CONTENTS 1 Why Andorra? p.5 2 Why MoraBanc? p.7 3 Types of residencies and administrative set up p.9 4 Open a Bank account in Andorra p.13 5 Finding your home p.16 6 Schooling your children p.19 7 Insurances: healthcare and others p.22 8 Register to the municipality p.23 9 Obtaining your Andorran driving license p.25 10 Complete your Andorran investment p.28 11 Tax residency in Andorra p.30 12 Andorran tax obligations p.31 2 Andorra has always been home to people looking for a quiet place to live but it is also a modern and dynamic country open to the world. In line with its commitment to 1 excellence and dedication to service, MoraBanc is at the forefront of offering support to expatriates, both in terms of providing them with banking services and products, and 2 facilitating their arrival and settlement in Andorra. 3 That’s why we have prepared this guide to provide up-to-date information on the 4 services that an expatriate may need when arriving in Andorra, from residency formalities through to finding the right school for their children, including updates on 5 local events and entertainment via our blog and monthly newsletter (www.andorra-expat-guide.com). 6 The MoraBanc team will be at your side, helping you with your financial investments 7 and offering innovative solutions. We invite you to discover our products and services in the following pages. 8 At MoraBanc we want to be with you in your projects, in your wishes and, above all, we 9 want to open the doors to this new country so that you can feel at home. 10 We hope that you will find this guide useful. 11 The International Residents’ Team 12 #tensunbanc 3 Your team of experts in Andorra 1 2 Marta Riera - Director Nationality: Andorran Languages: Catalan, Spanish, English 3 Countries where she has lived: Andorra, Spain, United Arab Emirates Tel.: +376 884 294 / Mobile: +376 603 253 4 [email protected] 5 Emma Ponsa - Senior Relationship Manager Nationality: British 6 Languages: Catalan, Spanish, English Countries where she has lived: Spain, New Zealand, Italy, Ireland, England 7 Tel.: +376 884 803 / Mobile: +376 605 485 [email protected] 8 Deborah Van Der Wekken - Senior Relationship Manager 9 Nationality: Dutch Languages: Catalan, Spanish, Dutch, French, English, German, Portuguese 10 Countries where she has lived: Netherlands, Portugal, Australia, Venezuela, Switzerland, Spain Tel.: +376 884 802 / Mobile: +376 605 486 11 [email protected] 12 Anna Dolsa - Senior Relationship Manager Nationality: Andorran Languages: Catalan, Spanish, French, English Countries where she has lived: Andorra, Spain, France Tel.: +376 884 377 / Mobile: +376 605 628 [email protected] 4 1. WHY Andorra? Based on the experiences of many people who have already made Andorra their home, following a summary of the most common reasons for their decision to relocate: 1 2 1 / A safe country The Principality of Andorra is a safe place. With one of the lowest crime rates in Europe, most 3 expatriates, and especially those families with children, really appreciate the peaceful and calm environment. 4 2 / An enjoyable climate all year round 5 Andorra’s climate is Mediterranean, which means that it has 4 seasons with many sunny days per year, even during the winter season. 6 3 / An ideal location in Europe 7 Andorra’s location between France and Spain makes it a favourite place for European expats who want to be close to their home countries, close to lively cities such as Barcelona, Toulouse 8 or Girona, and also to the Mediterranean. 9 4 / Impressive landscapes and ski slopes Andorra is located in the Pyrenees, an environment of exceptional natural beauty. There are 10 valleys, rivers, and numerous lakes to be discovered on foot, on skis, or by bike. 11 12 5 5 / Cost of living Housing, education, healthcare, transportation, and shopping in general are not very expensive, making Andorra an affordable destination for a new life. 1 6 / Favourable taxes 2 Personal Income Tax is capped at 10%. Andorra’s agreements against double taxation also make the Principality an ideal location for those considering becoming an expatriate. 3 Corporate tax: there are many advantages that make the Principality an ideal place for starting a business, including: national insurance contributions of just 22%, no taxation of dividends, 4 and Income Tax on profits capped at 10%. 5 7 / Multicultural society Andorra is a multicultural society that includes Andorrans, Spaniards, French, Portuguese, 6 English, Germans, Dutch, etc. The official Language is Catalan but Spanish, French and Portuguese are frequently used. English is also widely spoken. 7 8 / Education System 8 Consistent with Andorra’s multicultural society, you will find a variety of education models. The education system covers Andorran, Spanish and French curriculums. And you can also opt for an international private school. 9 10 11 12 6 2. WHY Morabanc? 1 / We are specialized in Services for Expats 1 At the MoraBanc Group we specialise in servicing the financial and wealth management needs of families who come to live in Andorra. 2 We provide a tailored service to meet the requeriments of New International Residents that’s covers two key aspects: 3 Financial aspects. MoraBanc’s team of professionals will be your best ally in this new chapter of your life. 4 The administrative and logistic aspects of you arrival and settlement in Andorra. We will put you in touch with external professionals to make sure you are in the hands of the best experts. 5 2 / Communication in your own language 6 At MoraBanc, Senior Relationship Managers will assist you in your own language.Catalan – 7 English – Portuguese – Spanish – Dutch – Russian – French – German - Italian - Swiss. 8 3 / A specialized Value Offer 9 Domestic Economy • Multicurrency current account. 10 • Automatic Direct Debit payments. • Online&mobile banking. • Credit cards. 11 • Finance (mortgages, etc.). • Life insurance, health insurance, etc.* • Pension plans. 12 * MoraBanc Assegurances products 7 Wealth Management • Custody and administration of global financial assets. • Multi-jurisdiction and multi-depositary custody. • Monitoring of market performance. 1 • Discretionary Management Services. • Open Architecture. • Wealth planning. 2 • SICAV. 3 External Provider Coordination With our network of external professionals we coordinate: 4 1. The administrative formalities relating to your application for residence in Andorra. 2. The accommodation that best suits your family’s requirements. 5 3. The entire relocation (school, enrolment, medical cover, administrative formalities once you have been granted residence, etc.). 6 4 / Wealth Planning Services The MoraBanc Group is your best partner in Andorra when it comes to achieving the financial 7 goals of your family. We are at your side to guide you through the process of building savings, planning your retirement or managing your existing wealth. 8 In addition, we will give you access to our network of contacts with top experts in the sector and several firms in each field of expertise, to help you find the best solution to meet your 9 financial requirements, whether it be managing your international assets efficiently and orderly, planning your succession, or complying with your tax obligations in Andorra and other countries, etc. 10 11 12 8 3. TYPES OF RESIDENCIES AND ADMINISTRATIVE SET UP 1 A-Types of residencies & general requirements: 2 General aspects 3 There are two main types of residence permits in Andorra. One of them is the tradional residence with work permit. The second one is a residence type without work permit. Among the residence without working permit, there are three categories: 4 • Residence with Non Profit Activities. • Residence for Professionals with International Projection. 5 • Residence for people with Scientific, Cultural and Sport activities. Andorran residence allows free travel to Spain, France and Portugal for citizens out of the 6 Schengen area. Andorran residence permits obtaining Schengen and other visas faster and easier for those 7 citizens. To be considered “tax residents in Andorra”*, individuals must meet either of the following 8 criteria: a) they reside more than 183 days a year in Andorra. Sporadic absences are taken into account 9 in determining the period of residence in Andorra unless the taxpayer provides proof of their tax residence in another country; or 10 b) the centre of their activities or economic interests is located in Andorra, whether directly or indirectly. 11 Unless proven otherwise the taxpayer is deemed to be a tax resident in Andorra where, in accordance with the above-mentioned criteria, their spouse (not legally separated) and minor 12 children are tax residents in Andorra. *Tax residents (more information in page 61) 9 Residence Type I: Non profit activities • No economic activity in Andorra. 1 • Presence in Andorra 90 days. • Minimum investment required: 400.000 € in Andorran assets (Real State, Andorran Bank Deposit, Andorran Investment fund). 2 • Refundable deposit to INAF* of 50.000 € + 10.000 € for each dependant person. 3 Residence Type II: 4 Professionals with international projection 5 • At least 85% of the professional activity must be carried out abroad. • Presence in Andorra 90 days. • Refundable deposit to INAF* of 50.000 € + 10.000 € 6 for each dependant person. 7 Residence Type III: Cultural, Scientific and Sport activities 8 Residents with internationally recognised talent in the fields of sport, culture or science. 9 • At least 85% of the professional activity must be carried out abroad. • Presence in Andorra 90 days. 10 • Refundable deposit to INAF* of 50.000 € + 10.000 € for each dependant person. 11 12 * INAF: Institut Andorra de Finances - Andorran Financial Regulator 10 Immigration administrative requirements • Rent / buy an apartment, house,… in order to establish the residency in Andorra. • Proof of income of 300% of the annual minimum salary in Andorra + 1 100% additional for each dependant person.