The new immigration framework in Andorra

Law 9/2012 of 31 May 2012 on immigration offers several residence possibilities in Andorra, including passive residence.

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Opportunities for British citizens. Passive or non-profit residence in Andorra

There are three categories of passive residence:

Category A: For people living in Andorra without lucrative activity

Category B: For people who have a service company or activity on an international scale that does not make a profit at a local level.

Category C: Created for elite athletes, scientific researchers and artists with international prestige.

In these cases, it is necessary to have a main and effective residence in the Principality of Andorra for at least 90 days per calendar year.

The economic requirements that a resident without lucrative activity must fulfil are the following:

Permanently and effectively invest an amount of at least 400,000 euros in one or several types of assets that are listed below:

  1. Real estate located in the Principality of Andorra.
  2. Holdings in the share capital or in the equity of companies located in the Principality of Andorra.
  3. Debt instruments or finances issued by entities with residence in the Principality of Andorra.
  4. Debt instruments issued by any Public Administration of the Principality of Andorra.
  5. Life insurance contracted with entities with residence in the Principality of Andorra.
  6. Non-interest-bearing deposits with the Andorran Financial Authority (AFA).
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Make a non-interest-bearing 50,000 euro deposit with the Andorran Financial Authority (AFA). In addition, the principal owner must also deposit the non-interest-bearing amount of 10,000 euros for each dependent living in the country as a resident without lucrative activity. These amounts will be deducted from the amount referred to in the previous section.

Passive residents are continuously increasing. This community includes some of the world’s top athletes who take advantage of the benefits of altitude training.

British community living in Andorra

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.

 

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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.

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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.

Spotlight Special | PRINCIPALITY OF ANDORRA

No-Deal Brexit, Hard Brexit, Soft Brexit…its uncertainty is being felt on both sides of the English Channel.  While the UK’s future relationship with the EU is being discussed, we can suggest a solution completely isolated from both sides. For those looking for a nation with a soft taxation framework and an inspiring mountainous destination, we suggest The Principality of Andorra;  where you can benefit from passive citizenship and a maximum tax cap of 10%. 

Enter PRINCIPALITY OF ANDORRA.

Andorra de la Vella

The perfect destination for British citizens

Andorra is politically and socially a stable country with an extraordinary standard of living, the Principality of Andorra is a popular destinations for British citizens. Here’s why:

  • Favourable tax and tax legislation, open to foreign investment.
  • High solvency of the Andorran banking system.
  • Nominal GDP per capita higher than the EU average.
  • An unbeatable location between France and Spain.
  • The official currency is the euro.
  • One of the highest incomes per capita in the world.
  • The driving forces behind the Andorran economy: mainly the services sector, followed by the financial and the construction sectors.

 

Quality of life in Andorra

  • A safe country with low crime rates.
  • Ranks 2nd in terms of highest life expectancy and is 4th in the world in health.
  • 3 free educational systems: Andorran, Spanish and French.
  • It is also home to the British College of Andorra, which teaches the British National Curriculum.
  • 90% of the country is forests and green areas, with three national parks and hundreds of kilometres of ski runs.
  • Two ski resorts in Europe’s Top 10 for high quality and low prices.