Carlota Pastora analyzes tax residency in Andorra in her article for Cinco Días

In a context of growing interest in favorable tax jurisdictions—especially among digital professionals and mobile entrepreneurs—Andorra’s tax system has become a subject of public discussion. In her article published in Cinco Días, Carlota Pastora offers a detailed analysis of the legal implications of establishing tax residency in Andorra, debunking simplified ideas about fast-track relocations and emphasizing the importance of coherent and lawful planning.

Tax residency in Andorra: what it really means to relocate

Is renting a house in Andorra enough to stop paying taxes in Spain? The answer is clear: no.

In recent years, Andorra has become an attractive destination for digital professionals, entrepreneurs, and content creators. However, the idea that one can change tax residency with just a few simple steps is, in legal terms, a myth.

Tax residency in Andorra: key legal requirements

Although Andorra offers a maximum direct tax rate of 10%, obtaining tax residency in Andorra requires meeting strict legal conditions.

The 183-day rule

This rule is just the beginning. For another state to recognize a change in tax residency, the taxpayer must:

- Reside in Andorra for more than 183 days per year.

- Have their economic and personal center of interest located there.

- Demonstrate a genuine disconnection from the country of origin.

Companies in Andorra: when they are legal and when they are not

It is common to see online offers suggesting the creation of companies in Andorra to optimize taxes. However, international tax authorities closely monitor the creation of shell companies: entities with no real economic activity, no employed staff, and no effective operations.

Keys to valid fiscal planning

The real fiscal advantage of Andorra does not lie in shortcuts, but in coherent and legal tax planning. This involves:

- Proving effective and verifiable residence.

- Establishing economic activity with real substance in the country.

- Maintaining a tax strategy that complies with international transparency and information exchange regulations.

- Obtaining specialized tax advice, both in the country of origin and in Andorra.

Professional advice for changing your tax residency

Before starting any tax relocation process, it is essential to rely on a tax advisor experienced in international regulations. Request a personalized consultation to evaluate whether you meet the legal requirements and how to properly structure your residence and economic activity in Andorra.

Access the full article here: Residencia fiscal en Andorra: más allá del mito del traslado exprés | Legal | Cinco Días