Editing Liechtenstein (section)

== Economy ==
{{Main|Economy of Liechtenstein}}
[[File:Vaduz Zentrum.jpg|thumb|Looking southward at Vaduz city centre]]
[[File:5 kronen Johann II of Liechtenstein 1904.png|thumb|upright=1.15|[[Silver coin]]: 5 kronen of Liechtenstein, 1904, the front of the coin is a portrait of Johann II]]
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 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.

Liechtenstein participates in a [[customs union]] with Switzerland and employs the [[Swiss franc]] as the national currency. The country imports about 85% of its energy. Liechtenstein has been a member of the [[European Economic Area]] (an organization serving as a bridge between the [[European Free Trade Association]] (EFTA) and the [[European Union]]) since May 1995.

The government is working to harmonize its economic policies with those of an integrated Europe. In 2008, the unemployment rate was 1.5%. Liechtenstein has only one hospital, the Liechtensteinisches Landesspital in Vaduz. As of 2014 the [[CIA World Factbook]] estimated the gross domestic product (GDP) on a [[purchasing power parity]] basis to be $4.978&nbsp;billion. As of 2021 the estimate per capita was $184,083.<ref name="LiechCIA" />

Industries include electronics, textiles, precision instruments, metal manufacturing, power tools, anchor bolts, calculators, pharmaceuticals and food products. Its most recognizable international company and largest employer is [[Hilti]], a manufacturer of [[Nail gun|direct fastening systems]] and other high-end power tools. Many cultivated fields and small farms are found both in the [[Oberland (electoral district)|Oberland]] and [[Unterland (electoral district)|Unterland]]. Liechtenstein produces wheat, barley, corn, potatoes, dairy products, livestock and [[Liechtenstein wine|wine]].

=== Taxation ===
[[File:Grenze Liechtenstein, Balzers.jpg|thumb|Since 1923, there has been no [[border control]] between Liechtenstein and [[Switzerland]].]]

The government of Liechtenstein taxes personal income, business income and principal (wealth). The basic rate of [[Income tax#Personal|personal income tax]] is 1.2%. When combined with the additional income tax imposed by the communes, the combined income tax rate is 17.82%.<ref>[http://www.nationsencyclopedia.com/Europe/Liechtenstein-TAXATION.html Encyclopedia of the Nations]. Nationsencyclopedia.com. Retrieved 24 December 2011.</ref> An additional income tax of 4.3% is levied on all employees under the country's [[social security]] programme. This rate is higher for the self-employed, up to a maximum of 11%, making the maximum income tax rate about 29% in total. The basic [[wealth tax|tax rate on wealth]] is 0.06% per annum, and the combined total rate is 0.89%. The tax rate on corporate profits is 12.5%.<ref name=LiechCIA />

Liechtenstein's [[gift tax|gift]] and [[Inheritance tax|estate taxes]] vary depending on the relationship the recipient has to the giver and the amount of the inheritance. The tax ranges between 0.5% and 0.75% for spouses and children and 18% to 27% for non-related recipients. The estate tax is progressive.

Liechtenstein has previously received significant revenues from ''Stiftungen'' ("foundations"), financial entities created to hide the true owner of nonresident foreigners' financial holdings. The foundation is registered in the name of a Liechtensteiner, often a lawyer. This set of laws used to make Liechtenstein a popular [[tax haven]] for extremely wealthy individuals and businesses attempting to avoid or evade taxes in their home countries.<ref>{{Cite news |title=Billionaire Tax Haven Liechtenstein Loses on Bank Reforms |url=https://www.bloomberg.com/news/articles/2013-05-02/billionaire-tax-haven-liechtenstein-loses-on-bank-reforms |access-date=3 August 2017 |website=Bloomberg.com |date=2 May 2013}}</ref>

In recent years, Liechtenstein has displayed stronger determination to prosecute international money launderers and worked to promote an image as a legitimate finance centre. In February 2008, the country's [[LGT Group|LGT Bank]] was implicated in a [[2008 Liechtenstein tax affair|tax-fraud scandal in Germany]], which strained the ruling family's relationship with the German government. Crown Prince Alois has accused the German government of trafficking in stolen goods, referring to its $7.3&nbsp;million purchase of private banking information offered by a former employee of LGT Group.<ref>Wiesmann, Gerrit (23 February 2008). "[http://www.ft.com/cms/s/0/4e54e4c4-e1b2-11dc-a302-0000779fd2ac.html Lilliput's giant-slayer]." ''Financial Times''. London.</ref><ref>{{Cite web |date=22 February 2008 |title=Pro Libertate: A Parasite's Priorities (Updated, February 23) |url=http://freedominourtime.blogspot.com/2008/02/parasites-priorities.html |access-date=3 August 2017 |website=Freedominourtime.blogspot.com}}</ref> The [[United States Senate]]'s subcommittee on tax haven banks said that the LGT bank, owned by the princely family, and on whose board they serve, "is a willing partner, and an aider and abettor to clients trying to evade taxes, dodge creditors or defy court orders".<ref>{{Cite news |date=6 October 2008 |title=Tax Me If You Can |work=ABC News Australia |url=http://www.abc.net.au/4corners/content/2008/s2383439.htm |url-status=dead |access-date=6 June 2010 |archive-url=https://web.archive.org/web/20091212021122/http://www.abc.net.au/4corners/content/2008/s2383439.htm |archive-date=12 December 2009}}</ref>

[[File:Hilti Schaan.jpg|thumb|Headquarters of [[Hilti]] Corporation in [[Schaan]], Liechtenstein]]

The [[2008 Liechtenstein tax affair]] is a series of tax investigations in numerous countries whose governments suspect that some of their citizens have evaded tax obligations by using banks and trusts in Liechtenstein; the affair broke open with the biggest complex of investigations ever initiated for tax evasion in Germany.<ref>{{Cite news |date=17 May 2010 |title=Skandal gigantischen Ausmaßes |language=de |work=Süddeutsche Zeitung |location=Munich |url=http://www.sueddeutsche.de/wirtschaft/steuerhinterziehung-skandal-gigantischen-ausmasses-1.272873 |access-date=17 May 2010}}</ref> It was also seen as an attempt to put pressure on Liechtenstein, then one of the remaining [[FATF blacklist|uncooperative tax havens]]—along with [[Andorra]] and [[Monaco]]—as identified by the Paris-based [[Organisation for Economic Co-operation and Development]] in 2007.<ref name="wsj0219">{{Cite news |last1=Esterl |first1=Mike |last2=Simpson, Glenn R. |author-link2=Glenn R. Simpson |last3=Crawford, David |date=19 February 2008 |title=Stolen Data Spur Tax Probes |work=The Wall Street Journal |location=New York |url=http://groups.google.com/group/alt.lawyers/browse_thread/thread/6782128a239af406/67aab034a3fcf850 |access-date=20 February 2008}}</ref> On 27 May 2009 the OECD removed Liechtenstein from the blacklist of uncooperative countries.<ref>[http://www.oecd.org/document/41/0,3343,en_2649_33767_42857769_1_1_1_37427,00.html Removal from OECD List of Unco-operative Tax Havens]. Oecd.org. Retrieved 24 December 2011.</ref>

In August 2009, the British government department [[HM Revenue & Customs]] agreed with Liechtenstein to start exchanging information. It is believed that up to 5,000 British investors have roughly £3&nbsp;billion deposited in accounts and trusts in the country.<ref>[http://news.bbc.co.uk/1/hi/uk/8194532.stm "UK signs Liechtenstein tax deal"]. ''BBC News''. 11 August 2009. Retrieved 24 December 2011.</ref>

In October 2015, the European Union and Liechtenstein signed a tax agreement to ensure the automatic exchange of financial information in case of tax disputes. The collection of data started in 2016. It is another step to bring the principality in line with other European countries regarding its taxation of private individuals and corporate assets.<ref>{{Cite press release |title=EU and Liechtenstein sign deal on automatic exchange of tax data |date=28 October 2015 |publisher=European Council |location=Brussels |url=http://www.consilium.europa.eu/en/press/press-releases/2015/10/28-eu-liechtenstein-deal-exchange-tax-data/ |access-date=15 August 2017}}</ref>

=== Tourism ===
Tourism accounts for a large portion of Liechtenstein's economy.{{citation needed|date=December 2023}}
In 2021, there were nearly 80 000 tourists and over the preceding twelve years the number of tourists ranged between about 60 to 100 thousand people per year.<ref>[https://www.statista.com/statistics/413269/number-of-arrivals-spent-in-short-stay-accommodation-in-liechtenstein/ Statista - Number of arrivals in tourist accommodation in Liechtenstein from 2008 to 2021 ]</ref>