Liechtenstein is the European country whose capital is Vaduz while Schaan is its largest municipality.
Vaduz sits beside the Rhine and is the seat of the national parliament, government institutions and the princely family. Its best-known landmark is Vaduz Castle, perched above the town. Schaan lies immediately to the north and is more populous, despite Vaduz's greater international fame and constitutional importance.
The Principality of Liechtenstein was created in 1719 when the territories of Vaduz and Schellenberg were united as an imperial principality. It became fully independent after the German Confederation dissolved in 1866. Today it is a doubly landlocked Alpine country between Switzerland and Austria and is divided into 11 municipalities.
The wording matters because “capital” and “largest municipality” are different distinctions. Vaduz is the political capital, not the largest settlement. Schaan is also an industrial and transport centre, with a railway station serving the surrounding Rhine Valley.