How to legally reduce taxes in 2023?
Since its removal from the list of tax havens in 2015, Andorra has become a preferred destination for those seeking to improve their tax situation through legal tax optimization in Andorra.
The advantages attracting an increasing number of foreign investors are numerous
Competitive Taxation and Absence of Many Taxes:
Unlike many other countries, Andorra imposes minimal taxes, preserving family wealth and financial assets.
Bilateral Double Taxation Agreements
These agreements play a crucial role in international tax planning, allowing taxpayers and businesses to better manage their tax burden. However, it is advisable to seek guidance from experts to ensure compliance with legal requirements.
Openness to Foreign Investments
Since 2015, Andorra has implemented policies to facilitate foreign investments on its territory.
Legal Tax Optimization in Andorra: Various Options
Real Estate Tax Optimization:
– Low Local Taxes:
Municipal taxes in Andorra are generally less than €300 per year for individuals.
– Light Taxation for Businesses:
Andorran businesses pay an average of less than €300 per year in taxes, depending on the size of their premises.
– Exemption from Property Tax:
In Andorra, there is no annual property tax, significantly reducing the costs of holding real estate in the long term.
– Capital Gain Benefits:
Andorra offers complete exemption from capital gains tax for real estate held for more than 10 years, encouraging long-term investments.
Legal Solutions:
-No Inheritance or Gift Tax:
Gifts and inheritances up to the third degree of kinship are not subject to tax. For transfers to unrelated individuals, a 5% tax rate applies.
Tax Optimization for Residents:
– Social Security Contributions at 22%:
Residents in Andorra contribute to the social security system through social security contributions.
– Personal Income Tax (IRPF):
The IRPF is progressive with multiple brackets, ranging from 0% to 10%. Double taxation agreements with many countries prevent double taxation.
Tax Optimization for Businesses:
– Advantageous Taxation:
Andorran companies pay minimal corporate income tax (maximum 10%) and benefit from low social security contributions.
To succeed in your tax optimization in Andorra, it is essential to be guided by experts. Adhering to the laws in both countries will avoid any conflicts of residence or double taxation. Our firm, specializing in company formation, tax optimization in Andorra, and expatriation, accompanies you throughout your project. Feel free to contact us for a personalized study.
Contact us for more information