It is known as a principality as it is a constitutional monarchy headed by a prince.
The principality of Liechtenstein is divided into eleven municipalities (Gemeinden – singular Gemeinde), most consisting of only a single town.
Five of the Gemeinden fall within the electoral district Unterland (lower country), the remainder are within Oberland (upper country).
Much of its terrain is mountainous, making it a winter sports destination. Many cultivated fields and small farms characterize its landscape both in the south (Oberland, upper land) and in the north (Unterland, lower land).
The country has a strong financial sector located in the capital, Vaduz, and has been identified as a tax haven.
It is a member of the European Free Trade Association and part of the European Economic Area, the Schengen Area but not of the European Union.