Passive, or non-profit, residence in Andorra is aimed at those people who live in the Principality but are not employed by any of the companies established there. This is the best way for us to obtain a legal residence permit without having a work contract in the country.

The non-profit residence is especially aimed at those who can prove sufficient income to survive without a job and who obtain financing legally, whether through pensions, property funds, bank interest, or any other demonstrable means.

The non-profit (passive) residence is especially interesting for those people who are not going to stay in the country for a long time, as they only require you to stay there for 90 days, instead of the 183 that are requested for other types of residence permits. This way, we have availability to be traveling for most of the year.

More specifically, passive residence is aimed at:

  • Investors in Andorra.
  • Those people susceptible to scientific, cultural or sporting interest.
  • Those professionals and entrepreneurs with projects, of any kind, at an international level.

As we will see later, to complete the application you must be in the country and be over 18 years old (in the case of minors, you do not need to be physically there). Andorran regulations allow that, once the categories mentioned above have been approved, they can be exchanged in the event that your situation also changes, albeit in compliance with the requirements. This is to maintain the “immigration quotas” that the government issues periodically, thus avoiding uncontrolled immigration.

Requirements for obtaining passive residence

In 2020, the Andorran authorities updated the requirements so that we could opt for passive residence in the Principality. But these requirements differ, depending on the categories. If your category is investor, you should meet the following points:

  • Have a property in Andorra or a rental contract.
  • Invest in a property worth at least 350,000 euros or pay this amount in a bank fund in Andorra.
  • Be in the country for a minimum residence time of 90 days.
  • Certificate of good conduct.
  • Private medical insurance.
  • Medical certificate issued in Andorra.
  • Present that you have an income of more than 300% of the Andorran minimum wage.

In addition to all this, you must leave a deposit of more than 50,000 euros, plus 10,000 euros per dependent, at the Andorran National Institute of Finance (INAF) until the passive residence is resolved. That is, we are talking about a refundable deposit, but without interest, as long as you invest a total of 400,000 euros in the country, within six months of the application. These investments are very detailed on the Andorran government website, but they basically refer to real estate or financial investments.

Within this category, the Andorran Administration establishes two models, A and B. Thus, the residents of category A can also form an Andorran management company. In practice, it is the simplest category and its response usually takes only three to eight weeks.

Model B is a bit more complicated, as it requires you to do at least 85% of the commercial activity abroad, although you can employ Andorrans (also with a maximum number). Its management can take between one and three months, as the business plan has to be evaluated by various government departments. When you get your approval, residence cards are issued three to six weeks later. Once you have it, you can start formalizing the company within the Principality.

Requirements for scientific, cultural or sporting reasons

It is well known that many Spanish athletes are registered in Andorra, for example, the tennis player, Arantxa Sánchez Vicario; the tennis player, Carles Moyà; the motorcyclists Álex and Pol Espargaró, Jorge Lorenzo and Dani Pedrosa, among others. The principality also requires them and all those who want passive residence for scientific, cultural, or sporting reasons.

  • Passport.
  • Certificate of marital status.
  • Home rental contract or purchase documentation.
  • Proof of scientific, cultural or sporting qualities.
  • Conformity of income higher than 300% of the Andorran minimum wage.
  • Certificate of good conduct.
  • Medical certificate issued in Andorra.
  • Retirement pension, disability or pension insurance, depending on the case.
  • Deposit of more than 50,000 euros, plus 10,000 euros per dependent, in the INAF (Andorran Financial Authority) until the passive residence, is resolved.

We are talking about a permit that has to be reviewed and renewed for the first year, and after that, to do it every three years.

Requirements for entrepreneurs with international projects and for pensioners

With this type of passive residence, the authority of the Principality grants a special permit for all those who want to open a company in Andorra but the services are designed internationally. These would be the requirements:

  • Contract for renting or buying a home in Andorra.
  • Justification of sufficient income.
  • Minimum residence time of 90 days.
  • 85% of income must be generated in countries other than Andorra.
  • The main headquarters of the company must be in Andorra.
  • Accreditation of the business plan to be developed.
  • Justification of retirement pension, disability, or pension insurance, if applicable.
  • Make a deposit of more than 50,000 euros, plus 10,000 euros per dependent, at the INAF until the passive residence is resolved.

Finally, to say that this residence permit is valid for two years and can be renewed for two more years and with an extension of three years. After seven years, the next renewal will last 10 consecutive years.

Steps to apply for passive residence

Managing non-profit passive residence in Andorra is not complicated, as long as you meet the above requirements. However, you should keep in mind that the steps to follow will be different, depending on which category you are applying for.

An important advantage is that you can do part of the management from your country of origin and then go to the Principality just to formalize your application and be given a passive residence permit. As you will not yet have this permit for this visit, you will need to travel with a tourist visa, which will allow you to be legally in the country for a total of 90 days.

If during this time you cannot complete the application for any reason, you will have no choice but to return to your country, apply for a new visa and return to the Principality, to try again.

Different types of residence permits in Andorra

There are approximately six residence permits in Andorra, although they can be grouped into two quite different categories: active and passive (which we developed at the beginning of this article). The difference between the two lies, above all, in the professional activity that is carried out. While you are active, you can apply for the first one if you have a work permit and you can carry out work or professional activity there. The second (passive) is, as we said at the beginning, the possibility of living legally in the Principality, without carrying out any work activity.

In addition to these two large groups, there are numerous residency work permits that have been created specifically to meet certain professional needs, which do not meet the above requirements. In this modality, there are also two major types: generals and cross-border workers.

If you are an active resident you can apply for residence for family reunification of:

  • Your spouse or stable marriage partner.
  • Your minor children and your spouse’s minor children, if you have legal custody.
  • Your adult children and the adult children of your dependent spouse who has legal guardianship or a similar institution.
  • Your retired or over 65s.
  • Any person over whom you have legal or similar guardianship, as long as both parents have lost parental authority.

Advantages of having an Andorran residence

As in any country in the world, legal residence in a country where you were not born will allow you to enjoy all (or almost all) of the benefits enjoyed by its citizens, in addition to having their obligations as well. But the most important is that of free movement. In the case of Andorra, the non-profit residence will be used to do all this:

  1. You can apply for Andorran citizenship if you have been in residence for more than 20 years.
  2. You will have the right to free movement, both in Spain and in France, as Andorra has agreements with two countries, although the Principality is not part of the European Union.
  3. One of the most attractive advantages (and that we have already mentioned before) is to be able to enjoy the tax regime of Andorra, especially as far as consumer goods are concerned. Their taxes are very low (you will not pay more than 10% of what you earn, which is unthinkable in other countries) and there are no tax burdens such as capital gains, corporate dividend taxes, or wealth taxes.
  4. Make it easy for your family to also get the residency while you make your own application.
  5. You will enjoy a very quiet life, in a wonderful natural setting and with a very low crime rate.
  6. Public health and education systems are characterized by being very efficient and of high quality and anyone who has a residence can benefit from both.

Main taxes of the Principality

Although fewer taxes are paid in the Principality of Andorra than other European countries, this does not mean that there are not some to support the country. The most important is the personal income tax, which in Spain we know as personal income tax. Since 2015, personal income tax has become the main country tax, which must be paid by all residents, regardless of nationality.

It is a simplified and very transparent system to which self-employed workers, employees, and employers are obliged. Not everyone is obliged to pay it, as for example, those who earn less than 24,000 euros will be completely exempt, which is unthinkable in other countries and demonstrates the high standard of living in the Principality.

The next tranche of personal income tax, which is between 24,000 and 40,000 euros, would have a tax rate of 5%, while annual income in excess of 40,000 euros will have a 10% tax rate. As is the case everywhere, there are a number of deductions to lower the rate that is related to pension funds, expenses spent on buying a home, or the family or individual situation of people (such as whether or not they have children, etc.). ).

In Andorra, income tax returns are made between 1 April and 30 September.

Other important rates are, for example, the indirect general tax (IGI), a tax figure that we do not find in Spain, but in France, as it resembles the French VAT and taxes consumer goods and services. It is very far from the Spanish VAT and that of other European countries, as the Andorran only reaches 4.5%. This, in practice, means that the country is becoming a very attractive place, fiscally speaking, especially for companies.

In short, non-profit (or passive) residence in Andorra is designed for all those people who want to live in the Principality without having to work there. This is an interesting permit for investors, illustrious people from the scientific and sports sectors, and entrepreneurs with international projects. Andorra is a very interesting country, fiscally speaking, and its residence permits will give you many advantages, including taking advantage of its low consumption taxes, traveling freely in Spain and France, and enjoying education and high-quality healthcare.

Andorra és un petit país situat als Pirineus i que, des del final de la Segona Guerra Mundial, s’ha caracteritzat pel seu dinamisme econòmic, gràcies a la seva fiscalitat avantatjosa. Expliquem les raons i avantatges per a venir a aquest país, i els impostos que fan d’Andorra un lloc interessant per a invertir.

Per què invertir a Andorra

Andorra és un país que compta amb unes bones infraestructures per carretera amb la resta de continent, una economia dinàmica i en creixement i una mà d’obra qualificada. Durant els anys 1950, va passar de ser un país aïllat i pobre a un dels Estats més rics de la planeta, que el fa un destí interessant per a invertir.

La forma de govern és el Coprincipat parlamentari, des de la promulgació de la Constitució de 1993 i els successius governs s’han caracteritzat per la prudència, introduint reformes fiscals moderades i prioritzant l’activitat econòmica privada com a motor de desenvolupament econòmic de país.

En primer lloc, és important dir que Andorra no es considera un paradís fiscal des de febrer de 2011, quan van entrar en vigor els convenis de doble imposició amb Espanya però, tot i això, la fiscalitat a Andorra és molt atractiva a la majoria dels impostos respecte als seus veïns.

En segon lloc, tot i que Andorra no és membre de la Unió Europea, si manté un acord d’unió duanera, de manera que els productes no han de pagar aranzels (a excepció dels agrícoles), i la moneda de curs legal al país és l’euro.

Finalment, cal destacar que, juntament amb les reformes fiscals, Andorra va obrir les portes de bat a bat a la inversió estrangera.

Impostos a Andorra

Invertir a Andorra
Invertir a Andorra: els avantatges del país i els impostos més comuns.

Els impostos més importants a Andorra són l’IGI, l’Impost de Societats, l’IRPF, l’IRNR que destaquen per tenir uns tipus mitjans molt inferiors als d’Espanya i França.

La fiscalitat a Andorra és un dels seus principals valors, tant per adquirir articles com per vendre’ls o establir una societat i, per descomptat, en el cas de voler invertir i residir en aquest petit país dels Pirineus.

Impost General INDIRECTE (IGI)

L’equivalent andorrà de l’Impost sobre el Valor Afegit (IVA) és l’Impost General INDIRECTE (IGI), amb un tipus de gravamen del 4,5% per als articles de consum habituals, i hi ha un tipus reduït de l’1% i un tipus superreduït del 0%.

En comparació, només cal recordar que el tipus general de l’IVA és de el 21% a Espanya i de l’20% a França.

Impost de Societats (IS)

Les possibilitats per a invertit en Andorra són molt interessants per a qui vulgui establir una societat. Una empresa a Andorra es regeix per l’Impost de Societats, que tributa a un 10%, un tipus realment baix en comparació amb el 25% d’Espanya i el 33,3% de França.

Estructures empresarials com els Hòldings tributen al 0%.

Per a crear una societat a Andorra, ja no cal que un ciutadà andorrà tingui el 49% del capital, com en el passat. Avui és possible que els no residents estableixin societats mercantils al país amb garanties per als inversors, amb una autorització prèvia de govern.

Impost sobre la Renda de les Persones Físiques (IRPF)

L’Impost sobre la Renda de les Persones Físiques (IRPF) d’Andorra es diferencia del que regeix a Espanya o França en el fet que no és progressiu, ja que compta amb un tipus general del 10% per les rendes de més de 24.000 euros.

En comparació, els tipus marginals a Espanya oscil·len entre l’exempció per a les rendes més baixes i el 45%, similars als de França.

Impost sobre la Renda dels No-Residents (IRNR)

L’Impost sobre la Renda dels No-Residents (IRNR) és un tribut que ha implantat el Govern d’Andorra en el marc de les mesures d’harmonització fiscal amb el seu entorn més proper. Grava els serveis o rendiments que obtenen els no-residents al país pirinenc amb un 10% sobre el valor total; s’inclouen conferències, lloguers d’habitatges, treballs temporals o pensions.

Tanmateix, és important destacar que estan exempts de l’IRNR dels dividends que es percebin d’una societat radicada a Andorra, la compravenda internacional de mercaderies i interessos de capital mobiliari, de manera que segueix oferint avantatges comparatius interessants pel que fa a les figures fiscals a Espanya o França. Cal no oblidar que els dividends, a Espanya, estan subjectes a una retenció del 19%.

Altres tributs

Finalment, cal assenyalar que a Andorra hi ha altres tributs que graven la contractació d’assegurances, els hidrocarburs, les transmissions patrimonials, el joc i les plusvàlues de comptes corrents, entre d’altres. Aquestes figures impositives són similars a les que estan vigents a Espanya i França.

Establir un negoci a Andorra

Per a crear societat a Andorra, únicament es requereix un capital mínim i autorització governativa en el cas de ser estranger. Els dos tipus de societats mercantils que es poden crear són la Societat Limitada (SL) i la Societat Anònima (SA), amb capitals mínims de 3.000 i 60.000 euros, respectivament, similars als necessaris a Espanya; també hi ha la figura de la SL unipersonal.

Per a invertir a Andorra amb aquesta opció, es requereix un domicili social físic al país i un administrador. Avui, és possible comptar amb el 100% del capital sent estranger, però, si es tindrà més del 10%, s’haurà de sol·licitar una autorització governativa. En tot cas, cal indicar que, en els últims anys, el Govern d’Andorra està especialment interessat a fomentar la inversió estrangera, i els tràmits s’han accelerat.

En Plus Serveis i Família ens dediquem principalment a assessorar i gestionar tot el necessari perquè es pugui establir-se en aquest país.

Som el Plus que necessita, tenim els Serveis que necessita, li rebem com Família.

Imatge de Tomasz Hanarz en Pixabay
Foto de Venta creat per jcomp – www.freepik.es

Temporary suspension of employment contracts and reduction of working hours (ERTO)

Article 7. Object

the temporary period during which the
salaried person continues to join the company but is suspended or reduced to the effective development of his / her working day.

Article 9. Temporary scope of application

period from May 1, 2020 to the 180 calendar days after the day on which the Government declares, by decree, the end of the emergency situation of health caused by the pandemic of the SARS-CoV-2, with the limit temporary maximum of December 31, 2020.

Article 11. Beneficiary companies and requirements

Companies that meet the following requirements may be eligible for temporary suspension of employment contracts or reduction of working hours:

That they are legally established in the Principality of Andorra.

That they have suspended their activity, both by compulsory decree of the Government and voluntarily, or
They are subject to a regime of guard or permanence by decree of the Government, or
That they are or open and authorized to open by Government decree but:
• Show a decrease in their turnover equal to or greater than
50% (compared to the previous year or February 2020 if they were not constituted).
• Although they do not show a decrease in the aforementioned turnover, they justify that the reduction in turnover has been of an entity that can jeopardize the future viability of the company, provided that
the ministry responsible for labor approves it.

That they do not have debts with the Public Administration unless those debts are in the process of regularization.

Article 12. Modalities

Companies can process the application in the following ways:

a) The temporary suspension of employment contracts.

b) The education of the working day of the employees who is not more than 75% of that day.

c) The two previous proportional and / or cumulative forms, depending on the needs of the company and the employees.

Article 17. Benefit of salaried persons

In the scenario in which the temporary suspension of work contracts is applied, employees will receive the following benefits in the following terms:

  1. Interprofessional Minimum Wage (SMI) (1,083.33 euros)
    The amount equivalent to the minimum interprofessional salary (1,083,33 euros) for the ordinary legal day or for the proportional part is fully guaranteed
  2. Salary between the SMI and the average salary (1,083.33 euros to 2,129.44 euros)
    In case the fixed salary of the salaried person is located between the minimum interprofessional salary (1,083.33 euros) and the average salary ( 2,129.44 euros), the increase between the minimum wage and the fixed salary that the salaried person receives is reduced by the following percentages:

30%. Between 1,083.34 euros and 1,432.03 euros.

40%. Between 1,432.04 euros and 1,780.74 euros.

50%. Between 1,780.75 euros and 2,129.44 euros.

  1. Salary between the average and double salary (2,129.44 euros to 4,258.88 euros)
    In the case of the fixed salary of the salaried person, it is located between the average salary (2,129.44 euros) and twice the average salary (€ 4,258.88), the increase between the average and fixed wages that the employee receives is reduced by the following percentages:

70%. Between 2,129.45 euros and 2,839.25 euros.

80%. Between 2,839.26 euros and 3,549.07 euros.

91%. Between 3,549.08 euros and 4,258.88 euros.

  1. Salary more than twice the average salary (more than 4,258.88 euros)
    The benefit is not taken into account when calculating the benefit, that part of the salary received by the salaried person and exceeds twice the average salary (4,258.88 euros) ).

The payment of the employee’s benefit resulting from the sum and reductions established is borne by the company and the Government at the rate of 25 and 75%, respectively.

Article 18. Benefits of the people who carry out an activity on their own account
The people who carry out an activity on their own account that has been suspended, both compulsorily by a Government decree and voluntarily, or who is subject to a guard or permanency regime by decree of the Government, they have the right
to receive a monthly benefit of € 1,083.33, only as long as the obligatory suspension or the guard or permanence regime continues.

This benefit is calculated according to the corresponding contribution base in February 2020 near the Andorran Social Security Fund, provided that it is one of the contribution bases mentioned in the following table:

QUOTE – FEE – SOU BASE – PERFORMANCE
(gross euros)
50,0% – 234,24 € – 1,064,72 € – 1,083,33 €
62,5% – 292, € 80 – € 1,330.90 – € 1,083.33
75,0% – € 351,36 – € 1,597,08 – € 1,083.33
100,0% – € 468,48 – 2,129 , € 44 – € 1,083.33

IMPORTANT: Company directors cannot receive any benefits.

Lease measures

Article 36. Reduction of the rent of the business premises

Reduction of the rent of the premises for Business

Regulation applicable from April 1 to April 30 of this Law (Law 3/2020, 1st Omnibus Law)

In all leases for business premises, the current contract rent is reduced in the following rates, for the period from March 14, 2020 inclusive, and the day following on that the Government declare the end of the health emergency situation caused by SARS-CoV2:

A) 100% in the case of business premises corresponding to activities that have completely ceased their activity.

B) 80% in the case of the premises for business corresponding to activities subject to a guard or permanency regime in accordance with the applicable decree of the Government.

C) 50% in the case of business premises corresponding to activities that must remain open.

Regulation applicable from May 1, 2020

In all leases for business premises, the current contract rent is reduced by the following rates, by the Ministry of the Law, for the period from the date of entry into force of this Law and the day on which the obligatory suspension of the activity or the regime of guard or permanence mentioned below ceases to be valid:

A) 100% in the case of premises for business corresponding to activities suspended both by compulsory decree of the Government and voluntarily, and to activities subject to a regime of guard or permanence by decree of the Government.

B) 80% in the case of the premises for business corresponding to open activities and authorized to open by decree of the Government.

Progressive transitional regime applicable when the obligatory suspension of the activity or the guard and permanence regime ceases to be valid:

Activity regime – Reductions in business rental income, 1st month post, 2nd, 3rd, 4th.

Suspended obligatorily or voluntarily – 100% 1st – 50% 2nd – 25% 3rd – 0% 4th

Guard or permanence regime – 80% 1st – 40% 2nd – 0% 3rd – 0% 4th

Open – 50% 1st – 0% 2nd – 0% 3rd – 0% 4th

Live from your income in a European country, safe and with quality of life.


Non-profit residence

The non-profit residence is one of the ways that Andorra allows foreign citizens to settle in the country. It is intended for people who, according to their situation, enjoy financial freedom and therefore intend to live, but do not develop any work activity in it.

In this article we explain in more detail all the nuances and conditions required to access this type of residence.

What are the advantages of residing in Andorra

The Principality of Andorra is a small country located in the heart of the Pyrenees on the European continent. It does not belong to the European Union but perhaps that is why it has a series of conditions that become very attractive to change your residence:

  1. some very interesting fiscal conditions, which allow a considerable tax savings compared to other countries,
  2. the environment, quality of life, security are other reasons to change here. If you want to know more, we developed it here.

Types of permits granted by Andorra

The Immigration Service is the government entity that manages the processing of all residence permits in the country according to the situation of each citizen. In general, residence permits are grouped into:

  1. Active residence: comprising employees, self-employed professionals and entrepreneurs who want to establish their business.
  2. Passive residence: Any person who wants to reside in the country without exercising a lucrative activity. Here also professionals with international projection are included, for scientific, cultural or sports reasons.

Details about non-profit residence (passive)

In this article we focus on the non-profit residence, what conditions it requires and the necessary procedures.

The definition given by Govern on this type of residence is:

A passive resident is a natural person who does not enjoy the Andorran nationality and who establishes his or her principal and effective residence in the Principality of Andorra without exercising any labor or professional activity.

To qualify for this residency these are the general requirements that have been to meet:

  • Demonstrate that the main holder has annual income above 300% of the current annual minimum wage, adding 100% of this indicator for each of the dependents. This aspect is evidenced, among others, by means of a retirement and / or disability pension certificate, an income declaration for the year prior to the last country of residence and the corresponding bank certifications. Example: per principal holder, base salary x 12 months x 3 (300%).
  • Have coverage and insurance for illness, disability and old age.
  • Own or rent a home.
  • Sign a commitment to establish the principal and effective residence and keep the mentioned insurance in force.
  • The main holder must make cash and deposit in the Andorran Financial Authority (AFA) the amount of 50,000 euros unpaid. In addition, you also have to deposit the amount of 10,000 unpaid euros for each of your dependents.

Types of non-profit residence and its specific requirements:

This model of residence in Andorra can be granted in different situations that we detail below.

Residence without lucrative activity

To qualify for this permit without exercising any gainful activity in the country, the owner is asked to make an investment in it:

  • You must invest permanently and effectively an amount of at least 350,000 euros in one or several types of assets that are listed below:
    • Real estate located in the territory of the Principality of Andorra.
    • Shareholdings in the share capital or equity of companies resident in the Principality of Andorra.
    • Debt or financial instruments issued by resident entities to the Principality of Andorra.
    • Debt instruments issued by any public Administration of the Principality of Andorra.
    • Life insurance products contracted with resident entities in the Principality of Andorra.
    • Unpaid deposits to the Andorran Financial Authority (AFA).
  • Deposit in the Andorran Financial Authority (AFA) the amount of 50,000 euros unpaid. In addition, the principal owner must also deposit the amount of 10,000 unpaid euros for each of the dependents who acquire the status of resident without gainful activity.

Residence for professionals with international projection

As the title explains, if on the other hand you develop an activity at the international level, these are the necessary requirements:

  • The headquarters or the base on which the professional activity takes place must be located in the territory of the Principality of Andorra.
  • Count at most with a person hired on a work schedule.
  • At least 85% of the services provided by the professional must be used in any other country or territory different from the Andorran.
  • To prove the economic viability of the activity that it intends to carry out and to demonstrate that this activity will generate the sufficient economic resources that allow it, both her and her dependents, to reside in Andorra.

Residence for reasons of scientific, cultural and sporting interest

Artists, scientists or athletes who enjoy international recognition for their talent in the world of science, culture or sports.

  • At least 85% of the services provided have to be used in any other country or territory different from the Andorran.
  • He must prove that he enjoys international recognition for his talent in the world of science, culture or sports.

At PSF, we can help you

Non-profit residence. In Plus Serveis i Família we have the knowledge, experience and resources necessary to advise you throughout the process.

At Plus Serveis i Família we have the knowledge, experience and resources needed to assess you throughout the process.

We are available to answer your questions and queries – https://psf.ad/en/contact/ 

We have all heard of the already well-known, officially pandemic, coronavirus. It has left more than 120 thousand affected throughout the world, including the more than two thousand cases detected in Spain. And in the meantime, what is happening in Andorra?

Coronavirus in Andorra

Outside of controversies about the media reports of the panic situation that is brewing, the virus in question does not have the same incidence that seasonal flu can have, so it will affect more those people at risk or with previous respiratory pathologies.

In this context, it is convenient to know that, despite the easy expansion of COVID-19 (due to the fact that it is a new virus for humans), the presence and spread of this virus through Andorran lands is practically nil and the Precaution and detection measures are being excellent and effective.

The only person, to date, affected by the coronoavirus has already been discharged after having given two negative tests. This is a young man who had recently traveled to Milan and was in a mild condition, so he was admitted to the Nostra Senyora Hospital in Meritxell as a precaution. The pertinent sanitary procedures have already been carried out to carry out analyzes to their relatives and close friends, in order to avoid, in this way, a possible spread of the virus.

In this way, there are no patients at risk, nor any people pending analysis, which is a complete success, taking into account the current state of expansion of COVID-19. Of course, as a solely preventive measure, 12 people close to the discharged patient are under house arrest to avoid possible infections or incubations of the disease. In addition to these, this measure has also been taken for two people who were sitting in an airplane, together with another person who was diagnosed with the disease in question.

As you can see, Andorra is out of all danger, it has only had a single patient, and does not entail any type of risk to the health of its neighbors or, of course, to all those interested in visiting it on these dates. The management of this crisis at a global level by the health services of the Andorran Govern are being excellent and effective, taking prevention, detection and quarantine measures to protect their citizens from possible contagions and, thus, avoiding a spread to big scale.

If you need more information about the incidence of coronavirus, or COVID-19, contact us and we will solve all your doubts about coexistence and residence in Andorra, where, as you can see, there is no risk for people.

Andorra is a small country located in the Pyrenees and which, since the end of World War II, has been characterized by its economic dynamism, thanks to its advantageous taxation.

Why invest in Andorra

Andorra is a country that has good road infrastructure with the rest of the continent, a dynamic and growing economy and a skilled workforce. During the 1950s, it went from being an isolated and poor country to one of the richest states on the planet.

The form of government is the Parliamentary Coprincipate, since the promulgation of the 1993 Constitution and the successive governments have been characterized by prudence, introducing moderate fiscal reforms and prioritizing private economic activity as the engine of the country’s economic development.

First of all, it is important to say that Andorra is not considered a tax haven since February 2011, when double taxation agreements entered into force with Spain but, even so, taxation in Andorra is very attractive in most taxes with Regarding your neighbors.

Second, although Andorra is not a member of the European Union, it does maintain a customs union agreement, so the products do not have to pay tariffs (except for agricultural ones), and the legal tender in the country is the euro.

Finally, it should be noted that, together with fiscal reforms, Andorra opened the doors wide for foreign investment.

Taxes in Andorra

Invest in Andorra
Invest in Andorra: country advantages and most common taxes.

The most important taxes in Andorra are the IGI, the Corporate Tax, the IRPF, the IRNR that stand out for having a much lower average rates than those of Spain and France.

Taxation in Andorra is one of its main values, both to acquire items and to sell them or establish a company and, of course, in the case of wanting to reside in this small country in the Pyrenees.

Indirect General Tax (IGI)

The Andorran equivalent of Value Added Tax (VAT) is the Indirect General Tax (Impost General Indirecte – IGI), with a tax rate of 4.5% for regular consumer items, and there is a reduced rate of 1% and a super reduced rate of 0%.

In comparison, just remember that the general VAT rate is 21% in Spain and 20% in France.

Corporation Tax (Impost de Societats – IS)

The investment possibilities in Andorra are very interesting for those who want to establish a company. A company in Andorra is governed by the Impost de Societats, which is taxed at 10%, a really low rate compared to 25% in Spain and 33.3% in France. 

Business structures such as the Holding are taxed at 0%.

To create a society in Andorra, it is no longer necessary for an Andorran citizen to have 49% of the capital, as in the past. Today it is possible for non-residents to establish mercantile companies in the country with guarantees for investors, with prior authorization from the government.

Personal Income Tax (IRPF)

The Personal Income Tax (Impost sobre la Renda de les Persones Físiques – IRPF) of Andorra differs from that which applies in Spain or France in that it is not progressive, since it has a general rate of 10% for the income of more than 24,000 euros.

In comparison, marginal rates in Spain range between the exemption for the lowest income and 45%, similar to those in France.

 Non resident Income Tax (IRNR)

TheNon resident Income Tax  (Impost sobre la Renda dels No-Residents – IRNR) is a tax that the Government of Andorra has implemented in the framework of fiscal harmonization measures with its closest environment. It records the services or yields obtained by non-residents in the Pyrenean country with 10% of the total value; conferences, housing rentals, temporary jobs or pensions are included.

However, it is important to highlight that the dividends received from a company based in Andorra, the international sale of goods and interests of movable capital, are exempt from the IRNR, and therefore continue to offer interesting comparative advantages with respect to tax figures in Spain or France. It should not be forgotten that dividends, in Spain, are subject to a 19% withholding tax.

Other taxes

Finally, it should be noted that in Andorra there are other taxes that include the contracting of insurance, hydrocarbons, asset transfers, gambling and capital gains from current accounts, among others. These tax figures are similar to those in force in Spain and France.

Establish a business in Andorra

To create a company in Andorra, only minimum capital and government authorization are required in the case of being a foreigner. The two types of mercantile companies that can be created are the Societat Limitada (SL) and the Societat Anònima (SA), with minimum capital of 3,000 and 60,000 euros, respectively, similar to those needed in Spain; there is also the figure of the sole proprietorship.

This type of investment in Andorra requires a physical registered office in the country and an Administrator. Today, it is possible to have 100% of the capital being a foreigner, but if you are going to have more than 10%, you will have to apply for a government authorization. In any case, it should be noted that, in recent years, the Government of Andorra is especially interested in promoting foreign investment, and the procedures have accelerated.

In Plus Serveis i Família we are mainly dedicated to advise and manage everything necessary so that it can be established in this country.

We are the Plus you need, we have the Services you need, we receive you as a Family.

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We explain in detail the educational structure that makes Andorra a unique country

If you are thinking about changing countries with your family, this is an important issue. Where will my children study? In what language? What possibilities and opportunities will they have?

We can say that the school offer in Andorra is varied and very complete. But to understand the educational system it is necessary to know a little about its history. We will explain all the options and various information of interest to consider.

The different educational systems that exist in Andorra

The coexistence of different educational systems has gained considerable complexity in recent decades.

Andorra is located in the Pyrenees, between France and Spain. In its history, we go back to the thirteenth century where it began to be a co-principality among neighboring countries. Currently, it is a co-principal parliamentarian, and for this reason we can find three educational systems in the country: Andorran, French and Spanish.

The history and evolution of the education system in Andorra.

A small historical analysis explains the essential features of this educational system. In 1882 the first congregational schools were established in some towns. In 1900 the first French schools were opened and 30 years later, the first Spanish schools. Until 1968, the three main congregational schools (Spanish system) that still exist in the country were also opened: Sagrada Família, Sant Ermengol and Mare Janer.

In 1972, the need to preserve the identity and peculiarities of the country in its education was detected. So, an Andorran Training Program is launched in foreign education systems. By teaching the Catalan language and the history, geography and institutions of Andorra. Ten years later the government finally created its own educational system, the Escola Andorrana. 

Since then, the offer has been complemented with:

  • professional training,
  • special education,
  • training for adults and 
  • higher education.

The school offer currently

We can say that the school offer is wide and you can choose among several options.

You can take the entire school stage considered mandatory in any of the three systems:

To complete the school offer privately, thewas recently installed British College of Andorra.

Additional information:

  • Schooling is compulsory from 6 to 16 years.
  • However there is the preschool grade, from 3 to 6 years old (exceptionally in Andorra they accept children with 2.5 years)
  • With the exception of private centers, all educational systems are free.
  • There is school transportation provided by the government of Andorra https://www.educacio.ad/transport-escolar
  • Being a snow country, skiing is a compulsory activity for all students in all educational systems https: //www.educacio .ad / ski-school

Choosing the best educational option for your children can be a difficult decision. And more if a change of country is added. We can say that the options in Andorra are varied and allow for opening many opportunities, since they can opt for university studies both in Andorra, as well in France and Spain.

CASS contributions (Caixa Andorrana de Seguretat Social), new upcoming changes

As of September 1, 2019 the amendment of Law 17/2018 (Law 9/2019 of 7 of February). This new law has several changes that affect self-employed workers. From now on, they will pay based on their income. This has been done with the objective of being more equanimous.

In PSF we know that this information is important for our clients and therefore we think it is convenient to comment on it.

What changes will we find in the new CASS regime?

We explain the differences between the current regime and the new one.

Until now, the CASS contribution scheme for self-employed workers was organized as follows: 

  • The self-employed contribution base is calculated by applying a certain percentage to the average monthly salary of the total number of employees of the previous year.
  • The percentages determined were divided into 4 (25%, 50%, 75% or 100%).

It can be said that it was a fairly simplified model and with quotation tranches that did not allow much flexibility. 

The new scheme will be organized as follows:

  • The contribution base of the self-employed is calculated by applying a certain percentage to the average monthly salary of the total number of employees of the previous year.
  • The percentages determined are increased to 7 (25%, 50%, 62.5%, 75%, 100%, 125%, 137.5%).
  • In addition, a new contribution scheme is created for young entrepreneurs under 35 during the first 12 months of activity. These will contribute 55% of the minimum wage, that is, between 50 and 60 euros, and will be entitled to benefits from the general branch.
Why this change? For what purpose is this modification made?
Cotitzacions CASS

This remodeling of the law responds to the need to create a more equitable system for all, taking into account the sustainability of the CASS system.

This measure responds to the resolution of the Consell General of May 5, 2016. At that time, the Government was asked for the possibility of establishing the contribution of people who exercise an activity on their own:

  • depending on their income or,
  • depending on the average salary in the sector.

In PSF we are on top of these changes, to give the best assistance to our customers.

If you need more information, contact us.

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Live in Europe and enjoy the best fiscal conditions

In the nature of every person there is always the goal of living better. In this case, one of the options may be to change the country in search of better economic and fiscal conditions.

But this may be one of the most important decisions to be taken. It may mean a big change in your life. Surely before making the big step, you will be looking for all the information you can find. There are many things to keep in mind. Adapting yourself to a new environment, changing the language, economic and fiscal conditions. Mainly if you are considering investing or establishing your business.

There are many options and many destinations. If you are interested in coming to Europe, the Principality of Andorra offers the best conditions. In a unique geographical location, where pure air, hot springs, lakes and mountains live. Want to know more about this small country in the heart of the Pyrenees? Read on …

Get to know Andorra in 7 points:

Location: The Principality of Andorra is located in the eastern Pyrenees mountain range. On the border between Spain and France.

  1. Its surface is 468 km².
  2. The Mediterranean climate of high mountains, with cold temperatures in winter and mild in summer. The estimated population is 74,794.
  3. It does not have an airport, but it is only 2/3 hours from the airports of Barcelona (Spain) and Toulouse (France). In addition to the airport in La Seu d’Urgell that operates with charter flights.

Language: The official language of the country is Catalan, which is spoken in Catalonia – Spain. But do not panic, the diversity of nationalities of the resident population makes other languages ​. Spanish, French and Portuguese are very present. Likewise, the Government has free classes available to all residents. You can learn to speak Catalan easily.

Medical Services: the health system is among the best in the world. It is a public system managed by the Caixa Andorrana de Seguridad Social (CASS). In general, residents and employees and self-employed workers are required to join. The contributions are low and the coverage of benefits is:

  • 75% of the total value for health expenses,
  • 90% of the value in hospitalizacions.

Finance: Andorra is one of the countries in Europe with the lowest tax rates in all of Europe. These are its fiscal conditions:

  1. Corporate tax (2-10%);
  2. Personal Income Tax (IRPF) ranges between 0% up to € 24,000 and up to 10% thereafter;
  3. Value added tax (VAT or sales tax) lowest in Europe, with 4.5%.
  4. There are no taxes on inheritances and successions.
  5. Andorrans Property tax on property taxes: 0-15%.

It is a country of services with an open economy in the world, flexible and competitive. With a predominance of micro, small and medium enterprises. Inflation goes hand in hand with Europe. It has a wide range of services and tourism visits us all year round. A country at the forefront of new technologies. The banking sector has more than 85 years of experience.

Foreign Investment: the Principality of Andorra is a parliamentary co-principality between France and Spain. It does not belong in the European Union, but its currency is the Euro. Since 2012, a law allowing foreign investment has been approved. Therefore, its economy has opened in the world. It is currently an attractive destination for new sectors and companies.

Lifestyle: Do you like skiing? It is an ideal country for nature lovers and mountain sports. In winter it has about 282 km in two ski domains. In summer there are several mountain activities, climbing, hiking, mountain biking, golf, etc. However, if you like a more cosmopolitan lifestyle, you can stroll along the commercial avenues and enjoy different activities such as the Shopping Festival.

Security: Andorra is considered one of the safest countries in the world. It is a socially stable country. With a high citizen security and a minimum crime rate. It has an efficient police force supported by a severe criminal code. Its borders are very safe. There is a good climate of coexistence among all nationalities.

If the European continent is one of your options as a destination, the Principality of Andorra can offer you all the resources for a quiet change.

Every successful trip starts with a good plan

Buscando mejores condiciones fiscales
Looking for better fiscal conditions

In PSF we have experience in helping foreign citizens to settle in the Principality of Andorra. If you are looking for better fiscal conditions, we have the right solution:

  • either a person with a public projection who wants to walk peacefully,
  • a small businessman looking for a better performance,
  • a foreign citizen who wants to enter Europe.

We are the Plus you need and we have the Services you are looking for.

Contact us, tell us about your situation and we’ll start working as soon as possible.

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The PSF family is here to help you if you want to come to reside in Andorra.

You have already thought about it. Have valued it and taken the great decision to go to another country.

Maybe you’re planning your retirement. Or you want to change your pace and lifestyle. Andorra is a country with an excellent health system and a very low crime rate.

Or, maybe you want to establish your business in a financial environment that allows you to save on taxes. By living in Andorra you can enjoy some tax benefits that you will not find in many countries.

For different personal situations, different services are required. Whatever your situation is, to live in Andorra or another country, involves many administrative steps and procedures. It is precisely in this process that we can help you.

Plus Serveis i Família accompanies you step by step to live in Andorra.

Residir en Andorra
Live in Andorra
Sant Esteve church in Andorra la Vella, Andorra

Let’s start from the beginning, let’s talk:

  • You can contact us via email, whatsapp or calling us directly.
  • We believe that the best service is a personalized service. Therefore we prefer to be able to speak personally with the client as soon as possible.
  • Depending on the situation you explain (specific scenario), we can advise you and indicate the most appropriate procedure.
  • We will present you with a budget.
  • If you decide to trust our experience, the next step is that we meet personally in our office in Andorra.
  • At this time the last doubts that may arise are clarified and everything necessary is prepared to start up all the procedures, and be able to reside in Andorra as soon as possible.

This is a small list of all the services we can give you:

  • Managing of all necessary procedures for Government, Immigration, etc.
  • Managing of all fiscal, notarial and legal procedures, etc.
  • Advice on bank procedures, search of real estate and insurance, etc.

At Plus Serveis i Família we have experience in helping foreign citizens to settle in the Principality of Andorra.

We are the Plus you need, we have the Services you need, our clients are our Family.

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