Liechtenstein

What is now the Principality of Liechtenstein was for a long time the minor holdings of a powerful noble family from elsewhere. It was part of the Holy Roman Empire and later became part of the German Confederation.

In 1866 Liechtenstein changed its alignment from the by then-dissolved German Confederation to Austria-Hungary until the end of World War I, when the economic devastation and the breakdown of the dual monarchy caused by that conflict forced Liechtenstein to conclude a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained neutral), the country's reputation as a "tax haven" has spurred outstanding economic growth. Outside of banking, Liechtenstein's main economic activities are the production of false teeth and tourism.

The Liechtensteinian flag is, by pure accident of history, identical to that of Haiti except for the emblems placed on both. During the 1936 Olympics, which were apparently the first time the two flags were displayed close to each other, this was discovered as Haitian civil flags at the time omitted the coat of arms and Liechtenstein added the crown as a symbol of its monarchy and to distinguish it from the civil flag of Haiti, should the two ever be displayed alongside each other.

Shortcomings in banking regulatory oversight have resulted in concerns about the use of the financial institutions for money laundering and tax evasion. However, the days of bringing suitcases of money into banks for deposit with no questions asked are over.

Liechtensteiners are also very proud of the fact that their nation has never been involved in a battle or military confrontation with an enemy state. They see their flag as a banner of peace.

For a European country, the aristocratic element in the constitution is rather strong and the prince/regent has a lot of powers both in theory and in reality (unlike say the British monarch). However, unlike almost all monarchies in the world there is a provision in the constitution that the prince has to resign and the monarchy has to be abandoned if a majority of the people so desire.

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 living standards on a par with the urban areas of its large European neighbours. 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 a large number of holding or so-called letter box companies to establish nominal offices in Liechtenstein, providing 30% of state revenues. Perhaps the most notable company from Liechtenstein is Hilti, not a bank, but a manufacturer of power tools (though they aren't made in Liechtenstein any longer). Liechtenstein is the world's leading producer of false teeth.

Liechtenstein participates in a customs union with Switzerland and uses Swiss francs as its national currency interchangeably with the Liechtenstein frank. It imports more than 90% of its energy requirements. Liechtenstein has been, since May 1995, a member of the European Economic Area, an organization serving as a bridge between the EFTA and the EU. The government is working to harmonize its economic policies with those of an integrated Europe. Liechtenstein has one of the highest personal income rates (GDP per capita) in the world, with the base rate of income tax at just 1.2%.

Liechtenstein is very mountainous, and is double-landlocked — one of only two countries in the world to be landlocked by landlocked countries (Uzbekistan is the other).

Most of the country's population lives in the long and wide Rhine Valley in the western third. Roads are mainly laid out in a north-south pattern following the valley as well. To the north, the main roads lead to the border with Austria, to the south, they enter Switzerland, and to the west across the river the bridges also cross into Switzerland. Most of the eastern border with Austria is not passable and is only accessible by foot as it is very mountainous, though the north of the country is well connected by road to Feldkirch in Austria. The country's highest point is the Grauspitz, which reaches 2,599 m. Among other European microstates, Liechtenstein is 2.5 times bigger than San Marino and 81 times bigger than Monaco.

Liechtenstein has a continental climate featuring cold, cloudy winters with frequent snow or rain, making the country a moderately popular ski destination. Summers are cool to moderately warm, also often cloudy and humid.

• Tourist information website

Liechtenstein is a member of the Schengen Agreement. See Travelling around the Schengen Area for more information on how the scheme works, which countries are members and what the requirements are for your nationality. In summary:

• There are normally no immigration controls between countries that have signed and implemented the treaty.
• There are usually identity checks before boarding international flights or boats entering the Schengen Area. Sometimes there are temporary border controls at land borders.
• A visa granted for any Schengen member is valid in all other countries that have signed and implemented the treaty.

Liechtenstein is not a member of the EU. Therefore, travellers entering Liechtenstein from Austria (and vice versa) are subject to non-systematic customs controls. There have been no immigration controls since Liechtenstein joined the Schengen Area on 19 December 2011.

Liechtenstein maintains a complete customs union with Switzerland and is represented by Switzerland in embassies internationally. Since 1923 there have been no border formalities needed for crossing between the two countries. In essence there is nothing more than a sign announcing your arrival in Switzerland or Liechtenstein (when you cross the Rhine or the land border), similar to the situation at smaller border crossings in many EU nations (e.g., Austria, Germany, France, Italy).

Measures to combat COVID-19 in Liechtenstein have been lifted. However, there may also be Swiss regulations to consider in regards to entry. For updates and the latest information, check Liechtenstein's tourism website and the Liechtenstein Government's COVID-19 portal (Website in German). (Jan 2023)

Liechtenstein has no airports. You can take a flight to Zürich Airport (ZRH ^IATA), 115 km from Liechtenstein. Although this is the only major airport near Liechtenstein, there are some limited services from Vienna to St. Gallen-Altenrhein Airport (53 km) by Austrian Arrows. There is also a private airport in Bad Ragaz, very close to the border. Another popular point of entry is through Friedrichshafen in Germany, which is served by low-cost airlines.

Liechtenstein has a heliport in the Southern Lowlands. This heliport has no passport control so helicopters are only allowed to go inside the Schengen Area. There is a heliport near the border at Feldkirch, Austria where passport control can be organised.

Flixbus has rides to Vaduz from Munich, Bregenz, Lindau, Milan, Lugano and Chur . (updated Apr 2024)

ÖBB, the Austrian federal railway company, runs a limited service from Buchs SG station in Switzerland, via Schaan-Vaduz station (near Schaan) to Feldkirch in Austria. Trains only run a few times a day, which makes buses generally more convenient.

Buses run every 15 minutes from the train station at Buchs (the main Swiss town on the Liechtenstein border) to Schaan and Vaduz. Tickets can be purchased on the bus for Fr. 3.40 and it only takes about 10 minutes to Schaan and another 5 to Vaduz. Vaduz is the only European capital in a country that otherwise has a rail network not connected to any rail line and there are (as of 2017) no plans to change that.

If coming by rail from Switzerland, it may be quicker and cheaper to take the train as far as Sargans, from where it's possible to catch a bus (see below) straight to Vaduz. Consult the SBB timetable to find out what'll be quickest when you're travelling. There are lockers at the Sargans station so you can leave your luggage there.

The Liechtenstein Buses Route 12 runs from Sargans railway station to Buchs railway station via central Vaduz and Schaan railway station. It leaves from outside each station approximately every 20 minutes. The buses are yellow-green in colour. A fare to Vaduz is Fr. 5.80 from Sargans and Fr. 3.40 from Buchs. There are student prices as well (be sure to show your student ID). Consider getting a whole network day pass (Fr. 12) or week pass (Fr. 24) if you are making many journeys, though two single fares (e.g., from Sargans or Buchs to Vaduz and Vaduz onward to Feldkirch) cost less than a day pass.

From Feldkirch railway station in Austria, look for the distinctive off-yellow Liechtenstein Buses. Numbers 11 and 14 head straight to Vaduz and number 13 goes to Buchs railway station, by-passing Vaduz, so you'll have to change at the Schaan interchange.

Liechtenstein has no highways, but the Swiss Autobahn A13/E34 runs along the Swiss side of the Rhine River, the border between Switzerland and Liechtenstein. There are several access points that cross the Rhine into Liechtenstein, the two that are most commonly used are the bridge crossing into the southern town of Balzers and the crossing into Vaduz. If you aren't coming from the west or have a Swiss vignette already, it may make sense to avoid Swiss highways as there is only a year vignette.

The alternative is to reach Liechtenstein via Austria. Coming from Germany, you most likely will also buy a vignette which is available in a 10 day variety that is much cheaper than the Swiss year version. You enter Liechtenstein directly from the north, via the Austrian city of Feldkirch which is also a tourist attraction.

Driving in Liechtenstein is relatively safe, but extra care should be taken on narrow and winding mountain roads. Speed traps are common, and for good reason as the roads are not made for high speeds.

Vaduz has several parking garages and places. As the city is not very large you can hardly make a poor choice. The prices don't differ that much.

Very easy from Feldkirch in Austria. In rush hour, lots of commuters head into the capital. A simple sign as you stand by the main road in Feldkirch should get you a lift within minutes.

For a rural area of its size and wealth, Liechtenstein's bus system is decent and well patronized. The country's sole bus operator is Liemobil. Fares are reasonable. A day ticket costs Fr. 12 (as of Jan 2024) and a 7-day unlimited use card costs Fr. 24. Single ride tickets can be purchased from the driver, or through FAIRTIQ or SBB Mobile apps.

Another cheap way to travel, weather permitting, is by bike. The roads in Liechtenstein are in excellent condition and many (in the Balzers-Schaan corridor) even offer bike lanes. Biking through the whole country (entering from Austria going all the way south through to Switzerland) takes only a few hours, but is worth every minute of the wonderful alpine scenery!

Liechtenstein is a very sluggish place to drive. The majority of the roads are either uphill on extremely steep and winding stretches or in populated regions. If it has one, the automatic gearbox should be in sport setting there. The valley also has straighter roadways. The roads are frequently a little congested, particularly in the direction of Vaduz.

Speed restrictions are prominently displayed. Some sections of the road between cities are 80 km/h, but primarily within the 50 km/h zone. Because of how slowly the interior roads move, navigators frequently suggest taking the highway just across the border in Switzerland. There are no national highways in the nation.

By foot

Liechtenstein is full of well-marked and -maintained hiking trails. The 'Liechtenstein Weg' is a 77-km path that crosses the entire country, from Balzers to Schaaneald, while doing some loops and going a bit into the mountains. It is divided into 5 stages, but realistically manageable in 2-3 days. If you would walk the main high way, you could cross the country in one day.

Liechtenstein uses the Swiss franc (CHF) as its currency. Many shops will also accept euros, but the exchange rate may not be very advantageous and you will get your change in Euro. An exception are supermarkets, where you will usually get the best exchange rate, which makes it a good place for exchanging your Euros into Francs: buy something and pay with a bigger euro bill, they accept up to 100€ bills (especially if you continue to Switzerland afterwards and want to exchange money) For a short visit you might not need francs at all though, as even the parking garage accepts euros.

Costs in Liechtenstein are roughly equivalent to those in Switzerland and are therefore somewhat more expensive than other European countries.