A Country Nobody Talks About: Is Andorra 🇦🇩 Europe's Tax Haven?
HTML-код
- Опубликовано: 6 окт 2024
- Get personalized advice about tax, asset protection, offshore banking, residency, and citizenships: calendly.com/m...
You can visit our websites for more information about us: offshorecitize... & www.offshoreca...
Andorra, officially the Principality of Andorra, is a sovereign landlocked microstate on the Iberian Peninsula, between France and Spain.
Andorra is the sixth smallest state in Europe, with an area of 468 square kilometers (181 sq mi) and a population of approximately 77,006. Andorra is the world's 16th-smallest country by land and 11th-smallest by population. Its capital, Andorra la Vella, is the highest capital city in Europe, at an elevation of 1,023 meters (3,356 feet) above sea level. The official language is Catalan, but Spanish, Portuguese, and French are also commonly spoken.
Andorra is not a member state of the European Union, but the euro is its official currency. It has been a member of the United Nations since 1993. In 2013, Andorra had the highest life expectancy in the world at 81 years, according to the Global Burden of Disease Study.
Andorra has the lowest VAT rate in Europe! Instead of sales tax, a value-added tax is applied to goods and services. In Andorra, the VAT is the lowest anywhere in Europe, with a general rate of 4.5%. It is known as “I.G.I.”, short for “impost general indirecte“.
The basic personal income tax rate in Andorra is 10% for resident individuals. In Catalan, this income tax is called “Impost sobre la renda de les persones físiques” or IRPF for short.
Income below 24 000 EUR per year is tax-free for single individuals, and for married couples, it's 40 000 euros or less. If a single person makes between 24 000 and 40 000
EUR per year, they will only pay 5% in taxes.
The Andorran corporate tax rate is 10%. For now, holding companies that invest outside of Andorra only pay a 2% tax rate on profits.
For both individuals and companies, capital gains are treated like any other income from a tax perspective. That means that the nominal capital gains tax rate is 10%.
It is important to note that you do not pay tax on gains from selling shares if you own less than 25% of the company. That means that you can effectively buy and sell (or day trade) most stocks without paying tax on the profits.
Also, the Andorra tax rate is 0% on gains from selling an asset that you have owned for more than 10 years.
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
Feel free to join our community!
Don’t forget to subscribe to our channel
/ @offshorecitizen
Hi Michael! Great video, I was living in Andorra for five years, still having my company there and just moved to Montenegro. In comparison, Andorra is like Disneyland when it comes to the banking experience and the overall infrastructure specially the internet service.
Quick update about transportation, the first commercial flight to Andorra that lands at the airport of La Seu d'Urgell (closest city to Andorra on the Spanish side) started to operate last week. So far flights are available from Madrid but they plan to include other mayor cities over the next year.
It is not for everyone but if your clients are outside the country it is good place to start a family.
Happy Holidays! 🤗🤗🤗
Thanks!
5 years Juan, wow...do you feel that you know everyone there?
Oh and how bad are the winter months?
Juan, can you elaborate on the internet service? Is it that bad?
I am in Andorra now, just talked to a lady that has lived here for 17 years, raised a family here, and said that she is leaving tomorrow for Finland to move there for good. All of her two children already left Andorra. The problem here is seniority, all of the Andorrans that were born here have all of the good jobs, and immigrants are stuck with the bad ones with low pay. Also, it is incredibly boring with no culture whatsoever.
As a day trader this is another interesting vid ,,thanks Michael for adding another place I had never considered to my list of lesser known places , Happy New year in advance
Thanks you too!
Hey, did you end up choosing/moving to a place, if so what were the top candidates?
Like the new map background and congrats on subscriber growth. Excellent content this past year. Thank you
Thank you!
We truly appreciate your continuous support!
Hope you're enjoying this holiday season
Congrats on 30k Mike! With the quality of content you share and your knowledge.. I forsee this 10xing again... 300k by end 2022 😉
Fingers crossed! :D
Andorra is a very nice place to live and for those wanting a bit more of life, it is only a 2 hour drive from Barcelona where you could buy an apartment for regular visits as to avoid having to stay in hotels.
Nice!
Could you see yourself living there?
@@OffshoreCitizen I could if I would simultaneously keep a small apartment in a good area of Barcelona for weekend getaways. Barcelona full time will bleed you dry with the wealth taxes etc, only place where you can mitigate taxes in Spain is Madrid really because of the absences wealth taxes and local income taxes. Andorra is a good place to start a family. Clean, safe and good school system and they don’t even have CFC rules !
Aaand Madrid is gone with that option. The Spanish introduced a new solidarity wealth tax - voted into power November 2022 and applying retroactively for the whole year - moving the wealth tax to the federal level. So everybody in Madrid was hit by it
It is said to be temporary for two years but we full well know it’s going to last forever and only expand
Excellent video as always, Michael. Congratulations on 30,000 subscribers.
Thank you, Bill! Appreciate your support!
What do you think about Andorra?
@@OffshoreCitizen , hey Michael, interestingly enough, I think I would enjoy a couple months there in the summer when I could enjoy some hiking. I grew up near the Canadian border and I got my fill of snow (no offense to you as a Canadian, haha)! Andorra in the summer would allow me to be away from Panama during two of its rainiest months.
Having only previously driven through Andorra it has fascinated me for some time. I'm hearing that fatca reporting effectively ended the tax haven use of Andorra, so today with its old school style of banking and high costs it's just not worth it unless you start another duty-free shop...
Another interesting video Michael, thank you. I have been waiting to hear your insights into Andorra, it's banking and treatment of corporations.
Happy to deliver!
When did you last visit? Any chance you'd go there again?
@@OffshoreCitizen I've been looking at a posting for an Eng teaching job, so I can be there and day trade hahaha. But I just watched your Bulgaria 250k start up vid, so now that's back in my top 3.
So Andorra is the same as porto rico 2america?is there that the mortmain account for europeans is located?
Congrats on 30k!
Thank you so much 😀
Awesome video, Michael. Would you mind sharing where you have seen it suggested Andorra is raising their tax rates?
Thanks, I've always been interested in Andorra! I'm also interested in little talked about Mauritius if you would like to do a video on it.
He did recently, past few months
I did a couple videos on Mauritius a while ago, should be able to search for them
Congrat's Michael on the 30K ! I have been doing my best to assist your numbers, albeit negligible in the big picture, but 1 brick at a time builds a wall.
Question: I would like to take advantage of tax treaties with Canada and USA etc. so I pay tax in the country my new company will be registered in. Are there any Zero Tax countries that fit the bill? Canada/USA it's the W-BENe form... what if I was to register my company in the UAE or St Kitts or...?
Good informative video. Keep up the good work and use manual exposure as the video changes from warm to cold. Just a tip.
Thanks!
Thanks for the video Michael! I really appreciate it :) And, I'll take your last point to heart. I plan on visiting in 2022. (Then... you and I may be in touch ;) ) Thanks again!
Always our pleasure! Looking forward to that :)
What do you think about Andorra?
@@OffshoreCitizen While I haven't visited quite yet, from the outside it seems perfect for me. I'm really looking for a place that's great for hiking, cycling, and skiing, and pretty much anything outdoors. I speak Spanish, Portuguese, and French. So, learning Catalan doesn't seem like too big of a challenge. I guess the only downside that I see is a lack of a train station to be able to get around, but if there's a bus to Barcelona, then within a few hours, you are back connected to the rest of Europe.
My plan is to visit for a few months this summer, when Covid has calmed down a bit, and see what I think. Then, I'll report back ;)
Thanks again Michael! And congrats on the 30k followers 🥳
I love the art work on the background
Thanks! :)
Andorra is a weird little place. I go there almost every year for skiing and shopping and it's quite an interesting place.
Haha what do you mean by weird? Could you see yourself living there?
I'd like to know why you say it's weird too please?
As I'm debating to move / retire back from Canada to Europe Andorra sounds like where I should go because of the no tax on gains from selling shares. As an investor / trader it seems that Andorra is much better than Portugal even under the golden visa that gives 10 years low tax and tax treaty with Canada. What are your thoughts between Portugal and Andorra for a investor / trader.?
Well, you're definitely right, if you that's where you want to be. Andorra is small and relatively boring, but very close to some very nice places in Spain and France. Just don't get sucked into the tax nets in either of those places!
Tax planning will be much more expensive to have a similar tax experience in Portugal as Andorra, probably 2 orders of magnitude more
As an investor in public shares
Appears that Portugal is somewhat better than Andorra for crypto traders (zero percent tax vs 10% tax).
From a tax standpoint yes, there or Cyprus. Personally I'd prefer Cyprus but to each their own.
You mention favourable tax for share trading. Do you know if that also applies to futures trading?
Sounds like an interesting place for peace, quiet, nature and lower taxes.
Could you see yourself living there?
@@OffshoreCitizen No
@@sebtube1 🤣🤣
I am interested in a DN visa. what are the montly requirments regarding salary please? have things been finalized yet please?
Thanks Michael. Was always curious about Andorra. Is Liechtenstein on your radar as well? Both are great stamp-collecting countries.😁
Tough for most people to move there, might do a video about it in the future, have a friend who lives there
Great video thankyou for the nice ℹ️ information, would you recommend Andorra for a Internet marketing company and webdesign?Greets Miloo
Depends if it's the type of place you want to live and how you're accepting payment
it has airport now shared with spain in spanish ground
EXCELLENT - yes juan has since stated: La Seu d'Urgell (closest city to Andorra on the Spanish side) started to operate last week.
Nice!
Have you been there?
I live in Andorra and it is a medical apartheid. I can only go to the supermarket and be locked at home. No restaurants, gyms, pools, libraries, shopping malls.
Is it from not having the sh0t?
😢 sad. But to open a company and not live there could be a better option. Hope things are better now
@@jamess2483no fro fear of the spread of the virus, even with the shot. I’m sure the shot is another tragic story as well
Is it possible to Take a private flight to Andorra?
Am interested to travel in Andorra i
Daytrading will create no tax? Great! Any difference in how options trading is treated and/or characterized?
How to travel in Andorra?
Hey! I am curious about why you wouldn't like to live in Andorra... Cheers!
Is Andorra a good place to open a company which mostly trades outside Andorra. And also keeping in mind that i would probably want to move there permanently !
Yes . Also depends on what you trade .what do u trade , I live here .
Can i come to this beautiful country through digital nomad visa ?
Hi can I leave in Uk the rest of the year and be the rest in Andorra and pay personal taxes in Andorra?
Michael, I like Andorra and could spend 90 days in the summer (I love hiking) and I can also work online there. What are the costs associated with getting residency there? Thanks.
Best to email us about this
How to register an IT company remotely in Andorra?
I want to come to Andorra for work is it good?
Hi not related to topic , but just a question about uae .. is it possible to set up business in uae in a lesser known emirate like ras al khaimah where it is cheaper to live ?? Or is there any advantages to Dubai compared to rak ?? I prefer a quieter place than the buzz of Dubai ..??
Yes, of course it's possible. Well, there are different requirements and pricing for different free zones, Dubai being the most expensive place to incorporate. You can absolutely incorporate in another Emirate.
what is tax haven?
what does the passport cost there...?
You can't buy the passport there and getting citizenship by living there takes super long, not a good option
What's with the slab of concrete with gold coloured graffiti on it? Did you renovate & leave a slab of the old wall exposed?😂If you look closely you can see a puppy on the left side👍
Too Bad is so baldly connected to big cities
Not sure if it's your mic or just the way you're speaking in this video but your voice sounds extremely low and croaky, it's annoying to listen to. Your other video for example here "Can a Foreign Owner of a US LLC pay ZERO US Tax?" is much easier to understand.
It is horrible country ! When you are owner of appartement you are not protected by law and police from non legal occupant , which is can brock the door and live in your appartements many years withount paying anything, till you wanting justice answer from remove them out of your appartement !
oh that sounds horrible
Good on the paper, but in reality banks are very slow and people don't know the word "professional", also nobody speak English
Have you ever lived there or just visited?
@@OffshoreCitizen I have been living here since 1 year
what's your opinion about offshore banking in Lebanon?