Why Every Global Strategy Should Include Andorra

In a world where global mobility, asset protection, and fiscal efficiency are more relevant than ever, Andorra stands out as a high-value jurisdiction for high-net-worth individuals (HNWIs) and their advisors.

Strategically located between France and Spain, this microstate combines legal security, low taxation, European access and a high standard of living—making it a powerful complement to existing structures in the UK, UAE, Switzerland, the US or Singapore.

If you're already operating internationally, Andorra doesn’t compete with your current setup—it enhances it.

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A European Jurisdiction Without EU Tax Complexity

Andorra is not part of the European Union nor the Schengen Zone, but maintains customs agreements with the EU and enforces the same entry requirements as Schengen countries. This allows for smooth access to European markets while remaining outside the EU’s complex fiscal framework.

Andorra also has no wealth tax, no inheritance or gift tax, and no tax on unrealized capital gains—an attractive proposition for individuals and families managing global portfolios.

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A Transparent, Attractive Tax System (Andorra 2025)

Far from being a tax haven, Andorra offers a modern, OECD-compliant fiscal framework with one of the lowest tax burdens in Europe:

Personal Income Tax (IRPF):

0% up to €24,000/year

5% from €24,000 to €40,000

10% above €40,000

But the real advantage lies in the key exemptions:

Capital gains and dividends from listed stocks or companies where you hold <25% ownership are fully tax-exempt.

This means that global investment income from diversified portfolios (ETFs, equities, bonds) can be received tax-free—a critical advantage for investors and family offices.

Corporate Income Tax (IS): Flat 10%

VAT equivalent (IGI): 4.5% standard rate (with lower rates of 0%, 1%, 2.5%)

This balance of low rates and legal certainty allows you to protect and grow your wealth within a framework respected by international institutions.

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An Ideal Add-On for HNWIs with Global Presence

Andorra becomes even more powerful when combined with existing international structures. Some typical examples:

UAE company + Andorran residency → You enjoy personal tax benefits while maintaining your corporate structure abroad.

Holding in Luxembourg or trust in Liechtenstein + Andorran director/shareholder → Strong legal layering with favourable fiscal treatment.

Family spending time between London, Geneva and Dubai → Andorra offers Plan B residency and a tax-resident base within Europe.

This approach works especially well for:

Asset managers and investors

International entrepreneurs

Digital nomads and crypto holders (with proper structuring)

Families seeking privacy and low-risk jurisdictions in Europe

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Stable, Safe and Private

Andorra has one of the lowest crime rates in the world, high political stability, and a strong culture of discretion. It offers:

Private healthcare ranked among the best in Europe

Multilingual international schools

Direct proximity to France and Spain

A peaceful environment for family life and long-term planning

The banking system is modern, well-regulated (under the AFA), and connected to SEPA and SWIFT—ideal for private banking and asset custody.

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Residency Options That Fit Global Lifestyles

For those looking to establish a foothold in Andorra, the passive residency program (non-lucrative) requires:

Investment of €600,000 in real estate, bank deposits or other eligible assets

Minimum presence of 90 days/year (not 183 days)

Private health insurance and proof of income

This residency does not require working or running a business, and is often used as a strategic secondary base for global citizens seeking European access without EU tax obligations.

Note: There are current discussions about increasing the minimum investment threshold, so early planning is recommended.

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Why Andorra Works So Well as an Add-On

Adding Andorra to your international strategy means:

Lowering your personal effective tax rate on global income

Holding assets in a low-risk, EU-adjacent jurisdiction

Enjoying lifestyle, education, and healthcare advantages for your family

Gaining an EU-compatible base for residence, without EU tax exposure

Increasing legal and geographic diversification across your wealth plan

And all of this while staying fully compliant with OECD, EU, and FATCA/CRS standards.

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Add Andorra to Your Strategy with LinkAnd

At LinkAnd, we help global clients and their advisors:

Obtain residency and structure their presence in Andorra

Set up compliant corporate and holding entities

Navigate local banks, regulators and advisors

Integrate Andorra into complex cross-border structures

Whether you’re a private investor, entrepreneur or family office, we offer a confidential, personalized approach that fits your bigger picture.

👉 Contact us today to explore how Andorra can become the most strategic layer of your global plan.