Liechtenstein – a broadly diversified center of commerce
Despite the Principality’s small size, Liechtenstein is extremely successful at holding its own on the international stage.
A small country is always confronted with great challenges. A surfeit of domestically produced raw materials and resources is not present, and the ability to exert economic as well as political influence is relatively meager. But in the «size» of the country also lie the strengths of the Principality of Liechtenstein. Tremendous flexibility and innovative power are the best guarantees that the opportunities to be had in a rapidly changing global economy can be successfully exploited even in future years.
For Liechtenstein as a center of commerce, globalization offers a great opportunity. Because its domestic market is relatively small, the Principality has always had to rely on opening up new foreign markets for its goods and services. Many Liechtenstein companies are world leaders in their specific niche. This global orientation, as well as the country’s liberal business regulations, constitute the basis for the attractiveness of Liechtenstein within the international financial community.
An overview of Liechtenstein
Country & populace
160 km2 of land area with approximately 35,500 inhabitants
Central location in Europe
Currency: Swiss francs; euros are also accepted
Constitutional hereditary monarchy based on a democratic and parliamentary foundation
Well-developed, modern infrastructure
Politics & laws
Stable social, legal and economic regulations
Political stability and continuity
Solid finance policy of the public-sector bodies
Liberal corporate law
Liberal tax legislation; holding-company privilege
Strict financial market supervision through the creation of an integrated supervisory authority (FMA) in 2005
Longer working hours compared to the rest of Europe; higher retirement age
Strong export industry
High-performance banking system
High-performance banking system
Significant economic branches (by number of employees)
Industrial and commercial: 43.7%
General services: 38.9%
Financial services: 15.2%
Agriculture & households: 2.1%
Memberships
EEA (since 1995)
WTO (since 1995)
EFTA (since 1991)
UN (since 1990)
European Council (since 1978)
OSCE (since 1975)
Economic, currency and customs union with Switzerland (since 1923)
Special aspects of Liechtenstein as an EEA member
Close relationships and open boundaries with Switzerland
Low taxation of holding and domiciliary companies
Strict banking client secrecy
Special Liechtenstein corporate formsn
Unhindered market access (e.g. EU-wide distribution of investment funds)
EU standards applied in legal provisions
VP Bank and Liechtenstein
The VP Bank Group was founded in Vaduz in 1956 and today is one of the three largest banks in Liechtenstein. Of the Group’s ca. 730 employees, close to 500 of them work in Liechtenstein.
