The Principality of Andorra is attracting more and more expatriates thanks to its exceptional living environment and advantageous tax system. If you're thinking of moving to this small country nestled between France and Spain, you may be wondering how to optimize your tax situation. Tax residency in Andorra offers many advantages, such as the absence of traditional property tax. Find out how to take advantage of them with the help of AND Capital, an accounting firm specializing in tax optimization in Andorra.
The advantages of the Andorran tax system
Unlike many European countries, Andorra does not impose a standard council tax.. Residents are therefore not subject to an annual tax simply for occupying a property. This tax advantage attracts many investors and expatriates.
However, property owners must pay certain specific taxes:
- Tax on built property, calculated according to the location and surface area of the property
- The "Foc i Lloc" tax, levied by the communes and varying according to the parish
An attractive tax environment for investors
Beyond the absence of property tax, Andorra offers many tax advantages :
- Income tax capped at 10%, with possible exemptions and deductions
- A corporate income tax rate of 10%, reduced for new businesses during their first three years of operation.
- A degressive capital gains tax, ranging from 15% to 0% depending on the length of time the property is held.
"Andorra offers a fiscal framework that is unique in Europe, combining low taxation and exceptional quality of life. It's a destination of choice for expatriates and investors alike."
- The AND Capital team
Attractive cost of living
In addition to its tax advantages, Andorra enjoys a relatively low cost of living compared with its European neighbors. The low rate of VAT (IGI), at 4.5%, helps to keep the price of consumer goods at an attractive level. Residents also benefit from high-quality services, particularly in the areas of health and education.
Why choose tax residency in Andorra?
Living in Andorra as a tax residentTo choose Andorra is to benefit from an exceptional living environment combining nature, security and tax advantages. Andorra's tax system is designed to attract investors and expatriates alike, offering favorable conditions for those wishing to reduce their tax burden while enjoying a high quality of life.
Call on AND Capital for your settling in Andorra
Would you like to find out more about tax benefits and investment opportunities in Andorra? Contact AND Capital's team of experts for personalized support. Specialized in company formation and tax optimization in Andorraour firm will guide you through all the steps involved in your expatriation and your investments in the Principality.
"At AND Capital, we put our expertise at the service of your expatriation project in Andorra. Our in-depth knowledge of the Andorran tax system enables us to offer you tailor-made solutions to optimize your situation."
- The AND Capital team
Don't hesitate, take the plunge into a new life in AndorraThe Principality of Monaco, where taxation is synonymous with peace of mind. With AND Capital at your side, you'll have all the keys you need to set up successfully and take full advantage of the Principality's assets.
