What are the advantages of the customs and monetary union with Switzerland?

The Switzerland-Liechtenstein customs treaty was signed on 29 March 1923 and came into force on 1 January 1924. With this, Liechtenstein and Switzerland became a single, unified customs and economic territory.
The customs union between Liechtenstein and Switzerland allows the free movement of goods, facilitating economic integration and promoting access to a stable and prosperous market.

In 1924, Liechtenstein introduced the Swiss franc as its official currency, thus establishing a monetary union with Switzerland.
This brings stability and confidence to the financial system and builds trust among international investors.
Liechtenstein banks are able to offer their clients the benefits of Switzerland’s stable economic and monetary policies indirectly through the monetary union, which makes the location particularly attractive for wealthy private clients and institutional investors.

This joint economic territory remained in place even after Liechtenstein joined the European Economic Area (EEA) in 1995.

To this day, the treaty still forms the core of the extremely close-knit and good relationship between the two countries and has played a significant role in contributing to Liechtenstein’s positive economic development in recent years.