Funding in the Liechtenstein education system varies depending on the level of education. The main responsibility lies with the state, which must support and promote the school and education system in accordance with the Constitution (Art. 17) – with the exception of non-family childcare and further education institutions, which are mostly privately run. Types of expenditure include the remuneration of teachers and lecturers as well as school staff, the construction and maintenance of facilities, teaching materials and consumables, school and counselling services, special educational measures, support measures, training grants, insurance cover for those involved in schooling, etc.

According to the Office for Statistics, public education expenditure amounted to CHF 211.5 million in 2023. This was 6.4% or CHF 12.7 million higher than the previous year's education expenditure. As in previous years, personnel expenses accounted for the largest share of education expenditure in 2023, at CHF 105.1 million, followed by other current expenses at CHF 68.8 million and material expenses at CHF 23.6 million. Investment expenditure was the lowest, at CHF 14.0 million. Over the last 10 years, education expenditure has increased by an average of 1.9% per year.

Supplementary childcare services

Parents and guardians are required to pay for supplementary childcare services. These services are mainly financed by parental contributions. The state and, in some cases, the private sector also contribute to the costs.

Compulsory schooling (primary and lower secondary level)

Public compulsory schooling (primary and lower secondary level) is free of charge for pupils (usually including teaching materials and consumables). 

Secondary level II 

The state finances public secondary level II education (Liechtenstein Gymnasium, Liechtenstein Vocational Matriculation School). Secondary level II schools charge parents a contribution towards teaching materials. 

Vocational training (basic vocational training, higher vocational training, vocational further training)

The business community plays an important role in financing vocational training. It contributes primarily by providing training places for basic vocational training in companies. Higher vocational training is largely financed by the students and their employers. Vocational further education, which takes place outside the formal vocational training system, is mainly financed by the participants and their employers. As there are no vocational schools in Liechtenstein, training takes place in Switzerland or Austria.

Universities

The granting of a licence to establish and operate a university does not entitle the institution to receive state subsidies. Such subsidies are paid on the basis of a service agreement between a university and the government or if a law provides for the payment of a state subsidy to a specific university. As a public-law foundation, the University of Liechtenstein is subsidised and supported by the state.

The existing institutions in Liechtenstein cover only a small area of higher education. In order to nevertheless enable students from Liechtenstein to access all courses of study, Liechtenstein has various international agreements with neighbouring countries (in particular Switzerland) and individual educational institutions. Liechtenstein contributes financially, for example, to the  Eastern Switzerland University of Applied Sciences and the  Interstate Matura School for Adults in St. Gallen/Sargans, and makes compensation payments (contributions per student).

In addition to the domestic school and education system, Liechtenstein finances school and university places at foreign institutions and, on the basis of the Scholarship Law, grants educational assistance in the form of scholarships (no repayment obligation) and interest-free loans (repayment within 6 years).

Research and development (R&D)

In 2023, a total of CHF 447.8 million was spent on internal research and development (R&D) in Liechtenstein. The driving force behind this was private companies, which spent a total of CHF 436.8 million, while Liechtenstein research institutions recorded total expenditure of CHF 10.3 million and the public sector CHF 0.5 million.

Further education

Further education is mainly financed privately.