Liechtenstein

LIECHTENSTEIN

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Information about travelling to Liechtenstein

Liechtenstein is located in Central Europe, between Austria and Switzerland

Facts about Liechtenstein

Population	34,498 (July 2008 est.)
Capital	Vaduz
Time zone	UTC+1 (6 hours ahead of Washington, DC during Standard Time) daylight saving time: +1hr, begin
Location	Central Europe, between Austria and Switzerland

General info about Liechtenstein

The Principality of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleanic 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 went into effect in 2003.

Languages spoken

German (official), Alemannic dialect

What about drugs?

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

Ethnic division

Liechtensteiner 65.6%, other 34.4% (2000 census)

HIV/AIDS prevalence rate

Climate

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

Resources

hydroelectric potential, arable land

Economy

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 the 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.