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Tax residence Requirements

The tax residence in Andorra

Tax requirements in Andorra The residence permit in Andorra allows a person to live in Andorra, but does not automatically change the tax residence to the Principality. Although a person can reside in different countries, he can only have one fiscal residence. Most of the member countries of the OECD use certain criteria, which are summarized in the double taxation agreements (CDI). Andorra also makes use of these criteria to determine legal fiscal residence.

Different points are applied to determine a tax residence in Andorra. This is where the CDI plays an important role, but even without the existence of a double taxation agreement, the same factors and criteria are often applied to determine the tax residence and, therefore, the tax obligation.

Requirements to obtain tax residence in Andorra

These are the conditions to obtain the fiscal residence in the country:

  1. Live in Andorra for more than 183 days a year. A person is considered a fiscal resident of the State in which he has a permanent home at his disposal, and lives in it for more than half of the year.
  2. The center of economic interest is in Andorra.
  3. The family lives in the country (legal partner and minor children). It is the so-called center of experiential interest.

If you do not meet any of these criteria, your nationality may be the factor in determining the place of the tax obligation without restrictions. If there is a double taxation agreement, both tax authorities are responsible for resolving the conflict.

The interested person can request a certificate of tax residence, both active residence and passive residence in a certain country, which will then clearly determine the tax obligation in this country.

We want to emphasize that what concerns the tax obligation can be a very complex issue. Therefore, we strongly recommend a more personalized consultation with our legal consultants, as well as with our tax advisors.

Frequently asked questions about fiscal residence criteria

No, the taxpayer may live in different countries, but may only have one tax residence.

Most countries of the European Union, including Andorra, are based on the criteria established by the CDI (Double Taxation Agreements)

  • Reside more than 183 days in Andorra.
  • The family core also resides in the principality.
  • The economic center must be in Andorra.
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07-05-2020

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