I doubt many of you know Lichtenstein. This is a small mountain nation. The country is a haven for people like me. The government is almost none existing. The personal freedom is almost ultimate. What makes Lichtenstein so great didn’t come over time. They battled for it. The country is even a monarchy. But I see the country as a prime example of what would happen when the government is abolished.
Lichtenstein has 38,000 people. It is 80 times bigger than Monaco. But that is where the compartment ends. The financial sector is only 24% of the economy. There is some niche manufacturing. Agriculture.
The Prince sees its position as a partnership. This will be the reason that it is one of the last functioning monarch systems in Europe. Most monarchs in Europe gave all power to democratically elected politicians. But they did this to simply keep their head on the shoulders.
The income tax is only 1.2%. But if you include the local tax it will be around 17%. The local communities have quite some autonomy. Villages have the right to secede. Local referenda take place after 5% of the population requested it.
In Lichtenstein, they consider the government as a service entity. An organization which provides services. Like security, infrastructure, and schooling. The monarch is not paid for by the taxpayers. The costs of the monarch are covered by its own funds. You might know one of his investments: the LGT private bank.
What makes Lichtenstein so interesting that if, let’s say, 40% wish to abolish the monarch they could secede. They could and just leave. They could simply join another country. This country could become a monarchy or a republic.
No, I don’t have a Lichtenstein bank account, nor a Lichtenstein company. But I’m considering to set one up. Just to acquire some investments. It could become the perfect European foothold for me.