France immigration VS Andorra immigration. Why French leave their country for Andorra?

22.06.2018

France immigration (French citizenship) VS Andorra

Why French prefer Andorran residence?

14 “PROS” for Andorra

1. Income tax in Andorra is fixed at 10% (0% if the income does not exceed 24000 euros per year). In France the progressive income tax rate varies from 5.5% (income €5 964 – 11 896), 14% (income €11 897 – 26 420), 30% (income €26 421 – 70 830), 41% ( income €70 830 – 150 000), 45% (income €150 001 – 1 000 000), to 49% (income more than €1 mln)

2. Indirect taxes (VAT) in Andorra are at 4.5%. There are 4 VAT rates  in France: 20% – all products and services; 10% – is the average rate that applies to work related to the transformation, improvement and preservation of real estate, as well as repair of residential buildings older than two years. A similar rate applies to the following goods and services: aid services, transportation allowances, agricultural products, certain types of medicines; 5,5% – food, drugs, transport; 2,1% – main medicines.

3. The tax burden on businesses in Andorra is one of the lowest in Europe. Companies’ profits are taxed at 10% with an opportunity to reduce to 2% (if the relevant requirements are met). Andorra is listed among the 25 best countries in the world for business, according to the International Living Index. In France, the corporate profit tax is 33.33% for businesses with a taxable income of more than 75,000 €. Enterprises that have a profit below this amount are taxed at a rate of 28%. In addition, there is a reduced rate of 15% for some companies whose profits are below 38120 euros. And, on the contrary, companies that have superprofits are taxed additional 3.3% of profits.

4. Residence permits by investments. This is where there is the possibility of the legalization of the family and the acquisition of active residency in Andorra, with the right to work (Compte Propi) when investing in a business for less than 10,000 Euro “turnkey” for a family of four people. In France the rate of “entry” into this category starts at 1 million euros.

5. There is a guarantee of getting a residence permit in Andorra with the full package of documents in contrast with similar applications for a residence permit in France.

6. Passive residents without the right to work have to reside in Andorra for at least 90 days. In France the same residence permit obliges the candidate to stay in the country for at least 183 days.

8. Ideal environmental conditions. On the territory of Andorra there are no large industries and almost 50% of the territory is a national park under UNESCO protection. Andorra ranks 1st in the world in terms of life expectancy, which according to the UN is 81.6 years.

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