It has also now relaxed residency laws in a move towards attracting wealthier citizens. As a result, the property market, which until last year was stagnating, has begun to see a significant rise in demand and prices.
Andorra measures just 468 square kilometers and its main income is from financial services and tourism. Around nine million visitors arrive annually to pursue outdoor activities, including skiing, and duty-free shopping.
There are also tax benefits for residents. The first €24,000 of earnings is tax free, and global income over €40,000 has a flat rate of ten per cent.
