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Fiscal residence in Andorra for individuals

All residency permits obtained through any of the methods previously outlined are valid to establish and prove a tax residency in Andorra before the authorities of the country of origin.

However, factors such as the number of days lived in the country per year and the location of economic and vital interests (location of resources to live and family) can be decisive if the country of origin decides to claim tax obligations therein.

Anyone with a residency card who spends more than 183 days a year in Andorra with their family settled in Andorra, will be subject to the Andorran tax system and not subject to the one of the country of origin.

Currently there is no income tax under the Andorran tax system but is expected to come into force on the 1st of January 2015. The maximum rate under income tax will be set at 10%.

Yu-An Corporation together with Andorran banks, can offer collective investment vehicles that can significantly mitigate taxation of Andorran residents reducing it to a 0%-0,75% rate.

Despite the new income tax law coming into force in  January 2015, Andorra is still one of the countries with the lowest tax burden in Europe, allowing a taxation on capital gains at a 1% effective rate under certain financial instruments.