For those who have already invested in an Andorran property the benefits of buying a second home, a rental or investment property or moving altogether are detailed below. For more information contact us and our advisors will discuss your options.
British community living in Andorra: conditions and advantages
There has been an established British community in Andorra for many years. +800 British residents are living in the country, attracted by the lifestyle and easy access to skiing, mountain biking, and cycling, as well as its financial sector; many British residents are also retired.
The Andorran government is taking protective measures in both banking and legal security and in the field of privacy and data protection. Hard or Soft Brexit, your rights are guaranteed.
Andorra is a country with a vested interested in the British entrepreneur with an ever closer collaboration between the UK’s International Trade Ministry and Actua. Andorra encourages innovation offering several growing sectors for British companies, for example the Smart Cities sector.
An outstanding fiscal framework adapted to the British resident
Andorra has one of the lowest tax rates in Europe.
In order to improve its international relations and end its ‘tax haven’ status, Andorra has opted for OECD approval of its tax regulations since 2009, although tax rates remain very competitive. The signing of bilateral agreements to eliminate double taxation further strengthens the system, with a corporation, income and non-resident tax at a maximum of 10% and where the indirect general tax (IGI) is 4.5%. British citizens will also be pleased to know that there is no tax on inheritances or donations.
Andorra has also alleviated its residence and investment laws to make the country more attractive to foreign investors. According to international consultant Bradley Hackford, in 2017 it was considered the second most attractive fiscal country in the world for investors.
The volume of foreign investment has grown 268% to 3.8% GDP since the new regulations for the opening of FDI in 2012 were approved, higher than the average in neighbouring countries.
An association agreement with the EU is currently being negotiated that will provide British citizens access to the European internal market and its more than 500 million consumers.