Tax residence: rising interest in expatriation to Andorra and the new conditions set by John Theron

At a time when personal tax is becoming increasingly important in high-tax countries, a growing number of people are deciding to emigrate. Among the appealing destination countries, the principality of Andorra, located between France and Spain is a popular jurisdiction for those who want to live in Europe, whilst also benefiting from a highly attractive fiscal and social environment...

At a time when personal tax is becoming increasingly important in high-tax countries, a growing number of people are deciding to emigrate.

Among the appealing destination countries, the principality of Andorra, located between France and Spain is a popular jurisdiction for those who want to live in Europe, whilst also benefiting from a highly attractive fiscal and social environment. To that effect, people who live in Andorra without working there benefit from an income tax of 0%.

Three developments to tax residence in Andorra

The year 2013 marks three reforms to the process surrounding relocating in Andorra.

- The first is semantic. The status of people living in Andorra without work until now was designated by the term "passive residence". This status is now called "residence without a work permit."

- The second concerns the categories of residence without a work permit. While previously there was only one category for this status, there are now three different categories:

- Residence for economically independent people (pensioners, annuitants...)

- Residence for people whose financial sources are international (international businessmen or investors...)

- Residence for well-known people (artists, athletes, scientists...)

- The third reform concerns the minimum residency in Andorra for residents without a work permit. Anyone interested in expatriation to Andorra will now be required to spend at least 90 days per year there, in contrast with the previous minimum of 183 days.

Living in Andorra

Living in Andorra allows the resident to benefit from particularly attractive tax incentives as there is no direct tax on individuals opting for the status of residence without a work permit. Those opting for status of residence with work permit, and who therefore intend to carry on business in Andorra, are subject to a tax rate of just 10%, the lowest rate in Europe.

Obtaining the tax residence in Andorra requires the ability to demonstrate a certain quantity of personal wealth and make a contribution of a minimum of 400,000 euros in Andorra. This contribution can either be in the form of real estate or in the form of financial investments. A deposit of 50,000 euros is also required, refundable upon leaving the country.

The international firm John Theron specializes in change of tax residence. It assists people wishing to emigrate and takes charge of the entire procedure, both juridically and practically.

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About John Theron

John Theron is an international firm dedicated to the expatriation of individuals in over 17 countries. The firm is also involved in procedures for change of nationality, and offers trust services including company formation, the opening of bank accounts and trust management.

John Theron : http://www.johntheron.com

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