Andorra’s passive residency program offers visas to individuals that wish to become a resident of the country, while performing most of their economic activities outside of it. Residency in Andorra allows individuals to legally minimise their tax while maintaining an enviably high standard of living.
Initially, passive residence permits are given for 2 years. This is then renewed for another 2 years, then 3 years, then 10 years. After 20 years, you can apply for citizenship.
Applicants must complete a criminal background check, while also providing proof of income and private health insurance. Income must be at least 300% the average Andorran annual minimum salary of €12,209.64, so you will need to show €36,628.92 in income each year. If applicants are bringing family, this same rule must be applied to each family member except at a rate of 100%.
This means a 4 person family with 3 dependents would need to show an income of €73,259.84.
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The Andorra banking sector is one of the principality’s most important industries. That means, in part, that it’s highly regulated and, as a new resident in Andorra, it will be relatively easy to find a bank.
Banking in Andorra is controlled by five banking groups, Andbank, BancSabadell d’Andorra, Crèdit Andorrà, MoraBanc and Vall Banc (formerly BPA). Banks in Andorra focus on serving local clientele with retail and private banking services for residents and commercial banking for local businesses.
If you want to apply for residency in Andorra, it’s a requirement to have a local bank account. That means that it’s best to have a bank account open with an Andorran bank before starting the process.
It will also come in handy when paying for all the costs of moving to Andorra and setting up your life here.
Continue reading “Andorra Banking System: A Complete Guide”
Andorra’s active residency programs are set up for those willing to live and work in the country. Unlike passive residency, active residents are expected to spend the majority of their time in Andorra, work here, and participate in the local community.
While passive residency allows visa holders to spend as little as 90 days in the country, this is not possible for active residents. Active residents for all intents and purposes must use Andorra as their home base, or “primary place of residence” if you will.
As active residents spend more than 183 days per year in the country, they are automatically fiscal residents and must pay tax in Andorra. But let’s be honest, with a maximum rate of 10%, this is more a positive than a negative.
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Said to account for around 20% of GDP, Andorra’s banking sector has seen radical change over the past few years.
Historically, Andorra’s banks offered numbered accounts without shared names of record. Numbered bank accounts were especially popular for foreign residents, as it made Andorra an attractive place to park and earn income on money, away from the eyes of their government of residence.
In light of a changing world, and after briefly being listed on the OECD’s list of non-cooperative tax havens, Andorra is moving towards a model of transparency with the global economy, while aiming to maintain privacy for its residents.
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Expat parents considering moving to Andorra understandably want to know “what are the Andorran schools like?”
Well, to begin, Andorra boasts a 100% literacy rate, school is free, and pupils end up multi-lingual.
Schooling in this tiny principality isn’t quite as simple as the tax system in Andorra. It’s not that the process is difficult, more that you’re spoiled for choice given the small size and population of this country.
In this article we’ll review a brief history of Andorra’s school system, explain the different “sub-systems” here, and discuss some important things to consider before enrolling your child in any of the schools.
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Any successful relocation to a new country brings about the challenge of making new friends and getting “everyday information”.
You need to find a network of people to connect with, ideally before you arrive, but most certainly after.
While meeting people online and discussing the technicalities of day to day life used to mostly be done on forums, plenty of new alternatives have come about.
Let’s look at some options you may find helpful…
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It’s not always easy to get a simple answer on topics regarding Andorra. If you’re looking for info on whether or not you need a Schengen visa to visit or leave Andorra, you’ve found the right place.
Whether you are a tourist looking to visit Andorra for a quick trip or a resident wondering about your rights, we’ll walk you through everything you need to know to make sense of a fairly complex situation.
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The healthcare system in Andorra is a major contributor to the high standard of living in the principality. While low taxes, higher than average salary, easy access to clean water, clean air, schooling and the environment are important, it all goes to the wall without adequate healthcare.
In this article we’ll look through a brief history of healthcare in Andorra, coverage and how it ranks on a global scale.
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Hidden in the Pyrenees mountains is the low-tax Principality of Andorra.
Andorra offers endless opportunities for both residents and tourists alike. However many of these people would have never found Andorra on the map without its low, but fair tax system.
In this article we’ll review Andorra’s tax rates, the different types of tax and the laws associated with the Andorran tax system for both individuals and companies.
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There are many common misconceptions about Andorra, the tiny country, landlocked between France and Spain in the Pyrenees mountains.
Those that know enough to be dangerous about the financial side of the country will often use the word “tax haven” in their description.
But is Andorra really a tax haven?
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