TAX FREE COUNTRY

  • There are no taxes in Andorra for companies or individuals other than modest annual registration fees, municipal rates, property transaction taxes, and a sliding scale tax on capital gains made on property transactions.

    In Andorra there are no taxes on profits, dividends or income, and with the exception of real estate, no capital gains tax and no inheritance tax.

Residence and Work Permits

  • To encourage immigration by high-net-worth individuals (often retired) the Government offers Passive Residence Permits, which are subject to a quota which is determined periodically according to the "economic and social needs of the Principality of Andorra".

    Please contact us to find out how to better approach your passive residence application.

    • Banking

    As a home for money, Andorra is hard to beat. Banks are solid, and there are no capital or exchange controls. Strict anti-money laundering legislation stops criminal activity, but excludes tax avoidance which is no crime in Andorra.

    		        

    Banks and other financial institutions in Andorra are regulated by the Andorran National Financial Institute (INAF) under the Law Regulating the Financial System 1993. Andorran banks are all members of the Agrupacio de Bancs Andorrans, which operated a system of self-regulation until the regulatory law was passed in 1993.

    		        

    The banks have very conservative policies, and high solvency ratios: depositors' funds are guaranteed under a 1997 law; but only one banking institution has failed in Andorra, Sobanca in 1968, and the remaining banks stepped up to honour its liabilities in order to preserve the confidence in the system.

    		        

    If not applying for passive residency, long term residence is only possible to those with active work permits, which are controlled by quotas. It is possible to comply with this system by owning a nominee company, which is relatively expensive, but the Government watches closely, and any kind of doubtful activity (or competition against locals) will bring rapid expulsion.