from October 25 to 28, 2026, which included stops in Mumbai, Vadodara, and New Delhi.
During the visit, Prince Alois held bilateral meetings with Prime Minister Narendra Modi and was hosted by President Droupadi Murmu at Rashtrapati Bhavan. The discussions focused on the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), which became effective in October 2025. This pact aims to mobilize $100 billion in investment from EFTA nations—Liechtenstein, Iceland, Norway, and Switzerland—into India over 15 years to create one million direct jobs.
India is currently examining the DTAA proposal through its Ministry of Finance. Liechtenstein officials stated the agreement would provide legal certainty and predictability for its companies, which have already invested $110 million in India. Both nations identified artificial intelligence, financial services, medical technology, and advanced manufacturing as primary areas for future collaboration.
