Economy Guide in Liechtenstein
Economic overview, job market trends, income levels, and financial landscape for expats
GDP
$7.19B
Total economic output of the country
HDI
0.94
Very high human development
Quality of Life
N/A
Composite score based on cost of living, safety, healthcare & climate
Purchasing Power
105/100
Strong purchasing power — high local buying capacity
Cost of Living Index
The Cost of Living Index is 114.6, indicating very expensive living costs compared to New York City (100). Groceries are particularly high (index 130.2), and restaurant prices are also above NYC levels (index 119.7).
Housing Market
The property price to income ratio is 6.4 years, suggesting an affordable housing market. The rent index is significantly lower at 39.7, indicating relatively more affordable rental options.
Average Income Levels
With a Purchasing Power Index of 252.3, residents have excellent buying power, significantly higher than in New York City.
Tax System
Liechtenstein features a progressive income tax system with combined national and municipal rates ranging from 2.5% to 22.4%. There is no property tax, and capital gains from private securities and cryptocurrency are generally exempt. The standard VAT rate is 8.1% as of January 2024.
Business Environment
Liechtenstein offers a favorable business climate, particularly for financial services and technology, supported by low corporate tax rates (12.5%) and robust intellectual property protection. The country is ranked 63rd globally in the 2025 Global Startup Ecosystem Index and is known for its pioneering role in Fintech and Blockchain innovation.
Social Security
Liechtenstein operates a comprehensive three-pillar social security system covering old-age, disability, and survivors' pensions, aligned with Switzerland. It provides mandatory health insurance for all residents, along with unemployment benefits and employer-funded family allowances.
Banking & Financial Safety
Deposits are protected up to CHF 100,000 (approximately USD 127,920) per depositor per bank under the statutory Deposit Guarantee and Investor Compensation Foundation PCC (EAS). Liechtenstein's banking sector is highly stable, holding an AAA credit rating, and adheres to stringent international financial regulations including Basel III and FATF standards.
Deposit Protection: up to $127,920 USD (see sources)More Insights for your Move to Liechtenstein
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