News & Insights

Global tax competition is driving HNWIs and entrepreneurs to seek more favorable jurisdictions. Andorra stands out for its low taxation and absence of wealth taxes. Switzerland offers stability and a special tax regime, but with high rates depending on the canton. Portugal has reduced incentives with the new RNH 2.0 regime. The UAE has no personal income tax but presents cultural challenges. Italy offers a fixed tax for new residents with foreign income, though it applies high rates to local earnings.

Andorra has established a legal framework for blockchain and cryptocurrencies with Law 24/2022, regulating the issuance and custody of digital assets. Companies must obtain a license from the Andorran Financial Authority (AFA). The country offers a favorable tax regime, with low taxes on cryptocurrency gains (up to 10%) and exemptions on transfers. Banks like MoraBanc also provide custody services. This has attracted investors and blockchain companies, positioning Andorra as a technological hub.

The UK is preparing for significant reforms to the taxation of resident non-domiciled (‘non-dom’) individuals, removing the concept of ‘domicile’ and replacing it with a residence-based tax system under the new Foreign Income and Gains (FIG) model.

These reforms, which will come into effect starting from 6 April 2025, will affect thousands of non-doms and their tax treatment in relation to their foreign source income and assets located abroad.

Understanding Relocation to Andorra

In our series "International Mobility - A legal and fiscal journey for families and businesses," we delve into the critical aspects that family businesses and private clients must consider when relocating to Andorra. This article focuses on tax considerations for those contemplating Andorra as their new home.

In the absence of bilateral tax treaties aimed at eliminating double taxation, each jurisdiction can apply its own rules according to domestic law. This may result in double taxation when the same taxpayer is taxed on the same income both in the country where the income is generated and in the taxpayer's country of fiscal residence.

Transferring residence to Andorra requires a careful and well-planned process.

First of all, it is essential to carry out an internal Due Diligence of the client's personal and professional situation.