Air Andorra

The Principality of Andorra lies in a secluded valley between France and Spain, high in the Pyrenees, one of Europe's most impressive mountain ranges.

Since 1993 an independent parliamentary democracy, this little known tax haven with strict banking secrecy until recently was a secluded medieval principality ruled jointly by the president of France and a Spanish Catholic bishop. For a few in the know, this picturesque country, almost forgotten by the world, offers affordable, crime free and tax-free living.

Until now Andorra, an accident of geography, has been hours away by auto from the nearest airports in Barcelona, Spain or Toulouse, France. Much of the year the skiing is great, but roads might be snow covered. But this week the Andorran government announced plans for a new airport just fifteen minutes from the border with Spain that could boost the number of ski and other tourists. It also may very well increase the number of resident foreigners seeking tax freedom and financial privacy.

Andorra's lone airport is to be located in Seu d'Urgell, with first flights anticipated in 2010 or 2011. With a runway of 4,500 feet, not long enough for some medium range aircraft, most commercial air planes using the airport will be 60 to 80 seaters, plus private jets much favored by the wealthy who may now consider Andorra as a viable and more accessible tax haven.

Andorra has been transformed in the past 40 years from a poor European country with no real economy to a vibrant independent state, sought after by the wealthy for her tax haven status, and skiers for ski runs that match the best in Europe for facilities and ski holidays infrastructure.

Andorra, and the more famous Principality of Monaco, are Europe's leading tax havens, with residents enjoying the benefit of no income tax. Property prices in Andorra are less than a third of the price of Monaco's. Indeed Andorra is a tax haven -- no income, capital gains or inheritance taxes. No sales taxes or customs duties. There is a small  local residence tax charged in most "parishes," as the local government unit is called.

And perhaps soon we may be seeing the logo of "Air Andorra".

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