International mobility | A legal and fiscal journey for families and businesses

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.

 Why Consider Andorra?

Andorra has become an attractive destination for individuals and businesses seeking favorable tax conditions within Europe and a high quality of life. With the changing economic and fiscal landscape of European countries, Andorra stands out as a residency option with a tax framework aligned with the OECD, providing security and confidence to residents due to the stability of its legal and fiscal system. Additionally, its geographical location facilitates mobility and cultural adaptation for many expatriates.

 Tax Considerations

   1. Personal Income Tax

One of the main attractions of Andorra is its progressive personal income tax system, with a maximum rate of 10%. This rate is considerably lower than that of many European countries, making it a significant financial advantage for high-income earners. 

    2. No Inheritance or Wealth Tax

Andorra does not have an inheritance or wealth tax, which is particularly beneficial for estate planning and wealth preservation. This feature makes Andorra an attractive option for those looking to secure their family's financial future without a high tax burden.

   3. Corporate Tax

Companies relocating to Andorra can benefit from a corporate tax rate of 10%. Moreover, the principality offers incentives for specific industries, particularly those in the technology and innovation sectors.

 Expert Perspectives

At Carlota Pastora Advocats, we are aware of the growing interest in Andorra as a residence destination. Therefore, we provide our clients with answers and draw on the opinions of prominent experts who will address various aspects of relocating to Andorra. These sessions will cover:

• Cross-border Taxation: How to manage the fiscal implications of moving assets across different jurisdictions;
• Wealth Planning: Effective strategies for inheritance and wealth preservation under Andorran and cross-border legislation;
• Business Structuring: Practical advice for establishing and running a business in Andorra.

As legal professionals, we strongly believe that relocating to Andorra offers significant advantages, particularly in terms of fiscal benefits and legal stability. Thus, it is essential to understand the key aspects of changing residency and to seek expert advice. In this way, both private clients and businesses can make well-informed decisions that align with their financial and personal objectives.

At Carlota Pastora Advocats, we are available to answer any questions related to geographical mobility and its legal and fiscal aspects. Stay tuned for our "International Mobility" series to gain more in-depth analysis and expert discussions on global mobility and the main legal and fiscal considerations to take into account.