Do you aspire to a privileged lifestyle while benefiting from an attractive tax system? Becoming a tax resident in Andorra could well be the ideal solution to make your plans a reality. Nestled in the heart of the Pyrenees, this principality offers many advantages to those who choose to make it their home. At AND Capital, an Andorran accounting firm specializing in business start-ups and thetax optimizationWe'll guide you through all the steps you need to take to obtain this precious pass.
The undeniable advantages of Andorran tax residency
Before embarking on your Andorran adventure, it's essential to understand the advantages of tax residency. At the top of the list, of course, are the most lenient taxes:
- No wealth or inheritance tax
- IRPP capped at just 10%
- IS between 2 and 10% for companies
But Andorra's strengths are not limited to just its tax benefits. The Principality enjoys an exceptional quality of life, with a cost of living close to that of Spain. Its healthcare system is recognized as one of the best in Europe. Last but not least, its geographical location makes it easy to reach Toulouse and Barcelona.
Opt for active tax residency
If you work in Andorra, the active tax residence is for you. Employees, the self-employed and company directors are all eligible, provided they reside in the Principality for more than 183 days a year. For company founders, you'll also need :
- Domicile in one of Andorra's 7 parishes
- Hire at least one employee
- Offer part of our services internationally
- Deposit €50,000 with the Andorran Financial Authority
Choose a passive tax residence
Would you like to move to Andorra without working there? Visit passive house is the solution. To qualify, all you need to do is stay in the principality for at least 90 days a year. You'll also need to make an investment of at least 600,000€, either by buying a property or by acquiring shares in an Andorran company. You'll also need to lodge a €50,000 bond with the AFA.
"In Andorra, there's a tax status to suit every profile, whether you're working or retired. The most important thing is to prepare your file well in advance to maximize your chances."
The AND Capital team
Retire to the sun
With its sunny climate and gentle lifestyle, Andorra has everything to seduce retirees looking for a haven of peace. By opting for a retirement in AndorraYou'll benefit from tax-free pensions and high-quality health cover. Preparing well for your move is essential for a successful new life in the principality.
Avoiding residency conflicts, the key to success
Before taking the plunge, it's crucial to analyze your personal situation to avoid any tax residency conflicts. Staying in Andorra for 90 days is not always enough to make you a tax resident in the eyes of your home country. Each country has its own criteria for determining residency.
To ensure a smooth transition, nothing beats expert guidance. At AND Capital, we work with you to study the tax treaties and rules in force to find the best strategy. Our aim: to help you establish your Andorran residence with peace of mind and in full compliance.
As you can see, becoming a tax resident in Andorra opens up a world of opportunities. Whether you're working, retired or just an investor, the Principality abounds with opportunities. By enlisting the support of a reputable accounting firm like AND Capital, specialists in the setting up offshore companiesof holdings or even property companies in AndorraIf you're looking for a new home in the Pyrenees, you've got everything you need to make a success of your new life. So, are you ready to take the plunge?
