Capital city: Andorra la Vella
Currency: Euro (EUR)
GDP: USD$3.3 billion
GDP per capita: USD$42,701
Andorra, officially the Principality of Andorra, is a sovereign landlocked microstate in Southwestern Europe (in the eastern Pyrenees Mountains bordering Spain and France). The principality was created under a charter in 988 and is headed by two Co-Princes—the Catholic Bishop of Urgell in Spain, and the President of France.
Andorra la Vella, the capital city, is the highest capital city in Europe (1,023 metres above sea level). The high altitude may be a significant reason the people of Andorra have the 4th highest life expectancy in the world at 82.43 years.
Tourism accounts for 80% of Andorra’s GDP with 10.2 million tourist visits annually. They are attracted by Andorra’s ski resorts which have 175 km of ski tracks.
The banking sector, with its tax haven status, accounts for 19% of the economy. Andorra has long benefited from its status as a tax haven, with revenues raised exclusively through import tariffs. There’s no wealth tax, no gift tax, no inheritance tax and no capital gains tax (unless the capital gain was realised by buying and selling Andorran property). Although personal income taxes were first introduced in 2015, they are low. The first EUR 24,000 of income is tax-exempt, and the top tax rate of 10% only applies to income over EUR 40,000).
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2