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ANCEI | CHANGE OF TAX RESIDENCE TO ANDORRA
If you are thinking of moving your tax residence to Andorra there are many issues that you should consider. First of all, you will need to process a residence permit: active, passive or other (explained below). Furthermore, it is important to point out that a transfer of residence to Andorra does not entail the acquisition of tax residence. In order to be considered a tax resident in Andorra you must meet a series of requisites, included in the Andorran regulations, such as: reside for more than half a year in the Principality and have it become your center of economic interests, as well as your center of vital interests (spouse and dependent descendants). Finally, it should be pointed out, that the change of residence may entail some tax obligations in the country of origin, such as the tax obligation on latent capital gains, derived from participation in Spanish entities (exit tax), or the Tax on Non Residents, for possible income derived from assets located in that country.
In the next section we will list and explain the different types of residence permits that exist in Andorra, some of the reasons why people decide to come to live in Andorra and the tax advantages offered by the country.
TYPES OF RESIDENCE PERMITS IN ANDORRA
To live in Andorra you will need a residence permit. One of the attractions of Andorra is the existence of different types of residence permits, which adapt to the different personal situations and needs of newcomers:
Active residence permit
Passive residence permit
Other types of residence
Why live in Andorra?
– It has great political and financial stability.
– It is one of the safest countries in the world.
– It has a solid healthcare system.
– It has a consolidated and high-quality multilingual educational system. It also has international schools.
– It is an ideal place for nature lovers, mountain and outdoor sports.
– It is only two and a half hours away from Barcelona and Toulouse.
– It has one of the most attractive fiscal frameworks in the Eurozone.
These are just some of the advantages offered by the Principality of Andorra, which is why, year after year, many people decide to move their residence to Andorra.
What are Andorra's tax advantages?
– Andorra has an Indirect General Tax (IGI) of 4.5% (VAT equivalent in Spain).
– The tax rate on Personal Income Tax (IRPF) and Corporate Income Tax (IS) is 10%.
– In addition, there are multiple exemptions applicable in the IRPF, especially with regards to passive income.
– In Andorra there is neither the Estate Tax (IP) nor the Inheritance and Donation Tax (ISD).
– You will also not be required to report goods abroad (form 720 in Spain).
– Andorra has great advantages for pensioners. The rescue of pension plans, for example, only taxes in Andorra.
– It is also a country committed to meeting the new transparency and substance requirements operating in international taxation.
– And it has signed eight treaties to avoid double taxation with other countries and is negotiating the signing of more treaties.
IN ANDORRA THE IGI IS 4,5 % (VAT)
IRPF AND IS ARE AT A MAXIMUM OF10%
THERE IS NO ESTATE TAX
NOR THAT OF SUCCESSIONS OR DONATIONS
NO OBLIGATION TO FILE FORM 720
GREAT ADVANTAGES FOR PENSIONERS
DOUBLE TAXATION TREATIES
AND MEETS TRANSPARENCY REQUIREMENTS
WE WILL HELP YOU WITH YOUR CHANGE OF RESIDENCE
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