Airbnb vs. Long-Term Rental: Profitability in Liechtenstein

Published on April 27, 2026 and written by Cyril Jarnias

In an economic context where the quest for real estate profitability is becoming crucial, the choice between Airbnb and long-term rental emerges as a strategic decision for investors.

Liechtenstein, with its dynamic real estate market and local specificities, offers a unique opportunity to explore the differences in profitability between these two models.

This article aims to analyze in depth the potential gains by city, evaluating market trends, traveler preferences, and legislative particularities that influence profitability.

Through a comparative study, we will discover how to maximize real estate income in this small but powerful European country.

Comparison of Income Between Airbnb and Long-Term Rental in Liechtenstein

The comparison between short-term rental (notably via Airbnb) and long-term rental in Liechtenstein reveals distinct dynamics in terms of income, management, and profitability, especially in major cities like Vaduz, Balzers, and Eschen.

Average Prices Charged

Type of Rental	Main City	Average Price per Night or Month
Short-term rental	Vaduz	550–600 CHF/night (central apartment)
Short-term rental	Triesenberg	175–180 CHF/night
Long-term rental	Vaduz	1,800–2,500 CHF/month (2-room)
Long-term rental	Balzers/Eschen	1,400–2,000 CHF/month (2-room)

Note: Prices for long-term rentals are estimated based on recent local practices. For short-term rentals, data comes from active listings on specialized platforms.

Analysis of Demand and Supply Trends

• Short-term rental
  • Demand: Strong seasonality with peaks in winter (skiing in Malbun), summer (hiking), and cultural events.
  • Supply: Limited but growing due to the country’s tourist appeal.
  • Concrete example: A central apartment in Vaduz rented at a 60% occupancy rate could generate up to 9,000–11,000 CHF/month during peak periods, but only 3,000–5,000 CHF/month off-season.
• Long-term rental
  • Demand: Stable year-round, driven by a small local population and some cross-border workers.
  • Supply: Broader than short-term tourism, but constrained by the highly regulated local real estate market.

Profitability heavily depends on geographic positioning and services offered. Short-term rentals often require more investment in daily management and maintenance.

Comparative Net Profitability

To illustrate:

• Short-term rental
  • High potential gross income during tourist peaks.
  • Significant additional costs: cleaning between each guest, possible tourist tax, Airbnb platform fees (~15%).
  • Possibility to optimize pricing based on seasonality to maximize occupancy.
  • Concrete example:

    A studio in a village near ski slopes rented throughout winter can generate up to three times the average monthly income of an equivalent annual rental.

• Long-term rental
  • Lower gross income but regular year-round.
  • Fewer direct operational costs; no need for daily customer service or frequent cleaning.
  • Increased financial security through long-term contracts.

Significant Differences

• Seasonality
  Short-term rental is highly sensitive to seasonal fluctuations, while long-term offers predictable financial stability.
• Local Legislation
  Liechtenstein applies strict regulations on furnished tourist rentals. It is necessary to declare these activities to local authorities. Owners must also comply with certain standards regarding the maximum number of rentable days per year or pay a specific tax depending on the municipality.
• Additional Services Required
  Day-to-day management demands more personal involvement or requires hiring a professional concierge service to ensure quick cleaning between each booking.

Economic Implications for Owners and Investors

Both models have their advantages:

To maximize net income with a well-located property in an attractive area like Vaduz or Malbun/Balzers/Eschen near ski/hiking resorts:

– Favor short-term rental if you can efficiently manage tenant turnover
– Opt for long-term if you seek security/predictability

For a local investor with an already vacant property:

– A mixed strategy is possible: offer long-term off-season and switch to short-term during peak periods

For a new foreign investor:

– Thoroughly research local legislation before acquisition
– Plan a higher initial budget if choosing short-term to cover setup/concierge costs

Finally, it should be noted that some owners cleverly combine these two models based on the calendar of major regional events to optimize overall return on investment while limiting risks of unexpected vacancy during the low tourist season, both nationally and internationally, including neighboring Switzerland and Austria. The principality itself remains an attractive niche destination for certain demanding traveler profiles seeking authenticity, alpine mountain tranquility, and proximity to dynamic urban centers like Zurich, Innsbruck, St. Gallen, etc.

Summary Table of Scenarios

Situation	Supply/Demand Trend	Strategic Coherence
Central property in Vaduz	Strong seasonality + stable year-round	Short/long-term mixable based on regional cultural/sports event calendar
Rural property near Balzers/Eschen/Malbun	Pronounced seasonality winter/summer hiking-ski/quiet green tourism spring/fall low affluence overall concentrated around flagship outdoor activities of the miniaturized European principality with unique tax status attractive to international temporary residents and Swiss/Austrian cross-border workers, etc.
All situations combined in Liechtenstein, a small densely urbanized territory of hills, valleys, and mountains accessible quickly by bike, bus, train, or private car without the usual congestion of major European metropolises like Paris, Lyon, or Bordeaux by the sea, where regulations sometimes hinder the development of the alternative hospitality sector like Airbnb, Booking, Abritel, and other similar global platforms leading the disruptive digital sector…
Thus, each profile will find a solution adapted to the specific Liechtenstein context, combining stable tax advantages, a clear legal framework, an exceptional natural setting, proximity to modern infrastructure, and a quality of life recognized internationally despite the reduced territory of a sovereign state recognized by the UN, EU, and EFTA, with privileged economic partnerships with its German-speaking neighbors in the Alpine Rhine region of Western Central Europe…

Conclusion and Recommendations

In practical conclusion, immediate recommendations for strategies to optimize net income from real estate in Liechtenstein vary depending on the profile, motivation, available time, personal commitment, and individual, collective, family, institutional, private, public, associative, corporate, startup, scale-up, fund, alternative investment, crowdfunding, cooperative, or citizen objectives, etc.

Here are some concrete axes advised by field experts:

• Analyze the local market precisely before choosing a dominant or mixed model.
• Anticipate the future needs of the target clientele: business travelers, families, couples, solo travelers, active retirees, students, researchers, artists, digital entrepreneurs, nomads, globetrotters.
• Optimize included services: WiFi, high-end kitchen equipment, flexibility in check-in/check-out times, automated digital solutions via clicks, smartphones, tablets, computers, universal connectivity accessible to all ages, cultures, languages, and diverse geographic origins.
• Scrupulously respect legal, tax, social, municipal, national, regional, European, and international obligations where applicable: declarations, taxes, contributions, insurance, civil liability, adequate legal protections, transparent contractual guarantees with precise, explicit, unambiguous, comprehensive clauses that are easy to read and understand for all signatories and multiple stakeholders in an open, innovative, sustainable, responsible, inclusive, equitable, and supportive collaborative ecosystem with shared, intelligent, agile governance resilient to potential future crises: pandemics, climate change, natural disasters, geopolitical, cybersecurity, health, economic-financial, societal, and global civilizational crises, both current and emerging.

Analysis of Seasonal Rental Profitability by City

Criterion	Seasonal Rental (Airbnb)	Long-Term Rental
Gross Profitability	Potentially 2 to 3 times higher in high season, but highly variable depending on occupancy rate and tourist period. Monthly income up to three times higher during peaks.	Stable yield year-round, generally capped at 4–7% per year depending on the city and local demand.
Seasonality	Very strong: maximum income during tourist periods (summer, school holidays). Marked decline off-season; some owners then opt for temporary classic rental.	Limited impact: constant income regardless of season or tourist influx. Low vacancy rate.
Average Occupancy Rate	High in high season (75–90%), can drop below 30% off-season; heavily depends on local tourism dynamism and one-off events.	Generally stable around 90–95%, except during major crises or structural decline in residential demand.
Average Nightly Rate	Variable by city/period: typically between €120 and €300/night in attractive destinations during summer, half that off-season. Dynamic management recommended to optimize actual income.	Fixed monthly rent: fictional example for Vaduz/Schaan ~€1,500–2,200/month for a modern two-room apartment (data extrapolated due to lack of precise examples for Liechtenstein).
Associated Costs	Higher: regular cleaning (~€20-40/stay), increased maintenance, active rental management (+10-20% commission if agency), Airbnb platform fee (~3% commission). Higher risk of temporary vacancy.	Reduced costs: standard annual maintenance, simplified management; little or no intermediation except possible initial agency fee (~5-10% of annual lease).

Factors Influencing Profitability

• Tourist Seasonality:
  • Cities like Vaduz attract business and cultural tourism with a strong summer concentration.
  • Demand drops significantly outside tourist peaks.
• Occupancy Rate & Dynamic Pricing:
  • Success largely depends on continuous adjustment of nightly prices as well as local events (cultural or sports festivals).
  • In low/mid-season, some owners temporarily convert their property to long-term rental to limit financial losses.
• Additional Operational Costs:
  • For Airbnb: frequent cleaning, accelerated wear and tear on furniture/equipment due to high turnover.
  • For long-term: costs limited to standard maintenance.

Recent Data on Generated Income

Fictional example adapted to the local context due to lack of precise public statistics on Liechtenstein:

A well-located two-room apartment in Vaduz

Airbnb July–August: estimated average rate ~€180/night × estimated occupancy rate ~85% → potential gross monthly income ≈ €4,600
Off-season (April-November): reduced median rate (~€100/night) × possible occupancy rate
Stable annual long-term rental: approximately €1,800/month or ≈€21,600 gross/year

In this example:

• Short-term rental is significantly more profitable over a few key months but quickly suffers when the occupancy rate drops.
• Over a full year with a weighted average between high/low seasons, the gap narrows, especially after deducting the higher costs associated with short stays.

Comparative Advantages & Disadvantages

List summarizing strengths/weaknesses:

• Airbnb Advantages:
  • High profitability during tourist peaks
  • Flexibility in management/pricing/availability
• Airbnb Disadvantages:
  • Volatile income
  • Time-consuming management/high variable costs
• Long-Term Advantages:
  • Annual financial security
  • Increased administrative/logistical simplicity
• Long-Term Disadvantages:
  • Capped yield even during temporary surges in the rental/tourist market

Concrete Examples/Case Studies

An owner with two similar properties in Schaan alternated between short-term via an international platform during July-September and long-term for the rest of the year to balance maximum yield and slow periods – a so-called “hybrid” strategy often providing an optimal compromise.

Current Trends & Future Outlook in Liechtenstein

• Strong dependence on international tourism – any geopolitical/health fluctuation will directly impact the short-term model.
• Gradual increase (+9.5%) in real estate prices in recent years could slightly compress classic yields while mechanically increasing the value of rented properties.
• Evolving local regulations regarding platforms like Airbnb, which could impose quotas/licenses, progressively restricting this lucrative activity in certain sensitive urban areas.
• Increasing digitalization, however, still facilitates the attractiveness and rapid profitability of short-term platforms as long as tourist flows remain dynamic.

Factors Influencing Rental Yield in Liechtenstein

Economic Factors and Market Structure

• Liechtenstein benefits from a stable economy, a high standard of living, and a low unemployment rate, which supports real estate demand.
• Average housing prices in Vaduz range between €5,000 and €12,000 per square meter, with steady growth over several decades.
• The majority of homes are owner-occupied, limiting the available rental supply. Only a few foreign nationals can purchase a property each year after residing there for three years.

Region	Average Price per m² (€)	Supply/Demand Trend
Vaduz	5,000 – 12,000	High demand
Other regions	3,500 – 8,000	Moderate demand

Comparison of Rental Yields

Criterion	Seasonal Rental (Airbnb)	Long-Term Rental
Annual Occupancy Rate	Variable (50-80%)	High (>90%)
Average Stay Duration	Short (2–7 days)	Long (>1 year)
Client Type	International tourists	Locals/expats
Maintenance/Management Costs	High (frequent cleaning…)	Moderate
Customer Satisfaction Level	Very sensitive to reviews	Less fluctuating

Key takeaway:
Seasonal rentals often generate higher monthly income in high season but at the cost of more intensive and variable management. Long-term rentals offer income security but limit upside potential during tourist peaks.

Main Determinants

• Strategic location near major events/infrastructure;
• Ability to offer a high level of service to maintain a good rating on platforms;
• Anticipation of hidden costs related to high turnover on the short-term side;
• Close monitoring of local regulations, which are always subject to change.