Frequently Asked Questions
Welcome to the Advantia Assessors FAQ section.
We know that when it comes to making important business decisions, many questions and doubts typically arise. That is why we have created this section to offer you clear and precise answers to our clients’ most frequently asked questions.
At Advantia Assessors, we specialise in advisory, consultancy, accounting and tax advice services, as well as providing the necessary support for setting up companies and obtaining residency in Andorra. Not forgetting specialised advice on the tax advantages of investing in the Principality of Andorra, a country that offers myriad opportunities for businesspeople and entrepreneurs.
We are committed to our clients’ satisfaction and strive to provide a high quality and personalised service at all times.
If you have any questions that you cannot find in this section, please do not hesitate to get in touch. We will be happy to help you with anything you may need.
LIFE IN ANDORRA
Living in Andorra is a unique experience, as it offers a high quality of life in a safe and peaceful environment. With its beautiful mountain scenery, excellent healthcare system, and low taxes, Andorra is a popular destination for expats who want to enjoy an active lifestyle.
The cost of living in Andorra is generally higher than in neighbouring countries, as the country has a high standard of living. However, the low rates of income tax and low VAT rates help to offset some of the costs. On average, a single person can live comfortably on a budget of about €2,500 per month.
Andorra has several neighbourhoods that are popular with expats, such as La Massana, Ordino, and Escaldes-Engordany. Each of them has its own charm and unique features, such as proximity to ski resorts, hiking trails, or shopping areas.
Finding a job in Andorra can be challenging, as the country has a small job market and a high demand for employment. However, if you have specialised skills or experience in a particular field, there may be some opportunities.
It is important to note that Catalan is the country’s official language and is essential for working in Andorra. Spanish and French are highly valued languages due to Andorra’s proximity to Spain and France, and, for some jobs, English is valued.
EU citizens do not need a visa. To work and live in Andorra all foreign residents must apply for a residence authorisation. This can be done through the Andorran consulate in your home country, or through a local sponsor.
Andorra has a well-established education system that offers free education up to secondary level. It has three education systems: Andorran, Spanish and French, and two private schools offering education in English, making it an ideal destination for families with children.
The healthcare system in Andorra is of a high standard and is accessible to all residents. There are several public and private establishments in the country, and residents are required to have health insurance.
Andorra has a unique taxation system that allows residents to benefit from low taxes. The income tax in Andorra is lower than in other countries (between 0% to 10% depending on the income), and VAT is only 4.5%. However, there are other taxes that apply, such as property tax and social security contributions.
In Andorra, driving is on the right-hand side of the road. All drivers must have a valid driving licence and insurance, and seat belts are mandatory for all passengers. Winter tyres are required on all vehicles from November to April.
Andorra has a mountainous climate with mild summers and cold winters. The weather can vary greatly depending on altitude, with higher elevations experiencing colder temperatures and more snowfall. Summers are generally warm and sunny, making Andorra an ideal destination for outdoor activities.
EXPATS IN ANDORRA
To become a resident in Andorra as an expat, you will need to apply for a residence permit. The application procedure involves providing various documents, including a police certificate, proof of financial stability, and proof of health insurance cover. The procedure can take three months to complete.
Residents are subject to taxes on any income earned in Andorra. It is recommended that, to be on the safe side, expatriates consult a tax advisor to find out their precise fiscal obligations and to avoid making mistakes when paying their taxes.
Although there are few job opportunities in Andorra, expats with specialised skills and experience may be able to find work in fields such as tourism, finance, or technology. It is important to note that fluency in Catalan, Spanish, or French is often required.
The cost of living in Andorra is generally higher than in neighbouring countries. Housing costs, in particular, can be quite high. However, the fiscal benefits of living in Andorra can help to offset some of these costs.
Andorra has a universal healthcare system that provides free or low-cost medical care to residents. Expats are required to have private health insurance in addition to the national health insurance cover. The quality of healthcare in Andorra is generally considered to be high.
Andorra has a wide-ranging education system that provides free education to all residents. Expats may choose to send their children to public schools or private international schools. Private schools can be quite expensive, but they may provide instruction in English or other languages.
Andorra has a mountainous climate with cool temperatures and moderate rainfall. Summers can be warm and sunny, while winters are cold with snowfall. Expats should be prepared for a wide range of weather conditions.
Andorra has a mixture of Spanish and French cultural influences, but the Catalan culture is dominant. Expats should be respectful of local customs and traditions.
Andorra is a small country with a close-knit community. While it may take some effort to integrate, expats who make an effort to learn the local language and culture will find a welcoming community.
Andorra has a well-developed road network that connects the country to neighbouring France and Spain. Public transport options include buses and taxis, but many residents prefer to use private cars. Expats may also choose to walk or cycle in urban areas.
CREATING A COMPANY IN ANDORRA
To set up a company in Andorra it is necessary to have a minimum share capital of 3,000 euros and to present an application for registration on the Andorran Companies Registry.
The process of registering a company in Andorra can take between two and four weeks.
It is not necessary to use a lawyer or tax advisor to set up a company in Andorra, but it is advisable to ensure that all legal requirements and procedures are complied with.
In Andorra, companies must pay corporation tax, which is 10% of profits.
Yes, foreign citizens can create a company in Andorra.
Yes, to register a company in Andorra it is necessary to have a physical address in the country, although it can be a temporary address or a virtual office.
You can create various types of companies in Andorra, such as limited companies or public limited companies, among others.
It is not necessary to have employees to set up a company in Andorra, but in some cases it is advisable, in order to ensure the smooth running of the business.
It is not possible to register a company in Andorra online; it is necessary to register in person at the Companies Registry.
The cost of registering a company in Andorra depends on the type of company and the associated costs, such as lawyers’ or tax advisors’ fees. It is estimated that the total cost can range between 3,000 and 5,000 euros.
OPENING A BANK ACCOUNT IN ANDORRA
You do not need to be a resident of Andorra to open a bank account, but you will need to present some documents, such as your passport or other identification document and proof of address in your country of residence.
The requirements for opening a bank account in Andorra vary from bank to bank, but generally you will need to present your passport or other identification document, proof of residence, proof of income and proof of origin of funds.
Yes, some banks allow remote opening of bank accounts, which means that you can open a bank account without visiting Andorra. However, you may need to send some notarised documents.
It is not necessary to have a bank account in Andorra to be a resident in the country, but it is advisable to have one to manage your finances and make transactions easily.
You will need to present your passport or other identification document, proof of residence, proof of income and proof of origin of funds.
The time it takes to open a bank account in Andorra can vary depending on the bank and the complexity of the account. However, it is generally possible to open a bank account in a few days.
Yes, most banks in Andorra charge a fee for opening a bank account. These fees vary according to the bank and the type of account.
Yes, some banks in Andorra require a minimum deposit to open a bank account. This requirement may vary depending on the bank and the type of account.
You can open several types of bank account in Andorra, such as current accounts, savings accounts, time deposit accounts as well as bank accounts with specific operations for companies.
Yes, it is safe to open a bank account in Andorra. The country has a stable and secure banking system, and all banks are regulated and supervised by the Andorran Financial Authority (AFA). In addition, many banks offer additional security services, such as two-factor authentication and suspicious-transaction notifications.
TAXES IN ANDORRA
Andorra’s taxation system is more favourable than the systems in most European countries, which is an advantage when you choose to reside in Andorra or set up a business there. Taxes are similar than those of other European countries but have a lower taxes. The most important taxes are income tax for residents and non-residents, VAT, corporation tax, property tax and some local taxes.
The personal income tax rate in Andorra varies between 0% and 10%, depending on the taxpayer’s income level.
The corporate tax rate in Andorra is 10%.
Yes, there is a property tax in Andorra, which is levied on owners of residential and commercial property and land.
There is no inheritance and gift tax in Andorra.
Yes, Andorra has double taxation agreements with several countries, which means that taxpayers residing in Andorra, and who have income in other countries, can avoid double taxation.
Taxes in Andorra are declared through the Andorran Government Tax Department. Taxpayers can file their tax returns online or in person, or through a specialised company acting on their behalf.
Yes, there are some tax deductions in Andorra, such as deductions for investments in principal residences, for contributions to pension plans and for medical and education expenses.
If taxpayers fail to pay their taxes in Andorra, they may face fines and financial penalties, as well as seizure of their assets.
Yes, Andorra offers fiscal residence for those who meet certain requirements, such as spending at least 90 days a year in Andorra and proving that they have sufficient financial
RESIDENCE IN ANDORRA
To obtain residence in Andorra, you will need to prove that you have a sufficient and stable source of income, private health insurance, and a home in Andorra. You will also need to be of good conduct and to have no criminal record.
The application procedure for residence in Andorra can take up to three months to complete. This may vary depending on the complexity of your case and the workload of the relevant authorities.
Obtaining residence in Andorra can have many benefits, such as access to a high-quality healthcare system, a low tax rate, political security and stability, a favourable business environment, and a high quality of life.
No, it is necessary to prove a sufficient and stable source of income to obtain residence in Andorra.
The total cost of obtaining residence in Andorra varies depending on the lawyers’ fees, the application costs, and the costs of the necessary insurances. It is estimated that the total cost can range between 5,000 and 10,000 euros.
It is not necessary to use a lawyer or a tax advisor to obtain residence in Andorra, but it may be useful to guide you through the procedure and to make sure that you satisfy all the requirements.
Yes, it is possible to obtain residence in Andorra through the purchase of a property. However, it is important to bear in mind that the purchase of a property does not automatically guarantee residence and that you will still have to fulfil other requirements.
In Andorra, a number of taxes apply, such as IRPF (Personal Income Tax), IGI (General Indirect Tax), and corporation tax. However, tax rates in Andorra are low compared to those of other European countries.
Yes, EU citizens are entitled to apply for residence in Andorra. However, they will still have to fulfil all the requirements and prove a sufficient and stable source of income.
Yes, it is not necessary to speak Catalan to obtain residence in Andorra. However, it may be useful to learn the language as it is the official language of the country and is widely used in daily life.
ANGEL INVESTORS IN ANDORRA
An angel investor is a wealthy individual who invests his or her own money in start-up companies in exchange for an equity stake.
Yes, there are angel investors in Andorra trying to invest in start-ups with growth potential.
You can search in investor directories, attend business networking events or contact venture capital firms in Andorra to find out more about potential angel investors.
Angel investors in Andorra look for start-ups with growth potential in various sectors such as technology, innovation or tourism, among others.
The amount which an angel investor invests can vary, but generally ranges from a few thousand euros to several hundred thousand euros.
Angel investors in Andorra are looking for a significant return on investment, in the form of dividends, shareholdings or the proceeds from the sale of the company.
The criteria used by angel investors in Andorra to select companies for investment include the quality of the management team, the viability of the business model, the growth potential and the capacity to generate profits.
What advantages can be obtained by companies that receive investment from an angel investor in Andorra ?
Companies that receive investment from an angel investor in Andorra can obtain financing for growth and expansion, access to valuable business knowledge and contacts, as well as increased credibility and visibility in the market.
The typical investment term for an angel investor in Andorra varies, but is generally between three and seven years.
By receiving investment from an angel investor in Andorra, the company is giving up part of its ownership and control, which can be a disadvantage in the long term.