Andorra residency

[uncreative]

I am just considering whether the passive residence is enough to avoid p.e problems with Spain.

An example: Someone only has the passive residence in Andorra and spends 140 days there and can proof it ( bills, renting contract for full year, etc.)
What do the Spanish tax authorities say if this person then spends 130 days in Spain.

It would be good to know that the Andorra residence really protects you from the Spanish authorities.
As far as I know, there is a double taxation agreement between the countries and I think a lot of people are spending a lot of time in Spain with a Andorra passive Residence.

Does anyone know of any precedents or maybe current court cases?
Maybe it also makes a difference to Spain if the Andorra Resident pays taxes with the passive residency or not. Andorra is an interesting location, but I think it is also dangerous to combine it with Spain, I have my concerns here.

 

[orangekangaroo]

This is what I have told. Passive residence is good option if you plan to stay less than 183 days and you just want to have mountain Chalet. I don't think any passive residents pay this 10% tax if you can still get tax residence certificate and pay no tax.
Also the beauty is that it's really hard to check how long you stayed there because of lack of border control.

Sorry, I know of passive residents that do not pay tax, between 90 and 183 days and still get a tax residency certificate in Andorra. Unfortunately, other countries want you to prove you are not a tax resident in theirs and they want you to come up with proof.

There are plenty of advantages of Passive residency and staying more than 183 days. No business reporting in a bureaucratic country, no social security contributions, no need to set up a business in Andorra, with banks that shun international transactions.

 

[Mda]

The landscape of local banking just evolved with a big step forwad in Andorra
Myandbank
Expect that the line of services of this Fintech outlet of Andbank extends to catch up with its spanish couterpart El neobanco experto en inversión

 

[Konstanz]

I am just considering whether the passive residence is enough to avoid p.e problems with Spain.

An example: Someone only has the passive residence in Andorra and spends 140 days there and can proof it ( bills, renting contract for full year, etc.)
What do the Spanish tax authorities say if this person then spends 130 days in Spain.

It would be good to know that the Andorra residence really protects you from the Spanish authorities.
As far as I know, there is a double taxation agreement between the countries and I think a lot of people are spending a lot of time in Spain with a Andorra passive Residence.

Does anyone know of any precedents or maybe current court cases?
Maybe it also makes a difference to Spain if the Andorra Resident pays taxes with the passive residency or not. Andorra is an interesting location, but I think it is also dangerous to combine it with Spain, I have my concerns here.

130 days in Spain is risky especially when you are Andorra resident. It also depends if you have Spanish passport or not. If you are not Spanish when is less risk to have problems. Anything more than 90 days in a country is a risk
Just don't shout everywhere you live in Spain. Of course, you cannot work in Spain, have employment contracts etc

 

[orangekangaroo]

130 days in Spain is risky especially when you are Andorra resident. It also depends if you have Spanish passport or not. If you are not Spanish when is less risk to have problems. Anything more than 90 days in a country is a risk
Just don't shout everywhere you live in Spain. Of course, you cannot work in Spain, have employment contrac

The landscape of local banking just evolved with a big step forwad in Andorra
Myandbank
Expect that the line of services of this Fintech outlet of Andbank extends to catch up with its spanish couterpart El neobanco experto en inversión

Myandbank es molt internacional. Catala e Espanol. Wow

 

[uncreative]

Sorry, I know of passive residents that do not pay tax, between 90 and 183 days and still get a tax residency certificate in Andorra. Unfortunately, other countries want you to prove you are not a tax resident in theirs and they want you to come up with proof.

There are plenty of advantages of Passive residency and staying more than 183 days. No business reporting in a bureaucratic country, no social security contributions, no need to set up a business in Andorra, with banks that shun international transactions.

So can I stay in the country longer than 183 days with the passive residence, if I pay the 10% tax, right?

Staying more than 183 days with the passive residence in Andorra, paying taxes there and only spending 3-4 months in Spain in your own holiday home shouldn't be a problem, because you can proof that you life most time in Andorra ( inclusive Tax Certificate ) .

May I own a holding company ( no active business ) with the passive residency just to receive dividends from abroad?

 

[Konstanz]

So can I stay in the country longer than 183 days with the passive residence, if I pay the 10% tax, right?

Staying more than 183 days with the passive residence in Andorra, paying taxes there and only spending 3-4 months in Spain in your own holiday home shouldn't be a problem, because you can proof that you life most time in Andorra ( inclusive Tax Certificate ) .

May I own a holding company ( no active business ) with the passive residency just to receive dividends from abroad?

Yes , you can stay all year in Andorra
If you are not Spanish passport holder I think holiday house in Spain would not be a problem if you spend only weekends or couple months per year

 

[uncreative]

A Holding Setup with a passive Residence is also no problem as long the company is not active in Andorra.

"Please also note that Category A ( passive Residence) also allows you to have an Andorran Company provided it is not trading or active in Andorra, a holding company for example, so that also opens a few options. Whether you need tax / fiscal residency or not Andorra Category A passive residency can offer interesting options."

 

[orangekangaroo]

Yes , you can stay all year in Andorra
If you are not Spanish passport holder I think holiday house in Spain would not be a problem if you spend only weekends or couple months per year

It is called Spaindorra.

 

[ironhide]

Hi all,
I have an Andorra residency and operational company in UAE.
Planning to set up a holding company in Andorra to distribute dividends from UAE company. Found this info:

The investee companies must be subject, without the possibility of exemption, to a minimum taxation of 4% or be resident in a country with which Andorra has signed a DTAA.

Since Andorra has DTAA with UAE, it seems like it is possible to pay 0% tax in Dubai, distribute dividends to Andorra and get it with 0% also.
But also read some info that I will need to provide documents to Andorra about paid taxes.
Do they need it for UAE? Maybe somebody has a similar experience?

 

[Konstanz]

Hi all,
I have an Andorra residency and operational company in UAE.
Planning to set up a holding company in Andorra to distribute dividends from UAE company. Found this info:

Since Andorra has DTAA with UAE, it seems like it is possible to pay 0% tax in Dubai, distribute dividends to Andorra and get it with 0% also.
But also read some info that I will need to provide documents to Andorra about paid taxes.
Do they need it for UAE? Maybe somebody has a similar experience?

This is what Andorra tax advisor can andvise.

 

[nobel]

It was forgotten that as a passive resident you have to transfer 45.000 € to Andorra every year for one person. The banks are bitchy and annoying and always ask where the money comes from and how it was earned. Private health insurance also necessary. This is checked.

 

[Mda]

Private health insurance at 600 € per year (locally) or 1200 € (globally), per person. Life-invalidity : 30 € /yr. Retirement plan : 360 € /yr. These are the minimums. Totsegur.ad

About the incoming deposits per annum, here are the expected thresholds.

Regardig investment requirements for 2 of the several types of residency, this has just changed.
From 15k to 50k for active with a company (not an international business one, this remain unchanged at 50k, or salaried)
From 400k to 600k for passive.

Celebrate if you were already part of the Dinasty of Andorra. For the others, please embrace the fuckery.

 

[nobel]

Private health insurance at 600 € per year (locally) or 1200 € (globally), per person. Life-invalidity : 30 € /yr. Retirement plan : 360 € /yr. These are the minimums. Totsegur.ad

Private health insurance (600€ year) is a joke, they pay nothing. Read the conditions, serious diseases are excluded (hepatitis, HIV, cancer...) What if you get it?

 

[Mda]

It pays for 100% of the CASS tariffs, which you can argue about but that's the public basis. You can compliment it with travel insurances covering for 500k at 180 € per 6 months. Then there are all other global premium coverages to find at 100% of the real fees spent anywhere for not much more.
I was just saying there is a large choice of policies to choose from, which are affordable if paying attention. Otherwise, you could easily spew 3 times more than necessary.

Besides, don't know where you bank, but as passive resident there are more lax partners than others who only mind about the total of incoming deposits but not their nature for immigration purposes. Then you could self feed all year around with your own savings from abroad instead of work justification they would not bother in order to publish the bank certificate. Then it's pure paperwork without invasion of privacy. On the side of immigration, they care that you can sustain your family, not the sources.
Of course, in case of sizeable transfers received the bank will ask for source of funds but that's a common practice not specific to Andorra, that's ongoing, clearing you all the while, not related to the issuance of the immigration certificate in itself.
Anyway, I'll be precise in what I meant above. Say you have 4k in total, cash out every month, deposit it at another bank then transfer it as lure money every month, this tactic has worked for some facing the income requirement to maintain the residency. Practical claim verifiable by hitting some gestorias if in disbelief.

Andorra is not exactly hell on earth but when hearing some grumpy expats or stranger prospectors or accredited discreditors, at times it can seem so! Haha

 

[nobel]

It pays for 100% of the CASS tariffs, which you can argue about but that's the public basis.

CASS are crooks, pay only 80% if at all. Very bad the health system Andorra. But CASS is only public health insurance. Private are serious diseases excluded and you are badly off.

 

[Mda]

75%. Assistència Sanitària Crèdit Andorra reimburses you 100% not partially. There are tradeoffs. It's not a recommendation, unless if you're healthy and home bound maybe, then transitory. Most passive generally go with DKV MundiSalut.

CASS becomes fantastic value if you have a family. You won't find better bang for your bucks that is capped on one low wage per household instead of gradual contributions based on income at communist countries. Many kids = peanuts but some kind of retirement factored in on top too
Bad health system... surely the reason why we live the longest in the world besides Japan. The hospital can be criticised but care at neighbouring countries is accessible. However, no waiting lines to see specialists the same day most often, versus 6 to 9 months queues in France. To each his own. Smiling at happiness in my case

 

[BlinkHood]

I am just considering whether the passive residence is enough to avoid p.e problems with Spain.

An example: Someone only has the passive residence in Andorra and spends 140 days there and can proof it ( bills, renting contract for full year, etc.)
What do the Spanish tax authorities say if this person then spends 130 days in Spain.

It would be good to know that the Andorra residence really protects you from the Spanish authorities.
As far as I know, there is a double taxation agreement between the countries and I think a lot of people are spending a lot of time in Spain with a Andorra passive Residence.

Does anyone know of any precedents or maybe current court cases?
Maybe it also makes a difference to Spain if the Andorra Resident pays taxes with the passive residency or not. Andorra is an interesting location, but I think it is also dangerous to combine it with Spain, I have my concerns here.

I'm planning to do something similar to this, I'm spanish, been living in Andorra for some years and now changing to passive residence.

My plan is to live ~120 days in Andorra and travel the rest of the year.

I will spend the least amount of time in Spain as possible though, less than 60 days.


If you are spanish you need to be careful with the fckers at the spanish tax agency.

 

[nobel]

I'm planning to do something similar to this, I'm spanish, been living in Andorra for some years and now changing to passive residence.

Have you bought a flat for the passive residence? The flats and the workmen are a disaster and everything is cheap quality in Andorra, cheap double window (no triple), all noises can be heard from outside and inside, the toilets and showers from the neighbour also, everything is crooked, check the toilet, bathroom fittings with the spirit level and let me know that I am right!

 

[pomegranate]

I'm planning to do something similar to this, I'm spanish, been living in Andorra for some years and now changing to passive residence.

My plan is to live ~120 days in Andorra and travel the rest of the year.

I will spend the least amount of time in Spain as possible though, less than 60 days.


If you are spanish you need to be careful with the fckers at the spanish tax agency.

I thought you became a tax resident in Spain if you spent more than 183 days. Why your citizenship matters here if you have no activities or economic/business interests in Spain?

Spain - Individual - Residence

Detailed description of individual residence rules in Spain

taxsummaries.pwc.com