The Princely House Of Liechtenstein: 900 Years Of History

The Origins Of The Princely House

The Princely House of Liechtenstein is one of the oldest Austrian noble houses in Europe, with a long and rich history dating back to the 12th century. The name Liechtenstein was first mentioned in about 1136. The uninterrupted family line began with Heinrich I von Liechtenstein (who died in 1265/66). Liechtenstein Castle, the ancestral estate of the Princes of Liechtenstein, still stands in Maria Enzersdorf in Lower Austria on the outskirts of the Vienna Woods. It was mentioned in a document in 1330 as “ein Haus ze Liechtenstain”.

The Success Of The Princely House

Prince Karl I (1569–1627) was the first Prince of Liechtenstein. He was elevated to the hereditary rank of Prince in 1608. The Liechtensteins rose to become one of the most politically influential families at the Habsburg Imperial Court.

The reigning Prince of Liechtenstein is Hans Adam II, the Head of State who started his reign in 1989. Under his management, Liechtenstein joined the United Nations (UN) in 1990, enhancing national sovereignty and international visibility.

The Longevity Of The Princely House

Over the centuries, the Princely House acquired vast estates in Austria and the former Bohemian lands. They also grew their wealth, diversified into other business sectors, and built various companies.

Through entrepreneurial ability, an innovative spirit, a long-term outlook and tremendous discipline, the Princely House achieved remarkable business success. Not least because of their consistent diversification strategy, they survived many economic and political crises. Despite setbacks, they managed to safeguard and grew their family wealth over many generations. Today, the family’s company portfolio is widely diversified. It ranges from the agriculture and forestry sectors to the production of alternative energies and the financial industry.

Key Success Factors For Family Longevity And Wealth Transmission

Enduring and strong family values, and forward-looking family governance, known as the House Law, are among them. For hundreds of years, the Princely House has been governed by the family’s House Law on succession to the throne and other important family matters. Today’s House Law dates from 1993. It cannot be amended or annulled either utilizing the Constitution of the Principality or by interstate agreements. Changing the House Law requires a two-thirds majority of all the voting members of the Princely House.

Well-designed family laws have helped to preserve the wealth of the Princely House. The family wealth was entailed as long ago as the 17th century, and the reigning Prince as the head of the family has the sole usufruct. This successfully avoided the erosion of the family’s wealth through inheritance and estate distribution.

Respect, cordiality, entrepreneurial commitment, a long-term and holistic perspective, and a tireless quest for quality and improvement are the values that underpin the longevity of the Princely Family for over 900 years and 30 generations.

In a time dominated by great and rapid change, the Princely Family believes that values and tradition are essential when taking good personal and business decisions and implementing them successfully.

The values of the Princely House also shape the values of LGT today, which was established in 1920. In 1930, the Princely House of Liechtenstein became the bank’s majority shareholder. The Princely House took over the bank and guided it through the Great Depression and the Second World War. Once a small regional bank in Liechtenstein, LGT has evolved into a leading Private Banking and Asset Management Group with more than 20 locations worldwide and more than 4,000 employees. LGT is also the family office for the Princely House which also benefits our institutional and private clients, for whom LGT manages over US$300 billion in assets.

Liechtenstein—A Modern Small State In The Heart Of Europe

With some 38,000 inhabitants, Liechtenstein today is a modern state located in the heart of Europe. Liechtenstein is known for its excellent business environment with a tradition of a balanced state budget. It has a very stable currency, the Swiss franc. The Principality has built up excellent international networks as a broad-minded small state. It is an active member of the UN, WTO, EEA, the Council of Europe, EFTA and OSCE. Liechtenstein is home to some 4,000 companies and is one of the most industrialized countries in the world. The country also has a stable and innovative financial center which is particularly strong in international asset management.

Liechtenstein is a lean and efficient state that defines itself as a provider of services to its citizens and entrepreneurs. As one of only a few countries worldwide, Liechtenstein has no government debt and traditionally reports a balanced state budget, except for the years following the global economic and financial crisis of 2008. Thanks to its budget discipline, the state has high capital reserves. The security and stability this gives to Liechtenstein also confirm that Standard & Poor’s has assigned the Principality the highest rating of “AAA” every year since 1996.