Thinking of taking the plunge and becoming a tax resident in Andorra? Specialized firm And Capital can tell you all about the steps to take and the unique opportunities the Principality offers in 2024 in terms of tax advantages and quality of life.
In recent years, Andorra has become a popular destination for entrepreneurs and individuals seeking legal tax optimization and a privileged living environment.
- The And Capital team
Andorra's main tax advantages
The Principality of Andorra offers numerous tax advantages to residents, including :
- No wealth or inheritance tax
- Personal income tax between 0 and 10% only
- Corporate income tax capped at 10%
- Reduced VAT rate of 4.5% (compared with 20% in France)
An attractive living environment
Beyond the tax aspects, Andorra seduces with its gentle way of life. Nestled in the heart of the Pyrenees, the Principality boasts an unspoilt natural environment ideal for outdoor activities. The Principality is one of the safest countries in the world, and boasts a modern infrastructure, including a high-performance healthcare system. The cost of living remains moderate, similar to that of Spain.
Passive or active tax residence: conditions
Passive tax resident status
Visit passive tax residence is aimed at people wishing to live in Andorra without working. The main criteria are :
- Stay a minimum of 90 days per year in Andorra
- Invest €400,000 in real estate or €50,000 in a local economic activity
- Taking out private health insurance
- Sufficient and stable financial resources
Becoming an active tax resident
Active tax resident status applies to individuals working in Andorra as company managers. The main conditions:
- Reside in the Principality for more than 183 days a year
- Setting up and domiciling your company in one of Andorra's 7 parishes
- Hire at least 1 local employee
- Invest €15,000 in an Andorran bank account
Anticipating the challenges of dual residency
And Capital draws attention to one key point: the risk of tax residency conflicts. As each country has its own criteria for defining tax residence, double taxation situations can arise. In order to avoid them, an in-depth analysis of each client's tax situation is essential.
We study your personal situation and objectives to determine the best strategy for tax residency in Andorra. Our expertise in tax treaties and our collaboration with the Andorran and foreign authorities ensure a secure approach.
- The And Capital team
Interested in a legal and efficient tax optimization ? Contact the experts at And Capital to study your eligibility for Andorran tax residency and start your new life in the best possible conditions!
