Welcome to Andorra, a hidden gem nestled in the Pyrenees! If you're a digital nomad, expat, or location-independent worker looking to make this picturesque country your tax home, you've come to the right place. This step-by-step guide will walk you through the process of obtaining tax residency in Andorra.
Step 1: Obtain Residency Permit
First and foremost, you need to apply for a residency permit. The types of permits available include passive residency (non-lucrative) and active residency (for those who wish to work). You will need to provide various documents including a criminal background check, proof of income, and health insurance.
Step 2: Establish a Physical Address
To be considered a tax resident, you must have a fixed physical address in Andorra. This can be a rental property or a purchased home. You will need to provide proof of this address, such as a rental contract or property deed.
Step 3: Spend Sufficient Time in Andorra
You are required to spend at least 183 days in Andorra within a calendar year to qualify as a tax resident. Keep records of your stay, such as passport stamps or travel tickets, to prove your physical presence.
Step 4: Register with Local Authorities
Once you have your residency permit and established a physical address, you must register with the local commune (parish). This registration process involves providing your residency permit, proof of address, and other personal details.
Step 5: Open a Local Bank Account
Opening a local bank account is essential for financial transactions in Andorra. You will need to provide your residency permit and other identification documents. This account will be used for various transactions and can serve as additional proof of your residency.
Step 6: Obtain a Tax Identification Number (NRT)
You must apply for a Tax Identification Number (NRT) from the Andorran tax authorities. This number is essential for all tax-related matters. The application process involves submitting your residency permit, proof of address, and other relevant documents.
Step 7: File for Tax Residency
Finally, you need to file for tax residency with the Andorran tax authorities. This involves submitting a formal application along with your Tax Identification Number (NRT), proof of address, and evidence of your physical presence in Andorra. Once approved, you will be officially recognized as a tax resident of Andorra.
Legal References
- Llei 9/2012, del Codi de l'Administració
- Llei 10/2013, de l'Impost sobre la Renda de les Persones Físiques (IRPF)
- Llei 35/2008, del Codi de Comerç
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