HOW IS LIFE IN ANDORRA?
In the past, we've spoken about Andorra's incredible tax advantages for high-income earners and why it's such a good place to move.
Today, we wanted to highlight some of the other reasons people cite for relocating to Andorra.
The small country of Andorra is located between France and Spain.
It has a population of 80,000 people.
It has a Mediterranean climate with cool summers and mild winters.
The weather in Andorra is warm with an average temperature of 15°C.
There are four seasons with winter being the most severe season, but not too much snow falls in Andorra.
The summer months are usually hot with an average temperature of 20°C and it can get up to 30°C on some days during the summer.
The climate is perfect for skiing and hiking, the two primary activities in Andorra.
Nightlife is not strong in Andorra as most people head to France for their nightlife entertainment.
There are also a lot of parks, nature reserves, and bars where you can enjoy the outdoors.
Andorra is a great place to live if you love outdoor recreation like hiking or skiing and need an escape from the chaotic world we live
in today.
The cuisine of Andorra is an interesting mix of Spanish and French influence.
There are plenty of restaurants that offer tapas as well as traditional Spanish dishes like paella.
You can also find typical French dishes here like cassoulet or duck confit if you want something more classic.
The typical pace in Andorra is a little slower than other European countries, so it's a great place to take your time to relax and enjoy life at your own pace.
When you want to go out and have some international fun, there are plenty of choices.
You could spend one weekend in Spain and the other in France for example.
Both countries are easily accessible by car from Andorra.
How to be a tax resident of Andorra and cut drastically your taxes?
It is possible to obtain tax residency in Andorra through three ways.
1. obtain a work permit
2. open a business
3. make a financial investment, namely have a capital and create a bank account in Andorra.
This is an option that allows you to obtain residency without working or creating a business in Andorra the so-called passive residence.
A resident is considered to be anyone who resides for more than 183 days in Andorra and who has the basis of the activity or other economic interests in Andorra.
There is the category of residents without gainful activity which refers to residents in the country who derive income only from abroad and fall into this category.
It is necessary to spend at least 90 days in the territory and not have the tax residence in another country.
Moreover it is necessary to respect an economic clause linked to investments at least for 100 000 euros in activities in andorra and 50 000 euros on a non-interest bearing account at the national finance institute.
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Pros and cons of life in Andorra | Find out if it's for you
Andorra is a paradise for some, but not for others.
Those who prefer a particularly busy life might get bored, and that is why some of the people who live in Andorra spend several weekends a year in France or Spain, since both are easily accessible from Andorra, even by car.
Some buy a second home in these territories to spend the weekend.
The climate in Andorra is excellent, the sun is present not only in summer but also for a good part of winter.
The climate is also surprisingly dry.
It is also an ideal climate for those suffering from heart problems, so much so that it is not uncommon to find people who have moved to Andorra for health reasons.
One downside is that Andorra doesn't have its own international airport.
Barcelona is relatively close, reachable in 2 to 2 and a half hours by car.
And then you can depart from Barcelona International Airport, which is well connected with the whole world.
From a fiscal point of view, Andorra is extremely interesting, and even more so for all Europeans who do not want to stray too far from Europe.
Also, as a place to hoard your savings, Andorra is hard to beat in the European arena.
Be careful, however, because there are several laws regarding anti-money laundering, but this does not normally concern tax offenses, since, historically, tax evasion is not considered a crime in Andorra.
In the next installment of this mini series on Andorra, we will see some aspects to consider for those who want to buy a house, or rent one, including the most sought-after areas, the prices at which properties can be found, the taxes to be paid when buying, as well as the commissions of real estate agents.
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Read also:
ANDORRA: Is this the right place to stop paying taxes?
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Disclaimer: Always speak directly to an attorney; blog posts are not a sufficient source of information to make decisions, may not be appropriate for your situation, may not be well researched, and may not be current at the time you read them, always speak directly with an attorney.
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