How did Andorra, the "Pyrenees", become a developed tax haven?

The "tax avoidance" is not to say that the tax exemption, of course, there will be tax exemptions, but in general, the tax avoidance of the application of the situation that the tax rate is very low, which is obviously on the development of tax avoidance of the country to provide a great deal of convenience, or how can support the development of the country's economy? What's more,For Andorra, which has a very small land area, the reason why it can develop into a developed country is that it has a great relationship with the system related to foreign trade formulated by their country.

First of all, Andorra survived in the midst of France and Spain, and at the same time it was protected by both countries, with a double support and security, and although Andorra lost its political rights, its economic and military security was guaranteed. Military security is guaranteed, so by virtue of its own advantages, open the low tax or tax-free fast track. The reason for such a strategy is obviously the immediate need to develop the economy, to attract a constant inflow of more foreign capital to promote their own development, why not?

Secondly, Andorra is a landlocked country, and with its small size and scarcity of natural resources, it is difficult to develop. There is little to rely on for economic development, but it still has the advantage of being fully integrated into the globalized economy, since there is no way to go out and develop. Opening up the country to foreign companies is an advantage, and that is why Andorra is a pocket-sized country, but one of the most developed.

And finally, despite the fact that many countries are making this tax avoidance a "gray area", Andorra is still doing very well under the protection of both France and Spain.