ANDORRA
Why move to Andorra
When we examine markers as important as tax, safety, quality of life, weather, health and wellness, this unique principality continues to be a best-kept secret, yet it provides a significantly higher return of investment compared to other popular expat destinations.
Here's 6 reasons why you should consider Andorra as your next home
1. Low Income Tax
Andorra has one of the lowest personal income tax rates in the world with a maximum tax rate of 10% and very relevant exemptions and bonifications. Some examples of this are:
- 24.000€ exempt on the general tax base and 50% waiver between 24.001 to 40.000€ (5%).
- 3.000€ exempt on the savings base.
- Dividends from Andorran companies distributed to Andorran residents are exempt.
Andorra recognizes the non-double taxation principle and has signed DTAs with multiple countries worldwide.
2. Low Corporate Tax
Andorra’s corporate tax rate is one of the most competitive in Europe, and also significantly lower than many other popular expat destinations such as Luxembourg, Singapore, or Panama.
Businesses based in Andorra pay a corporate maximum tax rate of 10% before deductions. Foreign companies dividends distributed to Andorran holding companies may be exempt depending on meeting certain requirements.
3. Top Safety Index
As ranked by the Global Peace Index, Andorra boasts the second position worldwide in terms of Safety.
Its topography, strict rules for immigration, where everybody is required to pass a criminal background check, a high level of social cohesion, due in part to the social benefits, education available to residents, and the ability to form closer relationships with others due to the smaller size of the community, lead to a more relaxed atmosphere that all residents benefit from.
4. Friendly Temperate Weather
Andorra benefits from over 300 days of sun a year, with 4 distinct seasons that never get so extreme as to make it uncomfortable, and that contribute to the charm of the country with its change of colors and temperatures.
During the summer months the days are warm, with cooler nights, and humidity is usually low. Winters are cold but rarely are there freezing temperatures during the day, at night temperatures can drop below freezing but are usually not severe. Andorra receives abundant rainfall which is well distributed throughout the year and feeds to the unending greenery of the mountains.
5. Good ROI on Real Estate
Andorra has seen tremendous growth over the past 30 years or so and that growth continues to accelerate as more and more people discover about Andorra’s extraordinary quality of life.
This past year alone, home prices increased by 25%, fueled by all the new residents that see how the price per square meter is still competitive when compared with other popular destinations.
6. Long Life Expectancy
Many factors influence the health and longevity of Andorra’s high life expectancy, rated one of the longest in the world by the WHO. Access to excellent healthcare is one of the most important reasons, and Andorra’s healthcare system is considered by many to be one of the best in the world.
Another factor is the level of crime and Andorra has one of the lowest crime rates in the world, violent crime and theft are extremely rare to non-existent, which promotes a more tranquil, relaxing environment for the residents of the country.
Finally, Andorra’s natural environment and moderate weather provide so many options for year-round exercise, such as hiking and skiing.