Andorra, known for its low taxes, stunning landscapes, and high quality of life, is becoming an increasingly popular destination for entrepreneurs, digital nomads, retirees, and those seeking to optimize their lifestyle. If you’re thinking of moving to Andorra, here’s a clear step-by-step guide to help you navigate the process, as well as how Axior Global can assist with tax advisement and residency registration.
Steps to Move to Andorra
1.- Choose the Right Residency Type
Andorra offers two main residency options for foreign nationals:
- Active Residency: For those planning to work or run a business in Andorra.
- Passive Residency: For retirees or individuals with substantial passive income.
2.- Meet the Financial Requirements
To qualify for Andorran residency, you must meet specific financial criteria:
- For Active Residency (business owners, employees), you must provide evidence of employment or income from an Andorran company or a business you operate.
- For Passive Residency (retirees or those with substantial savings), you must demonstrate sufficient financial means to support yourself without working.
3.- Complete the Residency Application
Once you’ve chosen your residency type, you’ll need to gather and submit the following documents:
- Valid Passport or ID
- Proof of Financial Means: Bank statements, income proof, or a business plan.
- Health Insurance: Andorra requires you to have health coverage through the Andorran social security system (CASS) or a private insurer.
- Criminal Background Check: From both Andorra and your home country.
- Proof of Accommodation: Either a property purchase or lease agreement in Andorra.
4.- Register Your Residence and Open a Bank Account
After your residency application is approved, you’ll need to:
- Register with the local authorities: After arrival, visit the local town hall to register your address and obtain your residency card.
- Open a Bank Account: A local Andorran bank account is essential for your financial and residency procedures.
5.- Obtain Social Security and Health Coverage
All residents in Andorra are required to register with the Caisse Andorrane de Sécurité Sociale (CASS) for health coverage, or you may choose private insurance. This is mandatory for active residents and those with employed status.
Tax Obligations for Residents of Andorra
Once you’ve established residency in Andorra, you’ll need to understand your tax obligations. Andorra is known for its attractive tax regime, including:
- Personal Income Tax: The maximum tax rate is just 10% on personal income, which is significantly lower than in most European countries.
- Corporate Tax: The corporate tax rate is 10% as well, with certain exemptions for international businesses.
- Wealth Tax: There is no wealth tax in Andorra, making it a highly appealing destination for wealth preservation.
- Capital Gains Tax: Andorra has no capital gains tax on investments, offering a favorable environment for investors.
- VAT: The standard VAT rate is 4.5%, one of the lowest in Europe.
How Axior Global Can Help
Axior Global specializes in tax advisement, residency registration, and business setup in Andorra. Here’s how we can assist you:
- Residency Application Assistance: Whether you are applying for active or passive residency, we will guide you through the process, ensuring you meet all the legal and financial requirements.
- Tax Strategy and Planning: We help optimize your tax situation by advising on Andorra’s favorable tax regime, including personal income tax, corporate tax, VAT, and more.
- Business Setup: If you are moving to Andorra for business, we can help with company registration, tax compliance, and setting up the right legal structure for your operations.
- Social Security and Health Coverage: We ensure that you meet the requirements for social security and healthcare in Andorra, helping you stay compliant with local laws.
Conclusion
Moving to Andorra offers many advantages, from a low-tax environment to a high quality of life. By following the appropriate steps for residency and working with a trusted advisor like Axior Global, you can seamlessly transition to life in Andorra, while ensuring full compliance with local tax laws.
For more detailed advice and personalized assistance, feel free to contact Axior Global and let us help you navigate the process of moving to Andorra with ease.
