Sometimes it has happened to us that a customer hesitates between Andorra and Gibraltar in order to establish a company in a low tax legislation. Both are in the Iberian Peninsula and the tax rates are identical, but the differences are very large when you go to review the details of each case.
The first point to settle is at the residence level. Andorra has 468km2, Gibraltar tiene 6.8km2. With this it is easy to deduce that housing in Gibraltar is not cheap, it is also very complicated to have a life there. In order to reside I would not choose Gibraltar under any circumstances.
However, the legislation in Gibraltar is agile and in Andorra it is not. In addition, setting up in Gibraltar is cheaper and maintenance has a slightly higher but very similar cost. Therefore, at the level of agility and at the level of costs Gibraltar has an important point in favor.
The quotes, in general, will be higher in Gibraltar if you reside, but as I said, I do not think residing there is a good idea in the first place. The difference is not particularly great, either.
At tax level, depending on the activity, you could pay less in Andorra, but usually the tax rate is exactly the same and by accounting rules we can be at 1-2% at most in favor of Andorra. If the activity comes from a special regime, the differences are much greater.
At the banking and savings level, it is complex and very specific in each case. For certain clients Andorra is ideal, for others it is Gibraltar. What I am clear about is that, over time, Andorra will gain momentum in this section and it will become an increasingly interesting country in terms of banking operations.
Now let's get into what's important. If you are a European resident, to only invest in Andorra or Gibraltar, without residing, there are very few assumptions that allow it in a safe and sustainable way in the long term. Gibraltar has interesting things at the level of the game and Andorra has interesting things at the level of online stores, but in general both legislations are absolutely useless if you do not want to reside in them. There are some businesses that do not, but in general, an investment can cause many worries in the long term for the European resident.
Therefore, I see Gibraltar as an excellent entry to the EU by non-Europeans, with common law legislation, agile and economic. Now, facing a European who wants to operate from Gibraltar (or Andorra) without residing and without a business that has particularities that facilitate it ... It is not easy.