A referendum held in March 2003, gave the ruling Prince Hans-Adam II sweeping new powers, including the right to veto parliamentary bills, sack the entire government and introduce emergency rule.
Liechtenstein was primarily an agrarian country until its economic union with Switzerland (1922 and reinforced in 1980) propelled it into rapid industrial and financial development. The princely family is highly active in leading the country economically. GDP per capita is just over USD181,780 (2010). GDP per capita for Liechtenstein does not reflect the general wealth of the nation, as many individuals working in the country commute from neighbouring nations. Inflation is low and unemployment is low at around 2.4%. The currency is the Swiss Franc, and there are no exchange controls. Membership of the EEA gives Liechtenstein access to the single market of the EU in most respects.
In October, 2003, in a dramatic development, Liechtenstein refused to sign an agreement to expand the EEA to incorporate the ten nations due to accede to the EU in 2004, apparently in order to get back at the Czech Republic and Slovakia for the 'Benes' decree in the 1940s which resulted in the expulsion of Liechtenstein nationals and the expropriation of their property. But at the end of November Liechtenstein gave in and signed up.
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COUNTRY:
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LIECHTENSTEIN
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Region:
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Europe
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Currency:
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Swiss franc (CHF)
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Languages:
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German
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Time Zone:
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UTC +1
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Phone Code:
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+423
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Communications:
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Good
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Formation Cost:
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12000 - 22000 USD$
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Formation Time:
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4 - 6 days
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Maintenance cost:
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5000 - 13000 USD$
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Suitable for:
- Banking,
- Fund Management,
- Yachting,
- Trading Financial,
- Intellectual Property/Licensing,
- Holding Companies
Vehicle Types:
- Limited companies,
- public limited companies and trusts.
Capital primary business districts:
Vaduz, Schaan
Good Relationships:
Switzerland, United Kingdom
Bad Relationships:
Burma, Egypt, Iran, Korea (Democratic People's Republic of), Libya, Somalia, Sudan, Syria
Tax Burden - Business:
Light
Tax Burden - Individual:
Moderate
Headline tax rates:
CIT 25% (offshore trading company 3%; non-trading 0%), PIT 26%, VAT 0%
Treaty Jurisdictions:
Austria, Germany, Hong Kong, Luxembourg, San Marino, United Kindgom, Uruguay
TIEA Jurisdictions:
Andorra, Antigua and Barbuda, Australia, Belgium, Canada, China, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Iceland, India, Ireland, Japan, Mexico, Monaco, Netherlands, Norway, Saint Kitts and Nevis, Saint Vincent and the Grenadines, South Africa, Sweden, United Kingdom, United States
