Advantages of Dual Residency in Andorra: Legal and Tax Aspects
Dual residency, understood as the possibility of maintaining legal and tax ties with more than one country, is an increasingly valued strategy among entrepreneurs, digital professionals, and high-net-worth individuals. Below, we analyze the legal and tax advantages that dual residency in Andorra offers, highlighting key elements to consider.
1. What does dual residency imply?
Dual residency can be legal (when a person has residence authorization in more than one country) or fiscal (when a person is considered a tax resident in two different jurisdictions in the same fiscal year). In the context of Andorra, many choose to maintain legal residence in the Principality while keeping ties with their country of origin, whether for family, business, or strategic reasons.
2. Legal Framework in Andorra
Andorra’s legal system has been designed to attract talent, investment, and international residents. Passive residency —one of the most common for foreigners— allows individuals to live in Andorra without working in the country, provided certain requirements are met, such as a minimum investment and staying at least 90 days per year.
In addition, Andorra has bilateral treaties that prevent double taxation with countries like France, Spain, and Portugal, providing legal security to those who wish to formalize a dual residency situation without tax conflicts.
3. Strategic Benefits of Dual Residency
Having dual residency offers flexibility and protection against regulatory, political, or economic changes in either country. It is especially useful for:
Digital nomads and international entrepreneurs: who need mobility without being fiscally bound to high-tax countries.
Families with children in international education systems: dual residency allows access to education options in multiple jurisdictions.
Asset protection: through diversification of assets and legal jurisdictions.
Succession planning: taking advantage of Andorra’s favorable inheritance and donation laws.
4. Considerations on Tax Residency
Obtaining legal residency in Andorra does not automatically mean being a tax resident. To be considered a tax resident in Andorra, a person must stay at least 183 days per year in the country or have their economic interests based there. If these conditions are not met, the country of origin may still consider the person a tax resident, with corresponding tax obligations.
It is therefore crucial to carry out proper international tax planning, with specialized legal advice, to properly document tax residency and avoid double taxation or penalties.
5. Treaties to Avoid Double Taxation
Andorra has signed double taxation treaties with several countries, which provides peace of mind to dual residents. These treaties allow:
Avoiding double taxation on the same income.
Establishing clear criteria for tax residency.
Guaranteeing mechanisms for tax credits and compensation.
Thanks to these agreements, greater legal certainty and financial predictability are achieved, which are essential for long-term wealth planning.
6. Risks and Recommendations
Although dual residency offers many benefits, it also brings some complexities:
Cross-border tax inspections: some countries, such as Spain or France, closely monitor their taxpayers.
Stay requirements: failure to meet minimum stay days in each country can invalidate legal or tax status.
Documentary evidence: it is essential to maintain solid proof of residency (invoices, rental contracts, bank records, etc.).
Therefore, it is recommended to work with tax and legal advisors specialized in international residency and tax planning in Andorra to ensure compliance in both jurisdictions.
The success of dual residency depends on careful planning, meeting each country’s legal requirements, and thorough documentation.
When properly managed, this setup allows entrepreneurs, professionals, and international families to benefit from the best of both worlds: Andorra’s structural advantages and the economic, social, or cultural ties with their countries of origin.
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Plus Serveis i Família Team