Retirement in Andorra offers many advantages when compared to other countries. Nowadays, not only the profiles of people with digital businesses can benefit from a residence permit in the Principality. Individuals who have sufficient assets and who want to retire and not do business can also benefit from one of these Andorran residence permits. Enjoying a pension or retirement in Andorra is perfect for people who have already finished working and are now looking for rest and relaxation.
Why retire in Andorra?
People who want to retire in Andorra can apply for a residence permit without lucrative activity, also known as passive. This type of residence permit does not grant the right to work in the country, but it does grant the right to reside for tax purposes.
Unlike active residence permits, authorization to retire in Andorra does not require contributions to the Andorran Social Security Fund (CASS). However, one of the requirements is that there be sufficient private health coverage and, of course, that the receipt of retirement from the country of origin is compatible.
In order to benefit from retirement in Andorra and process the corresponding residence permit, it is necessary to invest 600,000 euros in Andorran assets. This can even be through the purchase of a home in the geography of the Principality.
How to process retirement in Andorra from Spain?
Is it possible to live retirement in Andorra if you are Spanish? We tell you that there is an agreement on social security between the Principality and Spain. This agreement allows anyone who obtains an Andorran residence permit to retire in the country and receive the pension from Spain. But in addition, this agreement, together with the double taxation agreement, allows you to spend your retirement in Andorra, maintaining the pensions received from another country and being tax resident of the Principality. This makes taxation low, since taxes would not have to be paid in Spain.
That is, you can receive thepension from Spain as a non-residentand pay taxes on the income in the Principality. You may be entitled to and enjoy the benefit, even if you live in Andorra. It is something that French and Portuguese citizens can also do, since Andorra has signed multiple agreements to attract those who want to retire in its territory.
Retirement benefits in Andorra
Why move to Andorra and enjoy your retirement period here? We tell you that it is one of the favorite destinations for people who want to live in a very quiet and safe environment. There are many advantages of living your retirement in the Principality!
The tax advantages of retirement in Andorra
Andorra’s main attraction is its low taxation and when it comes to retirement, it is no exception. Retirees who decide to reside in the Principality can enjoy a series of benefits such as:
- There is no estate tax required.
- There is no tax on inheritance and gifts.
- There is a low tax on the returns that may be obtained from the assets. The maximum applicable percentage is 10% and, in some cases, there is a total exemption. This also applies to the income perceived.
If you want to live your retirement in Andorra, it is most advisable that you approach a specialized consultancy, such as MCA Assessors. And carrying out all the procedures to obtain this permit can be complicated if done privately.
A great healthcare system
For people who want a retirement that is as peaceful as possible, health is important. As a requirement, you will need to have total private medical coverage, But we want to tell you that in Andorra, you will find great doctors who offer quality service. The Andorran health system offers security and, best of all, is not saturated, which is the case in countries like Spain.
The Principality has a health system considered by many to be “the best in the world”. He is very competent and solid. Another advantage is that you can find medical insurance for passive residents that includes care in the best centers and clinics in the country; with qualified professionals and that, in addition, allow you to have coverage in other countries.
Andorra: a very safe country
Finally, the zero crime has always highlighted Andorra. The crime rate is almost zero, which allows you to have a very peaceful retirement. Of course, tranquility also comes from the strategic geographical location of the Principality: in the middle of the Pyrenees.
Requirements to obtain passive residence
In addition to having private health coverage and investing 600,000 euros in Andorran assets (this may be through the purchase of a home), it is necessary to meet other requirements :
- Make a deposit with the Andorran Financial Authority of more than 47,500 euros.
- Not having a criminal record.
- Confirm marital status.
- Submit the certificate of a medical examination, carried out in the Principality.
- Check that you have income of more than 300% of the minimum wage of the Principality.
- Reside, at least, 90 days a year.
- Have a valid passport.
