Liechtenstein :: Europe
Introduction
Background:
The Principality of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleonic Wars, it became a sovereign state in 1806 and joined the German Confederation in 1815. Liechtenstein became fully independent in 1866 when the Confederation dissolved. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained neutral), the country's low taxes have spurred outstanding economic growth. In 2000, shortcomings in banking regulatory oversight resulted in concerns about the use of financial institutions for money laundering. However, Liechtenstein implemented anti-money laundering legislation and a Mutual Legal Assistance Treaty with the US that went into effect in 2003.
Geography
Location:
Central Europe, between Austria and Switzerland
Geographic coordinates:
47 16 N, 9 32 E
Map references:
Europe
Area:
total:
160 sq km
land:
160 sq km
water:
0 sq km
country comparison to the world: 218
Area - comparative:
about 0.9 times the size of Washington, DC
Land boundaries:
total:
75 km
border countries (2):
Austria 34 km, Switzerland 41 km
Coastline:
0 km
(doubly landlocked)
Maritime claims:
none (landlocked)
Climate:
continental; cold, cloudy winters with frequent snow or rain; cool to moderately warm, cloudy, humid summers
Terrain:
mostly mountainous (Alps) with Rhine Valley in western third
Elevation:
lowest point:
Ruggeller Riet 430 m
highest point:
Vorder-Grauspitz 2,599 m
Natural resources:
hydroelectric potential, arable land
Land use:
agricultural land:
37.6%
(2011 est.)
arable land:
18.8%
(2011 est.)
/
permanent crops:
0%
(2011 est.)
/
permanent pasture:
18.8%
(2011 est.)
forest:
43.1%
(2011 est.)
other:
19.3%
(2011 est.)
Irrigated land:
0 sq km
(2012)
Population distribution:
most of the population is found in the western half of the country along the Rhine River
Natural hazards:
avalanches, landslides
Environment - current issues:
some air pollution generated locally, some transfered from surrounding countries
Environment - international agreements:
party to:
Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Wetlands
signed, but not ratified:
Law of the Sea
Geography - note:
along with Uzbekistan, one of only two doubly landlocked countries in the world; variety of microclimatic variations based on elevation
People and Society
Population:
39,137
(July 2020 est.)
note: immigrants make up 65% of the total population, according to UN data (2017)
country comparison to the world: 212
Nationality:
noun:
Liechtensteiner(s)
adjective:
Liechtenstein
Ethnic groups:
Liechtensteiner 66%, Swiss 9.6%, Austrian 5.8%, German 4.3%, Italian 3.1%, other 11.2%
(2017 est.)
note: data represent population by nationality
Languages:
German 91.5% (official) (Alemannic is the main dialect), Italian 1.5%, Turkish 1.3%, Portuguese 1.1%, other 4.6%
(2015 est.)
Religions:
Roman Catholic (official) 73.4%, Protestant Reformed 6.3%, Muslim 5.9%, Christian Orthodox 1.3%, Lutheran 1.2%, other Protestant .7%, other Christian .3%, other .8%, none 7%, unspecified 3.3%
(2015 est.)
Age structure:
0-14 years:
15.2%
(male 3,259/female 2,688)
15-24 years:
11.29%
(male 2,238/female 2,181)
25-54 years:
40.22%
(male 7,869/female 7,872)
55-64 years:
14.41%
(male 2,711/female 2,930)
65 years and over:
18.88%
(male 3,403/female 3,986)
(2020 est.)
Median age:
total:
43.7 years
male:
42 years
female:
45.3 years
(2020 est.)
country comparison to the world: 22
Population growth rate:
0.75%
(2020 est.)
country comparison to the world: 133
Birth rate:
10.4 births/1,000 population
(2020 est.)
country comparison to the world: 188
Death rate:
7.8 deaths/1,000 population
(2020 est.)
country comparison to the world: 98
Net migration rate:
4.9 migrant(s)/1,000 population
(2020 est.)
country comparison to the world: 24
Population distribution:
most of the population is found in the western half of the country along the Rhine River
Urbanization:
urban population:
14.4% of total population
(2020)
rate of urbanization:
0.81% annual rate of change
(2015-20 est.)
Major urban areas - population:
5,000 VADUZ (capital)
(2018)
Sex ratio:
at birth:
1.26 male(s)/female
0-14 years:
1.21 male(s)/female
15-24 years:
1.03 male(s)/female
25-54 years:
1 male(s)/female
55-64 years:
0.93 male(s)/female
65 years and over:
0.85 male(s)/female
total population:
0.99 male(s)/female
(2020 est.)
Mother's mean age at first birth:
31.3 years
(2017)
Infant mortality rate:
total:
4.2 deaths/1,000 live births
male:
4.5 deaths/1,000 live births
female:
3.8 deaths/1,000 live births
(2020 est.)
country comparison to the world: 185
Life expectancy at birth:
total population:
82.2 years
male:
79.9 years
female:
85 years
(2020 est.)
country comparison to the world: 21
Total fertility rate:
1.69 children born/woman
(2020 est.)
country comparison to the world: 176
Drinking water source:
improved:
total:
100% of population
unimproved:
total:
0% of population
(2017 est.)
Sanitation facility access:
improved:
total:
98% of population
unimproved:
total:
0% of population
(2017)
HIV/AIDS - adult prevalence rate:
NA
HIV/AIDS - people living with HIV/AIDS:
NA
HIV/AIDS - deaths:
NA
Education expenditures:
2.6% of GDP
(2011)
country comparison to the world: 148
School life expectancy (primary to tertiary education):
total:
15 years
male:
16 years
female:
14 years
(2018)
Government
Country name:
conventional long form:
Principality of Liechtenstein
conventional short form:
Liechtenstein
local long form:
Fuerstentum Liechtenstein
local short form:
Liechtenstein
etymology:
named after the Liechtenstein dynasty that purchased and united the counties of Schellenburg and Vaduz and that was allowed by the Holy Roman Emperor in 1719 to rename the new property after their family; the name in German means "light (bright) stone"
Government type:
constitutional monarchy
Capital:
name:
Vaduz
geographic coordinates:
47 08 N, 9 31 E
time difference:
UTC+1 (6 hours ahead of Washington, DC, during Standard Time)
daylight saving time:
+1hr, begins last Sunday in March; ends last Sunday in October
etymology: may be a conflation from the Latin "vallis" (valley) and the High German "diutisk" (meaning "German") to produce "Valdutsch" (German valley), which over time simplified and came to refer specifically to Vaduz, the town
Administrative divisions:
11 communes (Gemeinden, singular - Gemeinde); Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, Vaduz
Independence:
23 January 1719 (Principality of Liechtenstein established); 12 July 1806 (independence from the Holy Roman Empire); 24 August 1866 (independence from the German Confederation)
National holiday:
National Day, 15 August (1940); note - a National Day was originally established in 1940 to combine celebrations for the Feast of the Assumption (15 August) with those honoring the birthday of former Prince FRANZ JOSEF II (1906-1989) whose birth fell on 16 August; after the prince's death, National Day became the official national holiday by law in 1990
Constitution:
history:
previous 1862; latest adopted 5 October 1921
amendments:
proposed by Parliament, by the reigning prince (in the form of "Government" proposals), by petition of at least 1,500 qualified voters, or by at least four communes; passage requires unanimous approval of Parliament members in one sitting or three-quarters majority vote in two successive sittings; referendum required only if petitioned by at least 1,500 voters or by at least four communes; passage by referendum requires absolute majority of votes cast; amended many times, last in 2018(2019)
Legal system:
civil law system influenced by Swiss, Austrian, and German law
International law organization participation:
accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction
Citizenship:
citizenship by birth:
no
citizenship by descent only:
the father must be a citizen of Liechtenstein; in the case of a child born out of wedlock, the mother must be a citizen
dual citizenship recognized:
no
residency requirement for naturalization:
5 years
Suffrage:
18 years of age; universal
Executive branch:
chief of state:
Prince HANS-ADAM II (since 13 November 1989, assumed executive powers on 26 August 1984); Heir Apparent and Regent of Liechtenstein Prince ALOIS (son of the monarch, born 11 June 1968); note - 15 August 2004, HANS-ADAM II transferred the official duties of the ruling prince to ALOIS, but HANS-ADAM II retains status of chief of state
head of government:
Prime Minister Adrian HASLER (since 27 March 2013)
cabinet:
Cabinet elected by the Parliament, confirmed by the monarch
elections/appointments:
the monarchy is hereditary; following legislative elections, the leader of the majority party in the Parliament usually appointed the head of government by the monarch, and the leader of the largest minority party in the Landtag usually appointed the deputy head of government by the monarch if there is a coalition government
Legislative branch:
description:
unicameral Parliament or Landtag (25 seats; members directly elected in 2 multi-seat constituencies by proportional representation vote to serve 4-year terms)
elections:
last held on 5 February 2017 (next to be held on 7 February 2021)
election results:
percent of vote by party - FBP 35.2%, VU 33.7%, DU 18.4% FL 12.6%; seats by party - FBP 9, VU 8, DU 5, FL 3; composition - men 22, women 3, percent of women 12%
Judicial branch:
highest courts:
Supreme Court or Oberster Gerichtshof (consists of 5 judges); Constitutional Court or Verfassungsgericht (consists of 5 judges and 5 alternates)
judge selection and term of office:
judges of both courts elected by the Landtag and appointed by the monarch; Supreme Court judges serve 4-year renewable terms; Constitutional Court judges appointed for renewable 5-year terms
subordinate courts:
Court of Appeal or Obergericht (second instance), Court of Justice (first instance), Administrative Court, county courts
Political parties and leaders:
Fatherland Union (Vaterlaendische Union) or VU [Guenther FRITZ] ++ Progressive Citizens' Party (Fortschrittliche Buergerpartei) or FBP [Thomas BANZER] ++ The Free List (Die Freie Liste) or FL [Pepo FRICK and Conny BUECHEL BRUEHWILER] ++ The Independents (Die Unabhaengigen) or DU [Harry QUADERER]
International organization participation:
CD, CE, EBRD, EFTA, IAEA, ICCt, ICRM, IFRCS, Interpol, IOC, IPU, ITSO, ITU, ITUC (NGOs), OAS (observer), OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UPU, WIPO, WTO
Diplomatic representation in the US:
chief of mission:
Ambassador Kurt JAEGER (since 16 September 2016)
chancery:
2900 K Street NW, Suite 602B, Washington, DC 20007
telephone:
[1] (202) 331-0590
FAX:
[1] (202) 331-3221
Diplomatic representation from the US:
the US does not have an embassy in Liechtenstein; the US Ambassador to Switzerland is accredited to Liechtenstein
Flag description:
two equal horizontal bands of blue (top) and red with a gold crown on the hoist side of the blue band; the colors may derive from the blue and red livery design used in the principality's household in the 18th century; the prince's crown was introduced in 1937 to distinguish the flag from that of Haiti
National symbol(s):
princely hat (crown); national colors: blue, red
National anthem:
name:
"Oben am jungen Rhein" (High Above the Young Rhine)
lyrics/music:
Jakob Joseph JAUCH/Josef FROMMELT
note: adopted 1850, revised 1963; uses the tune of "God Save the Queen"
Economy
Economic overview:
Despite its small size and lack of natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial services sector and one of the highest per capita income levels in the world. The Liechtenstein economy is widely diversified with a large number of small and medium-sized businesses, particularly in the services sector. Low business taxes - a flat tax of 12.5% on income is applied - and easy incorporation rules have induced many holding companies to establish nominal offices in Liechtenstein, providing 30% of state revenues.
++ The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association and the EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated EU. As of 2015, 54% of Liechtenstein's workforce consisted of cross-border commuters, largely from Austria, Germany, and Switzerland.
++ Since 2008, Liechtenstein has faced renewed international pressure - particularly from Germany and the US - to improve transparency in its banking and tax systems. In December 2008, Liechtenstein signed a Tax Information Exchange Agreement with the US. Upon Liechtenstein's conclusion of 12 bilateral information-sharing agreements, the OECD in October 2009 removed the principality from its "grey list" of countries that had yet to implement the organization's Model Tax Convention. By the end of 2010, Liechtenstein had signed 25 Tax Information Exchange Agreements or Double Tax Agreements. In 2011, Liechtenstein joined the Schengen area, which allows passport-free travel across 26 European countries. In 2015, Liechtenstein and the EU agreed to clamp down on tax fraud and evasion and in 2018 will start automatically exchanging information on the bank accounts of each other's residents.
GDP real growth rate:
1.8%
(2012 est.)
-0.5%
(2011 est.)
3.1%
(2007 est.)
country comparison to the world: 147
Inflation rate (consumer prices):
-0.4%
(2016 est.)
-0.2%
(2013)
country comparison to the world: 14
Credit ratings:
Standard & Poors rating:
AAA
(1996)
GDP (purchasing power parity) - real:
$4.978 billion
(2014 est.)
$3.2 billion
(2009 est.)
$3.216 billion
(2008 est.)
GDP (official exchange rate):
$6.672 billion
(2014 est.)
GDP - per capita (PPP):
$139,100
(2009 est.)
$90,100
(2008 est.)
$91,300
(2007 est.)
country comparison to the world: 1
GDP - composition, by sector of origin:
agriculture:
7%
(2014)
industry:
41%
(2014)
services:
52%
(2014)
Ease of Doing Business Index scores:
73.0
(2020)
Agriculture - products:
wheat, barley, corn, potatoes; livestock, dairy products
Industries:
electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, tourism, optical instruments
Industrial production growth rate:
NA
Labor force:
38,520
(2012)
(2015 est.)
note: 51% of the labor force in Liechtenstein commute daily from Austria, Switzerland, and Germany
country comparison to the world: 198
Labor force - by occupation:
agriculture:
0.8%
industry:
36.9%
services:
62.3%
(2015)
Unemployment rate:
2.4%
(2015)
2.4%
(2014)
country comparison to the world: 27
Population below poverty line:
NA
Household income or consumption by percentage share:
lowest 10%:
NA
highest 10%:
NA
Budget:
revenues:
995.3 million
(2012 est.)
expenditures:
890.4 million
(2011 est.)
Taxes and other revenues:
14.9% (of GDP)
(2012 est.)
country comparison to the world: 195
Budget surplus (+) or deficit (-):
1.6% (of GDP)
(2012 est.)
country comparison to the world: 20
Fiscal year:
calendar year
Exports:
$3.217 billion
(2015 est.)
$3.774 billion
(2014 est.)
note: trade data exclude trade with Switzerland
country comparison to the world: 132
Exports - commodities:
small specialty machinery, connectors for audio and video, parts for motor vehicles, dental products, hardware, prepared foodstuffs, electronic equipment, optical products
Imports:
NA
(2015 est.)
$2.23 billion
(2014 est.)
note: trade data exclude trade with Switzerland
country comparison to the world: 168
Imports - commodities:
agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs, motor vehicles
Debt - external:
$0
(2015 est.)
note: public external debt only; private external debt unavailable
country comparison to the world: 206
Exchange rates:
Swiss francs (CHF) per US dollar -
0.9875
(2017 est.)
0.9852
(2016 est.)
0.9852
(2015 est.)
0.9627
(2014 est.)
0.9152
(2013 est.)
Energy
Electricity access:
electrification - total population:
100%
(2020)
Electricity - production:
68.43 million kWh
(2015 est.)
country comparison to the world: 202
Electricity - consumption:
393.6 million kWh
(2015 est.)
country comparison to the world: 174
Electricity - exports:
0 kWh
(2015 est.)
(2015 est.)
country comparison to the world: 161
Electricity - imports:
325.2 million kWh
(2015 est.)
country comparison to the world: 88
Communications
Telephones - fixed lines:
total subscriptions:
14,337
subscriptions per 100 inhabitants:
36.91
(2019 est.)
country comparison to the world: 185
Telephones - mobile cellular:
total subscriptions:
49,355
subscriptions per 100 inhabitants:
127.06
(2019 est.)
country comparison to the world: 206
Telecommunication systems:
general assessment:
automatic telephone system; 44 Internet service providers in Liechtenstein and Switzerland combined; FttP (fiber to the home) penetration marketed 3rd highest in EU; fiber network reaches 3/4 of the population
(2020)
domestic:
fixed-line 37 per 100 and mobile-cellular services 127 per 100
(2019)
international:
country code - 423; linked to Swiss networks by cable and microwave radio relay
note: the COVID-19 outbreak is negatively impacting telecommunications production and supply chains globally; consumer spending on telecom devices and services has also slowed due to the pandemic's effect on economies worldwide; overall progress towards improvements in all facets of the telecom industry - mobile, fixed-line, broadband, submarine cable and satellite - has moderated
Broadcast media:
relies on foreign terrestrial and satellite broadcasters for most broadcast media services; first Liechtenstein-based TV station established August 2008; Radio Liechtenstein operates multiple radio stations; a Swiss-based broadcaster operates one radio station in Liechtenstein
Internet country code:
.li
Internet users:
total:
37,815
percent of population:
98.1%
(July 2018 est.)
country comparison to the world: 202
Broadband - fixed subscriptions:
total:
16,712
subscriptions per 100 inhabitants:
43
(2018 est.)
country comparison to the world: 158
Transportation
Civil aircraft registration country code prefix:
HB
(2016)
Pipelines:
434.5 km gas
(2018)
Railways:
total:
9 km
(2018)
standard gauge:
9 km
1.435-m gauge (electrified)
(2018)
note: belongs to the Austrian Railway System connecting Austria and Switzerland
country comparison to the world: 136
Roadways:
total:
630 km
(2019)
country comparison to the world: 191
Waterways:
28 km
(2010)
country comparison to the world: 105
Military and Security
Military and security forces:
no regular military forces; National Police maintain close relations with neighboring forces
(2019)
Transnational Issues
Disputes - international:
none
Illicit drugs:
has strengthened money laundering controls, but money laundering remains a concern due to Liechtenstein's sophisticated offshore financial services sector
