The latest publications of consultants specialized in classifying countries according to their standards of living have ranked Andorra as one of the five best places for establishing a residence.
The small Principality, strategically located between France and Spain, has 180 square miles and about 80,000 inhabitants. It is known for its political and social stability and for having a very low violence index.
During the last two years, the Andorran Government has established new income tax for individuals and businesses. The income tax maximum rate is 10% and the VAT rate is 4.5%.
Furthermore, the country’s opening to foreign investments is attracting European citizens; lately, there has also been a strong increment in new Russian and Asiatic citizens.
Currently foreigners may choose a “passive residence”, without work permit, mostly seek by people who want to retire in Andorra. For businessmen who want to establish operations in Andorra, another alternative is an “active residence”, which guarantees registration at the local Social Security and the local labor system.
Artists or athletes moving to Andorra to take advantage of its infrastructures and training spaces, have an alternative to the old special residence regime. Nowadays, it is possible to obtain an active residence when they manage assets or other businesses from an Andorran company, i.e.: image rights or patents.