Living in Andorra
Three reasons to live in the Principality
Despite having an area of only 468 square kilometers and a population of just over 71,000 inhabitants, Andorra has traditionally positioned itself as a multicultural and open country in which more than 100 different nationalities live, in a completely integrated way. This fact, together with its excellent location, in the middle of the Pyrenees between Spain and France, has made Andorra a most attractive country to reside in, either permanently by buying a house or flat or, temporarily, by renting a property.
Living in an advantageous tax environment
Low taxation is one of the main distinguishing features that inherently incorporates residence in Andorra. Thus, whether it is a natural person or a society, residents in Andorra have a direct and indirect taxation (IGI general of 4.5%) very advantageous with respect to the surrounding countries. A level of taxation that allows, among other advantages, companies to tax at a nominal rate of 10% on corporate profits, with deductions on certain activities that reduce the tax rate to 2%.
As for the taxation of personal income tax, which came into force in Andorra on 1 January 2015, it also has a tax of 10% on wages and savings income. However, they are exempt from taxation, the first 24,000 hgm for work income and the first 3,000 hgm for personal income. In addition, within the section on bonuses, deductions are available for job creation, as well as exemption, provided the requirements are met, from indirect tax on real estate transfers (ITP).
Residence in Andorra, synonymous with living in a natural environment
Another reason to reside in Andorra is given by the location of the country. The valleys of Andorra, nestled in the middle of the Pyrenees, make the Principality a territory with an unbeatable natural environment, which can be enjoyed, thanks to the many activities offered by all the parishes of the country, practically all year round.
With more than 2,000 hours of sunshine a year, another of the Great claims to reside in Andorra during the summer is the wide range of itineraries and hiking routes, which allow you to discover, among other attractions, emblematic environments of the Principality such as the Tristaina Lakes, the Incles Valley, the Engolasters Lake or the Madriu-Perafita-Claror Valley. In addition, it goes without saying that with the first snowfall, the environment of Andorra is completely transformed, offering up to 300 skiable kilometers, distributed between the two stations of the country: Grandvalira, Pal Arinsal (old Vallnord) and Ordino-Arcalis.
Living in Andorra with a higher quality of life
With a GDP per captain above 46,400 euros per year -a figure well above the 29,800 euros of Spain and the 42,500 of France – and a minimum wage established at 991 euros, Andorra has quality of life levels higher than those of many of the surrounding countries. To this must be added, Public Safety and the low crime rate existing in the country, as well as a genuine, quality and free education system, in which three education systems coexist: Andorran, Spanish and French.
A quality of life that is also reinforced by a quality health service and different complementary services (retirement homes, home care, social and health centers…) aimed at the collective of the elderly. Without a doubt, another point that can help you make the decision to reside in Andorra.