Living in Andorra
In recent years, Andorra has become a preferred destination for French, Spanish, and European citizens seeking a fresh start. This small country, nestled in the heart of the Pyrenees, attracts people with its exceptional quality of life and advantageous tax system. Discover in this complete guide everything you need to know to successfully live in the Principality of Andorra.
Why Choose Andorra as Your Expatriation Country?
Andorra’s appeal is based on a perfect balance between tax benefits and quality of life. In fiscal terms, the Principality stands out for its particularly favorable policy for both individuals and businesses. Income tax, capped at 10%, represents a considerable advantage for taxpayers. Companies also benefit from this attractive 10% tax rate, one of the lowest in Europe.
The absence of wealth tax constitutes another major advantage of the Andorran tax system. The capital gains regime is also very advantageous: capital gains on securities are only taxed when selling shares held for less than two years, while real estate capital gains are exempt after ten years of ownership.
Beyond its attractive taxation, Andorra offers a privileged living environment. The country enjoys a preserved natural environment, with breathtaking mountain landscapes. The climate, mixing Mediterranean and mountain influences, allows for pleasant summers and winters ideal for winter sports.
Two Ways to Become a Resident
Active Residency
Active residency is designed for people wishing to pursue a professional activity in Andorra. This option requires a minimum presence of 183 days per year in the territory. The profiles concerned are varied: you can be an employee of an Andorran company, create your own company or holding, work as a freelancer, or establish yourself as an artisan. The main advantage of this status lies in the absence of real estate investment obligation.
Passive Residency
Passive residency suits people who do not wish to pursue professional activity in Andorra. It requires a minimum presence of 90 days per year and substantial real estate investment. This investment, with a minimum amount of 600,000 euros, can take different forms: acquisition of a primary residence, investment in buildable land, or participation in a real estate program.
A Modern and Efficient Public Services System
The Andorran healthcare system perfectly illustrates the modernity of the country’s public services. Based on a universal coverage model, it guarantees access to quality healthcare for all residents. The Caixa Andorrana de Seguretat Social (CASS) manages the public aspect, while a dynamic private sector complements the healthcare offering.
Education constitutes another strength of the Principality. The Andorran school system offers trilingual education in French, Catalan, and Spanish. This multicultural approach ideally prepares children to evolve in an international environment.
Practical Aspects of Settlement
Administrative procedures for settling in Andorra require several essential documents:
- A valid passport
- A clean criminal record
- Proof of income
- Health insurance certificate
It’s important to note that all administrative forms are written in Catalan, the country’s official language.
Expatriate Experiences
Peter, a 45-year-old entrepreneur, shares his experience after five years of living in Andorra: “Setting up a holding company in Andorra has allowed me to optimize my tax situation while enjoying an exceptional living environment. The quality of life here exceeds all my expectations.”
David, a 64-year-old retiree, emphasizes the advantages for seniors: “Andorra offers ideal conditions for retirement. The climate is pleasant, the cost of living remains reasonable, and the healthcare system is efficient. I particularly appreciate the simplicity of procedures for asset management.”
Keys to Successful Expatriation
The success of expatriation to Andorra is based on meticulous preparation. It is crucial to consult a specialized tax advisor to structure your project. Learning Catalan, even at a basic level, will greatly facilitate your integration and administrative procedures.
The choice of residence location also deserves particular attention. Each parish (administrative division) has its own characteristics: some are more urban, others more rural, some more touristic, others more residential.
Conclusion
Expatriation to Andorra represents a unique opportunity to combine tax optimization with exceptional quality of life. The key to success lies in rigorous preparation and appropriate professional guidance. Positive testimonials from expatriates confirm the Principality’s growing appeal as an expatriation destination.
