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 (since it is a new virus for humans), the presence and spread of this virus through Andorran lands are practically nil and the Precaution and detection measures are being excellent and effective.
The only person, to date, affected by the coronavirus 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 analyses 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 is 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 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/ 

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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We are Plus Serveis i Família. Our name is our brand. It is our goal every day.

We want to be the Plus you need. We give you a personalized service. We are a Family that welcomes you and helps you in everything you need.

We focus on the client

In Plus Serveis i Família we focus on the needs of our client. We are proud to always think of the best for him. We offer solutions that are not only theoretical, they are viable. We are responsible for guiding the client towards success.

Professional excellence

We offer services with the highest possible quality. In Plus Serveis i Família we rely on our accumulated knowledge and experience. As a true leader in the industry, we always strive to explore and offer new services.

The power of diversity

The culture of our company is nourished by the individual capabilities of each team. This helps us to grow. In this way, our growth is also the growth of the client.

Collaboration

In Plus Serveis i Família we gather all the individual capacities in our corporate power. We work as a team with the client and share a common goal. We take full advantage of each one’s wisdom and experience. Our solutions will always be realistic. They will be an essential part of the client’s business.

A new Global Dimension

Plus Serveis i Família
We want to be the Plus you need to carry out your projects.

We know how to proceed in our business. At Plus Serveis i Família we seek to closely follow the best practices in the world. But we also respect the value systems that prevail at the local level.

Our experience and global network allow us to offer services that guarantee the right results for the client.

We accompany you throughout the process.

In PSF – Plus Serveis i Família we have the necessary experience, we help you to establish yourself in the Principality of Andorra. We accompany you throughout the process.

We have the right solution, whether it is:

  • a person with a public projection who wants to walk with peace of mind,
  • a small entrepreneur looking for greater profitability,
  • or a non-EU citizen with the intention of entering our continent.

Contact us, explain your situation. We will give you a customized solution.

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