Bilateral relations between Germany and Liechtenstein

Political partner

The ties between Liechtenstein and Germany are traditionally very close. A common European history, culture and the German language have linked the two countries for centuries. This historical bond forms the basis for a modern, trusting partnership, which today is characterized by intensive and far-reaching political exchange at all levels.

Political relations between Germany and Liechtenstein are characterized by numerous bilateral contacts in a wide variety of areas. Regular exchanges take place in particular in foreign policy as well as in matters of economic, domestic and financial policy. The governments of both countries are in constant dialog, whether at ministerial level, in expert committees or at diplomatic meetings.

Liechtenstein also maintains intensive relations with the German federal states. There are numerous direct partnerships, particularly in the economic and cultural fields, which further strengthen the exchange and deepen relations beyond the federal level.

In addition to bilateral cooperation, Liechtenstein is an integral part of the multilateral network of German-speaking countries - together with Germany, Austria, Switzerland, Luxembourg and Belgium. This format enables close coordination on topics of common relevance. The regular meetings at the level of heads of state, ministers and parliamentary presidents promote a coordinated approach to cultural, political and social issues.

As a member of the European Economic Area (EEA), Liechtenstein is directly integrated into the European Single Market. The legal provisions of the EU internal market have been fully adopted and transposed into national law. Germany and Liechtenstein also work closely together in this context, for example in the areas of financial market regulation, consumer protection and competition policy.

This close European integration underlines Liechtenstein's conviction that key challenges such as security, migration, demographic change, climate change and digitalization can only be developed and sustainably overcome in close cooperation with its European neighbors.

Germany and Liechtenstein have much more in common than geographical proximity and cultural similarities - it is a partnership that has grown over time and is characterized by mutual trust, reliability and shared values. Both countries are committed to strengthening multilateral structures, a rules-based international order and the protection of democratic principles.

In the future, topics such as sustainability, innovation, digitalization and cross-border security will become an even greater focus of cooperation.

Current media releases and official information on bilateral relations between Germany and Liechtenstein are published on the government's website.

Since Liechtenstein joined the EEA on May 1, 1995, Germany and Liechtenstein have been part of a common economic area in which the four fundamental freedoms (free movement of goods, persons, services and capital) apply without restriction. The joint participation of Germany and Liechtenstein in the EEA is important for economic exchange between the two countries. This applies both to foreign trade and cross-border services as well as to the mobility of workers.

Signing of the treaty in Porto on May 2, 1992 by the then head of government Hans Brunhart

Another important milestone in relations between the two countries is the Schengen Agreement, which enables the free movement of people between Germany and Liechtenstein. The agreement was signed by Liechtenstein, Switzerland and the EU on February 28, 2008. It entered into force for Liechtenstein on December 19, 2011. The free movement of persons not only represents a major step towards liberalization in economic terms, but also strengthens the common legal and security area.

Close economic and trade relations

Germany is one of Liechtenstein's most important economic partners. It is the most important country of origin and production for goods imported into Liechtenstein and is one of the three largest sales markets for Liechtenstein industrial products alongside Switzerland and the USA.

Source: Annual Report of the Liechtenstein Chamber of Commerce and Industry 2024 (LIHK)

Germany also ranks first in terms of foreign direct investment in Liechtenstein, with an investment volume of CHF 6.16 billion in 2023.

Source: Direct investment statistics of the Deutsche Bundesbank 31.05.2024 (Deutsche Bundesbank)

Liechtenstein industrial companies are currently represented by 42 foreign branches in Germany and employ around 10,200 people as at 31.12.2024. These are predominantly active in research-intensive and innovative areas.

Liechtenstein as a workplace / research and innovation location

At around 42%, the share of industry in Liechtenstein's gross value added is one of the highest in the world. The proportion of employees in this sector is correspondingly high at 34%.

The Liechtenstein economy is strongly characterized by small and medium-sized enterprises. The number of companies has doubled in the last 20 years, and the density of companies is correspondingly high today: there is one company for every 7 inhabitants, while in Germany there is one company for every 24 inhabitants.

The innovative strength of the business location is also pronounced, which is reflected in the high number of new patent applications, among other things.

Liechtenstein as a financial center / Bilateral and multilateral tax cooperation

The financial services sector is the most important economic sector after industry. A long-term financial center geared towards continuity and sustainability is therefore of fundamental interest to Liechtenstein.

As the strongest private banking market in Europe, Germany is also a location with a stable economic environment and a high demand for individual wealth solutions. Liechtenstein banks also appreciate these conditions: Two of the largest institutions have expanded their local presence with branches in Frankfurt am Main, Munich, Cologne, Düsseldorf and Hamburg, thereby contributing to value creation in Germany.

The close economic ties between Germany and Liechtenstein were strengthened in 2011 with the conclusion of a comprehensive agreement on the avoidance of double taxation (DTA). This agreement was adapted to the minimum standards from the OECD/G20 BEPS (Base Erosion and Profit Shifting) project in 2021 and therefore also contains a BEPS-compliant anti-abuse provision. The legal certainty thus created further strengthens both the business and financial center. Liechtenstein is committed to full transparency and international cooperation in the area of taxation and was one of the first countries to introduce the automatic exchange of information in tax matters (AEOI).

Liechtenstein also supports the EU's sanctions policy and independently implements its restrictive measures in the country.

Cultural relations

The common German language enables a diverse exchange between German and Liechtenstein artists, be it in music, literature, the performing arts or the visual arts. For example, there has been close cooperation with the classical chamber ensemble of the Deutsche Oper Berlin since 2012. Several concert series and exchange concerts have been held in Vaduz, Munich and Berlin in honor of the Liechtenstein composer Josef Gabriel Rheinberger (1839-1901), who was once the court conductor of King Ludwig II of Bavaria.

In 2006, Liechtenstein opened an artist studio in Berlin. Since then, artists have been given the opportunity to live and work in the German capital for several months. This has further intensified German-Liechtenstein cultural exchange.

Education

The Principality of Liechtenstein is closely intertwined with Germany in the field of education - as part of the D-A-CH cooperation, Liechtenstein regularly participates in seminar series on topics such as teacher training, digitalization and recognition of qualifications. Through programs such as Erasmus+ as well as exchange platforms (e.g. Eurydice) and the University of Liechtenstein's partner network, the bilateral exchange of students and teachers is actively promoted in order to advance mobility and educational transparency in Europe.

One example is the Erasmus Plus project "MEMO" to promote multilingualism, in which institutions from Germany, Liechtenstein, Austria and Switzerland work together. While grammar school education can take place entirely in Liechtenstein, many young people complete their basic vocational training in neighboring countries, particularly in Switzerland and Germany. The close integration with the German education system and the D-A-CH structure strengthens the quality and international connectivity of Liechtenstein qualifications.

Sustainability

Liechtenstein and Germany work closely together in numerous international and regional formats in order to jointly meet the challenges of climate change, environmental protection and resource conservation. As part of the regular meetings of German-speaking environment ministers, most recently in June 2025 in Vaduz, the two countries coordinate on issues relating to climate protection, biodiversity and sustainable development. A particular focus is on cross-border projects such as the renaturation and flood protection of the Rhine, which are coordinated by the International Commission for the Protection of the Rhine (ICPR) and the "Rhine 2040" program. Both countries are working together to improve water quality, protect ecosystems and ensure the ecological continuity of the river.

As part of the Alpine Convention and the "Alliance in the Alps" initiative, Liechtenstein and Germany are working together with other Alpine states to promote projects on climate change adaptation, sustainable mobility solutions, biodiversity protection and resource-efficient construction.

In addition, German and Liechtenstein organizations work closely together within the framework of European programs such as Interreg Alpenrhein-Bodensee-Hochrhein. The cooperation focuses on sustainable mobility, research and technology transfer as well as social inclusion in order to strengthen regional competitiveness and resilience.

Embassies and honorary consulates

Liechtenstein and the Federal Republic of Germany established diplomatic relations on May 6, 1952. Since 2000, a non-resident ambassador has represented the Principality of Liechtenstein in Germany. In 2002, Josef Wolf was sent to Berlin as the first resident ambassador by the government of the Principality of Liechtenstein.

Isabel Frommelt-Gottschald is currently the Liechtenstein Ambassador to the Federal Republic of Germany. Liechtenstein has also had honorary consulates in Munich and Frankfurt since 2008.

A third honorary consulate was opened in Hamburg in the fall of 2021, and a further honorary consulate was opened in Düsseldorf in 2025.