Inhabitants of Liechtenstein have a greater rate of net income left over from gross income than those residing in Switzerland, a study conducted by the Liechtenstein Institute has revealed.
This difference in disposable income can largely be attributed to the tax burden, which is significantly lower in Liechtenstein than Switzerland, according to a government press release. Liechtenstein also demands lower social security contributions, but has higher transfer payments. However, the cost of living in the two countries is almost the same. These are the main findings of the study, "Disposable income in Liechtenstein compared to Switzerland". The Liechtenstein Ministry for Social Affairs contracted the Liechtenstein Institute to conduct the study, which has now been presented.
The aim of the study was to provide a sound scientific assessment of how much net income inhabitants have left over from gross income following tax deductions. The question follows some discussions, which led to the assumption that the cost of living in Liechtenstein is higher than in neighbouring Switzerland. Government minister Mauro Pedrazzini was quoted as saying: The present study does not seek to tout or justify possible increases in tax or social security contributions. It is designed to show that Liechtenstein enjoys a high level of net to gross income and that work is worthwhile. In addition, the study is intended to present aspects including the factual situation in a field that has been little studied to date.