The tiny Principality of Liechtenstein boasts an impressive scenic variety. It extends from the Rhine Valley, at some 500 metres, to the Alps, whose peaks rise to a height of almost 2,600 metres. Vaduz, its capital, lies at the foot of the Swiss Rätikon. Here the royal family's castle and one of the most impressive private art collections in the world are situated.
Liechtenstein's history dates back to the year 1719, when Kaiser Karl VI elevated the status of the counties of Vaduz and Schellenberg to a principality. Its royal family originated from Lower Austria, from Liechtenstein castle near Vienna. The family tree can be traced back to the 12th century.
Since 1921 Liechtenstein has had a constitutional monarchy. As in Switzerland, its neighbour, the population has the right to set up petitions for and to hold referenda. In foreign politics Liechtenstein is represented by Switzerland.
Since 1924 Liechtenstein has shared a customs union with Switzerland and the Swiss franc is its national currency. Its official language is German.
The principality owes its economic success in particular to over a hundred thousand companies which have formally registered there because of the favourable tax conditions and to its policy of strict confidentiality in banking.