What supposes and requires fiscal residence in Andorra - PSF Consultoría empresarial

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What supposes and requires fiscal residence in Andorra

Many people want to live effectively in Andorra, or at least benefit from tax residence in the country. In order to understand how this works, it is necessary to understand several fiscal issues that are interrelated with each other.

First, tax domiciliation is very similar to tax residence, but for legal persons rather than natural persons. Domiciliation is where the company has its domicile, which will be domiciled in tax as long as certain requirements that exceed the framework of this article are met. As a legal person "stays where we tell" is much simpler that this entity obtains tax residence (which also has its requirements, but are simpler).

In order to obtain the fiscal residence, first great requisite is to reside 183 days in the country. This is international law and there is no turning back. If you reside 183 days in a country and you meet the rest of the requirements, you are a tax resident. You can start when you want, finish when you want and have the residence permit you want. The important thing are the 183 days.

Then, the core of economic activity has to be in the country. This comes to mean that the income generated must be intellectually done in the destination country, in the case of pensions is irrelevant, but in the case of companies it can be something very serious to take into account. It is a very simple requirement to comply, but do not forget it.

Finally, spouses and children, who, if they are outside the country of destination, can be assumed that the residence is not effective. This is a punctilious subject, because it depends a lot on the age of the person and the children. If the children are of school age, it is very clear, but with older children is another story. You may not be separated and reside abroad with all of the law, that is for sure.

I want to end with a very short advice, the best way they do not get finned us is not to commit any punishable offense. I know that sometimes the state is very imaginative, but in general if one comes with the mentality to defraud, will end up passing some norm by high. Better to be conservative, eventually comes cheaper.


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About the Author

I finished the degree in Development of Computer Applications in Alcañiz and later I entered the financial market first as a systems programmer and then as a trader. During those years I finished my DBA Degree in the UNIR and later I obtained a master in Banking, Financial Markets and Patrimonial Management by the EAE. I also took a course in Financial Adviser from the UPV.

I have done consulting for various clients in both strategic and fiscal matters. I tend to offer integral solutions and now I take care of the administration of PSF. When there is an issue that requires knowledge of markets or investment, I also assume that competition.
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