The legal system of Liechtenstein
A microstate whose law is a deliberate hybrid: private law follows the Austrian ABGB, company and financial law draws on Swiss models, and EEA membership imports the bulk of EU single-market law. Uniquely in Europe, the Prince retains real and exercisable political power alongside strong instruments of direct democracy. A customs and currency union with Switzerland means the Swiss franc is legal tender.
Legal tradition
Liechtenstein belongs to the civil law tradition. A microstate whose law is a deliberate hybrid: private law follows the Austrian ABGB, company and financial law draws on Swiss models, and EEA membership imports the bulk of EU single-market law. Uniquely in Europe, the Prince retains real and exercisable political power alongside strong instruments of direct democracy. A customs and currency union with Switzerland means the Swiss franc is legal tender.
How power is divided
A unitary state of eleven communes, which retain a constitutional right of secession. Power is shared between the Prince, the Landtag and the electorate: 1,000 citizens can demand a referendum on a law and 1,500 can initiate a constitutional amendment. EEA membership adds a supranational layer supervised by the EFTA Surveillance Authority and the EFTA Court.
Where law comes from
- Constitution
- The 1921 text as revised in 2003; power is shared between Prince and people.
- EEA law
- Single-market law applies through the EEA Agreement; Liechtenstein is not an EU member.
- Statutes (Gesetze)
- Passed by the Landtag, sanctioned by the Prince and subject to referendum.
- Received codes
- Private law follows the Austrian ABGB; commercial and financial law follows Swiss models.
- Ordinances
- Verordnungen of the Government, reviewable by the Staatsgerichtshof.
- Treaties with Switzerland
- Customs union and currency union; Swiss law applies in defined areas.
The legal profession
Rechtsanwälte are admitted by the Liechtenstein Bar Association after a law degree, a supervised traineeship and the bar examination; qualifications from Austria and Switzerland are widely recognised. Trustees (Treuhänder) are a distinct and significant regulated profession given the importance of foundations and asset structures.
Law by topic in Liechtenstein
- Constitutional LawA dual monarchy: an unusually strong prince alongside direct democracyLiechtenstein is a constitutional hereditary monarchy in which power is shared between the Reigning Prince and the people. The 2003 constitutional reform confirmed the Prince's exceptionally strong position — including a veto on legislation and the power to dismiss the government — while also giving citizens the right to vote on abolishing the monarchy.
- Criminal LawAn Austrian-model system with a public prosecutor and no juryCriminal law and procedure follow the Austrian model, with a Criminal Code and Code of Criminal Procedure closely tracking Austrian law. The public prosecutor directs prosecution, an investigating judge conducts inquiries in serious cases, and professional judges try cases without a jury.
- Data Protection & PrivacyGDPR through the EEA, supervised by a national Data Protection AuthorityAs an EEA member, Liechtenstein applies the GDPR, incorporated through the EEA Agreement and implemented by a national Data Protection Act. The Data Protection Authority (Datenschutzstelle) supervises compliance and cooperates within the European data-protection framework.
- Property & LandOwnership through a land register, with tight limits on foreign buyersProperty law follows the Austrian civil-law tradition, with ownership passing on entry in the land register (Grundbuch). Acquisition of real estate is closely restricted, particularly for non-residents and foreigners, reflecting the scarcity of land in a very small state.
- Employment & LabourCivil-code employment rules, closely aligned with Swiss practiceEmployment relationships are governed by the civil law on the employment contract, in a framework closely aligned with neighbouring Switzerland. Termination is generally possible on notice, with protection against abusive or untimely dismissal rather than a general permission requirement.
- Civil ProcedureA received Austrian code applied by a single first-instance court in VaduzLiechtenstein received Austrian civil procedure, so its ZPO tracks the 1895 Austrian code and Austrian case law is a standard interpretive aid. All civil matters begin in the Fürstliches Landgericht in Vaduz, with appeal to the Obergericht and then the Oberster Gerichtshof.
- Human RightsConstitutional rights and the ECHR, guarded by the State CourtFundamental rights are guaranteed by the constitution and by the European Convention on Human Rights, which Liechtenstein ratified in 1982. The State Court (Staatsgerichtshof) hears individual complaints alleging violations of constitutionally guaranteed rights, giving it a role akin to a constitutional-rights court.
- Business & CorporateThe PGR: home of the Anstalt, the Stiftung and a famous foundation regimeCompany and foundation law is codified in the Law on Persons and Companies (PGR), an unusually rich statute offering forms found almost nowhere else, notably the establishment (Anstalt) and the private foundation (Stiftung). This flexibility underpins Liechtenstein's role as an international wealth-structuring and trust centre.
- Immigration & NationalityTight quotas and a residence lottery, even for EEA citizensDespite being in the EEA, Liechtenstein applies a special arrangement allowing it to cap immigration, so residence is quota-limited and famously allocated in part by lottery. Third-country nationals face still stricter conditions, and the small size of the country makes residence permits scarce and highly sought.
- Family LawSame-sex marriage since 2025, on an Austrian-model civil law baseFamily law rests on the received Austrian General Civil Code (ABGB). Marriage was opened to same-sex couples on 1 January 2025, replacing the earlier registered partnership as the route to full marital status. Divorce is granted by the court, with amicable and breakdown-based routes.
- Tax LawA flat 12.5% corporate tax, Swiss VAT, and wealth taxed as a notional returnLiechtenstein levies a flat 12.5% corporate income tax on worldwide income, with a minimum tax, and a progressive personal income tax reaching about 22.4% including municipal surcharges. Because it is in a customs union with Switzerland, it applies Swiss VAT at 8.1%, and wealth is taxed by adding a 4% notional return to taxable income.
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