FAQ
Expatriation in Andorra Most frequent questions
In Andorra, holdings can be set up as joint stock companies (S.A.) or limited companies (S.L.).
A minimum capital of €60,000 will be required to set up a limited liability holding company in Andorra, and must be divided into numbered shares and registered with the Companies Registry. For limited liability companies, the minimum capital is €3,000, divided into non-negotiable shares.
Holdings in Andorra have many advantages, especially in terms of optimising expenses. The companies within the business group can manage their expenses better, thanks to coordination of the holding’s activities. Moreover, accounting is more efficient and the company’s participation in the market is optimised. Companies integrated into the holding company also benefit from greater stability in their activities by reducing economic risk, while guaranteeing compensation to shareholders in the event of economic loss.
When you decide to settle in Andorra, in one of the 7 parishes, the question of accommodation is important.
The first option is to buy a property with a residence permit and a foreign investment authorization issued by the relevant Ministry. Non-residents may also purchase property legally, subject to obtaining a Foreign Investment Authorization.
To rent accommodation, you must open a bank account. The minimum rental contract is for five years. The contract can be terminated within this period and a change of address with a notice period of only 3 months. Rental prices fluctuate greatly, depending on the type of property, its location, the floor area and also the season. The best time to look for a property is from May onwards.
Fidencis forms part of the NODUM CORPORATE group and is a Family Office, authorised, regulated and supervised by the Andorran Financial Authority (registration number ASF-01/17), with total legitimacy to assist you in opening a bank account and managing the legal procedures, as required.
Andorra has become a secure and solvent financial centre thanks to the automatic exchange of CRS information and strict observance of anti-money laundering regulations by the banks.
There are currently 3 banks in Andorra, Andbank, Morabanc and Creand, all solvent and ranked among the most solid in Europe. They do not have access to European Central Bank funds, so their financing strategy is more conservative and this ensures greater stability. Individuals, businesses, residents or non-residents can open an account in Andorra, but must observe the banks’ anti-money laundering regulations and FATCA protocols and provide the source of the funds, as well as document transactions of a significant nominal value.
Yes. Andorra is a sovereign principality in the Pyrenean mountains between France and Spain. It is a legal and democratic jurisdiction based on the oldest parliament in the world.
Andorra operates as an independent country with its own government and laws. The country is governed by two co-princes – the Bishop of Urgell in Catalonia (Spain) and the President of France.
Andorra is not a member of the European Union so it is independent of the Commission in Brussels, but it is an active member of the United Nations and the Council of Europe.
Andorra is an independent state with its own Constitution, the Magna Carta of 1993. Unlike Spain, Andorra has no monarch as head of state. The country is represented in foreign relations by the two co-princes – the Bishop of Urgell and the President of France. Unlike Spain, Andorra has no monarch as head of state. The country is represented in foreign relations by the two co-princes – the Bishop of Urgell and the President of France.
As a diocese of the Catholic church, Urgell is subject to the archdiocese of Tarragona. Religion is important in Andorra because the principality is historically linked to the Catholic religion.
The Andorran government is led by the Head of Government who proposes laws to the Consell General (parliament), making the principality an independent, legal and democratic jurisdiction.
Yes, schooling is free up to college level (Baccalaureate). There are three, parallel education systems: French, Spanish and Andorran.
In the Principality of Andorra, all children and adolescents between the ages of 4 and 16 are educated within a system that is rated well internationally.
The schools are built and managed by the Andorran government, although the teachers in the French and Spanish schools are paid by their respective administrations.
A door to the world – Catalan, Spanish, French and English are the taught languages.
Primary and secondary education is mandatory for Andorrans and foreign residents. The school year begins on the first working day after the national holiday of Meritxell on 8 September, and ends in the last week of June.
Buying a car in Andorra offers several advantages for individuals, such as a registration card and approval within a few weeks, low VAT of 4.5%, no eco penalty or regional tax, and conservation of the point-based permit.
Vehicles registered in Andorra are authorised to drive throughout Europe; cars must meet Euro 6 standards to be registered in Andorra.
It is possible to benefit from unbeatable prices for prestige brands such as Porsche, Audi, BMW, Mercedes and McLaren, thanks to many local importers of foreign vehicles.
To resell the vehicle, there are two options: the vendor can either take care of all the formalities himself or entrust the task to an agent, through a package transferring the new hire purchase contract to the buyer.
Hire purchasing in Andorra offers great flexibility, with a 60-month contract, unlimited mileage, and the possibility of cancellation at any time without a penalty.
Andorra has long been considered an uncooperative tax haven before it was removed from the blacklist in 2009.
Since then, the Principality has introduced tax transparency, sharing information on tax nomenclature and conforming to international standards. Although the country no longer meets the OECD criteria of a tax haven, it continues to attract entrepreneurs and investors thanks to its low tax rate. Corporate tax is limited to 10%, IGI (equivalent to VAT) is 4.5% and dividends are tax exempt. The real estate market also benefits from an advantageous tax regime.
Although the quality of life is one of Andorra’s main attractions, some still consider it a tax haven, which is not difficult considering the point of view of its neighboring countries.
Caixa Andorrana de Seguretat Social (CASS) is the centralized social security organization responsible for managing reimbursements for medical and hospital expenses.
Membership in CASS is compulsory for all residents and salaried employees working in the Principality. Social security and health cover in Andorra are divided into 2 branches: the general branch, and the retirement branch for the management of retirement and widowhood pensions. The amount of contributions varies according to professional status, ranging from 6.5% for an employee to around €540.00 for a self-employed person. CASS covers healthcare costs at a rate of between 75% and 100%. It also covers between 90% and 100% of the cost of hospitalization, workplace accidents and occupational illnesses.
CASS is an important institution in the Principality and provides residents with health insurance based on international agreements with its European partners, which allows compatibility with French and Spanish hospitals.
Retirement in Andorra offers many advantages to retirees looking for peace and non-confiscatory tax.
Foreign retirees can obtain a residence permit in Andorra through the system of residence without gainful activity. This permit allows for tax residence in the country without needing to make contributions to the Andorran social security, but requires an appropriate private health cover. Furthermore, it is compatible with the retirement pension from the country of origin.
Retirees can benefit from the tax advantages, such as the absence of wealth tax or inheritance or donation tax, and low income tax.
Inheritance planning should be prepared carefully and based on the structure of the assets, type of assets held, and legal category of the income to be received.
With its picturesque landscapes, tourism has made Andorra a truly multilingual country, where you can hear Spanish, French, Portuguese and Catalan, the official language of Andorra.
French is taught from primary school to college level, as part of the official national curriculum. French is also widely spoken in the part of Andorra bordering France. Its residents are often bilingual.
Catalan is the official language of Andorra and used in politics and in the media (TV, press and radio). Most Andorrans speak Catalan fluently because it is taught at the local schools, so children can learn it from kindergarten level. Children are therefore able to learn it from the very first years of their education.
The advantages of multilingualism in Andorra include easy communication between different nationalities and an open attitude towards the world, thanks to an excellent education in several languages.
Fidencis Agency
Any other questions
about life in Andorra?
+376 82 82 65
info@fidencis.com
Current demand : High
Entry quota: 80.000 / 100.000
The best way to predict
the future is to create it.
Andorra, a small country with a great heart
With its majestic mountains, stunning landscapes and hospitable and caring people, you will immediately feel at home. We look after all the administrative formalities so that you can fully enjoy this unique experience.
Patrícia Nogal
Co-founder
