As you may have get word , the United States ’ mammoth national debt stand for we ’re firmly in our creditor ’ pockets . But what about countries on the opposite end of the spectrum ? Who ’s got the tiniest national debt ? In that arena , it ’s tough to vex Liechtenstein . The tiny European principality has a whopping external debt of zero dollars .
That ’s right ; Liechtenstein does n’t owe anyone cash . Its national credit circuit board is carry a zero rest . Liechtenstein ’s not alone . The CIA ’s World Factbook also lists Brunei , Macau , and Palau as get no external debts . How do Liechtenstein and its fellow countries pull off this prank ? And can the U.S. pinch any of their secrets ?
As far as the 2nd question go , in all likelihood not . Liechtenstein has a lot of factors working in its favor when it comes to keeping its debt low . First , it ’s extremely small . The entire country only fills 62 straight miles of cragged terrain between Switzerland and Austria . The tiny touch of country is home to just 35,000 citizen or so . With such a small universe , the land has n’t had a standing army since 1868 ; it relies on Switzerland for its DoD . Liechtenstein does n’t even have its own unequalled currency . or else , it uses the Swiss franc .
Open for Business
Not get to cover with fielding an United States Army or run a pecuniary system plane quite a piece off of Liechtenstein ’s expenses , but its business standard pressure is its real magic smoke .
The commonwealth has extremely low business taxes that max out at 20 percentage , and the rules for comprise a business are extremely at large . Thanks to this revenue enhancement - harbor status , business from other commonwealth can make quite a spot of cash by incorporate in Liechtenstein while really having little more than a post - office box seat within the country ’s border .
This picayune loophole has led to Liechtenstein being home to more than twice as many caller ( some 75,000 ) as people ( 35,000 ) . The government collects taxation from all these businesses , which bring in boatloads of money . Taxes on these nominal billet generate upwards of 30 per centum of the country ’s tax revenue .
persona cite : Andrew Bossi , used under Creative Commons permit
Liechtenstein ’s unique financial arrangement have n’t always helped the princedom make admirer on the international stage . Other countries have accused Liechtenstein of being one bounteous hilly tax dodge . The principality was in reality on the Organization for Economic Cooperation and Development ’s lean of “ disobliging revenue enhancement havens ” until May 2009 . Since then , Liechtenstein has actively been kick upstairs greater financial transparentness in its financial institutions .
On top of that , Liechtenstein ’s small universe props up a thriving industrial sphere . The body politic ’s mill roil out ceramic and pocket-sized power shaft , and it ’s a run producer of sausage case . Liechtenstein is also the world ’s lead exporter of false teeth .
Liechtenstein ’s citizens could n’t possibly buy all of this stuff , so the great bulk of the production is export . In 2009 the country ’s exportation tote up $ 2.83 billion , while its imports were just $ 1.77 billion , mostly in rude materials and food for thought .
As the CIA ’s World Factbook also take note , 51 percent of Liechtenstein ’s labor force commute in from Austria , Switzerland , or Germany . This setup is another blessing for the nation , which baffle to enjoy these worker ’ labour without get to hoof the bank bill for their solar day - to - day social program expenses .
Thanks to all these little quirks , Liechtenstein ’s government runs at a important surplus . In 2008 the government take in $ 943 million in revenue against just $ 820 million in expenses . It ’s probably not a recipe that the United States could learn from , but it ’s an fantabulous way to have no national debt .
