Why Liechtenstein
Stability and legal security
The country’s sovereignty, as well as its close ties to Switzerland and integration into the European Single Market through its EEA membership, combined with a stable social, legal, and economic order, form the breeding ground for a flourishing economy.
Political stability
Liechtenstein was founded in 1719 and gained its sovereignty in 1806. The Principality is a constitutional hereditary monarchy on a democratic parliamentary basis. Head of State Prince Hans-Adam II, the 15th Prince of the House of Liechtenstein, delegated the reins of government to his son, Hereditary Prince Alois, in 2004. State power is shared by the Prince and the people. The people elect the Liechtenstein Parliament, the so-called Landtag. Together with the Prince, the 25 members of parliament constitute the legislative branch. The government is the highest executive body in Liechtenstein and consists of five members. Liechtenstein’s political stability is based on this well-balanced balance of power. Of central importance are the direct democratic rights of the population, who can help shape policy through the optional referendum or popular initiative, for example.
Economic stability
Liechtenstein has no national debt. The lean state apparatus with short, unbureaucratic channels is characteristic of Liechtenstein, whose public expenditure ratio (ratio of government spending to GDP) of 22.6% is one of the lowest in Europe. The analysts at S&P Global Ratings also confirm the country’s high attractiveness. For years, they have awarded Liechtenstein an AAA rating and emphasise its stable outlook.
Broadly diversified economy
The broadly diversified economic structure with over 5,000 companies also contributes to the country’s economic stability. Liechtenstein is one of the most industrialised countries in the world and has a strong, broad-based financial center. Industry accounts for 42% of gross value added, while the financial centre contributes 21%.
Access to two markets
Liechtenstein has been a member of the European Economic Area (EEA) since 1995 and has since been able to position itself as an economic partner in Europe. This gives Liechtenstein companies free market access to 29 countries and around 450 million people in Europe. The free movement of goods, individuals, services, and capital simplifies business relations with Europe. The customs union with Switzerland has also ensured market access to the neighbouring country since 1923. This unique locational advantage contributes significantly to the continued stability of Liechtenstein’s economy.
Swiss franc
Since 1924, the legal currency in Liechtenstein has been the stable Swiss franc, thanks to the currency union with Switzerland.
Attractive tax system for companies
The Principality traditionally stands for a liberal economic system and attractive tax conditions for companies. The uniform income tax rate for Liechtenstein companies is 12.5%. Liechtenstein has neither capital tax nor coupon tax; there is also no distribution surcharge or taxes on dividends, capital gains, and liquidation gains on participations.