Most countries that have advantageous tax policies tend to be on the expensive side when it comes to housing, utilities, commuting, leisure and entertainment. While Switzerland, Dubai and Monaco are perfect examples of such places, Andorra can be regarded as an exception. In fact, this country is much cheaper than most other developed European nations and almost 40% less expensive than popular expat destinations like Hong Kong and Singapore. You can lead a comfortable lifestyle and spend less each month than you would in the UK, France or Germany.
The prices of food, household appliances, luxury goods, and alcohol in this Principality are between 10% and 25% lower than other EU nations. Items such as clothes and electronics also tend to cost 15% to 20% less than in Spain and France. This could be because people can purchase a wide range of products at duty free prices.
In spite of being a small country, Andorra is home to at least 2,000 boutiques and shops that stock a wide range of products to suit every budget. The competition helps keep prices fairly stable, and many of the stores offer great deals and discounts.
This applies to restaurants, bars, and cafes too; you can easily cut down on your monthly expenditure even if you eat out on a regular basis, just by choosing the less expensive eating joints. You can easily get a 4-course meal at an averagely priced establishment for less than € 20.