Time Running Out For Andorra Residency

Very often it's a surprise for those considering moving to a tax haven that property can be affordable, and that after gaining residency there is no income tax to pay in the European country of Andorra.

In their home country business people have little choice but to conform with current legislation and employ accountants who can minimilise their bills as much as possible, short of moving their offices or maufacturing to India or China there is little they can do to keep more of the wealth they have created.

But it's when they are selling their companies that taxes can really hurt. After years building up a business it seems unfair to many business owners that they should hand half of whatever they are to receive from the new owners to the government, when they have been contributing significant sums during their ownership.

And this is often when the thought of moving to a tax haven originates, usually when their accountant tells them just how much of the sum they are due to receive will disappear in tax - and the accountant suggests that moving to somewhere like Andorra and taking residency in Andorra will sidestep this necessity.

The best known of the European havens is Monaco, and often people haven't heard of Andorra, but when they learn that the tax benefits are the same but the cost of buying a property is around a fifth of Monaco, Andorra suddenly becomes a distinct possibility, and their research on what the Principality has to offer begins in earnest.

But over the next year their options might be closed for a while as only 500 residency places were allocated by the country's parliament, there are only 200 left, and once they are gone it could be up to a year before parliament agrees upon how many more applications will be allowed, and applications are allowed again, and for anyone seriously considering moving in the next twelve months it's no time for indecisiveness if they want to have a choice of where to move to.

Andorra has really come of age as a serious European tax haven for business people looking for a good environment to live and sometimes also to establish a new business over the last fifteen years, with virtually all the country being cabled up for high speed internet access, and millions of Euros being spent on roads and other infrastructure where the Principality today can be regarded as a truly modern European State.

Full international banking services are available, including private banking facilities and numbered accounts, along with the normal range of domestic services, with branches in most of the towns and villages, and mortgages are available on normal conditions for those looking to gain residency in Andorra - as would be expected debit cards are issued that can be used at ATM's worldwide.

Often it's families who are moving and taking residency, and they have a choice of a good international school in La Massana, or once they have been granted Andorra residency schooling is free at the local schools, and is of a high standard, with only the text books to be paid for. By the time they are sixteen many of the children are fluent in French and Catalan, as well as English - quite an advantage as they enter further education and then the jobs market.

For housing there is a choice of apartments, townhouses and chalets available. Two and three bedroom apartments with covered parking start for something that is half reasonable with views and close to amenities at 300,000 Euros, and typically a new resident will spend around 450,000 Euros for a three or four bedroom apartment with two bathrooms, close to amenities. The equivalent in Monaco would be over five million Euros.

Townhouses are a good option for those who want the space of a house without the maintenance of a garden, and if only six months a year are going to be spent in Andorra could be suitable - they start for three and four bedrooms at around 700,000 Euros and a good one is 850,000. Houses with some gardens start around 800,000 Euros for something fairly basic, and a good one is between one and one and a half million, so overall there is a good choice of Andorra property for sale to choose from.

But if you want to consider Andorra residency, better not leave it too late or you might have one place less to choose from.