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ANDORRA - PROPERTIES, RESIDENCE PERMITS AND COMPANY FORMATION

Facts about Andorra

The Principality of Andorra is located in the Pyrenees mountains between France and Spain. Andorra is one of Europe’s smallest independent countries with a total population of approx. 80.000 and an area of only 468 km².
No more than a 2 hour drive from the Mediterranean Sea, Andorra offers more than 300 sunny days per year and spectacular, untouched nature with excellent skiing in winter.
In addition, the country is known for its tax-freedom and traditional banking secrecy.
All this makes Andorra a perfect base for your permanent residency.

Andorra is also one of Europe’s oldest countries, founded in 1287.
The Principality has been an independent state since 1993, and the currency is the Euro.
The official language is Catalan, although most people speak Spanish and even English is becoming common.

Tourism is Andorra’s main industry and accounts for 80% of the country’s GDP.
Attracted by Andorra’s nature and its tax-free shopping, more than 10 million tourists visit Andorra every year.

The country’s banking institutions also benefit from Andorra’s fiscal system and its banking secrecy policy, and they contribute significantly to the Andorran economy.

The country’s climate is similar to the North of Spain, however due to the altitude (the lowest/highest point is 870/2,946 meters over sea level), the air is dryer, which makes summers very pleasant and gives Andorra’s ski resorts excellent snow conditions during the winter.

The living costs in Andorra are lower or on par with other Southern European countries.
Thanks to the absence of industry and the pleasant climate, the people of Andorra are currently listed as having the highest life expectancy in the world, with an average of 83.5 years.

Andorra has excellent international flight connections through Toulouse (France), Barcelona, Reus, Girona and Lleida-Alguaire (Spain). All airports are approx. 200km (Lleida 150km) or about 2-3 hours from Andorra by car or bus.
The closest airport Pirineus/Andorra, is just 10 minutes’ drive from the Andorran border (located on Spanish territory) and is scheduled to commence regular flights to Barcelona, Madrid and Palma de Mallorca during 2015.
In planning is a new heliport with regular routes to Toulouse and Barcelona, so that you can reach Barcelona in less than 30 minutes for a reasonable price.

Living in Andorra

Andorra is the perfect place of residence for those who want to lower tax burdens and at the same time increase their quality of life with leisure activities and relaxation.

Andorra has a highly attractive fiscal system and the principality does not claim any tax on capital, gifts or inheritance. There are no restrictions on capital movements.
Bank secrecy is an obligation by law and residence applicants are not obliged to move their assets to Andorra. Here you can enjoy the assets you have worked for.

10% is the maximum corporate tax for companies operating locally in Andorra. Companies operating internationally with intangible assets, companies engaged in international trade and financial investment and management companies can apply for a reduced corporation tax rate of 2%. All active companies have to pay an overall trade tax to the local municipality, which for most businesses amounts to less than € 1,000 per year.

Tax on personal income in Andorra is maximum 10%.

Another important fact for living in Andorra is the very low crime rate.

Did you know that in Andorra 100% of all homes, whether houses or apartments, have high speed optic fiber internet connection

There is a broad range of nationals from the entire world who choose Andorra as their place of residence.

Andorra provides multiple opportunities for sport- and leisure activities for the whole family both during summer and winter. There are three small golf courses in Andorra, there are beautiful hiking paths, and there are numerous activities also for families and children.

The country has invested heavily during recent years in upgrading infrastructure and ski resorts to world-class standards. Contrary to many other skiing destinations, all hotels and shops in Andorra remain open the whole year round.

PRIME MANAGEMENT is specialist in advising and assisting you with your residence application, with the search for a new home, your relocation and settling in Andorra, as well as registration and support to your Andorran company.

Andorra’s history

For 715 years, from 1287 to 1993, Andorrans lived under a unique co-principality, ruled by French and Spanish leaders (from 1607 onward, the French chief of state and the Spanish bishop of Urgell). In 1993, this feudal system was modified with the titular heads of state retained, but the government transformed into a parliamentary democracy. Long isolated and impoverished, Andorra achieved considerable prosperity since World War II through its tourist and banking industry.

Andorra’s Parishes

Andorra is divided into 7 parishes. Each parish has two representatives in the Andorran Parliament.
Below are the Andorran parishes with their postal codes:

Canillo AD100
Encamp AD200
Ordino AD300
La Massana AD400
Andorra la Vella AD500
Sant Julia de Loria AD600
Escaldes-Engordany AD700

Comparison of the surface area of small European countries (km²)

Cyprus 9.251 km²
Luxemburg 2.568 km²
Andorra 468 km²
Malta 324 km²
Lichtenstein 160 km²
San Marino 61 km²
Monaco 2 km²
Vatican 0.44 km²

Andorra’s population (2014)

Total 80,153