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Recent changes to residency requirement
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by Roger Munns
For years Andorra has been one of Europe's top tax havens, with the same tax benefits as Monaco but with property at less than a quarter of the price.
Recently the country passed legislation which in effect has increased the minimum investment required to become a resident.
As one of Europe's most popular tax havens, Andorra has until now been seen by many looking to move their assets to a low tax jurisdiction as an inexpensive gateway to fiscal paradise where there is no income tax to pay.
But this has just changed, and while the country is still a cheap option compared to better known Monaco, the costs and procedures of gaining residency have changed with the overall aim to bring more high net worth individuals to Andorra.
Until now it's been possible to gain residency by renting a property in Andorra and paying 30,000 Euros deposit to the government that was returnable if residency was given up. With good apartments available at under a thousand Euros a month it was affordable for many people about to sell their business and those retiring.
But the new rules stipulate a minimum investment in the country of 400,000 Euros, which can be made by buying an Andorra property or a government bond if new residents prefer to rent, or it can be a combination of a government bond and an Andorra property.
- Forum Legend