Relocating to Andorra can offer significant tax and lifestyle advantages for many professionals and entrepreneurs, including YouTubers and self-employed individuals seeking to establish residence and business in the Principality. However, a recent proposal could change the financial conditions for these new residents, with a considerable increase in the initial contribution required to settle.
Proposal to Toughen the Initial Contribution for Self-Employed Residents in Andorra
The political party Concòrdia has proposed a substantial increase in the initial financial contribution that immigrant self-employed individuals planning to reside and start a business in Andorra must make. Currently, this minimum contribution is €50,000, but it is proposed to be raised to at least €200,000, and even demanding €250,000 for certain profiles of new residents.
This proposal particularly affects YouTubers, entrepreneurs, and other self-employed professionals who move to Andorra and establish a business in the Principality.
Context and Rationale Behind the Proposal
Councilor Pol Bartolomé explained in an interview that the current economic criteria for international residents in Andorra are very low. The amounts requested, both for self-employed individuals and passive residents, are not a real obstacle for high-income persons, which has led to a significant growth of this resident population.
In previous sessions of the General Council, this situation was highlighted, noting that some international residents have used a legal loophole to reduce the initial contribution. They essentially took advantage of the self-employment status by setting up under an existing company in Andorra, allowing them to avoid the initially required €50,000.
Consequences of the Detected Practices
- Risk of imbalance in controlling the demographic growth of the Principality.
- Perception of unfairness towards local residents due to legal loopholes.
- Potential saturation of public resources and services if the population increases unchecked.
Bartolomé regrets that these practices have been promoted even on social networks within Andorra, reflecting a legislative gap now being addressed through the enactment of the omnibus law.
Implications for Those Planning to Establish Residency in Andorra
Individuals considering relocating their residence to Andorra and establishing as self-employed should be aware that this possible increase in the initial contribution could significantly raise the necessary financial investment to obtain residency and start their activity.
Staying informed about current regulations and seeking specialized advice is essential to plan the move properly. At AndorraWay.com, we provide updated information and guidance to facilitate the relocation, including fiscal and legal aspects needed to optimize this transition.
What Does the Initial Contribution Represent for New Self-Employed Residents?
The initial contribution is an economic requirement set by the Andorran government to ensure the economic viability of new self-employed residents. It also functions as a control mechanism to regulate population growth.
This contribution demonstrates financial stability and commitment to the country, acting as a filter to ensure that newcomers have sufficient resources to develop their activities and live in Andorra independently of public systems.
Main Advantages of Living and Working in Andorra
Despite the tightening of some requirements, living and working in Andorra continues to offer numerous attractive benefits for professionals and entrepreneurs:
- Attractive taxation: Low taxes on income and companies, ideal for self-employed individuals and entrepreneurs.
- Quality of life: Privileged natural environment, safety, and high-quality services.
- Healthcare system: Access to efficient healthcare services, a key factor for residents.
- Proximity to major markets: Close to Spain and France, perfect for international business.
For more information on taxation, taxes, and healthcare system, you can visit our resources at taxes in Andorra and healthcare system in Andorra.
Final Considerations and Future Perspectives
The enactment of the Omnibus Law represents an important change in regulating the economic conditions for new self-employed residents. Although this legislation addresses previous legal practices that could destabilize demographic and economic control, it will still be necessary to observe how these changes impact long-term reality.
Those looking to invest, live, or work in Andorra should understand and adapt their financial and legal planning to these new requirements to maximize the benefits of the Principality, minimizing risks and difficulties.
If you’re considering moving, we invite you to visit our comprehensive guide on moving to Andorra and contact us for personalized advice during your relocation process.