GESTORIA Andorra
If you’re considering a move to Andorra, you’ve likely encountered various outdated resources online. Not to worry, this comprehensive guide provides up-to-date information on the entire process.
Common Questions Addressed:
- How can I relocate to Andorra?
- Can I establish a company there?
- How can I find employment?
- What’s the timeline for settling in Andorra?
From The Experts
Understanding Andorra's Tax System
Andorra’s tax system is often a primary reason why many choose to relocate here. The country offers a simplified and attractive tax structure that includes:
1
Low Income Tax
Andorra has a low personal income tax rate, which typically ranges from 0% to 10%. The exact rate depends on your income level.
2
No Capital Gains Tax
Perhaps one of the most appealing features of Andorra's tax system is its lack of capital gains tax. This means that any profits from the sale of assets like stocks or real estate are not subject to taxation.
3
Minimal Inheritance and Gift Tax
Inheritances and gifts are subject to minimal taxation, making it an attractive option for wealth preservation and estate planning.
4
Low Corporate Tax
Businesses also benefit from a competitive corporate tax rate, which can be as low as 2%. This has drawn many entrepreneurs and investors to establish their businesses in Andorra.
5
VAT (IVA)
Andorra does have a Value Added Tax (VAT), known locally as IVA, which is currently set at 4.5%. While this is relatively low compared to many other European countries, it's essential to account for it in your financial planning.
RELOCATION
Ways to Relocate:
Primary Ways to Relocate:
Establishing Your Own Company:
Setting up a company in Andorra involves several steps and requirements. Typically, you’ll need to establish an Andorran limited liability company (SL) with a minimum share capital of €3,000. This initial capital is essential for the company’s operation and can be recovered if needed. However, the process involves legal intricacies best handled by professionals. Additionally, a deposit of €50,000 is required for non-resident administrators, which is refundable upon departure.
Passive Residence:
For individuals with sufficient income or assets, passive residence offers an alternative route. This option doesn’t permit work but requires a substantial investment in Andorran assets, such as real estate or public debt. Additionally, proof of ample annual income is necessary.
Important Considerations:
- Administrative vs. Tax Residence: Administrative residence in Andorra requires at least 183 days of physical presence, while tax residence involves different criteria.
- Fees and Expenses: Various costs, including notary fees, registration expenses, and ongoing obligations, should be accounted for. The total investment for establishing a company in Andorra, including professional services and deposit, typically amounts to around €70,000.
- Consultation and Assistance: Professional guidance is invaluable throughout the relocation process. All in Andorra offers personalized services to navigate the complexities effectively.
Other Options:
- Employment: While setting up a company in Andorra is one option, securing employment with an existing company is another route. However, finding job opportunities may require persistence and networking efforts.
Addressing Common Concerns:
- Andorra’s Tax Status: Andorra is no longer considered a tax haven and has implemented various reforms, including personal income tax and transparency policies.
- Nationality and Taxes: Residing in Andorra does not affect one’s nationality, and individuals are expected to fulfill their tax obligations as per Andorran regulations.
- Cryptocurrency and Trading: Taxation policies apply to various financial activities, including cryptocurrency transactions and trading profits.
TO ANDORRA
Andorra offers a unique blend of advantages
If you’re intrigued by the prospect of relocating to Andorra, we commend you for exploring this valuable resource. For personalized assistance and further inquiries, schedule a consultation with All in Andorra, where we’ll address any doubts and facilitate a smooth transition to your new home.
