Andorra

Andorra's maximum 10% personal income tax rivals classic offshore jurisdictions, yet sits nestled in the Pyrenees between France and Spain. The microstate combines competitive taxation with no wealth tax, no inheritance tax, and no gift tax, making it increasingly popular with European HNWIs seeking tax efficiency without leaving the continent.

Capital gains are included in personal income and taxed at up to 10%, with exemptions for securities held over 10 years. Andorra has been removed from international tax haven blacklists after implementing transparency measures and signing information exchange agreements.

The Passive Residency permit requires a minimum investment of EUR 1.0M in qualifying Andorran assets (real estate, company shares, government debt, or life insurance contracts with Andorran insurers). If investing in real estate, each property must have a minimum value of EUR 800K . In addition, applicants must make a non-refundable payment of EUR 50K to the Andorran Financial Authority (AFA), plus EUR 12K per dependent. These AFA payments count towards the EUR 1.0M total. The investment must be completed within the first six months.

Passive residents cannot work in Andorra but may manage personal investments. They must spend at least 90 days per year in the country.

Active residency permits for entrepreneurs and professionals require foreign investment authorization. For the self-employed route where you incorporate an Andorran company, the applicant must hold a participation greater than 34% in the company. Processing takes 3-6 months. Andorra is not an EU member, but its location offers easy access to the Schengen area.

The principality offers a high quality of life with excellent healthcare, low crime, and stunning mountain scenery. Banking privacy, while reduced from historical levels, remains stronger than most EU jurisdictions.