The Principality of Liechtenstein is a constitutional hereditary monarchy on a democratic and parliamentary basis.The country is situated in the heart of Europe and borders on Switzerland and Austria. Liechtenstein stands for stability and security – also thanks to the strong positioning of its financial centre.
The first bank in Liechtenstein was founded in 1861. Today – alongside banks, insurers, and professional trustees – the financial centre includes fund companies, asset managers, and numerous public-benefit foundations. With a contribution to GDP of 21.2%, the financial centre is the second most important economic sector after the broadly diversified industrial location at 41.9%. The banks in Liechtenstein have unrestricted access to their two main markets:
- Switzerland, thanks to the Customs Union of 1923 and the adoption of the stable Swiss franc as the official currency as a result of the Monetary Union
- the European Single Market, thanks to membership in the European Economic Area (EEA) since 1995 and the associated full incorporation of EU law
Banks in Liechtenstein enjoy the following location advantages:
Unrestricted market access to the European Single Market and Switzerland
High level of political, economic, and social stability
Moderate corporate taxation
AAA country rating by Standard & Poor’s
Short and efficient decision-making channels
Innovation-friendly environment
High level of education and business-friendly labour market policy
Broadly diversified economy with a strong industrial sector
Low-risk business models and excellent capitalisation with an average Tier 1 ratio of over 21%
