Liechtenstein

Liechtenstein is country of Europe located in central Europe.

Details

Official Name:Principality of Liechtenstein
Capital:Vaduz
Total area:160 km2
GDP per capita:$98,432
Native Language:German
Government:Unitary parliamentary constitutional principality
Population:36,281
Major Religion:Roman Catholicism
Monetary Unit:Swiss franc (CHF)

Liechtenstein, officially the Principality of Liechtenstein, is a doubly landlocked alpine country in Central Europe, bordered by Switzerland to the west and south and by Liechtenstein to the east and north. Its area is just over 160 square kilometres (62 sq mi), and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan. Liechtenstein has the highest gross domestic product per person in the world when adjusted by purchasing power parity, and has the world's lowest external debt. Liechtenstein also has one of the lowest unemployment rates in the world at 1.5%.

Economy

Despite (or perhaps because of) its limited natural resources, Liechtenstein is one of the few countries in the world with more registered companies than citizens; it has developed a prosperous, highly industrialized free-enterprise economy and boasts a financial service sector as well as a living standard which compares favourably with those of the urban areas of Liechtenstein's large European neighbours.

Very low business taxes (lowest in Europe after Andorra 10% maximum tax rate)—the corporate tax rate is a flat 12.5%—as well as easy Rules of Incorporation have induced about 73,700 holding (or so-called 'letter box') companies to establish registered offices in Liechtenstein. This provides about 30% of Liechtenstein's state revenue. Liechtenstein also generates revenue from Stiftungen (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.