Where to Save Taxes and Protect Your Wealth in Europe: A Strategic Comparison for HNWIs

In today’s volatile economic and political landscape, High-Net-Worth Individuals (HNWIs) are not only looking for tax efficiency — they also want legal stability, asset protection, and personal safety.

If you're planning to move your residence or structure your wealth smartly within Europe, the key question is:

> Where in Europe can I both minimize my taxes and protect my assets long term?

Let’s compare some of the most talked-about jurisdictions for HNWIs in Europe: Andorra, Switzerland, Portugal, Italy, and Spain — with a focus on both taxation and security/stability.

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🇦🇩 Andorra: The Smart Choice for Tax Optimization and Discretion

Personal Income Tax (IRPF): 0%–10%

Corporate Tax: 2%–10%

Dividend Tax: 0% (from Andorran companies)

Capital Gains: 0% (on stocks under 25% shareholding, or after 10 years if over 25%)

Wealth/Inheritance Tax: 0%

Legal Stability: High – politically neutral and financially conservative

Banking: Safe and compliant, but discreet

Privacy & Protection: Excellent; not under EU jurisdiction

Residency Requirements: ~90 days/year (active or passive)

✅ Best for: Entrepreneurs, investors, crypto holders, and families seeking European lifestyle with low taxation and legal protection.

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🇨🇭 Switzerland: Prestige and Privacy, but with a Cost

Personal Income Tax: Up to 40% (varies by canton)

Lump-Sum Tax Option: Available for wealthy residents (negotiable)

Dividend & Capital Gains: Taxed unless structured properly

Legal Stability: Very high

Banking: Global standard for private banking

Privacy: Strong, but under increasing global transparency pressure

Residency Requirements: Strict, and comes at a price

✅ Best for: Ultra-HNWIs ready to pay a premium for political neutrality, banking, and legacy structures.

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🇵🇹 Portugal: Once a Tax Haven, Now Changing

Non-Habitual Resident Regime (NHR): Abolished as of 2024 for new residents

Income Tax: Up to 48% (standard)

Capital Gains & Dividends: Taxed unless structured offshore

Legal Stability: Medium – subject to EU regulation and policy changes

Banking: Solid but transparent

Privacy: Weak; full CRS exchange, public registers

Recent Changes: Unpredictable tax policy shifts

🚫 Risk Alert: Portugal is losing its tax-competitive edge, and uncertainty is growing among wealth advisors.

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🇮🇹 Italy: Attractive Flat Tax, But Not for All

Flat Tax Regime for HNWIs: €100,000/year on foreign income (for up to 15 years)

Domestic Income: Taxed progressively (up to 43%)

Inheritance Tax: Up to 8%

Legal System: Bureaucratic and slow

Privacy: Medium – EU rules apply

Banking: Reliable, but not private

✅ Best for: HNWIs with mostly foreign passive income and strong ties to Italy (family, lifestyle, etc.)

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🇪🇸 Spain: Popular But Punitive for the Wealthy

Income Tax: Up to 47%

Wealth Tax: Applies above €700k in most regions

Exit Tax: Yes, for certain assets if relocating

Inheritance Tax: Up to 34%

Privacy: Low – EU & CRS compliant

Recent Trends: Increasing pressure on high net worth residents

🚫 Warning: Spain is one of the least friendly environments for UHNWIs seeking asset protection and tax efficiency

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🏁 Conclusion: Andorra Is the Last True Refuge in Europe

When combining both low taxation and true protection, Andorra clearly stands out among European jurisdictions. It offers:

The lowest personal and corporate taxes in Europe

No wealth or inheritance taxes

A safe, discreet and neutral legal environment

High-end lifestyle next to Spain and France

Total ownership of your wealth with legal security

For those looking to legally optimize their global position without going offshore or exposing themselves to unstable regimes, Andorra is not just an alternative — it’s the ideal solution.

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🧭 Want a Personalized Relocation Strategy?

At LinkAnd, we help HNWIs relocate to Andorra and structure their global presence through a trusted network of lawyers, tax advisors, private banks, and real estate professionals.

👉 Contact us today to explore your options — with total discretion.