If you are planning to move to Andorra and start your new life in the country, this guide will really benefit you. We will outline the main pillars that will shape your new life in the country, discovering how amazing living in the Principality is.
This section will help you understand why many immigrants move to Andorra and choose it as their new country of residency. Low taxation rates, great investment opportunities, high quality of schooling and health care. To sum up: the quality of life is much higher than in the vast majority of European Union countries.
And that is mainly due to the cost of living, much lower than the major cities in Spain, France, the United States or England. Hence, shopping and everything related to going out is cheap. High-end retail shopping is a common activity among residents, and going to a rustic or high-class restaurant afterwards is the right thing to do.
And life won’t be that good if it were not for the surroundings. No matter where you look at, you will find nature and amazing landscapes surrounding yourself. That makes it a perfect place for doing outdoor activities such as running, cycling or hiking.
And, finally, there is no denying that a proper quality of life involves health. In that sense, Andorra enjoys a really generous health care system, having nearly everything covered. And no one would dispute that health is also related to people. The principality is conformed by a diverse set of people who share something in common: their openness and friendliness. Therefore you won’t have any problem in creating your new life in the Principality.
With one of the lowest taxation rates in the world, many consider Andorra as a tax heaven. That is why it is a perfect option if you would like to create your own company and make it take off.
Which are the taxes you will need to pay in the Principality? Unlike many countries, taxes such as the wealth tax or the inheritance tax do not exist. The taxation system is much more simple than that.
-If you have a company, you will need to pay 10% on your profits. Nevertheless, if you meet some criteria, it is even possible to reduce this amount.
-As a resident in the country you will pay 10% as personal income tax. If you are not a tax resident, you won’t need to pay IRPF.
-Low tax percentages also apply to VAT. Because no, Andorra is not VAT exempt. But it just goes from 4 to 12%.
-Capital gains tax, 10% with many exemptions to reduce and even eliminate the need to pay it.
-Finally, non-resident income tax, which applies to those staying in the country for less than 183 days per year, which is also a 10%.
Bear in mind that Andorra has many taxation agreements with other European countries like Spain, France or Malta. This eradicates the double taxation problem that arises when you obtain incomes in one country but reside in the other.
Even though we are talking about a country with a growing demand in regards to the real estate market, as many new foreigners establish themselves in the principality, property prices are still reasonable. That makes it a perfect opportunity for you to invest.
Nevertheless, when it comes to renting, things are not as positive. Available options are really limited, and that is something that will keep consistent as property prices keep growing.
Which are the legal requirements to buy a property in Andorra? You must bear in mind that an authorization from the government is needed. Furthermore, there are two main taxes involved throughout the procedure. Paying a 1,5% tax on the purchasing price as long as a 2,5% in regards to the ITP (impost de tranmissions patrimonials) will be required.
You must be really careful when choosing the property you are going to buy. Andorra is surrounded by mountains, and that creates the unfavorable situation for many properties to have difficult access or low-levels of sunlight during the Winter. This last point is also really important when it comes to helping your heating systems (something completely needed due to the low temperatures).
Ease of all the immigration processes is something that characterizes the Principality. Getting the residency in the country is a simple process, especially due to the low requirements when it comes to the application procedure.
There are four types of residence permits, divided into two groups: passive and active. In the majority of the cases, and that is why immigrating to Andorra is a simple undertaking, the main requirement will be to realize some sort of investment.
And how can you get a work permit in the country? The work permit is assimilated to the Category D active residency, which will allow you to set up a company in the country and become the main worker, or find a job in an already established company (even though obtaining this type of work permit is much more complicated).
Do you need a visa to visit Andorra? That will depend on your country of origin. For example, Andorra has special movement agreements with Spain and France; meaning that if you are from any EU country, you don’t need a visa to stay for a maximum of 30 days in the principality.
Nevertheless, if you are from outside the European Union, obtaining your tourist visa will be required to visit Andorra, something you want to do when obtaining your residence permit.