myths around Liechtenstein and its Financial Centre
There are persistent rumours and myths around Liechtenstein
and its Financial Centre. It’s high time to put an end to these preconceptions.
Myth: The Prince rules over Liechtenstein!
Liechtenstein is a hereditary monarchy based on democratic parliamentary principles. Voters elect Parliament and the Government, which govern the country together with the Prince.
Myth: Liechtenstein is conservative!
No national debt, a moderate tax burden and political stability safeguard a successful society. Liechtenstein responsibly safeguards its political and social achievements so that future generations can also benefit from these.
Myth: You don’t pay taxes in Liechtenstein!
One of the main pillars of success for Liechtenstein is moderate taxation for citizens and companies. The moderate tax rates pay off in a highly innovative economy and a satisfied population.
Myth: Liechtenstein gets its wealth only from its Financial Centre!
Liechtenstein has one of the highest corporate densities in the world. Industry and commerce account for 43 percent of Liechtenstein’s gross output, making it an export-oriented industrialised nation.
Myth: Liechtenstein evades international regulations!
Due to the Monetary and Customs Treaty, Liechtenstein’s legislation is consistent with that of Switzerland. Liechtenstein has also been a member of the European Economic Area EEA since 1995, meaning that it applies the same strict regulations as all other EU states.
Myth: Liechtenstein is reluctant to adopt financial market regulations!
As an early adopter, Liechtenstein is committed to implementing OECD standards on transparency and the exchange of information in tax matters at an early stage, and has an explicit clean money strategy. Liechtenstein plays a leading role in efforts to achieve compliant financial market regulations.
Myth: The Liechtenstein Financial Centre consists only of bankers and trustees!
Liechtenstein has a diversified Financial Centre with trust companies, banks, asset managers, investment fund providers, insurers, auditors and lawyers.
Myth: The participants in Liechtenstein’s Financial Centre hoard foreign money!
The assets invested in Liechtenstein are reinvested worldwide and in a sustainable manner.
Myth: Liechtenstein is not a real country!
The independent small state of Liechtenstein is a member of the UN, the WTO, the EFTA, the Council of Europe as well as the European Economic Area EEA. In addition, with the Customs and Monetary Union, the country is also closely tied to Switzerland and its currency is the Swiss franc.
Myth: Liechtenstein benefits from its neighbouring countries!
Liechtenstein and its neighbouring countries benefit from each other. Liechtenstein benefits from the infrastructure of its neighbours, which for their part benefit from cross-border commuters who contribute towards the purchasing power of neighbouring countries.
Myth: The Liechtenstein Financial Centre is not supervised!
Liechtenstein has an independent and internationally-recognised Financial Market Authority that is embedded in the Europe-wide supervisory system within the EEA. All stakeholders are strictly supervised in order to protect clients and the Financial Centre.
