Liechtenstein

Liechtenstein

Situated in the southwest of central Europe, Liechtenstein's economy splits almost equally between services and industry. The country is small and lacks natural resources. Never-the-less it has developed its economy along the lines of a progressive and highly-industrialised free enterprise. It has more registered companies than citizens and one of the highest GDP per capita in the world. The country has a strong service sector which employs a significant portion of the labour force, the majority (54%) of which are cross-border commuters from Austria, Germany and Switzerland. Being in a customs union with Switzerland, the country has adopted the Swiss franc as its national currency. It is also a member of the European Economic Area since 1995. The country imports more than 90% of its energy requirements. A low business tax rate (flat 12.5%) along with trouble-free incorporation rules have prompted many companies to establish their offices in the country, providing 30% revenue to the state coffers. The country has faced international pressure since 2008, specifically from Germany and the United States, to enhance transparency in its banking and taxation systems. A Tax Information Exchange Agreement was signed with the US in 2008. In the same year, Liechtenstein tax affairs unleashed a flurry of investigations by the governments of numerous countries against their citizens for tax evasion. The country was identified as an uncooperative tax haven by the Financial Action task Force (FATF) on money laundering of the Organisation for Economic Co-operation and Development (OECD). Liechtenstein was removed from the OECD's grey list after the country concluded 12 bilateral information sharing agreements. By 2010, the country had signed 25 Tax Information Exchange Agreements or Double Tax Agreements. A tax agreement was also signed with the European Union (EU) in 2015 to facilitate the automatic exchange of financial information.

In 2015, 63.13% of its total energy
consumption was renewable [2]

In 2021, its GDP grew by 0.00% [2]



What free trade areas or economic unions is it a member of?

Member of the European Free Trade Association (EFTA) since 01/01/1991

Other members:

Iceland, Norway, Switzerland


What trade deals are there between European Free Trade Association and other countries and economic unions?

EFTA - Türkiye Free Trade Agreement (from 01/04/1992)

EFTA - Israel Free Trade Agreement (from 01/01/1993)

European Single Market (SM) (from 01/01/1993)

EFTA - Morocco Free Trade Agreement (from 01/07/1999)

EFTA - Palestinian Authority Free Trade Agreement (from 01/07/1999)

EFTA - Mexico Free Trade Agreement (from 01/07/2001)

EFTA - North Macedonia Free Trade Agreement (from 01/05/2002)

EFTA - Jordan Free Trade Agreement (from 01/09/2002)

EFTA - Singapore Free Trade Agreement (from 01/01/2003)

EFTA - Chile Free Trade Agreement (from 01/12/2004)

EFTA - Tunisia Free Trade Agreement (from 01/07/2005)

SACU - EFTA free trade agreement (from 01/07/2006)

EFTA - Korea, Republic of Free Trade Agreement (from 01/10/2006)

EFTA - Lebanon Free Trade Agreement (from 01/07/2007)

EFTA - Egypt Free Trade Agreement (from 01/08/2007)

EFTA - Canada Free Trade Agreement (from 01/07/2009)

EFTA - Albania Free Trade Agreement (from 01/10/2011)

EFTA - Serbia Free Trade Agreement (from 01/10/2011)

EFTA - Peru Free Trade Agreement (from 01/07/2012)

EFTA - Hong Kong, China Free Trade Agreement (from 01/11/2012)

EFTA - Montenegro Free Trade Agreement (from 01/11/2012)

EFTA - Gulf Cooperation Council (GCC) Free Trade Agreement (from 01/07/2014)

EFTA - Gulf Cooperation Council free trade agreement (from 01/07/2014)

EFTA - Central America Free Trade Agreement (from 05/09/2014)

EFTA - Colombia Free Trade Agreement (from 01/10/2014)

EFTA - Bosnia and Herzegovina Free Trade Agreement (from 01/01/2015)

EFTA - Georgia Free Trade Agreement (from 01/05/2018)

EFTA - Philippines Free Trade Agreement (from 01/06/2018)

EFTA - Ecuador free trade agreement (from 01/11/2020)

EFTA - Indonesia free trade agreement (from 01/11/2021)


What trade deals are there with other countries and economic unions?

UK - Norway, Iceland, and Liechtenstein free trade agreement (from 01/01/2021)

UK - Switzerland - Liechtenstein Trade Agreement (from 01/01/2021)

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Trade with the United Kingdom

Source: UK Office for National Statistics, October 2022.

Contains public sector information licensed under the Open Government Licence v3.0.

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