Liechtenstein

Liechtenstein(/ˈlɪktənstaɪn/,LIK-tən-styne;German:[ˈlɪçtn̩ʃtaɪn]), officially thePrincipality of Liechtenstein(German:Fürstentum Liechtenstein,[ˈfʏʁstn̩tuːmˈlɪçtn̩ˌʃtaɪ̯n]),is adoubly landlockedGerman-speakingmicrostatein the CentralEuropeanAlps, betweenAustriain the east and north andSwitzerlandin the west and south.Liechtenstein is asemi-constitutional monarchyheaded by theprince of Liechtensteinof theHouse of Liechtenstein, currently led byHans-Adam II. It isEurope's fourth-smallest country, with an area of just over 160 square kilometres (62 square miles) and a population of 40,023.It is the world's smallest country to border two countries,and is one of the few countries with no debt.
Liechtenstein is divided into11 municipalities. Its capital isVaduz, and its largest municipality isSchaan. It is a member of theUnited Nations, theEuropean Free Trade Association, and theCouncil of Europe. It is not a member state of theEuropean Union, but it participates in both theSchengen Areaand theEuropean Economic Area. It has acustoms unionand amonetary unionwith Switzerland, with its usage of theSwiss franc. Politically, aconstitutional referendumin 2003 granted themonarchgreater powers, after he threatened to leave the country should the referendum fail. These powers include being able to dismiss the government, nominate judges andvetolegislation.
Economically, Liechtenstein has one of thehighest gross domestic products per person in the worldwhen adjusted forpurchasing power parity.The country has a strongfinancial sectorcentred in Vaduz. It was once known as a billionairetax haven, culminating in atax affairin 2008, but the principality has since made significant efforts to shed this reputation. AnAlpine country, Liechtenstein is mountainous, making it awinter sportdestination.
The oldest traces of human existence in the area of present-day Liechtenstein date back to theMiddle Paleolithicera.Neolithicfarming settlements appeared in the valleys around 5300 BCE.
TheHallstattandLa Tène culturesflourished during the lateIron Age, from around 450 BCE—possibly under some influence of both theGreekandEtruscancivilisations. One of the most important tribal groups in the Alpine region were theHelvetii. In 58 BCE, at theBattle of Bibracte,Julius Caesardefeated the Alpine tribes, thereby bringing the region underRomansubjugation. By 15 BCE,Tiberius—later the second Roman emperor—with his brother,Drusus, conquered the entire Alpine area.
Liechtenstein then became integrated into theRoman provinceofRaetia. The area was garrisoned by theRoman army, which maintained large legionary camps atBrigantium(Bregenz, Austria), nearLake Constance, and atMagia(Maienfeld, Switzerland). The Romans built and maintained aroadwhich ran through the territory. Around 260 CE Brigantium was destroyed by theAlemanni, aGermanic peoplewho later settled in the area around 450.
In theEarly Middle Ages, the Alemanni settled the easternSwiss plateauby the 5th century and thevalleys of the Alpsby the end of the 8th century, with Liechtenstein located at the eastern edge ofAlamannia. In the 6th century the entire region became part of theFrankish EmpirefollowingClovis I's victory over the Alemanni atTolbiacin 504.
The area that later became Liechtenstein remained under Frankish hegemony (MerovingianandCarolingiandynasties) until theTreaty of Verdundivided the Carolingian empire in 843, following the death ofCharlemagnein 814.The territory of present-day Liechtenstein formed part ofEast Francia. It would later be reunified withMiddle Franciaunder theHoly Roman Empire, around 1000.Until about 1100, the predominant language of the area wasRomansch, but thereafterGermanbegan to gain ground in the territory. In 1300, another Alemannic population—theWalsers, who originated inValais—entered the region and settled; the mountain village ofTriesenbergtoday preserves features of theWalser dialect.
By 1200, dominions across the Alpine plateau were controlled by the Houses ofSavoy,Zähringer,Habsburg, andKyburg. Other regions were accorded theImperial immediacythat granted the empire direct control over the mountain passes. When the Kyburg dynasty fell in 1264, the Habsburgs underKing Rudolph I, the Holy Roman Emperor in 1273, extended their territory to the eastern Alpine plateau that included the territory of Liechtenstein.This region wasenfeoffedto theCounts of Hohenemsuntil the sale to theLiechtenstein dynastyin 1699.
In 1396,Vaduz, the southern region of Liechtenstein, gainedimperial immediacy, i.e. it became subject to the Holy Roman Emperor alone.
The family from which the principality takes its name originally came fromLiechtenstein Castlein Lower Austria, which they had possessed since at least 1140 until the 13th century, and again from 1807 onwards. The Liechtensteins acquired land, predominantly inMoravia,Lower Austria,Silesia, andStyria. As these territories were all held infeudal tenurefrom more senior feudal lords, particularly various branches of theHabsburgs, the Liechtenstein dynasty was unable to meet a primary requirement to qualify for a seat in the Imperial Diet (parliament), theReichstag. Even though several Liechtenstein princes served several Habsburg rulers as close advisers, without any territory held directly from the Imperial throne, they held little power in the Holy Roman Empire.
For this reason, the family sought to acquire lands that would be classed asunmittelbar, or held without any intermediate feudal tenure, directly from theHoly Roman Emperor. During the early 17th century,Karl I of Liechtensteinwas made aFürst(prince) by the Holy Roman EmperorMatthiasafter siding with him in a political battle.Hans-Adam Iwas allowed to purchase the minusculeHerrschaft('Lordship') of Schellenbergand thecounty of Vaduz(in 1699 and 1712, respectively) from the Hohenems. Tiny Schellenberg and Vaduz had exactly the political status required: no feudal superior (suzerain) other than the emperor.
On 23 January 1719,after the lands had been purchased,Charles VI, Holy Roman Emperor, decreed that Vaduz and Schellenberg were united and elevated the newly formed territory to the dignity ofReichsfürstentum(imperial principality) with the name "Liechtenstein" in honour of "[his] true servant,Anton Florian of Liechtenstein". On this date, Liechtenstein became amostly-sovereignimmediatemember state of theHoly Roman Empire.
By the early 19th century, as a result of theNapoleonic Warsin Europe, the Holy Roman Empire came under the effective control of France, following the crushing defeat atAusterlitzbyNapoleonin 1805. In 1806, EmperorFrancis IIabdicated anddissolved the Holy Roman Empire, ending more than 960 years of feudal government. Napoleon reorganized much of the Empire into theConfederation of the Rhine. This political restructuring had broad consequences for Liechtenstein: the historical imperial, legal, and political institutions had been dissolved. The state ceased to owe an obligation to any feudal lord beyond its borders.
Modern publications generally attribute Liechtenstein's sovereignty to these events. Its prince ceased to owe an obligation to anysuzerain. From 25 July 1806, when theConfederation of the Rhinewas founded, the Prince of Liechtenstein was a member, in fact a vassal, of itshegemon, styledprotector, the French Emperor Napoleon I, until the dissolution of the confederation on 19 October 1813.
Soon afterward, Liechtenstein joined theGerman Confederation(20 June 1815 – 23 August 1866), which was presided over by theEmperor of Austria.
In 1818,Prince Johann Igranted the territory a limited constitution. In that same yearPrince Aloysbecame the first member of the House of Liechtenstein to set foot in the principality that bore their name. The next visit would not occur until 1842.
Developments during the 19th century included:
In 1884,Johann IIappointedCarl von In der Maur, an Austrian aristocrat, to serve as theGovernor of Liechtenstein.
Until the end ofWorld War I, Liechtenstein was closely tied first to theAustrian Empireand later toAustria-Hungary; the ruling princes continued to derive much of their wealth from estates in the Habsburg territories, and spent much of their time at their two palaces in Vienna. The economic devastation caused by World War I forced the country to conclude acustoms and monetary unionwith its other neighbour,Switzerland.In addition, popular unrest caused from economic devastation in the war directly led to theNovember 1918 Liechtenstein putsch, which created the process of anew constitutionbased onconstitutional monarchybeing introduced in 1921.
In 1929, 75-year-oldPrince Franz Isucceeded to the throne. He had just marriedElisabeth von Gutmann, a wealthy woman from Vienna whose father was a Jewish businessman from Moravia. Although Liechtenstein had no officialNazi party, a Nazi sympathy movement arose within its National Union party.Local Liechtenstein Nazisidentified Elisabeth as their Jewish "problem".Pro-Nazi agitation remained in Liechtenstein throughout the 1930s, with anattempted coupin March 1939 whileFranz Joseph IIwas on a state visit toBerlin.
In March 1938, just after theannexation of Austria by Nazi Germany, Franz named as regent his 31-year-old grandnephew and heir-presumptive,Prince Franz Joseph. After making his grandnephew regent he moved to Feldberg,Czechoslovakiaand on 25 July, he died while at one of his family's castles, Castle Feldberg, and Franz Joseph formally succeeded him as the Prince of Liechtenstein.
DuringWorld War II, Liechtenstein remained officially neutral, looking to neighbouring Switzerland for assistance and guidance, while family treasures from dynastic lands and possessions inBohemia,Moravia, andSilesiawere taken to Liechtenstein for safekeeping.Operation Tannenbaum, the Nazi plan for conquest of Switzerland, also included Liechtenstein, and the Nazi "Pan German" dream of uniting all German-speakers in the Reich would have also included the population of Liechtenstein. However, the Nazis eventually gave up implementing this plan, and Liechtenstein was spared from enduring a Nazi occupation.
At the close of the conflict,CzechoslovakiaandPoland, acting to seize what they considered German possessions, expropriated all of the Liechtenstein dynasty's properties in those three regions.The expropriations (subject tomodern legal disputeat theInternational Court of Justice) included over 1,600 km(618 sq mi) of agricultural and forest land (most notably the UNESCO listedLednice–Valtice Cultural Landscape), and several family castles and palaces.
In 2005, a government-commissioned investigation revealed that Jewish slave labourers from theStrasshofconcentration camp, provided by theSS, had worked on estates in Austria owned by Liechtenstein's Princely House.The report indicated that though no evidence was found of the House's knowledge of the slave labour, the House bore responsibility.
Citizens of Liechtenstein were forbidden to enter Czechoslovakia during theCold War. The diplomatic conflict revolving around the controversial postwarBeneš decreesresulted in Liechtenstein not having international relations with theCzech RepublicorSlovakia. Diplomatic relations were established between Liechtenstein and the Czech Republic on 13 July 2009,and with Slovakia on 9 December 2009.
On 20 September 1990, Liechtenstein was admitted into theUnited Nationsas 160th member state. As a member of theUnited Nations General Assembly, the microstate is one of the few not to play a prominent role inUN-specialized agencies.
Liechtenstein was in dire financial straits following the end of World War II. The Liechtenstein dynasty often resorted to selling family artistic treasures, including the portraitGinevra de' BencibyLeonardo da Vinci, which was purchased by theNational Gallery of Artof the United States in 1967 forUS$5 million ($46 million in 2023 dollars),then a record price for a painting.
By the late 1970s, Liechtenstein used its lowcorporate taxrates to draw many companies and became one of the wealthiest countries in the world.
Liechtenstein is one of the few countries in Europe (along withMonacoandSan Marino)not to have a tax treatywith theUnited States, and efforts towards one seem to have stalled.
As of September 2019thePrince of Liechtensteinis the world's fifthwealthiest monarch, with an estimated wealth ofUS$3.5 billion.The country's population enjoys one of theworld's highest standards of living.
Liechtenstein has a somewhat enigmatic political system, which combines elements ofabsolute monarchy,representative democracy, anddirect democracy. Themonarchretains extensive executive and legislative powers, and plays a strong active role in the day to day politics of the country, and over all threebranches of government—the only European monarch to have retained such a role. Representative democracy and direct democracy coexist in that an elected parliament enactslegislation, and voters can propose and enact laws and constitutional amendments independently of the legislature.However, as with laws passed by the legislature, these can be vetoed by the monarch.
The reigning Prince is the head of state and represents Liechtenstein in its international relations (although Switzerland has taken responsibility for much of Liechtenstein's diplomatic relations).
The currentConstitution of Liechtensteinwasadopted in March 2003, amending the 1921 constitution, giving the prince extensive veto powers, and the ability to dismiss the government and rule by emergency decree, and maintaining the prince's active role in the legislative process. TheBBCcharacterizes Liechtenstein post-2003 as "in effect" an "absolute monarchy".Just prior to the referendum, theVenice commissionof theCouncil of Europepublished a comprehensive report analysing the amendments, opining that they were not compatible with the European standard of democracy.
Legislative authority is vested in the unicameralLandtag, made up of 25 members elected for maximum four-year terms according to a proportional representation formula. Fifteen members are elected from theOberland(Upper Country or region) and ten from theUnterland(Lower Country or region).Parties must receive at least 8% of the national vote to win seats in parliament, i.e., enough for two seats in the 25-seat legislature. Parliament proposes and approves a government, which the Prince formally appoints. Parliament may also pass votes of no confidence in the entire government or individual members.
Thegovernmentcomprises the head of government (prime minister) and four government councillors (ministers), who are appointed by the Prince upon the proposal of parliament and with its concurrence, and reflect the balance of parties in parliament. The constitution stipulates that at least two government members be chosen from each of the two regions.The members of the government are collectively and individually responsible to parliament; parliament may ask the Prince to remove an individual minister or the entire government, or the Prince may do so unilaterally.
Parliament elects from among its members a "Landesausschuss" (National Committee) made up of the president of the parliament and four additional members. The National Committee is charged with performing functions of parliamentary supervision. Parliament shares the authority to propose new legislation with the Prince, and with the citizenry, as both parliament and the citizenry may initiate referendums.
Judicial authorityis vested in the Regional Court at Vaduz, the Princely High Court of Appeal at Vaduz, the Princely Supreme Court, the Administrative Court, and the State Court. The State Court rules on the conformity of laws with the constitution and has five members elected by parliament.
The principality is largelyconservative. On 1 July 1984, Liechtenstein became the last country inEuropeto grant women the right to vote, following three previous referendums which rejected it in1968,1971and1973. Thereferendum on women's suffragethat year, in which only men were allowed to participate, narrowly passed with 51.3% in favour.
In 2024, Liechtenstein passedsame-sex marriagelegislation, which entered into force in 2025.Abortionremains criminalised within Liechtenstein.
In the absence of political or military power, Liechtenstein has sought to preserve itssovereigntyover the past 300 years through membership in legal communities.International cooperationand European integration are therefore constants of Liechtenstein's foreign policy, aimed at continuing to safeguard the country's sovereignty as recognized under international law. Decisive for the domestic legitimacy and sustainability of this foreign policy were and are strong direct-democratic and citizen-oriented decision-making mechanisms, which are anchored in Liechtenstein in the Constitution of 1921.
Important historical stages in Liechtenstein's integration and cooperation policy were its accession to theConfederation of the Rhinein 1806,to the German Confederation in 1815,the conclusion of bilateral customs and currency agreements with theHabsburg monarchyin 1852, and finally the Customs Treaty with Switzerland in 1923, which was followed by a range of other important bilateral treaties.
Post-war economic reconstruction was followed by accession to the Statute of theInternational Court of Justicein 1950, Liechtenstein signed the CSCE Helsinki Final Act (today's OSCE) together with 34 other states in 1975, Liechtenstein joined theCouncil of Europein 1978,and Liechtenstein was admitted to the United Nations (UN) on September 18, 1990.In 1991, Liechtenstein joined the European Free Trade Association (EFTA) as a full member, and since 1995 Liechtenstein has been a member of theEuropean Economic Area(EEA) and theWorld Trade Organization(WTO).
In 2008, Liechtenstein joined the Schengen/Dublin Agreement together with Switzerland. From an economic and integration policy perspective, relations within the framework of the EEA and the EU occupy a special position in Liechtenstein's foreign policy. The Hereditary Prince of Liechtenstein also participates in the annualmeetings of the heads of state of the German-speaking countries(consisting of EU and non-EU members).
Relations with Switzerland are particularly extensive because of the close cooperation in many areas; Switzerland performs tasks in some places that would be difficult for thePrincipalityto handle on its own because of its small size. Since 2000, Switzerland has appointed an ambassador to Liechtenstein, but he resides in Bern. Liechtenstein's consular representation has been mostly handled by Switzerland since theCustomsTreaty with Switzerland of 1923.
Liechtenstein maintains direct diplomatic missions inVienna, Bern, Berlin, Brussels, Strasbourg, andWashington, D.C., as well as Permanent Missions in New York and Geneva to theUnited Nations.Currently, diplomatic missions from 78 countries are accredited to Liechtenstein, but mostly reside in Bern. TheEmbassyin Brussels coordinates contacts with the European Union, Belgium, and also theHoly See.
For a long time,diplomatic relations with Germanywere maintained through a non-resident ambassador; that is, a contact person who was not permanently resident in Germany. Since 2002, however, Liechtenstein has had a permanentambassadorin Berlin, while the German embassy in Switzerland is also responsible for the Principality. Liechtenstein's Ministry of Foreign Affairs considers the contacts to be extremely fruitful and important for the country's development, especially on the economic level.
Conflicts over the handling ofbankingand tax data have repeatedly strained relations with Germany.On 2 September 2009, Liechtenstein and Germany signed an agreement on cooperation and the exchange of information in tax matters. The text of the agreement followed the OECD model agreement and provides for an exchange of information on tax matters upon request as of the 2010 tax year. In addition, Liechtenstein regards Germany as an important partner in safeguarding its interests in European integration. At the cultural level, project sponsorship plays a particularly important role. For example, the Hilti Foundation financed the exhibition "Egypt's Sunken Treasures" in Berlin, and the state donated 20,000 euros following the fire at the Duchess Anna Amalia Library inWeimar.
Liechtenstein is a member of theForum of Small States, a group founded in 1992 by Singapore currently containing 108 nations that have fewer than ten million inhabitants at the time of joining.
Liechtenstein is a member of theInternational Monetary Fundsince the annual meeting ofWorld Bank Groupin Washington, D.C. on 21 October 2024.
Liechtenstein is situated in the UpperRhinevalley of the EuropeanAlpsand is bordered to the east by the Austrian state ofVorarlberg, to the south by thecanton of Grisons(Switzerland) and to the west by thecanton of St. Gallen(Switzerland). The Rhine forms the entire western border of Liechtenstein. Measured south to north the country is about 24 km (15 mi) long. In 1943, aninland canalwas built in the country connecting to the Rhine.
Its highest point,Grauspitz, is 2,599 m (8,527 ft). Despite its Alpine location, prevailing southerly winds make the climate comparatively mild. In winter, the mountain slopes are well suited to winter sports. Newsurveysusing more accurate measurements of the country's borders in 2006 have set its area at 160 km(62 sq mi), with borders of 77.9 km (48.4 mi).Liechtenstein's borders are 1.9 km (1.2 mi) longer than previously thought.
Liechtenstein is one of the world's twodoubly landlocked countries– countries wholly surrounded by other landlocked countries (the other isUzbekistan). Liechtenstein is thesixth-smallestsovereign state in the world by area.
The principality of Liechtenstein isdivided into 11 communescalledGemeinden(singularGemeinde). TheGemeindenmostly consist of only a single town or village. Five of them (Eschen,Gamprin,Mauren,Ruggell, andSchellenberg) fall within the electoral districtUnterland(the lower county), and the remainder (Balzers,Planken,Schaan,Triesen,Triesenberg, andVaduz) withinOberland(the upper county).
The World Bank did not include Liechtenstein on its list of 50 "small states" by its inclusion criteria.
Despite itsalpinelocation, the prevailing southerly winds temper Liechtenstein's climate. Its climate is continental, with cloudy and cold winters, with frequent rain and snowfall. Summers are cool to slightly warm, cloudy, and humid.
The country's climate is relatively mild despite its mountainous location. It is strongly influenced by the action offoehn(warm and dry autumn wind), so the vegetation period is prolonged in spring and autumn and temperatures around 15 °C (59 °F) due to the strong foehn are not uncommon even in winter. The mountain ranges ofSwitzerlandand the Vorarlberg upstream protect from the cold polar and Atlantic air, creating a typical alpine inland protective layer. The principality has orchards with leafy meadows and a long tradition ofviticulture. Liechtenstein's small land area hardly plays a role in climatic differences, but the vertical division into different altitudes is of great importance, so that significant climatic differences arise.
Inwinterthe temperature rarely drops below −15 °C (5 °F), while in summer the average temperatures range between 20 and 28 °C (68 and 82 °F). Annual precipitation measurements amount to an average of about 900 to 1,200 millimetres (35 to 47 in), in the direct alpine region, however,precipitationis often up to 1,900 mm (75 in). The average duration of sunshine is about 1600 hours per year.
TheRhineis the longest and largestbody of waterin Liechtenstein. With a length of approximately 27 kilometres (17 mi), it represents thenatural borderwithSwitzerlandand is of great importance for Liechtenstein's water supply. Furthermore, the Rhine is an important recreational area for the population.
At 10 kilometres (6 mi), theSaminais the second-longest river in the Principality. Thiswhitewaterriver begins atTriesenbergand flows into theIllin Austria (nearFeldkirch).
The only naturally-formed lake in Liechtenstein is theGampriner Seelein, which was not formed until 1927 by afloodingof the Rhine with enormous erosion. In addition, there are other artificially-createdlakes, which are mainly used to generateelectricity. One of them is the Steg Reservoir, the largest lake in Liechtenstein.
About half of Liechtenstein's territory is mountainous.Liechtenstein lies entirely in theRhaetikonand is thus – depending on the classification of the Alps – assigned either to theEastern Alps(two-part division of the Alps) or to the Central Alps (three-part division of the Alps).
The highest point of Liechtenstein is the Vordere Grauspitz (Vordergrauspitz) with an altitude of 2,599 m (8,527 ft) above sea level, while the lowest point is theRuggeller Rietwith an altitude of 430 metres (1,410 ft) above sea level.
In total, there are 32 mountains in Liechtenstein with an altitude of at least 2,000 metres (6,600 ft). The Falknishorn, at 2,452 metres (8,045 ft) above sea level, is the fifth highest mountain in Liechtenstein and represents the southernmost point of the country. The Liechtenstein-Graubünden-Vorarlberg border triangle is theNaafkopf(2,570 m (8,430 ft) above sea level).
In addition to the peaks of the Alpine chain,which belong to the Limestone Alps, twoinselbergs, Fläscherberg (1,135 m or 3,724 ftabove sea level) in the south andEschnerberg(698 m or 2,290 ft) in the north, rise from the Rhine Valley and belong to the Helvetic cover orflyschzone of the Alps.Eschnerberg represents an important settlement area in the LiechtensteinUnterland.
Despite its limited natural resources, Liechtenstein is one of the few countries in the world with more registered companies than citizens; it has developed a prosperous, highly industrialized free-enterprise economy and a financial service sector as well as a living standard that compares favourably with those of the urban areas of Liechtenstein's much larger European neighbours.
Liechtenstein participates in acustoms unionwith Switzerland and employs theSwiss francas the national currency. The country imports about 85% of its energy. Liechtenstein has been a member of theEuropean Economic Area(an organization serving as a bridge between theEuropean Free Trade Association(EFTA) and theEuropean Union) since May 1995.
The government is working to harmonize its economic policies with those of an integrated Europe. In 2008, the unemployment rate was 1.5%. Liechtenstein has only one hospital, the Liechtensteinisches Landesspital in Vaduz. As of 2014 theCIA World Factbookestimated the gross domestic product (GDP) on apurchasing power paritybasis to be $4.978 billion. As of 2021 the estimate per capita was $184,083.
Industries include electronics, textiles, precision instruments, metal manufacturing, power tools, anchor bolts, calculators, pharmaceuticals and food products. Its most recognizable international company and largest employer isHilti, a manufacturer ofdirect fastening systemsand other high-end power tools. Many cultivated fields and small farms are found both in theOberlandandUnterland. Liechtenstein produces wheat, barley, corn, potatoes, dairy products, livestock andwine.
The government of Liechtenstein taxes personal income, business income and principal (wealth). The basic rate ofpersonal income taxis 1.2%. When combined with the additional income tax imposed by the communes, the combined income tax rate is 17.82%.An additional income tax of 4.3% is levied on all employees under the country'ssocial securityprogramme. This rate is higher for the self-employed, up to a maximum of 11%, making the maximum income tax rate about 29% in total. The basictax rate on wealthis 0.06% per annum, and the combined total rate is 0.89%. The tax rate on corporate profits is 12.5%.
Liechtenstein'sgiftandestate taxesvary depending on the relationship the recipient has to the giver and the amount of the inheritance. The tax ranges between 0.5% and 0.75% for spouses and children and 18% to 27% for non-related recipients. The estate tax is progressive.
Liechtenstein has previously received significant revenues fromStiftungen("foundations"), financial entities created to hide the true owner of nonresident foreigners' financial holdings. The foundation is registered in the name of a Liechtensteiner, often a lawyer. This set of laws used to make Liechtenstein a populartax havenfor extremely wealthy individuals and businesses attempting to avoid or evade taxes in their home countries.
In recent years, Liechtenstein has displayed stronger determination to prosecute international money launderers and worked to promote an image as a legitimate finance centre. In February 2008, the country'sLGT Bankwas implicated in atax-fraud scandal in Germany, which strained the ruling family's relationship with the German government. Crown Prince Alois has accused the German government of trafficking in stolen goods, referring to its $7.3 million purchase of private banking information offered by a former employee of LGT Group.TheUnited States Senate's subcommittee on tax haven banks said that the LGT bank, owned by the princely family, and on whose board they serve, "is a willing partner, and an aider and abettor to clients trying to evade taxes, dodge creditors or defy court orders".
The2008 Liechtenstein tax affairis a series of tax investigations in numerous countries whose governments suspect that some of their citizens have evaded tax obligations by using banks and trusts in Liechtenstein; the affair broke open with the biggest complex of investigations ever initiated for tax evasion in Germany.It was also seen as an attempt to put pressure on Liechtenstein, then one of the remaininguncooperative tax havens—along withAndorraandMonaco—as identified by the Paris-basedOrganisation for Economic Co-operation and Developmentin 2007.On 27 May 2009 the OECD removed Liechtenstein from the blacklist of uncooperative countries.
In August 2009, the British government departmentHM Revenue & Customsagreed with Liechtenstein to start exchanging information. It is believed that up to 5,000 British investors have roughly £3 billion deposited in accounts and trusts in the country.
In October 2015, the European Union and Liechtenstein signed a tax agreement to ensure the automatic exchange of financial information in case of tax disputes. The collection of data started in 2016. It is another step to bring the principality in line with other European countries regarding its taxation of private individuals and corporate assets.
Tourism accounts for a large portion of Liechtenstein's economy.In 2021, there were nearly 80 000 tourists and over the preceding twelve years the number of tourists ranged between about 60 to 100 thousand people per year.
With a population of 39,315 as of 31 December 2021,Liechtenstein isEurope's fourth-smallest countryafterVatican City,San MarinoandMonaco. Its population is primarilyAlemannic-speaking, although one third is foreign-born, primarily German speakers fromGermany,Austria, andSwitzerland, along with other Swiss, Italians, andTurks. Foreign-born people make up two-thirds of the country's workforce.
Liechtensteiners have an average life expectancy at birth of 82.0 years, subdividing as male: 79.8 years, female: 84.8 years (2018 est.). The infant mortality rate is 4.2 per 1,000 live births, according to 2018 estimates.
The official language is German, spoken by 92% of the population as their main language in 2020. 73% of Liechtenstein's population speak anAlemannicdialectof German at home that is highly divergent fromStandard Germanbut closely related to dialects spoken in neighbouring regions such as Switzerland andVorarlberg, Austria.InTriesenberg, aWalser Germandialect promoted by the municipality is spoken.Swiss Standard Germanis also understood and spoken by most Liechtensteiners.
According to theConstitution of Liechtenstein,Catholicismis its officialstate religion:
Liechtenstein offers protection to adherents of all religions, and considers the "religious interests of the people" a priority of the government.In Liechtenstein's schools, although exceptions are allowed, religious education in Catholicism orProtestantism(eitherLutheranorCalvinist, or both) is legally required.Tax exemptionis granted by the government to religious organizations.According to thePew Research Center, social conflict caused by religious hostilities is low in Liechtenstein, and so is government restriction on the practice of religion.
According to the 2010 census, 85.8% of the total population were Christian, of whom 75.9% adhered to theCatholicfaith, constituted in theCatholic Archdiocese of Vaduz, while 9.6% were eitherProtestant, mainly organized in theEvangelical Church in Liechtenstein(aUnited church, Lutheran & Reformed) and theEvangelical Lutheran Church in Liechtenstein, orOrthodox, mainly organized in the Christian-Orthodox Church.There is a small community of 30 Jewish people who attend a synagogue in Switzerland.The largest minority religion isIslam(5.4% of the total population).
The literacy rate of Liechtenstein is 100%.In 2006Programme for International Student Assessmentreport, coordinated by theOrganisation for Economic Co-operation and Development, ranked Liechtenstein's education as the 10th-best in the world.In 2012, Liechtenstein had the highest PISA scores of any European country.
Within Liechtenstein, there are four main centres for higher education:
There are nine public high schools in the country. These include:
There are about 250 kilometres (155 mi) of paved roadway within Liechtenstein, with 90 km (56 mi) of marked bicycle paths.
Liechtenstein Busis a subsidiary of theSwiss Postbus system, but separately run, and connects to the Swiss bus andtrainnetwork atBuchsandSargans, respectively.Holders of aSwiss Travel Pass(non-residents of Switzerland or Liechtenstein only) can travel for free on Liechtenstein's buses.
The single railway line in Liechtenstein is theFeldkirch–Buchs railway, of which 9.5 km (6 mi) are located within the principality. This line connectsFeldkirchinVorarlberg(Austria) withBuchsin thecanton of St. Gallen(Switzerland). There are four railway stations in Liechtenstein, namelySchaan-Vaduz,Forst Hilti,NendelnandSchaanwald(from west to east). With the exception of Schaanwald, which was closed in 2013, these stations are served by aregional train, theS2ofVorarlberg S-Bahn, which runs betweenFeldkirchandBuchs SGon working days only. The service is operated byAustrian Federal Railways(ÖBB).Plans to upgrade the line and increase rail traffic were halted by a referendum in 2020.
Liechtenstein is nominally  within theOstwindtransit district, which also includes northeastern Switzerland.RailjetandEuroCitylong-distance trains do not call at stations in Liechtenstein.
Liechtenstein is one of only a fewcountries without an airport. The nearest large airport isZurich AirportnearZürich, Switzerland (130 km or 80 miles by road). The nearest small airport isSt. Gallen Airport(50 km or 30 miles).Friedrichshafen Airportalso provides access to Liechtenstein, as it is 85 km (53 miles) away.Balzers Heliportis available for chartered helicopter flights.
As a result of its small size, Liechtenstein has been strongly affected by external cultural influences, most notably those originating in the southern regions of German-speaking Europe, including Austria, Baden-Württemberg, Bavaria, Switzerland, and specificallyTiroland Vorarlberg.
The largest museum is theKunstmuseum Liechtenstein, an international museum of modern and contemporary art with an international art collection. The building by the Swiss architects Morger, Degelo, and Kerez is a landmark in Vaduz. It was completed in November 2000 and forms a "black box" of tinted concrete and black basalt stone. The museum collection is also the national art collection of Liechtenstein.
The Historical Society of the Principality of Liechtenstein and theLiechtenstein National Museum(Liechtensteinisches Landesmuseum) also play a role in preserving the culture and history of the country.The National Museum shows permanent exhibitions on the cultural and natural history of Liechtenstein as well as special exhibitions. There is also a stamp museum, ski museum, and a 500-year-old Rural Lifestyle Museum.
TheLiechtenstein State Libraryis the library that haslegal depositfor all books published in the country.PoetIda Ospelt-Amannpublished her works exclusively in the Alemannic dialect of Vaduz.
The famous historical sites includeVaduz Castle,Gutenberg Castle, andVaduz Cathedral.
The Private Art Collection of the Prince of Liechtenstein, one of the world's leading private art collections, is shown at theLiechtenstein Museumin Vienna.
On the country's national holiday, all subjects are invited to the castle of the head of state. A significant portion of the population attends the national celebration at the castle where speeches are made and complimentary beer is served.
Music and theatre are important parts of the culture. There are numerous music organizations such as the Liechtenstein Musical Company, the annual Guitar Days, and the InternationalJosef Gabriel RheinbergerSociety, which play in two main theatres.
The primaryinternet service providerandmobile network operatorof Liechtenstein is Telecom Liechtenstein, located in Vaduz.
There are two conventional television channels in the country. The private channel1FLTVwas created in 2008 with a goal of joining theEuropean Broadcasting Union, which it did not accomplish and has since abandoned. TheLandeskanal(de) ("National Channel") is operated by the government's Unit for Information and Communication and carries government proceedings,public affairsprogramming, and cultural events. Both are seen on local cable providers, along with all major channels from the other German-speaking countries. Since Switzerland shut off itsdigital terrestrial televisionnetwork in 2019, the only free television signals available are German and Austrian channels from the Sender Pfänder (de) inBregenz.
Radio Liechtenstein, which was established in 2004 along with the public-service broadcasterLiechtensteinischer Rundfunk(LRF) that operates it, is the country's only domestic radio station based in Triesen. Radio Liechtenstein and several programs of SRF are broadcast from the Sender Erbi (de) overlooking Vaduz. Liechtenstein also has one major newspaper:Liechtensteiner Vaterland.
Amateur radiois a hobby of some nationals and visitors. However, unlike virtually every other sovereign nation, Liechtenstein does not have its ownITU prefix. Conventionally, amateurs are issued call signs with the Swiss prefix "HB", followed by "0" or "L".
Liechtensteinfootballteams play in the Swiss football leagues. TheLiechtenstein Football Cupallows access for one Liechtenstein team each year to theUEFA Europa Conference League;FC Vaduz, a team playing in theSwiss Challenge League, the second division in Swiss football, is the most successful team in the Cup, and scored their greatest success in theEuropean Cup Winners' Cup in 1996when they drew with and defeated the Latvian teamFC Universitate Rigaby 1–1 and 4–2, to go on to a lucrative fixture againstParis Saint-Germain F.C., which they lost 0–3 and 0–4.
TheLiechtenstein national football teamis regardedas an easy targetfor any team drawn against them; this was the basis for a book about Liechtenstein's unsuccessful qualifying campaign for the2002 World Cupby British authorCharlie Connelly. In one surprisingweek during autumn 2004, however, the team managed a 2–2 draw withPortugal, who only a few months earlier had been the losing finalists in theEuropean Championships. Four days later, the Liechtenstein team traveled to Luxembourg, where they defeatedthe home team4–0 in a2006 World Cupqualifying match.
In the qualification stage of the European Championship 2008, Liechtenstein beat Latvia 1–0, which prompted the Latvian coach's resignation. They went on to beat Iceland 3–0 on 17 October 2007, which is considered one of the most dramatic losses of the Icelandic national football team. On 7 September 2010, they came within seconds of a 1–1 draw againstScotlandin Glasgow, having led 1–0 earlier in the second half, but Liechtenstein lost 2–1 thanks to a goal byStephen McManusin the 97th minute. On 3 June 2011, Liechtenstein defeatedLithuania2–0. On 15 November 2014, Liechtenstein defeatedMoldova0–1 withFranz Burgmeier's late free kick goal inChișinău.
As analpinecountry, the main sporting opportunity for Liechtensteiners to excel is in winter sports such asdownhill skiing: the country's single ski area isMalbun.Hanni Wenzelwon two gold medals and one silver medal in the 1980Winter Olympics(she won bronze in 1976), her brotherAndreaswon one silver medal in 1980 and one bronze medal in 1984 in thegiant slalomevent, and her daughterTina Weiratherwon a bronze medal in 2018 in theSuper-G. With ten medals overall (all in alpine skiing), Liechtenstein has won more Olympic medals per capita than any other nation.It is the smallest country to win a medal in any Olympics, Winter or Summer, and currently the only country to win a medal in the Winter Games but not in the Summer Games. Other notable skiers from Liechtenstein areMarco Büchel,Willi Frommelt,Paul FrommeltandUrsula Konzett.
Another discipline unusually popular with Liechtensteiners ismotorsport; American-born German-ColombianRikky von Opelraced under the flag of Liechtenstein inFormula Onein1973and1974, andManfred Schurticompeted in 9 editions of the24 Hours of Le Mansas aPorschefactory driver with a best finish of 4th overall in1976.The country is currently represented internationally byFabienne WohlwendandMatthias Kaiserinendurance racing.
Other sports Liechtenstein athletes have had success in includetennis, withStephanie VogtandKathinka von Deichmannboth having varying degrees of success on the women's tour, as well asswimming; bothJulia HasslerandChristoph Meierrepresented the country at the2016 Summer Olympicswith the former the nations' flag bearer.
In March 2020, the distance world record for electric motorcycles was set in Liechtenstein. ArtistMichel von Telldrove over 1,000 miles within 24 hours on the first electricHarley-Davidson. The Record is still current in 2023 and ended inRuggell. The Event became global media attention.
Liechtensteincompetes in the Switzerland U16 Cup Tournament, which offers young players an opportunity to play against top football clubs.
TheLiechtenstein National Policeis responsible for keeping order within the country. It consists of 87 field officers and 38 civilian staff, totaling 125 employees. All officers are equipped withsmall arms. The country has one of the world's lowestcrime rates. Liechtenstein's prison holds few, if any, inmates, and those with sentences over two years are transferred toAustrian jurisdiction.The Liechtenstein National Police maintains a trilateral treaty with Austria and Switzerland that enables close cross-border cooperation among the police forces of the three countries.
Liechtenstein follows a policy ofneutralityand is one of the fewcountries in the world that maintain no militaryalthough its police force maintains a paramilitary force, the Princely Liechtenstein Security Corps, within the organisation that might act as itsde factoarmy if an invasion of Liechtenstein ever occurred. The corps provides heavy backup for the National Police as well as Honor Guards at the Royal Palace and official functions. However, Liechtenstein can reinstate its military if deemed necessary.
The army was abolished for financial reasons soon after theAustro-Prussian War of 1866, in which Liechtenstein fielded an army of 80 men, although they were not involved in any fighting.No casualties were incurred; in fact, the unit numbered 81 upon return due to an Italian military liaison who accompanied the army back home.The demise of theGerman Confederationin that war freed Liechtenstein from its international obligation to maintain an army, and parliament seized this opportunity and refused to provide funding for one. The Prince objected, as such a move would leave the country defenceless, but relented on 12 February 1868 and disbanded the force.The last soldier to serve under the colours of Liechtenstein,Andreas Kieber, died in 1939 at age 95.
In 1985, the Swiss Army fired off shells during an exercise and mistakenly burned a patch of forest inside Liechtenstein. The incident was said to have been resolved "over a case of white wine".In March 2007, a 170-man Swiss infantry unit got lost during a training exercise and inadvertently crossed 1.5 km (0.9 miles) into Liechtenstein. The accidental invasion ended when the unit realized their mistake and turned back.The Swiss Army later informed Liechtenstein of the incursion and offered official apologies,to which an internal ministry spokesperson responded, "No problem, these things happen."
On 20 September 2017, Liechtenstein signed the United NationsTreaty on the Prohibition of Nuclear Weapons.
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