Andorra for High Net Worth Individuals
Contributed by Andorra Solutions
22 February, 2019
Andorra is certainly not on the radar for most high net worth individuals when it comes to choosing a home base. There is no reason for this apart from the fact that Andorra has been Europe's best kept secret. Only in recent years Andorra has caught more attention and family offices around the world start suggesting it as the perfect option for those that wish to combine safe and clean mountain surroundings with Mediterranean lifestyle.
Living in Andorra is very different from places such as Monaco or Dubai. The country is quiet, and the hustle and bustle is more than 2 hours away in such cities such as Barcelona. However, Andorra should not be underestimated. There are many reasons, why Andorra should not be underestimated. "Mountains with style" will surprise you with several superlatives such as Europe's highest golf court, one of Europe's biggest spas and the biggest ski resort in the Pyrenees. Furthermore, the high quality of life makes it a wonderful place to live for locals and foreigners alike. Who would not want to enjoy an almost crime less country with a stable economy and good health care facilities?
Affordable yet luxurious real estate is another plus. Andorra offers high net worth individuals a variety of comfortable flats, chalets and houses. High living standards, political stability, healthy climate and one of the highest life expectancies worldwide speak for themselves. No wonder, these reasons have already attracted famous football players as well as formula one pilots to relocate to the Principality.
Advantages of Andorra for high net worth individuals
- Crime is nearly nonexistent in Andorra
- Excellent healthcare institutions and hospitals
- 5-10% income tax on qualified income / investment returns
- No succession / inheritance tax nor wealth tax in Andorra
- Qualified capital gains from publicly traded companies are tax-exempted
- Favourable legislation for real estate investments
Requirements for tax residency in Andorra
- Spend a minimum of 183 days per year in Andorra
- Have your spouse and underage children living with you in Andorra
- Have your economic interests in Andorra
- Maintain a salary sufficiently high to cover your living expenses
- Have clean criminal / police records from your country of birth/current residence
- Pass compliance process with local banks (provide tax declarations, origin of funds etc.)
- Justify your residency through either investment or company creation
Requirements for passive residents through investment
- Spend a minimum of 90 days per year in Andorra
- Leave a non-interest-bearing deposit / bond of 50,000 EUR with the Andorran government
- Make an investment of 350,000 EUR (plus the 50,000 EUR deposit) into Andorran assets
- Show proof of sufficient funds to cover your / your family's living expenses
- Be sufficiently insured depending in terms of health, accident coverage
- Have clean criminal/police records from your country of birth/current residence
Andorra Solutions tailors customized residency programs for our clients with very special needs. Andorra Solutions' family office and tax consultants will analyse your personal situation, current country of residence, and the best way to plan your relocation to Andorra. Typically, the passive residency through investment but also other residency options are open to you depending on your current lifestyle. If you still have a professional activity, there may be more choices to consider for your residency.
Real estate planning is an important part of your new life in Andorra. Andorra Solutions includes a real estate agency, which will be happy to assist you with your property search.
Relocation to Andorra is Andorra Solutions' speciality, and apart from immigrational aspects Andorra Solutions covers all your needs for making your transition as smooth as possible. Andorra Solutions works with local authorities, banks, insurances, and the local municipality to get you relocated and properly registered in your new home in Andorra.
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