If you’re considering relocating to an Alpine region, Switzerland might be the first country that comes to mind. However, there is a 25-km long principality situated between Austria and Switzerland, known as Liechtenstein, which is home to many expats. Here are some of the reasons why Liechtenstein is considered an idyllic expat location.
Low taxes and a strong economy
Liechtenstein might be one of the smallest countries in the world when it comes to its size, but it offers tremendous financial advantages to individuals and businesses, due to its notoriously low taxes. Tax rates are extremely low on both personal income and corporate income. The basic tax rate is 1.2% on income and there is also a tax on wealth, which is .06%
Not only are the taxes low, but the currency of Liechtenstein is based on the Swiss Franc, which is very stable and has a lot of buying power. To stay long-term in Liechtenstein, expats require a residency permit and there are different regulations for EU and non-EU citizens. EU nationals have flexible movement around the country and may apply for various residency permits: Short-term residency (less than 12 months), B residency (5 years), C permit (settlement) and self-employment.
Safe and secure
Liechtenstein enjoys the reputation of being one of the safest countries in Europe and it’s not uncommon to meet a member of the Princely Family while out shopping in its capital, Vaduz. The government of the Principality of Liechtenstein is classified as a democratically run constitutional monarchy and it’s extremely ordered and well run with many visitors commenting on its cleanliness and beauty.
Excellent medical care
Unlike many countries, anyone who works or lives in Liechtenstein receives mandatory health insurance and the country has more than enough medical facilities with well-trained healthcare staff – ensuring excellent healthcare no matter where you are in the country.
Liechtenstein has a strong education system with a wide range of tertiary and further education options. The Liechtenstein school-leaving exams not only grant access to the University of Liechtenstein but also to universities in Switzerland and Austria. The University of Liechtenstein prides itself on its international standing, having partnerships with over 70 universities around the world.
Liechtenstein believes that families are the most important social network in society and in order to protect and encourage families, Liechtenstein is dedicated to creating the right social, legal and economic conditions for good family life. The premise that citizens with children deserve to be supported by the state is a central pillar of the county’s family policy and families in Liechtenstein receive allowances following the birth of a child and while growing up. Families also benefit from tax breaks and can, if needed, apply for rent allowances.
Rich in culture and entertainment
Despite its small size Liechtenstein places a priority on culture and this plays a major role in daily life. The Museum of Fine Arts features regular exhibitions by internationally renowned artists and the TAK Theatre Liechtenstein holds regular performances featuring dance, comedy, plays, readings and music. There are also plenty of shops, especially in the larger towns that cater to the many wealthy individuals who reside in Liechtenstein.
If you’re planning on moving abroad, contact FinGlobal today to discover how to streamline your move and unlock your financial wealth in your new country.