Andorra

Residency Programs
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• Passive residency: €600,000 investment (€400k in Andorran bonds + €100k real estate + €100k Andorran Financial Authority deposit). Minimal physical presence required (90 days/year). Popular for wealthy individuals, traders, investors not operating Andorran business.
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• Active residency: Establish business in Andorra, reside full-time (183+ days). Must demonstrate business activity, employment, economic ties. For entrepreneurs operating from Andorra.
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• Nominal residency (suspended/restricted): Previously available, now difficult to obtain.
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• Permanent residency after 20 years (long period)
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• Citizenship extremely rare (25+ years, Andorran language/culture requirements, very limited grants)

Company Formation & Tax
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• SL (Sociedad Limitada) limited company standard structure
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• 10% corporate tax (flat rate, competitive for Europe)
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• Personal income tax 10% cap (progressive up to 10%, effectively low taxation)
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• No wealth tax, no inheritance tax, no capital gains tax (major attractions)
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• VAT 4.5% (IGI - Impost General Indirecte, lowest in Europe)
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• Must demonstrate economic activity in Andorra (substance required)
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• Popular for: trading (especially crypto, securities), e-commerce, consulting, holding companies with substance

Banking & Financial Services
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• Banking sector historically known for privacy (similar to Switzerland)
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• OECD pressure eroded secrecy (automatic exchange of information, CRS compliance)
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• Still favorable for wealth management, private banking (though transparency increased)
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• Banks: Andbank, MoraBanc, Crèdit Andorrà (local institutions plus some international presence)
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• Residency requirement for opening accounts typically (must be Andorran resident)

Lifestyle & Practical Considerations
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• Tiny country (pop. ~77,000), mountainous (Pyrenees), ski resorts
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• Extremely high quality of life, safety (virtually zero crime), clean environment
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• Strategic location: 3 hours to Barcelona, close to France, Spain
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• Catalan language (official), but Spanish and French widely spoken
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• No airport (nearest: Barcelona, Toulouse), road access only (can be cut off by snow in winter)
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• Cost of living moderate-high (real estate expensive, daily goods moderate)
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• Healthcare excellent (modern facilities, low cost)
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• Small, close-knit community (everyone knows everyone, can be limiting)
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• Physical presence requirement (passive residency 90 days, active residency 183+ days)
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• Best for: traders, crypto investors, wealthy individuals seeking low-tax European base with mountain lifestyle, entrepreneurs willing to establish real Andorran operations