Actually it's not.
Don't know if there are still bargains to be had, but it is essentially all duty free.
In Andorra, the only taxation is 5% on all imported goods. Therefore, prices should be around 15% lower than UK. For people working there, no income tax, no deductions. What you earn gross is what you get. The worst thing about buying something in Andorra is that the locals will never put a pricetag on anything. You have to go in and ask.
Re. Andorra La Vella, it's anything but. Heat, noise, traffic jams, pollution. As you move out of the city, it becomes more pleasant.
We usually stay in La Massana, about 5 minutes drive from the city and very civilised.
As a teetotal person who has never bought or smoked a cigarette nor used an illegal substance in his life, I never take anything out of any country, never mind Andorra, I do not care if I am stopped or not by Police/Customs, but I have been with many others who have been stopped leaving Andorra and searched. Other aquaintances have taken panniers full of things like cigarettes out of Andorra, to pay for their trip there. I always travel about 5 minutes away from them for the first 30km or so after exit.
One never ceases to be amazed at what is available over the counter in the country. Things that generate an automatic jail sentence here. Guns, Mace, tazers, you name it, you can buy it there with no questions asked.
One aquaintance had a pub in Claremorris in the west of Ireland. He brought home a can of Mace. One night at around 1.30 in the morning, he was trying to get his customers out and they were refusing to leave. He took out the can of mace, and sprayed it for a second or so into the blades of a circulating fan on the wall. 3 minutes later, every victim in the pub was in the street, along with the staff!
There are only 2 roads out of Andorra, one South towards Urgeles, and another northeast into France, or so we are led to believe.
If you wish to take a crazy route out of the country, one goes to the village of Bixessarri (Southwest of Andorra la Vella) and sets the satnav for Os de Civis, one ends up in Spain by very back roads.Next plot is Burg, then Llavasori. You now join the road a few km north of Sort.
Myke