We Moved to Tax Haven, Andorra
Not necessary to be mega-rich to do so
Entrepreneur Journey
Not necessary to be mega-rich to do so
What is Andorra? And why Andorra?
Is it in Africa?
No! that is Angola!
To help ease your curiosity, I am going to tell you where is Andorra and why we choose Andorra for our economic activity base.
Perhaps you will start packing your bag and become our neighbor.
The Motivation of Moving the Country.
Before I am telling you about Andorra I like to tell you a bit about our background and why we wanted to move?
It was for a long time Charlie, my husband realized that even though he was born in France he did not belong there. He hates and nearly disgusts how and what French has become. He didn’t see himself as French, except for fine wine and a sophisticated way of living
The main reason that drove him insane was a political problem, especially tax unfriendliness. Ridiculous enough that people started to be unfriendly as so the tax system.
He decided to take his life in his fortune and stopped feeling like a victim in his own country that was when the search started.
Where would be a good place to root? within the reach of his economy? where the tax system allowed him to breathe and people are kind. Moreover the possibility to grow a property’s portfolio.
For me, who loves my country, Thailand, and knows too little about what politics is and also, never even look at how much I have paid tax as a character of money avoidance. I just enjoyed learning new things and exploring my options!
So two individuals with different motivations were on the hunt for the country we may live in!
Where is Andorra located?
Many people asked me what country is it Andorra located in? First, you need to know that Andorra is not a city. It is a COUNTRY! I don’t know how many times I have to say this! hurr
It is located in Europe but not parts of the European Union similar to Swisserland, Monaco, Montenegro, Croatia, and many more.
It is a tiny country in the Pyrenees mountain. You can drive relaxing from one end to another end of the country while admiring beauty, and taking in the fresh air. Still, only take you two hours.
I can not state enough how tiny it is, 468 km² to be exact, about half the size of Singapore.
If you open Google Maps and look closely at the border between France and Spain you won’t see Andorra yet.
But if you zoom in about 5 times or maybe 10 times then you started to see a little dot name Andorra.
So there you got it!
Congratulation!
You have found a country that few people know about.
Benefits of Reside in Andorra
What makes Andorra interested is not the size or the rareness of not being known. It is the political and tax system.
Yes, a friendly taxes system.
We have studied a term and conditions of all the tax heaven destinations like Monaco, Hongkong, Panama, and so on where they charge very little tax or zero taxes.
We have visited some that intrigue us like Vanuatu (Another country you may hear about for the first time.)
Vanuatu is zero tax country but we understood why once we explored more.
Because most people nearly make no money. There is not much economic activity, including all the infrastructure like roads and hospitals.
If you need medical treatment, you will need the assistance of a helicopter to fly you to a country nearby like New Caledonia, or Australia.
Let alone, the property for sale takes year and year to find some random people who will be interested in buying.
But Vanuatu has something else to offer but let left Vanuatu there for now and come back to it another time.
But when we found Andorra, something clicked! Andorra is not exactly a tax-heaven country. They have reasonable taxes in place.
Maximum is 10% of yearly income.
For income under €24,000 a year, you apply zero tax, still receiving all social benefits similar to people who pay taxes.
For example, school and hospitality are free for anyone.
Most people who work for hours rate may fall into this racket.
It is very generous of the country to care for their people.From €24,000 up to €42,000 a year, you are subjected to a 5% tax
And 10% tax for anything above, of course with stair step.
No wealth tax, no heritage tax, and so on … and house taxes are dead cheap.
Compare to France that even collect a television tax, Andorra is a haven. Yes if you have a television in France, you need to pay a tax to watch your show. Ridiculous! We should be paid to be brainwashed.
How to claim an Andorra residency
There are two ways not including a residency by marriage. With only 78,000 people residing with an average age of 40 years old, it is quite tough to find a decent person to marry so I won’t talk about this unless cupid has made the plan for you.
First, Passive Residency
This is how we became residents here, by investing all in all around €400,000 in property or funds. Compared to Monaco which requires at least €1 million plus many more, it is affordable.
Second, Active Residency
If money is a concern you may like to hear this option, active residency. As long as you have an idea of making money through whatever project outside Andorra. You can propose a business plan and obtain your residency and enjoy tax benefits. Great opportunity for no mad and online entrepreneurs!
Take a Moment to Think?
You may think what a person we are talking about no taxes and bra bra bra like we don’t like to contribute to a society where we were raised.
Don’t get us wrong… We have paid enough.
Charlie had given 30% and more of everything his family own to the government before he left. I paid 30% of my income for a decade to my country and I am proud of it. I am grateful for my motherland and Thailand always be my home.
Choosing Andorra for economic activity has nothing to do with being grateful or not. We considered it a wise investment.
Paying tax to whatever country is like investing in stock, you better not invest in a country that is not sustainable and not managing their resource to its fruitful.
I believed when we have awareness of what going on with our country doesn’t matter if we agree or like it or not.
We believe focusing on the problem where it was, complaining about it, or trying to fix it won’t have a significant impact compared to focusing on changing ourselves accordingly to our values and what we believe in.
Our micro-actions and movement focusing on ourselves will bring evolution to those problems we may concern about.
Andorra is More Than Just Taxes.
It was taxes that got us at first grant but after living here for one year. I found tax friendly system was just a compliment to other good things Andorra has to offer. I will come to that topic next time.
Please let me know what else you may like me to include in the next article in the comment. I will be appreciated it.
For now, just know that I love you and I love your money to be with you!
My name is Lita Jane. Subscribe to my newsletter for more doses of faith, hope, and love.