Living in Liechtenstein: the ultimate expat guide

Liechtenstein implements an extremely restrictive quota system for residence permits, making relocation highly selective. As a member of the European Economic Area and Schengen zone, the principality allows European citizens free movement for short stays. However, long-term residence or employment requires obtaining a residence permit, which must be secured several months in advance.

Short-term stays

For tourist or business visits under 90 days, European Union, European Economic Area, and Swiss citizens require no visa. Entry is permitted with a valid identity card or passport. Other nationalities need a Schengen visa costing 80 EUR for adults and 40 EUR for children. Applications are submitted through Swiss embassies or consulates, as Liechtenstein lacks diplomatic representations in all countries. Requirements include a passport valid at least 3 months beyond departure date, travel insurance covering minimum 30,000 EUR, and proof of sufficient financial means.

Work-related residence permits

The short-stay permit (L permit) is designed for employment contracts under one year with a Liechtenstein-based company. This permit doesn't count toward annual quotas but requires confirmed job offer. The standard residence permit (B permit) is subject to strict quotas: only 72 permits are allocated annually to EEA citizens, with 36 distributed by lottery and 36 by government selection based on national interest criteria. Swiss citizens benefit from a separate quota of 17 annual permits. An additional quota of 56 permits exists for employment, accessible to non-EEA nationals if employers demonstrate national interest. Initial permit duration is 5 years, renewable, leading to permanent settlement permit eligibility after this period.

Residence without employment

Liechtenstein offers a residence permit without professional activity, limited to 16 permits for EEA citizens and 5 permits for Swiss citizens annually. This permit targets retirees or financially independent individuals. Requirements include substantial financial resources, local accommodation, valid health insurance, and prohibition of local employment. Holders must reside at least 183 days annually in the country.

Student permits

Students accepted at Liechtenstein higher education institutions, such as the University of Liechtenstein, can obtain student residence permits. Required documentation includes admission letter, proof of financial resources of at least 1,500 to 2,000 CHF monthly, accommodation proof, and health insurance. Students are authorized to work up to 15 hours weekly during studies. A security deposit of 3,000 CHF is required at the University of Liechtenstein.

Processing timelines and procedures

Processing times range from 4 to 8 weeks for standard residence permits, extending to 6 to 12 weeks for work permits depending on case complexity. State fees amount to 62 EUR. All applications must be submitted via Swiss embassies or consulates, as Liechtenstein lacks extensive diplomatic networks. Importantly, purchasing real estate in Liechtenstein grants no automatic residence permit rights. Finally, changing employers requires a complete new work permit application, potentially involving substantial administrative procedures.

Liechtenstein's labor market demonstrates remarkable dynamism with unemployment rates among Europe's lowest. With approximately 20,000 cross-border workers commuting daily from Switzerland, Austria, and Germany, the country compensates for its small population through highly qualified international workforce. Professional opportunities concentrate primarily in financial services and advanced manufacturing sectors.

High-performing labor market

In 2023, Liechtenstein recorded an employment rate of 78.2% for ages 20-64, standing 7.6 points above the European Union average. Unemployment reached only 1.4%, representing one of Europe's best performances. The active population totaled 20,786 persons in December 2023, with the majority employed in service sectors. Women achieve a 73.1% employment rate, while men reach 83.4%. This performance stems from a diversified, innovative economy, with massive research and development investment representing approximately 32% of national revenues.

The following table presents key employment market statistics in Liechtenstein, offering an overview of working conditions and compensation in the country.

Sources: EURES, World Salaries

Key sectors and major employers

Liechtenstein's economy rests on three main pillars. Financial services contribute approximately 20% of GDP, specializing in private banking and wealth management. Institutions like LGT Group and VP Bank in Vaduz employ several hundred professionals. Manufacturing industry represents 34.1% of employment, concentrating on high-value sectors: electronics, metallurgy, textiles, ceramics, pharmaceuticals, and precision instruments. Leading companies include Hilti AG in Schaan (professional equipment), Ivoclar Vivadent AG (dental materials), and Oerlikon Balzers (industrial coatings). The technology and innovation sector benefits from massive R&D investments, establishing Liechtenstein as a regional technology hub.

Working conditions and social charges

Probationary periods typically last one month, followed by permanent contracts. While not mandatory, 13th-month salary (Weihnachtsgeld) is common in many companies. Overtime receives premium compensation, generally set at 25% of hourly rate. Salaries experience average growth of 4% every 29 months. Employer social contributions total 12.5% of salary, including 9.6% for old-age, survivors, and disability insurance. Mandatory health insurance is shared equally between employer and employee, representing approximately 300 to 320 CHF monthly per person.

Starting a business

Business formation in Liechtenstein takes 2 to 4 weeks for complete registration and professional bank account opening. Corporate tax rate is fixed at 12.5% flat, making it one of Europe's most attractive tax regimes. Available legal forms include AG (public limited company), GmbH (limited liability company), Anstalt (establishment, specific to Liechtenstein), and Trust. Most businesses are small-scale: 88.2% employ fewer than 10 people, 9.6% between 10-49 employees, and only 2.2% employ 50 or more. This economic structure favors entrepreneurship and innovative SMEs.

Liechtenstein's tax system stands out for its relative simplicity and attractiveness, with tax rates significantly lower than most developed countries. The system operates on progressive taxation combining national and municipal levels. The country has concluded tax treaties with numerous nations including the United States and United Kingdom to prevent double taxation, ensuring clarity for international taxpayers.

Personal income tax

Income tax functions on a two-tier progressive system. At the national level, the scale comprises 8 brackets ranging from 1% to 8% of taxable income. The first 15,000 CHF of income is tax-exempt for single individuals. Beyond 200,000 CHF annual income, the national rate reaches its 8% maximum. A municipal multiplier between 150% and 250% of national tax applies depending on municipality of residence. In practice, combined effective rates range from 2.5% to 22.4% of total income, depending on income level and chosen municipality. This maximum rate remains substantially lower than top marginal rates in most English-speaking countries.

Tax residency

Tax residents of Liechtenstein are taxed on worldwide income, meaning all income earned globally. Tax residency is established when residing more than 6 consecutive months in the country. Non-residents are taxed only on Liechtenstein-source income, such as income from permanent establishment, real estate located in Liechtenstein, local salaried or self-employed activity, or fees received domestically.

Value Added Tax (VAT)

Liechtenstein applies a Value Added Tax (Mehrwertsteuer) system aligned with Swiss legislation. The standard rate is 8.1% since January 1, 2024, increased from previous 7.7%. A reduced rate of 2.6% applies to essential goods including food, medicines, newspapers, and books. Hospitality benefits from a special rate of 3.8%. Since 2025, VAT registration and declarations are exclusively electronic, with new rules applying to online sales platforms.

Wealth tax

Liechtenstein applies a particular mechanism for taxing wealth: assets are multiplied by 4% to calculate notional income, then added to income tax base. This taxation applies to movable assets (financial investments) and real estate. This system can significantly increase tax burden for individuals with substantial assets, even if current income is modest.

Capital gains and dividends

Capital gains on private stocks and securities are tax-exempt when arising from private asset management. However, real estate capital gains face specific taxation with rates varying from 3% to 24% depending on gain amount realized. Dividends received by individuals are also tax-exempt, representing a notable advantage for investors.

Inheritance and gift taxes

Liechtenstein applies no inheritance or gift taxes, except in one specific case: a 3.5% levy applies when transferring assets to non-taxable entities within the country. This absence of succession taxation makes it a prized destination for estate planning.

Other taxes

A securities transaction tax applies to stock market operations: 0.15% for Swiss or Liechtenstein securities and 0.3% for foreign securities when transacting through local brokers. Liechtenstein levies no withholding tax on dividend distributions, simplifying taxation for foreign investors. Finally, a lump-sum expenditure-based taxation regime exists for individuals establishing residence without working locally, financing their lifestyle through foreign income or assets. This regime replaces standard income and wealth tax.

International tax treaties

Liechtenstein has signed 22 double taxation agreements with countries including the United States, United Kingdom, Switzerland, Germany, Singapore, Hong Kong, and the United Arab Emirates. These treaties prevent the same income from being taxed twice. The country has also concluded 27 tax information exchange agreements to combat tax evasion and meet international transparency standards. US citizens should note that FATCA reporting requirements apply regardless of residence location.

Liechtenstein operates a universal healthcare system based on mandatory private health insurance, similar to the Swiss model. All residents and workers must individually affiliate with an approved insurance company. Despite limited medical infrastructure on national territory, care quality remains high through agreements with neighboring Swiss and Austrian hospitals.

Mandatory health insurance

Affiliation with basic health insurance (OKP) is mandatory for anyone residing or working in Liechtenstein. Three insurance companies offer this mandatory coverage. Each individual must subscribe personally, including children. Monthly premiums amount to approximately 300 to 320 CHF per person (around 330 to 350 USD). For employees, this premium is shared equally between employer and employee. Children under 16 years benefit from premium exemption, while those under 20 pay no co-payment. Individuals reaching retirement age enjoy a 50% reduced rate.

Coverage and benefits

Basic insurance covers preventive consultations, treatments by general practitioners, chiropractors and physiotherapists, hospital and outpatient care, prescription medications, and medical analyses. Consultations with contracted general practitioners are free, with practitioners paid directly by insurance companies. Emergency services are also free, even for uninsured individuals. However, dental care is not covered by mandatory insurance: the country has 26 private dental clinics and patients must pay entire costs out-of-pocket.

Medical infrastructure

Liechtenstein has only one hospital, the Liechtensteinisches Landesspital located in Vaduz, handling routine care and emergencies. The country counts approximately 64 general practitioners and consultants, along with numerous health centers distributed across territory offering outpatient care and specialist consultations. For highly specialized treatments or complex surgical interventions, patients are transferred to hospitals in Switzerland or Austria, through bilateral agreements enabling coordinated care.

European Health Insurance Card

Holders of the European Health Insurance Card (EHIC) can access healthcare in Liechtenstein under the same conditions as local residents. Flat fees apply: 115 CHF for 30 days for active adults, and 40 CHF for retirees. The EHIC is accepted in all healthcare facilities throughout the country.

Despite limited hospital infrastructure, Liechtenstein's healthcare system guarantees high-quality care, reinforced by partnerships with neighboring countries. Expats should budget substantially for health insurance and dental care.

Liechtenstein offers a very high-quality education system, ranked among Europe's best according to PISA evaluations. Literacy rate reaches 100% and the country draws heavily from the Swiss model. For expat families, public schools are free, while higher education offers attractive programs, notably at the University of Liechtenstein.

Public education system

Liechtenstein's school system follows a structure similar to Switzerland, with compulsory primary and secondary education of high quality. In 2012, Liechtenstein recorded Europe's highest PISA scores, confirming its educational system excellence. The country counts 9 public secondary establishments, including Liechtensteinisches Gymnasium in Vaduz, preparing students for baccalaureate, along with Realschule Vaduz and Oberschule Vaduz, grouped in Mühleholz II school center. In Schaan, one finds Realschule Schaan and Sportschule Liechtenstein, the latter specializing in training young high-level athletes.

Higher education

The University of Liechtenstein, located in Vaduz, constitutes the country's main higher education institution. It offers programs in business economics and architecture and planning. Some modules and language courses are taught in English, though German remains the primary teaching language. Tuition fees range from 1,500 to 3,000 CHF per semester (approximately 1,650 to 3,300 USD) for Bachelor's degrees, and 3,000 to 4,500 CHF per semester for Master's. A security deposit of 3,000 CHF is required for the entire student visa duration. The university also offers Executive programs, including an MBA specializing in technology innovation, a CAS in Blockchain and FinTech, and an LL.M. in economic criminal law.

The Private University in the Principality of Liechtenstein (UFL), based in Triesen, offers programs in medicine and law. For international students pursuing medicine, specific qualifications may be required depending on country of origin.

International student admission requirements

International candidates must provide a university admission letter, proof of financial resources covering 1,500 to 2,000 CHF monthly, a certificate of non-opposition to expatriation (depending on country of origin), valid health insurance, and proof of accommodation. International qualifications are generally recognized, subject to equivalence with European standards. The Erasmus program allows students to benefit from one to two semester exchanges at partner universities within the European Economic Area.

System advantages

Small class sizes enable personalized attention and close student monitoring. Internship regulations are flexible, allowing students to choose professional experiences suited to their personal needs and career goals. Liechtenstein offers a modern learning environment, connected to European academic networks, while maintaining a human dimension conducive to success.

Finding accommodation in Liechtenstein presents a significant challenge due to the territory's small size and high demand. The rental market is tight and prices, whether purchasing or renting, rank among Europe's highest. Apartments constitute the majority of available offerings, while individual houses remain rare and often prohibitively expensive for most expats.

Real estate purchase prices

Real estate prices vary considerably by location. In Vaduz, the capital, prices range between 10,000 and 13,000 CHF per square meter (approximately 11,000 to 14,300 USD per sqm), making it the country's most expensive city. Houses in Vaduz average 5 bedrooms with total average surface of 1,218 m², reflecting the area's very high standard. In municipalities of Balzers and Schaan, prices are more accessible, around 5,000 CHF per sqm (approximately 5,500 USD per sqm), roughly half Vaduz prices. Importantly, purchasing real estate in Liechtenstein grants no automatic residence permit rights, with restrictions applying even for European Economic Area citizens to protect local interests.

Rental market

Rents in Liechtenstein are approximately 58.7% higher than in Germany, to provide perspective. Rates vary from several hundred to several thousand dollars monthly depending on accommodation size and location. In Vaduz, rents significantly exceed those in other municipalities. Precise data on average rents by accommodation type is limited due to small transaction numbers recorded, but expect amounts comparable to those in major Swiss cities like Zurich or Geneva.

Main cities and neighborhoods

Vaduz, the capital, attracts expats working in finance, diplomacy, or government institutions. It offers all services, national museums, cathedral, and cosmopolitan atmosphere, but prices are prohibitive. Schaan, the largest municipality with 5,748 inhabitants, represents a more affordable choice. A major economic center, it hosts headquarters of large companies like Hilti and features a railway station facilitating travel. Triesen, with 4,701 inhabitants, appeals to families and retirees through its historical charm, medieval buildings, and modern infrastructure. Recent residential zones offer tranquil living near Vaduz. Finally, Balzers, in the country's south, offers more moderate real estate prices and easy access to industrial employment, notably at Oerlikon Balzers.

Real estate taxation

Liechtenstein levies no annual property tax on ownership, representing a notable financial advantage for property owners. However, rental income is integrated into income tax base, with progressive rates ranging from 3.24% to 17%. Upon resale, a 2.1% tax applies to the difference between purchase and sale price, calculated on realized capital gain.

Housing in Liechtenstein requires substantial budget and advance planning. Finding accommodation timelines can be lengthy, so starting searches several months before relocation is recommended.

Relocating to Liechtenstein demands meticulous preparation and rigorous planning, given strict residence permit quotas and high living costs. Here's a detailed checklist for successful expatriation to this Alpine principality.

Before departure

1. Secure residence permit: This is the most critical step. Annual quotas are extremely limited (72 permits for EEA citizens), making it imperative to begin procedures several months in advance. Work permits generally require confirmed job offer from a Liechtenstein company. Allow between 4 and 12 weeks depending on case complexity.
2. Obtain job offer: Most work-related residence permits require employment commitment. Target growing sectors like finance, advanced manufacturing, or technology, and consult job postings on European employment platforms like EURES.
3. Find accommodation: The real estate market is tight and prices are very high, particularly in Vaduz. Start your search as early as possible, ideally several months before arrival. Consider Schaan, Triesen, or Balzers for more affordable rents.
4. Obtain mandatory health insurance: Upon arrival, you must affiliate with one of three approved insurance companies offering basic coverage. Monthly premiums amount to approximately 300 to 320 CHF per person, shared equally between employer and employee if salaried.
5. Learn German: While English is spoken in some professional environments, German is the official language and Alemannic dialect is commonly used in daily life. Taking courses before departure will greatly facilitate integration.

Upon arrival

1. Open bank account: Once residence permit is obtained, visit a local bank to open an account. Liechtenstein features reputable institutions like LGT Group and VP Bank, though banking fees can be high.
2. Register with municipal authorities: Register with the municipality of residence to obtain residence certificate and finalize administrative installation.
3. Familiarize with transportation: Liechtenstein has no airport on its territory. Zurich airport, located approximately 115 km away, is nearest. The country is served by an efficient public bus network (Liechtenstein Bus) and a railway line crossing the territory with four stations, including Schaan-Vaduz. Swiss Travel Pass holders can use buses free of charge.
4. Plan substantial budget: Liechtenstein ranks as the world's 8th most expensive country. Living costs are approximately 64.3% higher than in Germany and 2.33 times above global average. Anticipate significant expenses for housing, food, and leisure.
5. Integrate into community: Liechtenstein society is relatively close-knit, and integration requires active participation in local life. Join sports clubs, participate in community events, and show genuine interest in local culture. This will facilitate acceptance and enrich your expat experience.

With proper organization and several months' advance planning, your Liechtenstein installation will proceed smoothly. Contact Swiss embassy or consulate in your country for official and updated information on required procedures.

Liechtenstein offers a privileged living environment between Alpine mountains and picturesque villages, ideal for outdoor activities and cultural discovery. Despite its small size, the country provides diverse activities for all tastes, from winter sports to summer hiking, along with rich historical and architectural heritage.

Sports and outdoor activities

Winter sports enthusiasts benefit from immediate Alpine proximity for practicing skiing and snowboarding in neighboring Swiss and Austrian resorts. Liechtenstein territory features 250 km of marked mountain hiking trails, offering spectacular panoramas over Alpine valleys and surrounding peaks. Cyclists have access to 90 km of developed cycling paths, enabling safe country-wide bicycle exploration. Rock climbing also attracts many enthusiasts through direct access to Alpine rock formations. The temperate continental climate guarantees cold, snowy winters ideal for winter sports, and cool but pleasant summers for hiking and mountain biking. The foehn, a warm autumn wind, occasionally brings mild temperatures at altitude.

Culture and heritage

The Liechtenstein National Museum and National Art Gallery, both located in Vaduz, offer high-quality permanent collections and temporary exhibitions. Vaduz Castle, perched on a hill overlooking the capital, remains the princely family's official residence and constitutes an iconic country symbol. While not open for visits, it provides majestic backdrop for old town walks. St. Florin's Cathedral in Vaduz impresses with its neo-Gothic architecture. Gutenberg Castle in Balzers, dating from the 12th century, houses a public museum retracing the region's medieval history. Villages like Triesenberg preserve distinct dialect and authentic local traditions, offering glimpses into Liechtenstein Alpine culture.

Events and social life

Liechtenstein regularly organizes cultural festivals, art exhibitions, and concerts throughout the year. Baroque churches, scattered across different municipalities, testify to the country's rich religious heritage. Social life centers around sports clubs, community associations, and local events, where expat integration requires active participation. The country also features several restaurants offering local cuisine inspired by Swiss, Austrian, and German traditions, though international options remain limited due to reduced territory size.

Nature and tranquility

With relatively low population density and omnipresent nature, Liechtenstein offers peaceful living far from major metropolis bustle. Alpine trails enable quick escapes into preserved landscapes where Alpine fauna and flora thrive. Villages maintain traditional architecture and friendly atmosphere, conducive to rejuvenation and quality of life. Exemplary safety and low crime rates reinforce the serenity characterizing life in Liechtenstein.

Liechtenstein ranks among the world's most expensive countries, placing 8th position for cost of living. Prices are approximately 2.33 times higher than global average and 64.3% above those in Germany. This expense reflects high living standards, substantial salaries, and proximity to Switzerland, whose economy strongly influences Liechtenstein. However, generous salaries partially offset these expenses, with median annual salary of 65,940 CHF (approximately 73,000 USD) covering average 2.8 months of current expenses.

Monthly expenses for single person

The following table presents estimated monthly expenses for a single person living in Liechtenstein. These amounts are indicative and may vary according to lifestyle and country location. Data sourced from Numbeo, updated July 2025.

Source: Numbeo (July 2025)

Monthly expenses for family of 4

For a family of four (two adults and two children), monthly expenses increase considerably, particularly due to housing and food costs. The table below provides estimates of main expense categories.

Source: Numbeo (July 2025)

Notable points

Detailed rent data for Liechtenstein is limited due to restricted recorded transaction numbers. Prices are generally comparable to major Swiss cities like Zurich or Geneva. Swiss Travel Pass holders can use Liechtenstein Bus network free of charge. Children under 16 years are exempt from health insurance premiums, representing substantial savings for families. Finally, public schools are free, while higher education at University of Liechtenstein remains affordable compared to Swiss or American universities.