The Austrian family of Liechtenstein is documented in the 12th century. Over the next few hundred years they became close allies to the Habsburg emperors and gained land and titles in what are today the Czech Republic and Hungary. They were made Princes in 1608 and bought the counties of Schellenberg and Vaduz in 1699 and 1712. These counties were joined by imperial decree to form the Principality of Liechtenstein.
After the defeat of Napoleon who had annexed the Principality, it became a sovereign country in 1806. To save costs, the army was abolished in 1868. Liechtenstein was a natural ally of the Austrian Empire up to its dissolution in 1918. After that, Liechtenstein got closely linked to Switzerland, using the Swiss Franc as currency and entering into a customs union with Switzerland. Liechtenstein depends on the Swiss army for its defence, though there is no formal treaty to that effect.
The Prince and his family live and reside in Vaduz Castle above the capital. The Princes moved to Vaduz in 1938 permanently, before that they resided in one of their Czech or Hungarian Castles. The capital of Vaduz has 5,000 inhabitants and has an excellent art museum showing part of the princely art collection.
Liechtenstein is one of those famous tax havens. Due to the German government involving itself in Liechtenstein internal politics, a major diplomatic impasse has been reached last year. As a direct result, all art works owned by the Prince have been repatriated from Germany and loan agreements with museums cancelled. The major income in Liechtenstein is still from banks and trusts.
The language spoken is Alemannic, national language is German. It is the only country in the world with only German as a national language. Liechtenstein is a member of the United Nations. Liechtenstein has accredited only seven ambassadors worldwide; otherwise the Swiss ambassadors double in for both countries. Liechtenstein athletes on an international level usually form part of the Swiss national team in the same sport. The Football (Soccer) Club of Vaduz plays in the Swiss Superleague (Premier).
To confuse the unwary, there are several Liechtenstein connotations due to a thousand years of family history. The Castle of Liechtenstein is situated near Vienna in Austria and belongs privately to the princely family since 1806. It had been the family seat until 1300 when it was sold. There is a new Castle of Liechtenstein just near the original one built in 1820 by the princes, but this has been sold to the local community. And last but certainly not least, there is Liechtenstein Palace in Vienna, Austria, which is owned by the Prince and run as an art museum, showing the greater part of the princely collection.
Further reading
How Many Monarchies Exist in Europe?
Princes: Not All That Glitters
Elected Monarchs of Europe
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