Turn into a Tax Resident of Andorra


Andorra’s tax residents are required to pay taxes on all of their revenue globally, however the nation doesn’t have taxes on wealth, items, inheritance, or capital features, aside from capital features from shopping for and promoting actual property inside Andorra. A progressive private revenue tax system was established in 2015 with one of many lowest tax charges in Europe.

For instance, revenue as much as EUR 24,000 is taxed at 0%, revenue between EUR 24,001 and 40,000 is taxed at 5%, and revenue above EUR 40,001 is taxed at 10%. Married {couples} are topic to a ten% tax on revenue above EUR 40,000. Moreover, financial institution deposit curiosity is taxed, however solely on quantities exceeding EUR 3,000. The capital features tax on actual property gross sales is 15%, however the fee decreases every year, and the property will be offered after 13 years of possession. Turning into a tax resident of Andorra entails assembly sure standards and following particular steps. Right here is an summary of the method.

The Advantages of Andorra’s Tax Residency

Having a enterprise in Andorra can have a number of advantages, such because the nation’s low tax burden, pro-business laws and a steady financial system. It has a well-developed infrastructure, with good transport hyperlinks to different international locations in Europe, which might make it a great location for companies that must import or export items. Andorra additionally has a great popularity for privateness and banking secrecy. Nevertheless, keep in mind that Andorra is a small nation, so the home market could also be restricted, and companies might must rely extra on international clients.

In addition to that, Andorra will not be a member of the European Union, so companies might have to think about the potential impression of that on commerce and entry to EU markets. Andorra has a strict coverage of not permitting firms with solely fiscal functions, and your software may very well be rejected whether it is suspected that your predominant purpose is to arrange an organization for tax avoidance.

Getting Your Tax Residency

Typically, there are two methods to achieve tax residence in Andorra. Firstly, Venture promoters, firm homeowners, and anyone else working in Andorra might apply for permits for lively residency (also called a “work residence”). Traders within the Principality might apply for a passive residence, usually referred to as a “unproductive, non-profit-making property” (actual property, finance, and many others.).

Secondly, People with explicit qualities or expertise, in addition to a selected degree of status (cultural, scientific, and many others.), equivalent to professionals, artists, or elite sports activities, could also be given supplementary tax resident permits in Andorra. Allow us to see extra particulars under.

Set up a Presence in Andorra

To turn out to be a tax resident of Andorra, it’s essential to set up a bodily presence within the nation. This may be completed by buying property, renting a residence, or opening a enterprise in Andorra.

Spend a Sure Quantity of Time in Andorra

To be thought-about a tax resident, it’s essential to spend no less than 183 days per calendar 12 months in Andorra. This may be completed by dwelling within the nation full-time or by spending vital intervals of time in Andorra every year.

Register with the Native Authorities

Upon getting established a bodily presence and spent the required period of time in Andorra, you will want to register with the native authorities, such because the city corridor or the police station. You will want to supply proof of residence, equivalent to a lease or buy settlement, in addition to your passport or ID card.

Get hold of a NIE Quantity

Registering with the native authorities may also make it easier to to acquire a NIE quantity, which is a novel identification quantity that each tax resident in Andorra should have.

File Andorran Tax Return

Upon getting turn out to be a tax resident of Andorra, you’ll be required to file an Andorran tax return every year and pay taxes in your worldwide revenue.


It’s also possible to learn advantages of saving cash on your info objective. Word that, even in case you meet all the above standards, Andorra has a strict coverage of not permitting tax residents with solely fiscal functions and will reject your software whether it is suspected that your predominant purpose is to keep away from paying taxes in your house nation. Seek the advice of with a tax advisor or lawyer to make sure that you’re absolutely compliant with the native legal guidelines and laws of Andorra.







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