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 Germanic 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.

Central Europe, between Austria and Switzerland

47 16 N, 9 32 E

Europe

about 0.9 times the size of Washington, DC

0 km (doubly landlocked)

none (landlocked)

continental; cold, cloudy winters with frequent snow or rain; cool to moderately warm, cloudy, humid summers

mostly mountainous (Alps) with Rhine Valley in western third

hydroelectric potential, arable land

NA

NA

NA

along with Uzbekistan, one of only two doubly landlocked countries in the world; variety of microclimatic variations based on elevation

Liechtensteiner 65.6%, other 34.4% (2000 census)

German (official), Alemannic dialect

Roman Catholic (official) 76.2%, Protestant 7%, unknown 10.6%, other 6.2% (June 2002)

35,236 (July 2011 est.)

0.653% (2011 est.)

9.65 births/1,000 population (2011 est.)

7.61 deaths/1,000 population (July 2011 est.)

4.48 migrant(s)/1,000 population (2011 est.)

VADUZ (capital) 5,000 (2009)

1.53 children born/woman (2011 est.)

NA

NA

NA

2% of GDP (2007)

constitutional monarchy

11 communes (Gemeinden, singular - Gemeinde); Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, Vaduz

23 January 1719 (Principality of Liechtenstein established); 12 July 1806 (independence from the Holy Roman Empire)

Assumption Day, 15 August

5 October 1921; amended 15 September 2003

civil law system influenced by Swiss, Austrian, and German law

accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction

18 years of age; universal

unicameral Parliament or Landtag (25 seats; members elected by popular vote under proportional representation to serve four-year terms)

Constitutional Court or Verfassungsgericht; Supreme Court or Oberster Gerichtshof; Court of Appeal or Obergericht

Die Freie Liste (The Free List) or FL [Wolfgang MARXER]; Fortschrittliche Buergerpartei (Progressive Citizens' Party) or FBP [Alexander BATLINER]; Vaterlaendische Union (Fatherland Union) or VU [Adolf HEEB]

NA

CE, EBRD, EFTA, IAEA, ICRM, IFRCS, Interpol, IOC, IPU, ITSO, ITU, ITUC, OPCW, OSCE, PCA, Schengen Convention (de facto member), UN, UNCTAD, UPU, WIPO, WTO

the US does not have an embassy in Liechtenstein; the US Ambassador to Switzerland is accredited to Liechtenstein

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

Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial service sector and likely the second highest per capita income in the world. The Liechtenstein economy is widely diversified with a large number of small businesses. Low business taxes - the maximum tax rate is 20% - 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 (EFTA) and the EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe. In 2008, Liechtenstein came under renewed international pressure - particularly from Germany - 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.

$5.028 billion (2008)

$4.16 billion (2007)

$4.035 billion (2006 est.)

$5.08 billion (2008)

1.8% (2008 est.)

3.1% (2007 est.)

$141,100 (2008 est.)

$122,100 (2007 est.)

32,880 (2009)

1.5% (2007)

1.3% (September 2002)

NA%

18.6% of GDP (2008 est.)

2.4% of GDP (2008 est.)

0.7% (2010)

0.3% (2009)

$NA

wheat, barley, corn, potatoes; livestock, dairy products

electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, tourism, optical instruments

NA%

$2.83 billion (2009)

$3.92 billion (2008)

small specialty machinery, connectors for audio and video, parts for motor vehicles, dental products, hardware, prepared foodstuffs, electronic equipment, optical products

$1.77 billion (2009)

$2.59 billion (2008)

agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs, motor vehicles

$0 (2001)

Swiss francs (CHF) per US dollar -

1.0429 (2010)

1.0881 (2009)

1.0774 (2008)

1.1973 (2007)

1.2539 (2006)

19,600 (2010)

35,500 (2010)

relies on foreign terrestrial and satellite broadcasters for most broadcast media services; first Liechtenstein-based television station established August 2008; Radio Liechtenstein operates multiple radio stations; a Swiss-based broadcaster operates several radio stations in Liechtenstein (2008)

.li

9,418 (2010)

23,000 (2009)

gas 20 km (2010)

28 km (2010)

no regular military forces (constitutionally prohibited); Principality of Liechtenstein National Police (Landespolizei, LP) (2010)

Liechtenstein has no military forces but is interested in European security policy and is an active member of the Organization for Security and Cooperation in Europe (OSCE)

none

has strengthened money laundering controls, but money laundering remains a concern due to Liechtenstein's sophisticated offshore financial services sector