Living in Andorra is one of the best decisions you can make today. The country is constantly growing and attracts many foreign immigrants because it offers great benefits and quality of life. And what are the advantages of living in Andorra? Why you should move to the Principality?
Why live in Andorra?
Andorra is a small country located in the Pyrenees Mountains, between Spain (with whom it borders to the south) and France, with whom it borders to the north. The official language of Andorra is Catalan, but there is also a presence of Spanish and French, although the latter, to a lesser extent. The small country has an area of 468 square kilometers and its capital is Andorra La Vella or Old Andorra. The country is divided into seven different parishes.
If you want to live in Andorra you can choose the capital, but also Escaldes-Engordany and Sant Julià, which have a border with Spain. For their part, Canillo and Ordino border with France, while Encamp and La Massana have a border with both countries. You can travel from Spain or France to Andorra easily.
The country is sustained through tourism today. But, traditionally, the Principality is known as an agricultural and livestock place. The climate, the region’s commerce and the beauty of the landscape attract millions of tourists a year. And of course, many residents who seek to live in Andorra for the great benefits it offers.
Taxation: one of the advantages of living in Andorra
The economic model of the Principality allows the establishment of foreign companies thanks to Andorran taxation. This is one of the main attractions of the country. But in order to benefit from this taxation, it is necessary to meet a series of requirements. Even if you live in the Principality, you can enjoy certain tax benefits, but this becomes more noticeable when you establish your tax residence here, which happens when you work and live in the country for more than 183 days. .
You can establish yourself as an employed or self-employed worker and even open your own company. In the latter case, the company must be located in the Principality.
- The general VAT (which in Andorra is called IGI) is only 4.5% and is the lowest in the region, when compared to 21% in Spain and 20 % of France. If you make purchases in Spain, you can deduct VAT.
- The corporate tax has a maximum value of 10%.
- Living in Andorra and paying IRPF is quite affordable. It is possible to receive exemptions of up to 100% for the first 24,000 euros per year. This percentage increases depending on the salary received, but is never higher than 10%.
- Themunicipal taxes are only 800 euros per year (if you constitute a company or company).
- The social contribution for companies has an average of 15.5%.
The Andorran health system
Another of the advantages of living in Andorra is its excellent healthcare system. This is governed by the CASS, which is the body in charge of social security contributions and healthcare reimbursements. Contributions vary depending on the worker’s salary. As far as healthcare is concerned, Andorra has quality centers and hospitals, but if necessary, it has also signed agreements with Spain and France. This way, you can be assisted in neighboring countries if you need it.
The Andorrana CASS works with a system of copayments and refunds:
- 75% of medical expenses (visits and medications) are covered by the State.
- If there are admissions or surgical interventions, 90% is covered.
- You can aspire to 100% reimbursement if you also have private health insurance.
- 33% for people who are not affiliated with the Andorran CASS.
Work in Andorra
Working and living in Andorra offers great benefits. In addition to the issue of taxation and healthcare, we tell you that the Principality offers the option of establishing yourself here as an employed person. You can move to Andorra if you have a seasonal or full-time job offer. Many people choose seasonal work, especially in winter, which lasts six months.
And, as we already mentioned, the main support of the Andorran economy today is tourism. And the snow, the weather and the beauty of the landscape attract millions of tourists a year, making seasonal work easy. You can get a job in hotels, restaurants and ski resorts.
For businessmen who wish to settle in the Principality, things change. It is necessary to establish a company and have a minimum capital of 3,000 euros to start operating, as well as pay 15,000 euros as a deposit. But you will be surprised to know that you can create the company in a maximum period of two months, as long as you put yourself in the hands of experts, like MCA Assessors.
Quality of life
In Andorra you can live on rent or invest in your own home, at quite competitive prices, when compared to the rest of the countries in Europe. Prices vary depending on the area you choose. The capital has a higher price, since it brings together most of the country’s infrastructure and services.
The supplies, however, have a much lower price when compared to Spain and France. Electricity is one of the lowest in all of Europe. And the water? It’s free throughout the country. The shopping basket also represents savings, which improves your quality of life considerably.
Privileged environment, one of the advantages of living in Andorra
Andorra attracts millions of tourists for its unbeatable environment. The mountains and ski areas leave no one indifferent. Here we can mention, for example,Grandvalira and Vallnord, which offer the best to relax. In addition, they have attractive sports entertainment offers: They have more than 250 kilometers to ski!
90% of the territory is made up of natural landscapes, which makes living in Andorra a perfect option for lovers of mountain sports such as hiking.
