How is Liechtenstein linked to Switzerland?

Since the Customs Agreement of 1923, Liechtenstein and Switzerland have formed a joint customs union. As a result, Liechtenstein is fully integrated into the Swiss customs territory. The same Swiss customs regulations apply to imports into both countries; furthermore, there is no customs border between the two states.

In addition to the customs agreement, the two countries also form a monetary union. The official currency in Liechtenstein is the Swiss franc.

For customs and VAT purposes, the Principality is regarded as part of the Swiss domestic territory. Essentially, the same rate of VAT is levied.

It is particularly worth noting that, although Liechtenstein is a member of the European Economic Area (EEA), the common customs and economic area with Switzerland (which is not part of the EU or the EEA) remains in place.