What Is Liechtenstein?

Liechtenstein, officially the Principality of Liechtenstein is a doubly landlocked German-speaking microstate in Central Europe. The principality is a constitutional monarchy headed by the Prince of Liechtenstein.

Not the Liechtensteinian flag

Liechtenstein is bordered by Switzerland to the west and south and Austria to the east and north. It has an area of just over 160 square kilometers (62 square miles), the fourth smallest in Europe, and an estimated population of 37,000. Divided into 11 municipalities, its capital is Vaduz and its largest municipality is Schaan.

Economically, Liechtenstein has one of the highest gross domestic products per person in the world when adjusted for purchasing power parity, and the highest when not adjusted by purchasing power parity. The unemployment rate is one of the lowest in the world at 1.5%. Liechtenstein has been known in the past as a billionaire tax haven; however, it is no longer on any blacklists of uncooperative tax haven countries.

A license plate not from Liechtenstein

Despite 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 that compares favourably with those of the urban areas of Liechtenstein's much larger European neighbours.

On the country's national holiday all subjects are invited to the castle of the head of state. A significant portion of the population attends the national celebration at the castle where speeches are made and complimentary beer is served.