For those expats with active residency whose income is essentially work related, the tax rates are very reasonable: 0% for incomes up to 24,000€ a year.

 

Andorra fiscal framework

Andorra has ended up strategically positioned as one of the most competitive jurisdictions in the world for those individuals who are looking for a country from where they can manage their business and personal wealth in optimum conditions.

The adoption of the direct personal tax has meant a real step towards direct taxation in the country. The goal was to generate a climate of trust, internationally, that would point favorably to Andorra’s offer as a strategic location. It has also been important in the negotiation of the No Double Taxation Agreement: France began the final process of parliamentary ratification, Luxemburg signed and there has been significant progress in the negotiations with Spain and Portugal.

At the same time, there has been a significant increase in authorization of approved investments. The number of these investments has reached 883, which in monetary terms is expected to be 64 million Euros of investment to constitute or acquire 733 companies and open up 322 new businesses.

Fiscal expatriation

According to international observers, Andorra is now the second most attractive place in the world to set up residency.

The values considered in this study were: legal security and personal safety, governmental political attractiveness to new investors, speed of administration, strategic geographic location and access to primary services and, of course, the tax level for residents.

Fiscal pressure

For those expats with active residency whose income is essentially work related, the tax rates are very reasonable: 0% for incomes up to 24,000€ a year, 5% between 24,000€ and 40,000€ and 10% for incomes above this value.

 For passive residents without active income, ie. Those who live from “wealth management”, the tax rate will be anything from 0 to 10%, the first 3,000€ being exempt. The final figure will depend on their use of collective financial offerings such as the Andorran SICAV programs which can effectively reduce tax to nil. The distribution of dividends to partners of Andorran companies is exempt of tax.

High net Worth Individuals

The Andorran jurisdiction is aiming to be the preferred jurisdiction for High Net Worth Individuals from all over the world who are looking for a strategic location in Europe that offers guarantees at all levels and a place to live with advantages not offered elsewhere.