Luxembourg vs. Liechtenstein: two countries with high salaries and living standards

Language is another area where these two countries show both similarities and differences. In Luxembourg, the official languages are Luxembourgish, French, and German. This trilingualism reflects the country's diverse cultural influences and is a key part of its national identity.

Liechtenstein, on the other hand, primarily speaks German, specifically the Alemannic dialect. While English is widely understood and spoken, particularly in business and tourism, German remains the dominant language in everyday life.

The climates of Luxembourg and Liechtenstein are quite similar, with both countries experiencing temperate conditions. Luxembourg has a moderate climate with mild winters and cool summers. Rainfall is evenly distributed throughout the year, making the environment lush and green.

Liechtenstein enjoys a similar temperate climate, though its mountainous terrain brings slightly more variation. Winters can be colder, especially in higher altitudes, making it a good destination for winter sports. Summers are generally mild, providing pleasant conditions for outdoor activities.

The lifestyle in Luxembourg is cosmopolitan, reflecting its status as a major financial hub and the presence of numerous international institutions. The country offers a high standard of living, excellent healthcare, and education systems. Luxembourg City, in particular, has a dynamic urban vibe with numerous dining, shopping, and entertainment options.

Liechtenstein offers a more serene and close-knit community lifestyle. With its small population, the country has a strong sense of community and a slower pace of life. Residents enjoy high living standards, with a focus on outdoor activities and a healthy lifestyle. The natural landscape of Liechtenstein, with its mountains and valleys, provides ample opportunities for hiking, skiing, and other outdoor pursuits.

Both Luxembourg and Liechtenstein are characterized by their rich cultural heritage, influenced by their European neighbors. Luxembourg, with its strategic location bordered by Belgium, France, and Germany, has a diverse cultural tapestry. The country celebrates numerous cultural events and festivals, reflecting its multicultural population. The capital, Luxembourg City, is known for its vibrant arts scene, including theaters, museums, and music festivals.

Liechtenstein, though smaller, also boasts a rich cultural scene. The country has a strong tradition in classical music, and its capital, Vaduz, is home to several museums and art galleries. The cultural life in Liechtenstein is heavily influenced by its close ties to Switzerland and Austria, offering a unique blend of Germanic culture.

Luxembourg's economy is one of the most dynamic in Europe and among the most open in the world. It regularly ranks in the top 10 globally for competitiveness, digitalization, and innovation. The most developed industrial areas in Luxembourg include the steel industry and financial services.

The steel industry has long been a major source of employment and wealth in Luxembourg, contributing significantly to the national GDP. In the mid-20th century, Luxembourg became the world’s largest steel producer. The success of this sector greatly contributed to the country's economic development for many years. However, following the first steel crisis in the 1970s, the government made considerable efforts to diversify the economy by creating a favorable fiscal environment, which soon turned Luxembourg into one of the world's leading financial centers.

Today, the financial sector is one of the most important in the country, representing 25% of Luxembourg's GDP. As of the end of April 2024, there were a total of 117 banks in the Grand Duchy, with private banking playing a significant role. Additionally, over the past fifteen years, Luxembourg has become the main European center for investment funds. Luxembourg serves as an operational hub for many international financial institutions.

Liechtenstein's economy is characterized by its diversification, with a notable balance between the secondary (industry) and tertiary (services) sectors.

In the tertiary sector, which accounts for approximately 55% of GDP, financial services are crucial, representing around 24% of the total GDP and nearly half of the tertiary sector. Liechtenstein excels in banking and a wide range of asset and wealth management services, benefiting from attractive fiscal policies and political stability. Additionally, the country has invested in technology and innovation, particularly in advanced research, high technology, and the medical and health technology sectors.

In the secondary sector, which represents about 40% of GDP, Liechtenstein excels in manufacturing, specializing in the production of precision tools, machinery, and equipment, led by companies like Hilti. The country is especially strong in the chemical, pharmaceutical, IT, and dental sectors (it is the world's leading exporter of dental crowns).

Despite the dominance of industry and financial services, the primary sector (agriculture) also plays a role, accounting for approximately 8% of GDP, though to a lesser extent than the other two sectors.

Many individuals relocate for educational opportunities. Luxembourg and Liechtenstein boast prestigious universities and research institutions, attracting students from around the globe. To study in these countries, one typically needs to secure a student visa.

Requirements usually include:

• Proof of enrollment at a recognized institution.
• Evidence of sufficient financial resources to cover tuition and living expenses.
• Valid health insurance.
• A valid passport and possibly a background check.

Relocating for employment is another prevalent reason. Both Luxembourg and Switzerland have robust job markets in various sectors. To move for work, the following are generally required.

To move for work, the following are generally required:

• A valid job offer from a company in the destination country.
• A work visa or permit, which the employer often assists in obtaining.
• Proof of qualifications and sometimes proficiency in the local language(s).
• Valid health insurance and a clean criminal record.`

A special option in this area is the European Blue Card, which is available in most European countries, including Luxembourg, but not in Liechtenstein. This card is intended for highly qualified workers, it offers certain advantages but also comes with special conditions for obtaining it, the requirements for this card in Luxembourg are as follows:

• Have an Employment Contract of One Year or More for a Highly Qualified Position.
• Receive a Substantial Remuneration Based on the Sector.

• Provide Documentation of High Professional Qualifications.
• Obtain a Certificate Issued by ADEM Authorizing the Employer to Hire a Third-Country National.

Moving to join family members is a common motivation for relocation. Family reunification visas allow spouses, children, and sometimes extended family members to live together.

Requirements typically include:

• Proof of relationship (marriage certificate, birth certificates).
• Evidence that the family member residing in the destination country can financially support the applicant.
• Accommodation that meets local standards.
• Health insurance coverage.