Excellent bilateral relations between Switzerland and Liechtenstein
Relations between Switzerland and the Principality of Liechtenstein are excellent, and the two countries are bound by strong ties of friendship. The two countries share the same fundamental values and form a single economic and currency area that is not divided by borders.
History of bilateral relations
Relations between Switzerland and Liechtenstein intensified after the end of the First World War and since 1919 Switzerland has protected Liechtenstein’s interests abroad. With the Customs Union Treaty of 1923, the Principality of Liechtenstein is integrated into the Swiss economic area. In 1924 Liechtenstein introduces the Swiss franc as its official currency. This common economic area survives even after Liechtenstein’s accession to the European Economic Area in 1995.
In 1919 Liechtenstein establishes a legation in Bern which, after a temporary closure, is transformed into an embassy in 1969. In 2000 Switzerland appoints for the first time an ambassador for the Principality of Liechtenstein, based in Berne.
Switzerland and Liechtenstein in full agreement about the future
Summary of the centenary love between Switzerland and Liechtenstein
Priority of diplomatic relations
Relations between the two countries are governed by a dense network of treaties, including the customs treaty of 1923, by which Liechtenstein became part of the Swiss economic area. Diplomatic relations are characterised by numerous visits at all levels.
Within the framework of their respective foreign policies, Switzerland and Liechtenstein work in many areas in pursuit of the same interests and values. Both work together regularly and closely, for example at the UN or in matters relating to the International Criminal Court.
Cultural exchanges
Cultural exchanges between Switzerland and the Principality of Liechtenstein are intensive. Two agreements also govern Liechtenstein’s participation in the two programmes “Youth and Music” and “Youth and Sport”. The former promotes the musical training of children and young people, the latter offers them the opportunity to participate in courses and sports camps in around 70 sports disciplines.
Free entry to Italian museums and parks for AIRE registered Italians
Swiss Customs Museum opens exhibition season
The alpine season as candidate for the intangible cultural heritage of UNESCO
Economic cooperation
The common economic and currency area is the basis for strong economic ties between the two countries.
The Customs Treaty of 1923 created a de facto customs union based on the principle of open borders. Trade flows between Switzerland and Liechtenstein are therefore difficult to record: Liechtenstein’s export statistics do not record trade traffic with Switzerland or that which passes through the Confederation.
Since 2017, a double taxation agreement has been in force and, since the beginning of 2018, the automatic exchange of information for tax purposes (AEI) has been in force between the two states, under which, from autumn 2019, it will be possible to exchange data on financial accounts for the first time.
Around half of the 37,453 people employed in Liechtenstein (as of December 2016) are cross-border commuters, of whom around 55% live in Switzerland.
Swiss nationals in the Principality of Liechtenstein
Excluding holders of dual citizenship, there were more than 3600 Swiss men and women residing in Liechtenstein at the end of 2018. They represent around 10% of the population of the Principality. Since 2003, the immigration of Swiss nationals to Liechtenstein has been restricted by EFTA regulations. Each year, 12 permits are granted for gainful employment and five for residence without gainful employment.
Switzerland protects Liechtenstein’s consular interests in four additional locations
On the basis of an exchange of letters between Switzerland and the Principality of Liechtenstein dated 21 and 24 October 1919, Switzerland has, for more than a century, safeguarded the consular and, upon request, also the diplomatic interests of Liechtenstein if the Principality of Liechtenstein does not have its own representation there. The new agreement now extends this cooperation even further: the Principality of Liechtenstein now has its own representation in Berlin, Bern, Brussels, Geneva, New York, Strasbourg, Vienna and Washington. Under the new agreement, which will enter into force on 1 May 2022 at Liechtenstein’s request, Switzerland will also represent the Principality in consular matters in the United States of America, in Belgium and Germany, where Liechtenstein does not have its own consular division, and to a limited extent also in Vienna via the Swiss Embassy.The protection of Liechtenstein’s consular interests promotes the already excellent and intensive bilateral relations between the two countries and expands them further. The additional burden for the protection of Liechtenstein’s consular interests at the four locations is expected to be low. Although there are no precise figures on the exact number of Liechtenstein citizens living abroad, it is estimated that the Liechtenstein population living outside the country’s borders amounts to around 3,500. Swiss representations around the world already look after Swiss nationals living abroad, totalling some 780,000 people.
Source: Federal Department of Foreign Affairs https://www.eda.admin.ch