|Principality of Liechtenstein
Fürstentum Liechtenstein (German)
Motto: "Für Gott, Fürst und Vaterland"
"For God, Prince, and Fatherland"
(English: "High on the Young Rhine")
Location of Liechtenstein (green)
in Europe (dark grey) – [Legend]
/ 47.16667; 9.50972
• Prime Minister
|Independence as principality|
• Treaty of Pressburg
|12 July 1806|
• Separation from
|160 km (62 sq mi) (219th)|
• Water (%)
• 2014 estimate
|227/km (587.9/sq mi) (57th)|
|GDP (PPP)||2013 estimate|
|$5.3 billion (149th)|
• Per capita
|GDP (nominal)||2010 estimate|
|$5.155 billion (147th)|
• Per capita
|HDI (2015)|| 0.912
very high · 15th
|Currency||Swiss franc (CHF)|
|Time zone||CET (UTC+1)|
• Summer (DST)
|Drives on the||right|
|ISO 3166 code||LI|
Liechtenstein (//; LIK-tin-styn; German: [ˈlɪçtn̩ʃtaɪn]), officially the Principality of Liechtenstein (German: Fürstentum Liechtenstein), is a doubly landlocked German-speaking microstate in Central Europe. It is a constitutional monarchy with the rank of principality, headed by the Prince of Liechtenstein.
Liechtenstein is bordered by Switzerland to the west and south and Austria to the east and north. It has an area of just over 160 square kilometres (62 square miles), the fourth-smallest in Europe, and an estimated population of 37,000. Divided into 11 municipalities, its capital is Vaduz and its largest municipality is Schaan.
Economically, Liechtenstein has one of the highest gross domestic products per person in the world when adjusted for purchasing power parity, and the highest when not adjusted by purchasing power parity. The unemployment rate is one of the lowest in the world at 1.5%. Liechtenstein has been known in the past as a billionaire tax haven; however, it is no longer on any blacklists of uncooperative tax haven countries (see ).
An alpine country, Liechtenstein is mainly mountainous, making it a winter sport destination. Many cultivated fields and small farms are found both in the south (Oberland, upper land) and north (Unterland, lower land). The country has a strong financial sector centered in Vaduz. Liechtenstein is a member of the European Free Trade Association, and while not being a member of the European Union, the country participates in both the Schengen Area and European Economic Area. It also has a customs union and a monetary union with Switzerland.
The oldest traces of human existence in Liechtenstein date back to the Middle Paleolithic era. Neolithic farming settlements were initially founded in the valleys around 5300 BCE.
The Hallstatt and La Tène cultures flourished during the late Iron Age, from around 450 BCE-possibly under some influence of both the Greek and Etruscan civilisations. One of the most important tribal groups in the Alpine region were the Helvetii. In 58 BCE, at the Battle of Bibracte, Julius Caesar defeated the Alpine tribes, therefore bringing the region under close control of the Roman Empire. By 15 BCE, Tiberius-destined to be the second Roman emperor-with his brother, Drusus, conquered the entirety of the Alpine area. Liechtenstein was then integrated into the Roman province of Raetia. The area was maintained by the Roman military, who also maintained large legionary camps at Brigantium (Austria), near Lake Constance, and at Magia (Swiss). A Roman road ran through the territory was also created and maintained by these groups. In 259/60 Brigantium was destroyed by the Alemanni, a Germanic people who settled in the area in around 450 CE.
In the Early Middle Ages, the Alemanni settled the eastern Swiss plateau by the 5th century and the valleys of the Alps by the end of the 8th century, with Liechtenstein located at the eastern edge of Alemannia. In the 6th century, the entire region became part of the Frankish Empire following Clovis I's victory over the Alemanni at Tolbiac in 504.
The area that later became Liechtenstein remained under Frankish hegemony (Merovingian and Carolingian dynasties), until the empire was divided by the Treaty of Verdun in 843 AD, following the death of Charlemagne. The territory of present-day Liechtenstein was under the possession of East Francia. It would later be reunified with Middle Francia under the Holy Roman Empire, around 1000 CE. Until about 1100, the predominant language of the area was Romansch, but thereafter German began to gain ground in the territory. In 1300, an Alemannic population-the Walsers, who originated in Valais-entered the region and settled. The mountain village of Triesenberg still preserves features of Walser dialect into the present century.
By 1200, dominions across the Alpine plateau were controlled by the Houses of Savoy, Zähringer, Habsburg, and Kyburg. Other regions were accorded the Imperial immediacy that granted the empire direct control over the mountain passes. When the Kyburg dynasty fell in 1264, the Habsburgs under King Rudolph I (Holy Roman Emperor in 1273) extended their territory to the eastern Alpine plateau that included the territory of Liechtenstein. This region was enfeoffed to the Counts of Hohenems until the creation of the Liechtenstein dynasty in 1699.
In 1396 Vaduz (the southern region of Liechtenstein) was raised to the status of "imperial immediacy" and as such made subject to the Holy Roman Emperor alone.
The family, from which the principality takes its name, originally came from Liechtenstein Castle in Lower Austria which they had possessed from at least 1140 until the 13th century (and again from 1807 onwards). The Liechtensteins acquired land, predominantly in Moravia, Lower Austria, Silesia, and Styria. As these territories were all held in feudal tenure from more senior feudal lords, particularly various branches of the Habsburgs, the Liechtenstein dynasty was unable to meet a primary requirement to qualify for a seat in the Imperial diet (parliament), the Reichstag. 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 as unmittelbar (immediate) or held without any intermediate feudal tenure, directly from the Holy Roman Emperor. During the early 17th century Karl I of Liechtenstein was made a Fürst (prince) by the Holy Roman Emperor Matthias after siding with him in a political battle. Hans-Adam I was allowed to purchase the minuscule Herrschaft ("Lordship") of Schellenberg and county of Vaduz (in 1699 and 1712 respectively) from the Hohenems. Tiny Schellenberg and Vaduz had exactly the political status required: No feudal lord other than their comital sovereign and the suzerain Emperor.
On 23 January 1718, 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 of Fürstentum (principality) with the name "Liechtenstein" in honour of "[his] true servant, Anton Florian of Liechtenstein". It was on this date that Liechtenstein became a sovereign member state of the Holy Roman Empire. It is a testament to the pure political expediency of the purchase that the Princes of Liechtenstein never visited their new principality for almost 100 years.
By the early 19th century, as a result of the Napoleonic Wars in Europe, the Holy Roman Empire came under the effective control of France, following the crushing defeat at Austerlitz by Napoleon in 1805. Emperor Francis II abdicated, ending more than 960 years of feudal government. Napoleon reorganized much of the Empire into the Confederation 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 any suzerain. From 25 July 1806, when the Confederation of the Rhine was founded, the Prince of Liechtenstein was a member, in fact, a vassal, of its hegemon, styled protector, the French Emperor Napoleon I, until the dissolution of the confederation on 19 October 1813.
Soon afterward, Liechtenstein joined the German Confederation (20 June 1815 – 24 August 1866), which was presided over by the Emperor of Austria.
In 1818, Prince Johann I granted the territory a limited constitution. In that same year Prince Aloys became 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:
Until the end of World War I, Liechtenstein was closely tied first to the Austrian Empire and later to Austria-Hungary; the ruling princes continued to derive much of their wealth from estates in the Habsburg territories, and they spent much of their time at their two palaces in Vienna. The economic devastation caused by this war forced the country to conclude a customs and monetary union with its other neighbour, Switzerland.
At the time of the dissolution of the Austro-Hungarian Empire, it was argued that Liechtenstein, as a fief of the Holy Roman Empire, was no longer bound to the emerging independent state of Austria, since the latter did not consider itself as the legal successor to the empire. This is partly contradicted by the Liechtenstein perception that the dethroned Austro-Hungarian Emperor still maintained an abstract heritage of the Holy Roman Empire.
In 1929, 75-year-old Prince Franz I succeeded to the throne. Franz had just married Elisabeth von Gutmann, a wealthy woman from Vienna whose father was a Jewish businessman from Moravia. Although Liechtenstein had no official Nazi party, a Nazi sympathy movement arose within its National Union party. Local Liechtenstein Nazis identified Elisabeth as their Jewish "problem".
In March 1938, just after the annexation of Austria by Nazi Germany, Prince Franz named as regent his 31-year-old first cousin twice removed and heir-presumptive, Prince Franz Joseph. Franz died in July that year, and Franz Joseph succeeded to the throne. Franz Joseph II first moved to Liechtenstein in 1938, a few days after Austria's annexation.
During World War II, Liechtenstein remained officially neutral, looking to neighbouring Switzerland for assistance and guidance, while family treasures from dynastic lands and possessions in Bohemia, Moravia, and Silesia were taken to Liechtenstein for safekeeping. At the close of the conflict, Czechoslovakia and Poland, acting to seize what they considered to be German possessions, expropriated the entirety of the Liechtenstein dynasty's properties in those three regions. The expropriations (subject to modern legal dispute at the International Court of Justice) included over 1,600 km (618 sq mi) of agricultural and forest land (most notably the UNESCO listed Lednice–Valtice Cultural Landscape), and several family castles and palaces.
In 2005 it was revealed that Jewish labourers from the Strasshof concentration camp, provided by the SS, had worked on estates in Austria owned by Liechtenstein's Princely House.
Citizens of Liechtenstein were forbidden to enter Czechoslovakia during the Cold War. More recently the diplomatic conflict revolving around the controversial post-war Beneš decrees resulted in Liechtenstein not sharing international relations with the Czech Republic or Slovakia. Diplomatic relations were established between Liechtenstein and the Czech Republic on 13 July 2009, and with Slovakia on 9 December 2009.
Liechtenstein was in dire financial straits following the end of the war in Europe. The Liechtenstein dynasty often resorted to selling family artistic treasures, including the portrait "Ginevra de' Benci" by Leonardo da Vinci, which was purchased by the National Gallery of Art of the United States in 1967 for $5 million ($36 million in 2016 dollars), then a record price for a painting.
However, by the late 1970s, it used its low corporate tax rates to draw many companies to the country, becoming one of the wealthiest countries in the world.
The Prince of Liechtenstein is the world's sixth wealthiest monarch with an estimated wealth of 5 billion USD. The country's population enjoys one of the world's highest standards of living.
Liechtenstein has a constitutional monarch as Head of State, and an elected parliament which enacts the law. It is also a direct democracy, where voters can propose and enact constitutional amendments and legislation independent of the legislature. The Constitution of Liechtenstein was adopted in March 2003, replacing the previous 1921 constitution which had established Liechtenstein as a constitutional monarchy headed by the reigning prince of the Princely House of Liechtenstein. A parliamentary system had been established, although the reigning Prince retained substantial political authority.
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 Prince may veto laws adopted by parliament. The Prince can call referenda, propose new legislation, and dissolve parliament, although dissolution of parliament may be subject to a referendum.
Executive authority is vested in a collegiate government comprising the head of government (prime minister) and four government councilors (ministers). The head of government and the other ministers are appointed by the Prince upon the proposal and concurrence of parliament, thus reflecting the partisan balance of parliament. The constitution stipulates that at least two members of the government 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.
Legislative authority is vested in the unicameral Landtag made up of 25 members elected for maximum four-year terms according to a proportional representation formula. Fifteen members are elected from the "Oberland" (Upper Country or region) and ten members are elected from the "Unterland" (Lower Country or region). Parties must receive at least 8% of the national vote to win seats in parliament, i.e. enough for 2 seats in the 25-seat legislature. Parliament proposes and approves a government, which is formally appointed by the Prince. Parliament may also pass votes of no confidence in the entire government or individual members.
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 parliamentary oversight functions. Parliament can call for referenda on proposed legislation. Parliament shares the authority to propose new legislation with the Prince and with the number of citizens required for an initiative referendum.
Judicial authority is 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.
On 1 July 1984, Liechtenstein became the last country in Europe to grant women the right to vote. The referendum on women's suffrage, in which only men were allowed to participate, passed with 51.3% in favour.
In a national referendum in March 2003, nearly two-thirds of the electorate voted in support of Hans-Adam II's proposed new constitution to replace the 1921 version. The proposed constitution was criticised by many, including the Council of Europe, as expanding the powers of the monarchy (continuing the power to veto any law, and allowing the Prince to dismiss the government or any minister). The Prince threatened that if the constitution failed, he would, among other things, convert some of the royal property for commercial use and move to Austria. The princely family and the Prince enjoy tremendous public support inside the nation, and the resolution passed with about 64% in favour. A proposal to revoke the Prince's veto powers was rejected by 76% of voters in a 2012 referendum.
Few national constitutions provide a right of secession, but municipalities in Liechtenstein are entitled to secede from the union by majority vote.
Liechtenstein is situated in the Upper Rhine valley of the European Alps and is bordered to the east by Austria and to the south and west by Switzerland. The entire western border of Liechtenstein is formed by the Rhine. Measured south to north the country is about 24 km (15 mi) long. Its highest point, the Grauspitz, is 2,599 m (8,527 ft). Despite its Alpine location, prevailing southerly winds make the climate of Liechtenstein comparatively mild. In winter, the mountain slopes are well suited to winter sports.
New surveys using more accurate measurements of the country's borders in 2006 have set its area at 160 km (61.776 sq mi), with borders of 77.9 km (48.4 mi). Thus, it was discovered in 2006 that Liechtenstein's borders are 1.9 km (1.2 mi) longer than previously thought.
Liechtenstein is one of only two doubly landlocked countries in the world-being a landlocked country wholly surrounded by other landlocked countries (the other is Uzbekistan). Liechtenstein is the sixth-smallest independent nation in the world by land area.
The principality of Liechtenstein is divided into 11 communes called Gemeinden (singular Gemeinde). The Gemeinden mostly consist only of a single town or village. Five of them (Eschen, Gamprin, Mauren, Ruggell, and Schellenberg) fall within the electoral district Unterland (the lower county), and the remainder (Balzers, Planken, Schaan, Triesen, Triesenberg, and Vaduz) within Oberland (the upper county).
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 boasts 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 a customs union with Switzerland and employs the Swiss franc as the national currency. The country imports about 85% of its energy. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association (EFTA) and the European Union) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe. Since 2002, Liechtenstein's rate of unemployment has doubled. In 2008, it stood at 1.5%. Currently, there is only one hospital in Liechtenstein, the Liechtensteinisches Landesspital in Vaduz. The gross domestic product (GDP) on a purchasing power parity basis is $5.028 billion, or $89,400 per capita, which is the second highest in the world.
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 is Hilti, a manufacturer of direct fastening systems and other high-end power tools. Liechtenstein produces wheat, barley, corn, potatoes, dairy products, livestock, and wine. Tourism accounts for a large portion of the country's economy.
The government of Liechtenstein taxes personal, business income, and principal (wealth). The basic rate of personal income tax is 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's social security programme. 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 basic tax rate on wealth is 0.06% per annum, and the combined total rate is 0.89%. The tax rate on corporate profits is 12.5%.
Liechtenstein's gift and estate taxes vary 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 from Stiftungen ("foundations"), which are 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 popular tax haven for extremely wealthy individuals and businesses attempting to avoid or evade taxes in their home countries. In recent years, Liechtenstein has displayed a stronger determination to prosecute international money-launderers and has worked to promote the country's image as a legitimate finance center. In February 2008, the country's LGT Bank was implicated in a tax-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. However, the United States Senate's subcommittee on tax haven banks said that the LGT bank, which is 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".
The 2008 Liechtenstein tax affair is 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 the Federal Republic of Germany. It was also seen as an attempt to put pressure on Liechtenstein, then one of the remaining uncooperative tax havens-along with Andorra and Monaco-as identified by the Paris-based Organisation for Economic Co-operation and Development in 2007. On 27 May 2009 the OECD removed Liechtenstein from the blacklist of uncooperative countries.
In August 2009, the British government department HM Revenue & Customs agreed 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.
Population-wise, Liechtenstein is the fourth smallest country of Europe; only Vatican City, San Marino, and Monaco have fewer residents. Its population is primarily Alemannic-speaking, although one third is foreign-born, primarily German speakers from Germany, Austria, and Switzerland, other Swiss, Italians, and Turks. Foreign-born people make up two-thirds of the country's workforce.
Liechtensteiners have an average life expectancy at birth of 80.31 years, male: 76.86 years, female: 83.77 years (2011 est.). The infant mortality rate is 4.64 deaths per 1,000 live births, according to recent estimates.
The official language is German; most speak an Alemannic dialect of German that is highly divergent from Standard German but closely related to those dialects spoken in neighbouring regions such as Switzerland and Vorarlberg, Austria. In Triesenberg, a dialect promoted by the municipality is spoken. However, Swiss Standard German is understood and spoken by most people within the country.
According to the Constitution of Liechtenstein, the Roman Catholic Church is the official state religion of Liechtenstein:
The Catholic Church is the State Church and as such shall enjoy the full protection of the State- Constitution of Liechtenstein
Liechtenstein offers protection to adherents of all religious beliefs, and considers the "religious interests of the people" a priority of the government. In Liechtenstein schools, although exceptions are allowed, religious education in Roman Catholicism or Protestantism (Reformed and/or Lutheran) is legally required. Tax exemption is granted by the government to religious organizations. According to the Pew Research Center, social conflict caused by religious hostilities is ranked low in Liechtenstein, and so is the amount of government restriction on the practice of religion.
According to the 2010 census, 85.8% of total population is Christian, of whom 75.9% adhere to the Roman Catholic faith, forming the exempt Roman Catholic Archdiocese of Vaduz, while 8.5% are Protestant, mainly organized in the Evangelical Church in Liechtenstein and the Evangelical Lutheran Church in Liechtenstein. The largest minority religion is Islam (5.4% of total population). Catholicism is, by far, the predominant religion of people with Liechtenstein citizenship (87.0%).
|Other Christian Churches||0.3%||0.1%||0.2%|
The literacy rate of Liechtenstein is 100%. In 2006 Programme for International Student Assessment report, coordinated by the Organisation 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 miles) of paved roadway within Liechtenstein, with 90 km (56 miles) of marked bicycle paths.
A 9.5 km (5.9 mi) railway connects Austria and Switzerland through Liechtenstein. The country's railways are administered by the Austrian Federal Railways as part of the route between Feldkirch, Austria, and Buchs, Switzerland. Liechtenstein is nominally within the Austrian Verkehrsverbund Vorarlberg tariff region.
There are four stations in Liechtenstein, namely Schaan-Vaduz, Forst Hilti, Nendeln and Schaanwald, served by an irregularly stopping train service that runs between Feldkirch and Buchs provided by the Austrian Federal Rail Service. While EuroCity and other long distance international trains also travel along the route, they do not normally stop at the stations within the borders of Liechtenstein.
Liechtenstein Bus is a subsidiary of the Swiss Postbus system, but separately run, and connects to the Swiss bus network at Buchs and at Sargans. Buses also run to the Austrian town of Feldkirch.
Liechtenstein has no airport. The nearest large airport is Zürich Airport near Zürich, Switzerland (130 km/80 mi by road). The nearest small airport is St. Gallen Airport (50 km/30 mi). Friedrichshafen Airport also provides access to Liechtenstein, as it is 85 km away. Balzers Heliport is available for chartered helicopter flights.
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