As one of the most scenic countries around, the Principality of Liechtenstein offers many people a wonderful place to live and/or work. Liechtenstein is one of the smallest countries in the world by size, but offers a huge advantage to many individuals and businesses with its attractive tax haven Taxes are notoriously low in Liechtenstein and this is one reason expats flock to this tiny Alp country to live.
Liechtenstein is a land locked country that is German speaking. It is located between both Austria and Switzerland; however it is more closely aligned to Switzerland than Austria. The population of Liechtenstein is only 33,000. The area of Liechtenstein measures approximately 160 KM, which translates into only 77 miles of land. The country is so small; you can drive from one border to the other in only a few minutes. While Liechtenstein is a German speaking country, it does not share a border with Germany. It should also be noted that Liechtenstein is a doubly land locked country, meaning that the two countries that it borders (Switzerland and Austria) are also landlocked. The currency of Liechtenstein is based on the Swiss Franc. The Swiss Franc is a very stable currency and has a lot of buying power.
Climate
The climate of Liechtenstein is continental in nature. This means that it is generally cold in the winter and relatively warm in the summer. During the winter time expect temperatures that hover around freezing and as you rise in the Alp regions of the country, the temperatures can easily drop below the freezing mark. One of the attractions of Liechtenstein is its winter resorts that cater to ski and winter sports enthusiasts. Besides being cold, winters can also be cloudy and there is frequent rain and snow. During the summer months, expect moderately warm days with some sun. Summers can be humid at times and thus uncomfortable for some people. During the spring time, expect frequent rain and temperatures usually rise by the very end of the spring season. The fall time is mild with less humidity that can be chilly at times.
Government
The government of the Principality of Liechtenstein is classified as a democratically run constitutional monarchy. Many people that visit Lichtenstein are amazed at how well run the country is and how clean it can be. Some have mentioned that the country is a type of wonderland due to its pristine beauty and cleanliness.
It should be noted that there is no US embassy in Liechtenstein; however the US Embassy in Switzerland does assist with issues and policies within Liechtenstein.
You can contact the Embassy of Liechtenstein to the United States of America.
Tax System
One of the reasons many expats and businesses come to Liechtenstein is due to the low tax rates. Tax rates are extremely low on personal income and corporate income. While there are many taxes that are levied by the government, for the most part they are far less than what the rest of Europe levies. For instance, the basic tax rate is 1.2% on income. There is also a tax on wealth, which is .06%. There are other taxes that are aggregated. For instance, personal income can be as high as 17.82% which is very low compared the UK, France and Germany.
Corporate taxes are extremely low as well. Expect taxes on corporations to be between 7.5% and 15%. You can find out more information regarding taxes in Liechtenstein at the Embassy of Liechtenstein to the United States of America.
Medical Care
One of the great things about Liechtenstein is that anyone that works or lives in Liechtenstein receives mandatory health insurance. Liechtenstein has more than adequate facilities and a well trained health care staff. You can easily find excellent health care any where in the country.
If you are an expat that has a status of a tourist, you might have to rely on your health insurance from back home or buy an international traveler’s insurance plan in case you require hospitalization.
Real Estate
Property in Liechtenstein is very expensive. For a small size apartment, expect to pay 300,000 Euros or more. A large apartment or home can cost well over one million Euros. For those looking to purchase real estate, you should know that there are tough restrictions. Property is sold to those that have resided in Liechtenstein for at least three years. For expats looking to live in Liechtenstein, usually a work permit is necessary. For those expats with a working permit, finding a home or apartment to rent or lease is fairly easy.
It should be noted that you can easily enter Liechtenstein with just a passport. No visa is required for Americans. If you are entering the country from Switzerland, there are usually no border guards or border crossing.
Shopping
While Lichtenstein is small, it does have plenty of shops, especially in the larger towns. Since the country is filled with many wealthy individuals, there are plenty of shops that cater to this high end clientele. Besides shops that offer the necessities, you can find plenty of boutiques and many businesses that offer services.
Besides shopping, there are plenty of entertainment options including fine restaurants, night life, resorts, spas and live music. While Liechtenstein is not known as a party hot spot, those that come to this beautiful country will find plenty of things to keep them entertained and occupied.
Cost of Living
The cost of living in Liechtenstein is high. Not only is the currency the Swiss Franc, but because the low tax rates draw wealthy individuals, many shops charge a premium for their goods and services. Unfortunately, real estate can be one of the most expensive in Europe and while taxes are low offsetting the cost, it can very difficult to find a decent place to live on a small budget. However, for those that are looking to live in a small, cozy Alpine country that is picture perfect, Liechtenstein is well worth any price.