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European Tax Havens

Monaco and Andorra are two European countries that have decided to stay out of the EU for the simple reason of maintaining a no income tax policy. Unlike Monaco, Andorra is not well known for its financial benefits. Although both countries are similar in their economic benefits, they could not be more different in every other aspect. While Monaco is a well known European tax haven, Andorra has remained little known outside of the financial community despite enjoying the same tax advantages and arguably more private banking than her better known rival. With Andorra and Monaco?s high speed cable and broadband internet access more and more company owners are moving their residence to low and no tax countries and running their companies from a distance geographically, while being able to share information with their head office in real time.

The major differences between the two countries have to do with the climate. Monaco has good all year round weather and is located next to the South of France, while Andorra is in the Pyrenees and between early December and late April attracts nearly ten million tourists for ski holidays. Monaco has year round tourists, peaking twice a year in May for the Grand Prix, and September for the Yacht Show. Neither Andorra or Monaco have their own airports ? Nice airport has a helicopter link, a ten minute ride direct to Monaco, Andorra is not so fortunate and the nearest airport is Barcelona, a three hour drive away from the principality. Being a citizen in either country requires an entry price, which entails buying or renting a house or apartment. In this aspect, Andorra wins out over Monaco in terms of cost.

One bedroom apartments in Monaco start at 800,000 Euros, but in Andorra the same size apartment starts at less than a third of the price at 250,000 Euros. And while a house in Monaco is a rarity, there is a good choice of houses for sale in Andorra, with prices starting at under a million Euros. It has come as a surprise to many that the closing costs for buying a property in Andorra has not only been less than half that of Monaco, but also less than buying a property in many other mainland European countries at around four and a half per cent. As well as buying a property in Andorra or Monaco, both countries require residency applicants to establish a local bank account and deposit around 50,000 Euros, in Andorra, or 100,000 Euros, in Monaco, take out private health insurance, and to live there for six months of the year.