Tax advantages in Andorra

Andorra, along with Monaco, has the lowest crime rate in Europe. A sophisticated healthcare system coupled with clean mountain air make it the ideal place for your retirement. Many retired executives choose Andorra as it offers a number of important advantages.

If you are interested in enjoying your retirement in Andorra, we can help you with our personalized solution for passive residents through investing in Andorra. The passive residence program in Andorra is very popular among retirees and people with high net worth who are no longer actively working.

We advise on the best possible procedure to request passive residence in Andorra and will organize the subsequent move. Andorran immigration has specific categories for passive residents and it is important to analyze which is the best solution for you.

Our services include the entire process with the immigration authorities, banks, insurance and the local municipality so that they move and properly register in their new home in Andorra.

Advantages of Andorra for retired people:

• The crime rate is almost non-existent in Andorra. Excellent sanitary facilities and hospitals
• Very affordable private insurance plans
• 5-10% Income Tax on Qualified Income / Investment Statements
• There is no inheritance / inheritance tax or wealth tax in Andorra
• Possibility of receiving your private or public pension with tax advantages (subject to the provisions of the double taxation agreement)
• Qualified capital gains of publicly traded companies are exempt from tax.

Requirements for a non-profit residence through investments:

• Spend a minimum of 90 days per year in Andorra
• Leave an unpaid deposit / bond of 50,000 EUR with the Andorran government
• Make an investment of EUR 350,000 (in addition to the EUR 50,000 deposit) in Andorran assets
• Show that you have sufficient funds to cover your personal / family expenses
• Be properly insured with health and accident coverage - Have clean criminal / police records from your country of birth / current residence

Project description

IT specialists and YouTubers usually work as freelancers and, in most cases, provide their services remotely to their clients. This gives them some flexibility in choosing where to settle and they can choose the country of residence based on their personal preferences rather than where their clients are located. Andorra offers unique advantages for YouTubers and IT specialists who decide to make their home in Andorra. Fast fiber optic internet, low costs of living, and a beautiful mountain setting for those who enjoy an active lifestyle. All this just 2.5 hours from Barcelona, one of the most cosmopolitan cities in Europe.

Many freelancers do not operate through a legal entity, but are billing for their services in their own name. Unfortunately, Andorra does not facilitate entry for freelancers unless they are associated with specific professions (doctors, scientists, architects, etc.). Therefore, we recommend the creation of a company in Andorra that formalizes its activity under a duly established entity. Depending on your participation in a company and on being one of the directors, you can formally request your residence in Andorra.

To comply with local immigration requirements, you can apply for residency by participating in a company with at least 10% and serving as an active board member or director of the company. Therefore, the first step for your project in Andorra is the creation of a company.

Requirements to create an IT services company + active residence

For the creation of an IT services company:

• Submit a business plan and future billing estimates
• Provide criminal / police records of the country of birth / current residence for all shareholders with more than 10% of participation
• EUR 3,000 of capital for an SL / EUR 60,000 for an SA
• Approve the compliance process with local banks (provide tax returns, source of funds, etc.)
• A minimum of two visits during the creation process of creation (notary, presentation at the bank)

For active residence (self-employed) through the creation of a company:

• Spend a minimum of 183 days a year in Andorra
• Participate with a minimum of 21% of the company's shares
• Actively participate in the board / management of the company
• Leave a deposit of 15,000 EUR with the Andorran government
• Pay social security contributions, minimum 450 EUR per month
• Maintain a salary high enough to cover your living expenses
• Have a clean criminal / police record from your country of birth / current residence