Liechtenstein is situated in the Rhine valley in the Alps. The entire western border of Liechtenstein is formed by this river. The eastern part of the country is located at higher altitude, the highest point being the Grauspitze[?], at 2,599 m.
In spite of the alpine location, the climate of Liechtenstein is rather mild, due to southern winds. In the winter, the mountain slopes are well suited for winter sports.
Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialised, free-enterprise economy with a vital financial service sector and living standards on a par with the urban areas of its large European neighbours. Low business taxes - the maximum tax rate is 18% - and easy incorporation rules have induced about 73,700 holding or so-called letter box companies to establish nominal offices in Liechtenstein, providing 30% of state revenues.
The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organisation serving as a bridge between the European Free Trade Association (EFTA) and the European Union) since May 1995. The government is working to harmonise its economic policies with those of an integrated Europe.
The resident population of Liechtenstein, the fourth smallest country of Europe, consists for about a third of foreigners, mainly Germans, Austrians and Swiss.
The most famous person from Liechtenstein - besides the prince - is Hanni Wenzel, of German origin, who won two Olympic titles in 1980 in alpine skiing.
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