How to obtain residency in Andorra and what are its benefits?

Advantages of obtaining a residence permit in Andorra

Andorra is an attractive place for investors due to its low tax rates, which are significantly lower than in most other European countries. When you obtain a residence permit, you automatically become a tax resident of this principality.

Comparison of tax conditions

To better understand the tax conditions in Andorra, it is necessary to compare it with other European countries:

• AndorraCorporate tax - 10%, personal tax - 10%, indirect taxes - 4.5%
• SpainCorporate tax - 30%, personal tax - up to 52%, indirect taxes - 21%
• FranceCorporate tax – 36.1%, personal tax – up to 45%, indirect taxes – 19.6%
• PortugalCorporate tax – 31.5%, personal tax – 53%, indirect taxes – 23%
• LuxembourgCorporate tax – 22.05%, personal tax – 41%, indirect taxes – 15%
• SwitzerlandCorporate tax - 8.5%, personal tax - 21.6%, indirect taxes - 8%
• MonacoCorporate tax is 33.3%, individuals are not taxed!

It is important to note that if your annual income in Andorra is below€24,000...or if you are in a family with one working spouse and your total income does not exceed...€40,000you are exempt from paying taxes. It is also worth noting that the dividend tax for residents in this principality is0%.

High standard of living

Andorra is known for its modern and adaptive tax legislation. In addition to tax benefits, there are many other positive aspects. In particular, the standard of living in the principality is quite high. According to the UN and statistical agencies, the gross domestic product per capita exceeds€36,000...which places Andorra on the same level as countries like the USA, the UK, and Germany.

In the international quality of life index, Andorra ranks12th place, it also takes12th placein terms of average life expectancy. In the latest index regarding access to medical services and their quality, Andorra ranksfirst placeon the effectiveness of its healthcare system. The rating from Standard & Poor's for Andorra isA-/A-2This indicates stability and an attractive business environment. The conditions for conducting financial activities in Andorra are quite favorable.

The process of obtaining a residence permit

The process of obtaining residency in Andorra through real estate purchase involves certain aspects: this status does not allow you to work, except in cases related to your company (only dividend payments are permitted here). Residency is granted fortwo yearsAfter that, it can be extended twice for two years, and then new conditions apply for the term.four yearsandten yearsResidence permit holders must stay in Andorra for at least90 daysin a year, which grants the right to permanent residency and tax resident status.

Additional information

For those interested in investment, immigration, and real estate acquisition, we recommend checking out additional information on our Telegram channel.

According to information from Pirineu Administrative Servei, the mandatory conditions for obtaining a residence permit in Andorra through real estate purchase include an investment of€400,000from which€50,000It is necessary to deposit in the Central Bank of Andorra (INAF) as an interest-free deposit, and the remaining...€350,000will go towards the purchase of real estate.

Introduction

If the applicant wishes to obtain a residence permit for themselves and their family members, it should be noted that in addition to the main deposit that needs to be made to the Central Bank, an additional amount must be added for each person.€10,000It is important to note that the total amount of investments will be reduced by the same amount accordingly.€10,000For example, if we are talking about a family of four — two parents and two children — the total amount of investments will be€400,000from which€80,000will be deducted as a deposit, and the remaining€320,000will go towards the purchase of real estate.

Necessary documents for obtaining a residence permit

To obtain a residence permit through the purchase of real estate, you will need to gather a specific set of documents:

• Original foreign passport.
• A certificate of no criminal record, valid at the time of document submission, with a validity of no more than three months.

Conclusion

In conclusion, it can be stated that obtaining residency in Andorra not only offers financial benefits but also provides a unique opportunity to enhance one's quality of life. Comparative data on taxation shows how advantageous it is to be a tax resident of this country —low tax rates,flexible legislationand the ability to receivedividends without taxmake Andorra attractive to investors.

Although investing in real estate may require significant financial investments, it also opens the door to a comfortable life in one of the best corners of Europe.High standard of living,modern healthcare systemandeducational standardsThey make this country a desirable place to live and do business.

The process of obtaining a residence permit

It is important to note that the process of obtaining a residence permit involves careful study of all requirements and preparation of complete documentation. Nevertheless, the confidence that such illusions, like the possibility of living in a stable and safe country with high standards, are worth the effort.

Advantages of living in Andorra:

• Low tax rates
• Flexible tax legislation
• The quality of life is at a high level.
• Modern healthcare system
• The absence of a dividend tax for residents

Result

Andorra is not just a country to live in; it is the perfect place to realize your potential. Therefore, if you are considering embracing new opportunities, obtaining residency in Andorra could be your first step towards a successful life abroad.