“It is certain that only those who use their freedom are free” says the preamble to the Federal Constitution. The concept of freedom is enshrined in it a total of 75 times.
The Avenir Suisse Freedom Index cannot be used to assess who makes use of their freedom rights and to what extent. However, it can be used to assess and compare how many freedoms the Swiss cantons – and the Principality of Liechtenstein – grant their population. This year, a total of 29 indicators were evaluated in the two sub-areas of economic and social freedom.
The methodology document explains what freedom means, how we measure it, how the indicators included in the index are defined in detail and how the sub-indices on economic and social freedom are formed. All data is now also published in an Excel document.
The ranking
The canton of Aargau comes out on top in the Avenir Suisse Freedom Index 2024. It is the only canton to score very well in terms of both economic and social freedom. Second place goes to Liechtenstein, which has also been included in the ranking for five years. The podium is completed by the canton of Appenzell Ausserrhoden. Brief comments on the performance of all 26 cantons and Liechtenstein can be found under these canton abbreviations:
AG, AI, AR, BE, BL, BS, FR, GE, GL, GR, JU, LU, NE, NW, OW, SG, SH, SO, SZ, TG, TI, UR, VD, VS, ZG, ZH, LI
The figure above shows all cantons on the two axes of “economic” and “social” freedom. It shows that there is a negative correlation, if any, between the performance of the cantons in the two sub-indices. This can be seen more clearly if the outlier canton of Aargau is excluded. So if a canton is in the bottom half of both sub-indices, there is a high probability that it will even be in the bottom half overall – and the same naturally applies to the opposite scenario.
The fact that the cantons score higher on average in the economic freedom sub-index than in the social freedom sub-index could lead to the confirmation of a common cliché: “You see, Switzerland is economically liberal but socially conservative!” Regardless of how one feels about this statement, it should be emphasized here that this cannot be read from this index. The values for economic freedoms tend to be higher than those for social freedoms because quantitative indicators dominate in the former. For the latter, the best canton (see methodology) automatically receives 100 points. In contrast, qualitative indicators dominate for social freedoms. Here, even the best cantons often do not fulfill all criteria and therefore do not achieve 100 points. This leads to lower scores on average.
Something else is striking in the figure: a strong cluster formation of the language regions. The six cantons that lie above the 45° line, i.e. the cantons in which social freedoms were rated better on average than economic freedoms, are all Latin-speaking – namely Vaud, Jura, Geneva, Neuchâtel, Fribourg and Ticino. Only the canton of Valais, which is also predominantly French-speaking, falls below this line. The clichéd characterization of German-speaking Switzerland as closer to the economy but less liberal in social terms is thus given new impetus here.
From this perspective, the negative correlation between the two types of freedom also disappears. This is not to be found within the language clusters. Greater social freedoms therefore do not necessarily come at the expense of fewer economic freedoms. This also means that the cantons can and should learn a lot from each other across language borders. For example, an attractive tax environment (more common in German-speaking Switzerland) does not prevent a canton from facilitating the political participation of resident foreigners (more common in French-speaking Switzerland).
An Excel document with all the details
This year, we have significantly increased the transparency of the Freedom Index. All data has now been prepared in a publicly accessible Excel document. This not only contains the index values and rankings of the cantons for all indicators, but also the actual values of the individual indicators. Some of these consist of several components. These are shown on another worksheet. Finally, the last worksheet contains a time series with the rankings of all cantons since 2009.
Freedom is ultimately always a subjective concept. Each individual may judge differently whether or not a law is perceived as an unnecessary restriction that restricts personal freedom of action. This is why the Avenir Suisse Freedom Index is designed to be interactive: In the “Index values” worksheet, each indicator can be individually selected and deselected (column D) in order to create a freedom index according to one’s own preferences. Only the selected indicators are considered in the average values for economic and social freedom. The “Ranks” worksheet thus adjusts automatically, as does the bubble chart of the 26 cantons and Liechtenstein on the first two worksheets.
In the “Historical rankings” worksheet, you will also find an interactive chart with time series for all rankings. Simply select the canton(s) and the freedom category for which you want to see the development of the rankings.
New methodology for indexing
In order to make the indexing of the values more comprehensible and easier to interpret, the methodology was comprehensively adapted:
- For the quantitative indicators, the canton with the best value receives an index value of 100 points, while the canton with the worst value receives 0 points.
- For the qualitative indicators, an index value of 100 results if a canton fully meets all criteria.
A minimum of 0 points and a maximum of 100 points can therefore be achieved for each indicator. This also applies to the two sub-indices on economic and social freedom, which represent an arithmetic mean of the associated indicators.
This approach differs from the previous one: Until 2023, the average of all cantons was set at 50 points and the score achieved by a canton depended on how many standard deviations it was next to this average. This was mathematically plausible, but not very intuitive, as it was quite possible that the lowest index value for an indicator would be 40 points, for example, or conversely that a canton would only achieve 65 points for another indicator even though it met all the criteria. The new, consistent 0-100 scale means a stretching, especially for qualitative indicators with few gradations. This means that the same differences are reflected more strongly than before in the respective sub-index, which can lead to certain shifts in rank.
Feedback welcome!
Those who are transparent make themselves vulnerable. We are happy to accept this consequence. Anyone who believes that “their” canton has been rated incorrectly for a particular indicator is welcome to contact us. While it is possible to discuss methodological details in the case of quantitative indicators, there is sometimes a need for interpretation when assessing qualitative indicators, for example when it comes to the interpretation of laws.
Whether you believe there is a specific weakness in the methodology, suspect an incorrect evaluation or have a suggestion for a new indicator: Feel free to get in touch with us. Because our goal is clear: we want to offer you a freedom index that is as meaningful as possible – now and in the future.
AG ↑
Rank 1 / Index value 67
After several podium finishes since 2018, the canton of Aargau is once again the winner of the Freedom Index this year – and with a comfortable lead of six index points. Aargau came third in both the economic and social sub-indexes. In terms of economic freedom, the canton is one of the few cantons to carry out a regulatory impact assessment. The canton is also in first place for the health of cantonal finances. However, the canton of Aargau has room for improvement: Companies are taxed quite heavily, and their debt brake is one of the weaker ones. In terms of social freedoms, the consistent separation between state and church stands out, with no church tax for companies and no no religiously motivated event bans. The canton also has moderate rules on homeschooling and does not go beyond the federal rules on the protection of non-smokers, which is considered more liberal than rules that practically ban smoking.
AI ↑
Rank 19 / Index value 45
In terms of economic indicators, the canton of Appenzell Innerrhoden is in the lower midfield. This is due to the absence of a debt brake and a regulatory impact assessment. In addition, the health of the canton’s finances is rated lower than in last year’s index. On the other hand, the canton’s low score for decentralization should come as no surprise given its small size. The canton is liberal when it comes to store opening hours and the law on alcohol sales. In terms of social freedoms, it is slightly better placed at 15th. Appenzell Innerrhoden is one of the cantons with the full number of points regarding non-smoker protection and public access laws. The canton also ranks well for public safety. It can improve in the area of video surveillance. The separation of church and state is not complete due to the church tax for companies and the ban on events on public holidays.
AR ↑
Rank 3 / Index value 58
Last year’s winner Appenzell Ausserrhoden is also on the podium this year – albeit only in third place. A solid performance in both sub-indices is enough for this. In terms of economic freedom, the canton is in 9th place. The tax burden is rather high, except for companies, where the canton has the ninth-lowest value. The rather meagre balance sheet is partly compensated for by a solid debt brake, liberal store opening hours and the waiver of hospitality fees. There is room for improvement in the cantonal monopolies, where Appenzell Ausserrhoden shares last place with a handful of other cantons. Appenzell Ausserrhoden is one of the few German-speaking Swiss cantons to perform well in the social indicators (6th place). Moderate regulation of homeschooling and the third-best score for public safety contribute to this. The canton is also exemplary when it comes to the separation of church and state by not imposing church taxes on companies and not imposing religiously motivated event bans.
BE ↑
Rank 21 / Index value 44
The canton of Bern ranks particularly poorly in the indicators relating to the tax burden. It also has proportionally more employees in the public sector than any other canton. Although this is not surprising given the large presence of the federal administration, it still has a negative impact on economic freedom because the public administration absorbs so many human resources. As such a large canton, Bern could also be more decentralized. In some regulatory aspects of economic freedom, however, Bern is not in a bad position. Overall, the canton ranks 18th in the economic indicators, placing it in the lower midfield. The canton is one place better in the social indicators. It scores well with its relatively liberal regulation of homeschooling. Bern also has low residence requirements for naturalization and a solid public access law. However, the canton also scores a few zeros in the rest of the social index values. Overall, Bern lost four places compared to last year’s ranking.
BL ↑
Rank 22 / Index value 44
In terms of economic freedom, the canton of Basel Landschaft ranks in the lower midfield for numerous indicators. An average family has the fourth highest tax burden here. The regulatory impact assessment, which the canton is one of the few in Switzerland to carry out, stands out positively. Basel Landschaft also achieved (shared) first place for store opening hours and cantonal monopolies. A similar picture emerges for social indicators. In terms of non-smoker protection, the canton goes far beyond the federal regulations. The time it takes to obtain a construction permit is comparatively long. Basel Landschaft could also improve by abolishing the church tax for companies and relaxing the ban on events. Since 2019 (rank 7), the Basel region has lost many places in the freedom index.
BS ↑
Rank 6 / Index value 56
The half-canton on the banks of the Rhine achieves very good values for around half of the economic indicators. For example, it has the second-lowest public spending ratio (although this is due to its very high economic output rather than low expenditure) and is generous when it comes to tax deductions for external childcare. The canton achieves full marks for creditworthiness as a debtor, hospitality fees, regulatory impact assessment and cantonal monopolies. However, Basel Stadt does not score well in the four indicators relating to the tax burden. The canton is also not very liberal when it comes to the Alcohol Sales Act and labor market regulation. While Basel Stadt is in 4th place for economic freedom, it is “only” in eleventh place for the social indicators. The public safety indicator stands out in particular, where the city canton has unsurprisingly high security expenditure and yet only achieves a rather low crime clearance rate. Only in two cantons does it take longer to receive a construction permit. The canton could also be more liberal in its protection of non-smokers.
FR ↑
Rank 20 / Index value 44
The canton of Fribourg performs below average in a large number of economic indicators. These include the third-highest public spending ratio in the evaluation and the most restrictive store opening hours in Switzerland. The canton is also at the bottom of the rankings for tax-related indicators. Things look better in the social indicators, where the canton is ranked 10th overall. The extensive political rights for foreigners at communal level stand out positively. On the other hand, Fribourg has the second longest waiting time for a construction permit. However, the ranking in the social sub-index is not enough to compensate for the considerable deficit that the canton suffers with 24th place in the economic sub-index. At 20th place, the canton ranks two places lower than in the previous year.
GE ↑
Rank 16 / Index value 46
The canton of Geneva is ending a tradition: in previous evaluations, it was always in last place in the freedom index. In 2024, it will leap forward by eleven ranks. This is despite the fact that the improvements in the two sub-indices are smaller: +2 places for economic freedom (now ranked 25th), +5 places for social freedom (now ranked 8th). The rise in the overall index is therefore partly due to a special constellation among the other cantons; the lead over the third-last place is only 3.4 index points. The canton (together with Vaud) still has the highest tax take among natural person. In addition, Geneva has a high government ratio, many employees in the public sector, short store opening hours and strong labor market regulation. Nevertheless, Geneva is family-friendly: the tax burden for an average family is rather low and the tax deduction for external childcare was recently increased significantly. In the social sub-index, the canton of Geneva is catching up with the other French-speaking cantons. Liberal regulations on homeschooling, no church taxes for companies and the absence of a ban on events stand out positively. Geneva also recognizes political rights for foreigners at communal level. The canton needs to improve in the area of public safety, where it is in last place in two respects: It “combines” the highest per capita expenditure with the lowest detection rate. In addition, Geneva has the longest waiting time for a construction permit in Switzerland.
GL ↑
Rank 13 / Index value 51
The canton of Glarus has solid values for most of the economic indicators. However, the canton is in the bottom third of the rankings in terms of the state quota. In contrast, Glarus is in the top ranks for store opening hours, the Alcohol Sales Act and hospitality fees. With the retention of lay judges and the restriction to the federal law on the protection of non-smokers, the canton scores well on the social index. However, Glarus should abolish the church tax for companies and the religiously motivated ban on events. The residence deadlines for naturalization are set high. Overall, the canton of Glarus is ranked thirteenth, two places lower than in the last evaluation.
GR ↑
Rank 10 / Index value 52
The canton of Graubünden achieved the greatest improvement of all cantons compared to last year’s evaluation. It climbed no less than 14 places and is now ranked 10th in the freedom index. The improvement is reflected in both the economic sub-index (+7 ranks) and the social sub-index (+10 ranks). However, it is not only due to actual improvements in the canton; the change in the indexing methodology is also likely to have had an influence, and last but not least, the mountain canton was reassessed for two indicators: It leaves the regulation of both store opening hours and hospitality fees to the municipalities, for which it was now awarded the maximum number of points. The large mountain canton is also highly decentralized in terms of expenditure. The canton of Graubünden was able to significantly reduce its public spending ratio (from 27.1% to 23.8%), even though it is still one of the highest of all cantons. In terms of social indicators, Graubünden is just in the front midfield for many values. The canton can score points with a moderate time to obtain a construction permit and political rights for foreigners, which have been introduced in some municipalities. However, the residence periods for naturalization are among the longest in Switzerland.
JU ↑
Rank 12 / Index value 51
After several years at the top of the French-speaking cantons, the canton of Jura has now relinquished this title to the canton of Neuchâtel, dropping five places. Two extremes collide in the canton: on the one hand, last place in the economic indicators and, on the other, second best in the social indicators. From the tax-centered indicators to the expansion of the state, e.g. the state quota, to the regulation of store opening hours and alcohol sales, the canton of Jura performs poorly. However, it is particularly liberal when it comes to social indicators. Liberal regulations on homeschooling, the protection of non-smokers and the video surveillance indicator are complemented by political rights for foreigners at cantonal and communal level.
LU ↑
Rank 25 / Index value 43
The canton of Lucerne lost 3 places each in economic and social freedoms, falling from 16th to 25th place overall. Instead of the top score of 6, the health of the canton’s finances is now only rated at 4.8 and the indicator for public safety has deteriorated. In addition, the poor performance in the indicators church tax for companies, ban on events and lay judges is more significant due to the new indexing. In the economic index, the canton of Lucerne still just makes it into the top 10 and is characterized by a high degree of decentralization. Lucerne ranks in the top third in terms of the state quota, the proportion of employees in the public sector and the tax utilization of legal entities, among other things. The alcohol sales law is liberal. Lucerne ranks at the bottom for tax deductions for external care and store opening hours. The canton of Lucerne ranks last in the social sub-index. In addition to the indicators already mentioned, the canton also received zero points for political rights for foreigners, video surveillance and the lack of a public access law. However, such a law is due to come into force in June 2025.
NE ↑
Rank 8 / Index value 53
The canton of Neuchâtel is now at the top of the French-speaking cantons in the freedom index. This is not thanks to the economic indicators – the canton is in 22nd place in this sub-index. The average family pays the highest taxes in Switzerland in Neuchâtel. A relatively high proportion of employees work in the public sector and the canton also performs poorly in terms of decentralization. On the other hand, Neuchâtel is in joint first place for the health of cantonal finances, where the canton – in contrast to many other cantons – has improved compared to last year. Neuchâtel ranks fourth in the social sub-index. It is one of only two cantons to grant foreigners political rights at cantonal and communal level and requires only short periods of residence for naturalization. The canton also has particularly liberal rules on homeschooling and sets short time limits for the storage of video surveillance footage.
NW ↑
Rank 23 / Index value 44
Nidwalden is almost exactly in the middle of the economic index ranking. The two tax utilization rates, in which the canton is in the top 5, stand out positively. However, the tax deductions for external care are rather low and the canton is relatively centralized (which is not necessarily surprising given its small size). In terms of social freedoms, Nidwalden is in third-last place. Restrictive regulations for homeschooling, the lack of a publicity law and long residence periods for naturalization contribute to this. The canton could improve with a consistent separation between state and church, which is currently prevented by the mandatory church tax for legal entities and the ban on events.
OW ↑
Rank 14 / Index value 49
In terms of economic indicators, Obwalden is in 6th place, keeping pace with the best cantons. A few indicators stand out, but Obwalden is in the middle of the field for most of them and does not fall far behind anywhere. The canton achieved very good rankings for the tax utilization rate of natural persons, the debt brake (strengthened since 2020), the Alcohol Sales Act and store opening hours. In the social sub-index, Obwalden performs significantly less well at 22nd place, even though the canton can still be classified in the lower midfield in terms of its score. Homeschooling is not regulated liberally, the residence periods for naturalization are long and there is both a church tax for companies and a ban on events. The canton is liberal when it comes to protecting non-smokers. In terms of public safety, Obwalden even has the best score of all cantons. In the overall index, the canton of Obwalden climbed 8 places.
SG ↑
Rank 15 / Index value 47
In terms of economic indicators, the canton of St. Gallen is in the middle of the rankings. St. Gallen has a low public spending ratio and is generous when it comes to tax deductions for external childcare (both ranked 4th). The canton is in the lower midfield for the other tax-related indicators, as well as for store opening hours and the law on alcohol sales. There are also low scores for cantonal monopolies and the health of cantonal finances. St. Gallen ranks 19th in the social sub-index, with long retention periods for video surveillance material and long residence periods for naturalization applicants compared to other cantons. The good score for public safety is a positive factor. In the overall index, the canton of St. Gallen lost six places compared to the previous year and fell out of the top 10.
SH ↑
Rank 5 / Index value 56
The canton of Schaffhausen ranks in the upper midfield of the economic and social index. It is helped by its good performance in the tax-related indicators. The canton has repeatedly been able to significantly reduce its tax rate in recent years. For example, it now has the third-lowest tax burden for legal entities. On the other hand, the proportion of employees in the public sector remains quite high. Schaffhausen also has various cantonal monopolies. The canton achieves good rankings in many social indicators – for example, in terms of residence periods for naturalization and the time it takes to obtain a construction permit. The ban on events on major holidays and the strict rules on admission to the judiciary cloud the picture somewhat. Overall, Schaffhausen improved by five places compared to last year and is now in the top 5.
SO ↑
Rank 17 / Index value 46
The canton of Solothurn performs slightly better in terms of economic freedom than in terms of social freedom. However, in both sub-indices it ranks in the middle of the field. In the economic freedom sub-index, the generous tax deductions for external childcare and a low proportion of employees in the public sector have a positive impact. There is room for improvement in tax indicators, such as the tax utilization rate for legal entities and the tax burden on the average family and the second earner. The canton is also at the bottom of the rankings for cantonal monopolies. In terms of social indicators, there is room for improvement in areas such as the ban on events, church tax for companies and free choice of school. Solothurn achieved the second-best score for the time it takes to obtain a construction permit. In the overall ranking, Solothurn has improved slightly, from 21st to 17th place.
SZ ↑
Rank 4 / Index value 57
As the second-best canton in the economic index, Schwyz comes up trumps in many indicators. These include tax-related areas such as tax utilization rates, but also regulations such as store opening hours, the Alcohol Sales Act and hospitality fees. Schwyz could still improve in terms of tax deductions for external care and with the introduction of a regulatory impact assessment. The canton is less liberal when it comes to social freedoms. Political rights for foreigners and residence deadlines for naturalization are very restrictive. The canton scores well for video surveillance and liberal protection of non-smokers. Overall, Schwyz just missed out on the podium after coming in bronze last year.
TG ↑
Rank 24 / Index value 44
The canton of Thurgau slipped ten places to fourth-last place in this year’s Freedom Index, losing the places it gained in last year’s evaluation. The main reason for this is a deterioration in the economic sub-index. The canton now ranks in the bottom third in both sub-indices. The values for the tax-related indicators are all average. In terms of the health of cantonal finances, Thurgau lost 19 places, and this year received the worst score of all cantons from IDHEAP Lausanne, which assesses this indicator. This is due to the significant deficit that the canton had to cope with in 2023 and the low level of self-financing (although this can change significantly from year to year). Nevertheless, the canton has a good decentralization score and the proportion of employment in the public sector is also low. It also has the most liberal alcohol sales law. On the other hand, there are still several cantonal monopolies. In terms of social indicators, the long retention period for video surveillance footage, the continuing church tax for companies and the ban on events stand out.
TI ↑
Rank 9 / Index value 53
Although the canton of Ticino scores well in the economic indicators with a low tax burden for families and a moderate government ratio, it is otherwise not convincing in this sub-index. The canton does little to accommodate companies: The tax utilization rate for legal entities is the second highest in Switzerland and the border canton has declared the largest number of collective and standard employment contracts to be generally binding of all cantons. Ticino is more liberal when it comes to social freedoms, where the canton ranks fifth. It is the only canton that still has a jury court. This gives it victory in the lay judges category, as the broad representation of the population in the judiciary is rated positively in this category. Overall, the canton lost one place in the overall index compared to last year.
UR ↑
Rank 26 / Index value 39
The canton of Uri came second to last in the overall ranking, dropping one place compared to last year. The main reason for this is its performance in the sub-index on social freedoms. In terms of economic freedoms, the high state quota, many employees in the public sector and a low level of decentralization have a negative impact. The canton is also not very liberal when it comes to store opening hours. Nevertheless, Uri scores well in the tax-related indicators, such as the taxation of second earners. It even came in first place for the tax deductibility of childcare – the law does not set a limit on deductions. In terms of social freedoms, Uri ranks at the bottom almost across the board. This is exemplified by the public safety indicator, where the combination of medium-high security expenditure and a low crime clearance rate results in the third worst score of all cantons. The only positive aspect that stands out is the short time it takes to obtain a construction permit.
VD ↑
Rank 11 / Index value 52
The canton of Vaud is symptomatic of the duality of Latin Switzerland. In terms of economic indicators, the canton is in second-last place. The highest tax utilization rate for natural persons (together with Geneva) and the high tax burden on the average family and the second earner contribute to this. The canton also has the most restrictive alcohol sales law in the whole of Switzerland. In terms of social freedoms, however, the canton of Vaud is at the top of the podium. It offers short residence periods for naturalization and political rights for foreigners at communal level. In addition, Vaud separates church and state by dispensing with a church tax for companies and a ban on events on major holidays. Across the entire freedom index, the canton of Vaud ranks 11th in the midfield, improving by four places compared to the previous year.
VS ↑
Rank 27 / Index value 39
For the first time, the canton of Valais is at the bottom of the freedom index. Valais is at the bottom of both the economic and social indices. Of all the cantons, the mountain canton taxes companies the most and also has the highest public spending ratio. Valais is also restrictive in terms of store opening hours, alcohol sales laws and labor market regulation. There are also not many bright spots when it comes to social freedoms. Only in three cantons do you have to wait longer for a construction permit. Surveillance videos are kept for a long time and Valais goes far beyond the federal regulations when it comes to protecting non-smokers. At least the regulation of homeschooling is moderate and the canton (as one of only a few Catholic cantons) refrains from banning events on major holidays.
ZG ↑
Rank 7 / Index value 54
Not surprisingly, the canton of Zug, which is widely known as a business-friendly canton, once again secured the top spot in the economic index by a clear margin. Zug is in first place for all tax-related indicators; only the tax deduction for external childcare could be increased. The canton has the lowest government ratio in Switzerland by a huge margin and the smallest proportion of employees in the public sector. In order to move up in the overall index, the canton of Zug would have to improve in the social indicators, where it only ranks 23rd, in stark contrast to the economic sub-index. The canton is restrictive when it comes to homeschooling and construction permits take a long time to be granted. Video recordings in public spaces are kept for a long time and the costs of public safety are relatively high in relation to the crime clearance rate. As a result, the canton of Zug remains in the top third of the overall index in 7th place but misses out on last year’s top 5 ranking.
ZH ↑
Rank 18 / Index value 45
The canton of Zurich, which is sometimes accused of a certain economic inertia, does not do so badly in the corresponding sub-index, ranking 8th. Surprisingly, its weaknesses lie more in the social sphere. In terms of economic freedom, the canton has the highest degree of decentralization in Switzerland. It also receives top marks for creditworthiness, liberal store opening hours and regulatory impact assessment. In the sub-index on social freedom, on the other hand, the Zurich lion locks itself in. It is only in 24th place. Video recordings in public spaces are kept for a long time and the costs of public safety are very high in relation to the crime clearance rate. Furthermore, companies in the canton of Zurich are not exempt from church tax and there is a ban on events on major holidays. The canton is liberal when it comes to homeschooling and residence periods for naturalization. In the overall index, the canton of Zurich falls five places to 18th.
LI ↑
Rank 2 / Index Value 59
Note: The index reflects areas where the cantons have room for action. Federal laws are excluded from the assessment of the cantons – unlike in Liechtenstein. Therefore, comparisons can be challenging.
With the exception of the canton of Aargau, the Principality of Liechtenstein outperforms all cantons and once again ranks very well in the freedom index. Liechtenstein scored very well in the tax-related indicators. The only thing missing is a tax deduction for external childcare. In terms of decentralization, the Principality is only ranked 24th – which is not very surprising given the small size of the territorial entity. Liechtenstein has the second-highest number of CLAs and NAVs (collective and standard employment contracts) declared generally binding, which leads to a poor ranking in labor market regulation. In terms of social indicators, the time it takes to obtain a construction permit stands out. At 38 days, this is far below the best value of the Swiss cantons and has the (methodologically) unpleasant side effect of reducing the differences between the cantons in the indexing of this important indicator. The Principality is in second place for public safety. However, the rules on homeschooling are restrictive. When it comes to church tax, Liechtenstein goes even further than many Catholic cantons: the state does not have a mandatory church tax for companies, but instead finances religious communities directly from the general tax pot. Church tax is therefore even compulsory for natural persons, so to speak.
