5 Most Tax-Friendly Countries in Europe

3. Andorra:

Corporate Income Tax Rate: 10%
Personal Income Tax Rate: 10%

Andorra imposed income taxes on residents in 2015 because of consistent pressures from the European Union. Even then, it remains one of the most tax-friendly countries in Europe. The top rate of 10% personal income tax is applicable to individuals with earnings over €40,000. The country applies a corporate income tax rate of 10% on profits generated by companies operating in the country. This low rate makes Andorra an attractive location for businesses. Andorra also imposes a 15% tax on capital gains but the tax decreases as the years of property possession pass. There is no capital gains tax on properties owned for over 13 years.