Liechtenstein is located in Western Europe, bordered by Switzerland to
the west and by Austria to the east.
It is the smallest German-speaking country in the world.
It is a constitutional monarchy divided into 11 municipalities. Its capital
is Vaduz. Much of Liechtenstein's terrain is mountainous, making it a
winter sports destination.
The Liechtenstein economy is widely diversified with a large number of
Despite its limited natural resources, Liechtenstein is one of the few
countries in the world with more registered companies than citizens; it
has developed into a prosperous, highly industrialized, free-enterprise
economy, and boasts a financial service sector as well as a living standard
which compares favourably to those of the urban areas of Liechtenstein's
large European neighbours.
Relatively low business taxes—the maximum tax rate is 20% - as well
as easy rules of incorporation have induced about 73,700 holding (or so-called
'letter box') companies to establish nominal offices in Liechtenstein.
Liechtenstein also generates revenue from the establishment of stiftungs
("foundations"), which are financial entities created to increase
the privacy of nonresident foreigners' financial holdings. The foundation
is registered in the name of a Liechtensteiner, often a lawyer.
GDP: purchasing power parity - $4.16
billion (2007 est.)
GDP - per capita: $118,000
Swiss francs (CHF) per US dollar - 1.0774 (2008 est.),
1.1973 (2007), 1.2539 (2006), 1.2452 (2005), 1.2435 (2004)