Moving to Andorra: A Complete Guide to Andorra Immigration
Moving to Andorra comes with numerous tax benefits. Get the facts and details with a complete guide Moving to Andorra Immigration | Fintax Andorra
Do you ever wish you could pick up and move somewhere else? If life is stressing you out, you may want to look into Andorra immigration to see if the small country is right for you.
It may be in the mountains, but Andorra has a lot to offer people. Consider how to move there and why you should to determine if it's the right choice for you.
Keep reading for more.
Know How to Get to Andorra
One of the most important steps in Andorra immigration is getting to the country. No matter where you're moving from, you can't fly directly into Andorra.
You will need to fly into La Seu Urgell, which is 20 minutes from Andorra, and you can fly there from Madrid. Then, you can take a bus to the Andorra border and cross into the country.
Andorra doesn't have an airport or train station, so the bus is the only way to get in and out.
Understanding how to get to Andorra can help you plan for your move. That way, you'll have time to get to your new home and settle in before you start work or school.
Apply for Residency
Next, you'll need to decide if you want to apply for Andorra passive residence or active residence. Passive residence (or administrative residence) requires you to stay in the country for at least 90 days and invest €400,000 in Andorran assets.
Alternatively, you can get a permit to run your own business. You'll need to have €15,000 and your own company.
A third option is to get a work permit through an employer in Andorra.
Active residence (or tax residence) requires you to spend more than 183 days per year in the country. It requires that Andorra is your centre of vital interest and economic interest.
However, you can work in Andorra and take advantage of healthcare and the low tax rates. You'll get a tax residency certificate after six months of living in Andorra.
How to Choose the Type of Residency
Be sure to consider any exit tax you may have to pay where you currently live. You should also think about if you're moving to Andorra alone or with your family.
It's also important to know where you'll earn the majority of your income. If that's not Andorra, passive residence may be a better option.
Look For a Job
Unless you'll start a business or continue your current self-employment in Andorra, you'll need to find a job. Getting a job can help you get a work permit so that you can make money after moving to Andorra.
If you're self-employed, you will need to apply for the residence and self-employment program. Andorra allows 900 people to live in the country through this program each year.
You can also look for a job in the country. In that case, your employer will take care of organising your seasonal work permit, so you shouldn't have to worry about it.
The tourism sector is an excellent industry to work in when you live in Andorra. However, you don't have to work in tourism to fulfil the Andorra visa requirements.
Apply for a Work Permit
If your employer won't help you apply for a work permit, you'll need to do so yourself. You will need to provide a copy of your passport as well as your CV and photos.
Andorra also requires a certificate of your housing status to make sure you'll have somewhere to live. That way, you can move to the country and settle in without having to search for housing.
Married couples should also provide a copy of a certificate of their marital status. All of this can help make your case for pursuing Andorra active residence so that you can live and work there.
Research Places to Live
To make sure you have all of your documentation to apply for residency, look at potential places to live. You can find apartments, houses, and other types of residences.
If you already have a job offer, consider how far away you want to live from work. Andorra is very small, so you may not need to live in the same city as your job to have a short commute.
Maybe you want to live in the capital Andorra la Vella, or in a smaller town. All cities and towns can be great locations, but the place for you depends on your situation.
Decide if You'll Buy or Rent
As you plan your relocation to Andorra, consider if you want to buy or rent property. Buying can be an excellent choice if you plan to stay in Andorra long term and pursue Andorra active residence.
However, renting can be a fantastic choice as well, especially when you first move to Andorra. You don't have to worry about buying a home in an area you don't like.
If you find you want to move within Andorra, you can do so when your lease ends. Consider the pros and cons of renting and buying a home to make the best choice for you.
Learn About Tax in Andorra
One of the most significant benefits of Andorra immigration is the tax system. You will need to pay income tax, but the rate is much lower than in countries such as the United States and the United Kingdom.
If you make €24,000 or less, you won't pay any income tax. When you make between €24,001 and €40,000, the tax rate will be 5%, and it jumps to 10% at €40,001.
The 5% tax rate drops to 0% for married couples making less than €40,001. Unfortunately, you will have to pay taxes on your income worldwide, but you may still save money compared to living somewhere else.
Income tax applies to regular income from a job or business. You'll also need to pay the tax on any money you earn from cryptocurrencies if you obtain Andorra active residence.
Consider Opening a Bank Account
An Andorra tax advisor may tell you to open a bank account once you get to the country. That way, you can receive money from a job or from local clients for your business.
You will also be able to access your money in Euros, which is the local currency. Even if we're reaching the end of cash, having a local bank account offers many benefits.
For example, some of the money you earn from deposits to an Andorran bank won't be subject to taxes. Having a local bank account also means you won't have to deal with currency conversion every time you want to buy something.
Transfer Your Money
After you set up your bank account, you should transfer enough money to support yourself. Then, you'll be able to pay for housing and other expenses before you get your first local paycheck.
You can also transfer extra money if you want to jump into cryptocurrency investing. You'll be able to work with a cryptocurrency advisor in Andorra to help invest in the right currencies.
Even if you don't want to invest in cryptocurrency yet, having the extra money available is useful. You never know when something may go wrong and delay a paycheck.
Think About the Languages
You may be able to get by in Andorra if you only speak English. However, it helps to learn at least a bit of Catalan, Spanish, or French, which are the most common languages in the country.
Catalan is the official language, but Spanish and French are somewhat similar. Learning one or more of the languages may help you stand out when applying for jobs since employers won't need to translate things.
Knowing the language will also help you get through the visa application yourself. You won't have to hire an interpreter to help you understand the questions on the forms.
Prepare for Healthcare Costs
One of the biggest differences you may experience after moving to Andorra is the healthcare system. Americans will have to get used to paying into a government-run health insurance program.
The program covers over 90% of Andorran residents, including all salaried employees. If you don't have coverage, you'll have to purchase private health insurance.
In either case, the cost may be a bit more than you're used to, especially if you're healthy. However, you won't have to worry about your health costs going up and down from month to month.
Fortunately, the government program can cover you if you get sick when travelling to Spain, France, or Portugal. You should inform the government of your travels first to ensure they'll reimburse you for your expenses.
Review the School System
If you have or want kids, you should look at the Andorran school system. Luckily, Andorra has some of the best schools, and your children can attend school in the country for free.
Most schools teach in Catalan, French, Spanish, and even English. That can help your children get accustomed to the languages in the area, but they can learn in a language that they understand.
The country has public schools and private schools if you prefer to send your child there. However, you can't homeschool your children if they're residents of Andorra because they have to attend school from ages 6 to 16.
Andorra also offers maternal education to children between three and six years old. Teenagers 16 to 18 can enrol in upper secondary education, but those programs aren't required.
Pack Your Belongings
The last main step before moving to Andorra is to pack your belongings and ship them over. If you have significant investments that you want to bring, you may want to talk with an Andorra lawyer.
They can help you explore your options for transferring or selling investments. If that's not a concern you have, you can simply pack all of your stuff as if you were moving domestically.
Be sure to consider what items you want to keep with you during the trip to Andorra. Then, you can pack those in a carry-on or in a suitcase that you check when you get to the airport.
You may need to sell your home, car, and other items that you won't bring with you. If you'll be a passive resident, you might choose to put the items in storage.
Why Move to Andorra
Even if you understand how Andorra immigration works, you should consider why you should move there. The country may not be massive, but it offers plenty of benefits.
That way, you'll be able to determine if Andorra is the right country for you. If so, you can then look into the various cities in the country to find your perfect job and home.
Here are some of the best reasons to move to Andorra.
Affordable Cost of Living
Compared to many other European countries, Andorra is an affordable place to live. You may be able to save almost a third of your money if you move to Andorra.
Individuals and families should be able to live comfortably without needing a massive income. That means you can afford to work less and spend more time doing things you live.
Food and housing are relatively affordable, and so are healthcare and other services. Plus Andorra's location makes it easy and affordable to travel to other parts of Europe.
Barcelona makes for an excellent day trip, while Toulouse and other cities in France and Spain are great weekend getaways. If you don't want to worry about money, Andorra may be the place for you.
Of course, you also get to enjoy paying less tax in Andorra. This is good for employees and entrepreneurs, so you can save more of your money to spend on housing or food.
Alternatively, you can put more of your money into cryptocurrency or other investments. A good blockchain advisor in Andorra can help you decide how much to invest and where to put your money.
That way, you can invest in things that taxes don't apply to, so you can save even more money. And you'll be able to enjoy living in Andorra, or you can move and pay less in exit tax.
One of the safest countries in the world
Andorra claims to be one of the safest countries in the world, and the claims hold up. The country has almost no violent crimes each year, and some people will even return your purse if you leave it behind.
Residents may leave their cars unlocked when they go shopping. Firearms are hard to obtain compared to other countries, which keeps gun use rates low. Low unemployment also helps minimise crime.
Another factor that makes Andorra safe is the border patrol. You can only enter from a few points, and the country checks you thoroughly to make sure you're safe to enter.
Of course, it's impossible to guarantee that no crime will ever happen. However, the odds are much lower in Andorra than in many other countries.
If you like nature, you'll love living in Andorra. Its location in the middle of the Pyrenees Mountains make Andorra the perfect place to go hiking or rafting, and you can partake in winter sports.
Even if you don't want to do a ton of physical activity, you can go sightseeing throughout the various cities. There are also plenty of parks for you and your family to visit, so you can explore plants and animals.
You may even be able to get a home with a beautiful view of the mountains. Andorra can be an excellent location for people who love nature.
Healthcare systems vary between countries, and Andorra's is one of the most progressive. It's one of the top five healthcare systems in the world, and it's up there with Switzerland and Norway.
The country has a relatively high ratio of doctors to residents, at four doctors per thousand people. That can make it easier to book an appointment when you need care.
While you do have to pay into the system, you can benefit from plenty of coverage. Andorra's program covers maternity care, and it helps with hospital costs and checkups.
It can be hard to get used to the system, especially if you're moving from the United States. However, you may find it's more convenient, especially since it covers emergency care in certain other countries.
Moving internationally is a big decision, especially if you want to move alone. Fortunately, you will meet a welcoming community of people to help you settle in.
People in Andorra are nice to new people, and they come from different cultures. You may be able to find other people from your country to help you get to know the area.
The small population allows you to meet people more easily, and many people speak various languages. While it helps to learn Catalan, you don't need to when you first move to Andorra.
You can also find a nice tax advisor in Andorra to introduce you to the financial system. Then, you can set yourself up for success in the country.
Great Education System
If you currently have or plan to have kids, you want to move somewhere that will offer them a great education. Andorra is an excellent place to raise your children and set them up for their futures.
There are public schools in each city, and your child can learn in various languages. If you want to start their education early, maternal education is an option, though you don't have to do it.
Upper secondary education is another optional form of schooling. After your child turns 16, they can finish school or continue learning to prepare for college or university.
You don't need to worry about the cost of your child's schooling since the school system is free. That can help you save more money to use for other things.
Low tax rates and a thriving tourism industry have helped Andorra's economy grow. You have more buying power due to lower taxes, so you can buy items that come into the country.
Andorra has also become a more popular tourist spot, which helps the economy. There are hundreds of hotels and restaurants, which is great if you want to work in that industry.
However, the industry helps the country as a whole bring in more money. That way, you can enjoy things like free schools and good healthcare for as long as you're a resident.
Andorra's economy will probably never surpass that of a massive country. However, it's good to know that it's growing since that means it will most likely be a good place to live in the future.
If you need to use the internet often, Andorra can be a great place to live. A lot of homes there have modems that support faster connectivity, so you can communicate with people throughout Europe and the world.
Every home has fibre internet, which can run faster than dial-up and cable connections. Businesses also have great internet, so you can work from a restaurant, or you can run your business with the internet.
Whether you want to work remotely or enjoy some Netflix after work, Andorra's internet can meet your needs. It's a great choice if you want to become a passive or active resident.
As you look for somewhere to live, ask about the internet connection. Then, you can make sure you'll be able to stay in touch with people back home.
Multiple Residency Options
Another advantage of moving to Andorra is the different residency options. If you plan to live in the country and take advantage of the tax rates and other benefits, you can become an active resident.
On the other hand, if you like to travel, a passive residency may be a better option. You won't have to pay taxes or be in the country as much, so you can have more control.
Both residency options are useful, and you may find the right option changes after a while. Either way, talk with an Andorra lawyer to compare options and apply for residency in Andorra.
Andorra Immigration Made Easy
Moving abroad takes a lot of planning, but it comes with many benefits. If you're thinking about Andorra immigration, be sure to start planning as soon as you can.
Then, you can obtain the necessary documents and find a job. Soon enough, you'll be able to pack your bags and fly into Spain or France before taking a bus to Andorra.
Do you need help with the legal aspects of moving to Andorra? Learn about our services and contact us for a consultation.