Andorra Opens Door For More Tax Exiles

Increasing demand for residency in the European tax haven of Andorra has been seen, as rival tax haven Monaco has seen her property prices rise significantly.

And while property prices in Andorra have increased significantly as well, particularly in the last three years, it started from a much lower base than Monaco, and a property in Andorra still costs less than a quarter of that of Monaco.

The lowest price property in Andorra is currently a 38m2 studio apartment at 145,000 Euros, while in Monaco a 30m2 studio with a 7m2 balcony is on the market for 720,000 Euros.

Similarly, a three bedroom two bathroom 100m2 apartment in Andorra's prime ski village of Soldeu is being marketed at 395,000 Euros, while in Monaco 2,500,000 Euros is being asked for a slightly larger 108m2 two bedroom apartment in the Fontvieille district of the principality.

As well as lower cost property, Andorra has the added advantage over Monaco of lower closing costs - while Monaco is in double digits Andorra's is around six per cent.

One of the reasons for Monaco's soaring property prices has been the lack of new buildings and properties in recent years. Although some new building is currently taking place, the apartments will be for Monaco citizens rather than incoming residents, ensuring key workers can live as well as work in their home country.

A new island is planned to be built off Monte Carlo which will add housing stock for new residents, but this could be as much as ten year before it is ready.

The tax benefits of Andorra compare very well Monaco, with private banking, income and inheritance tax at zero, security and privacy achieved for high net worth individuals in both.

Buying a property in Andorra is often seen as a route to residency, which entitles people to live in Andorra and benefit from her tax haven status.

To obtain residency in Andorra, applications need to be submitted in Catalan. A notarised copy of the applicants passport, birth certificate and a certificate of good conduct from the home country are submitted at the same time. Residency normally takes between three and six months to be approved.

Once residency is granted, residents are supposed to spend six months a year in Andorra, but this isn't policed.

One of the drawbacks for those looking to become a resident in a tax haven when considering Andorra has been that the country has no airport of its own, and is unlikely to have ine future given that it is located in the Pyrenees. The nearest airports are Barcelona and Toulouse.

Recent improvements in the road from Barcelona to Andorra though have cut the travelling time by some thirty minutes to two hours fifteen minutes.

'Given the tax advantages Andorra has', an Andorra travel guide, 'A two and a quarter hour trip to the nearest international airport could be viewed as a small price to pay for those who will be saving substantial amounts of money in tax. Especially when you consider that their properties could be rising in value quite significantly in the years to come, and for those who like skiing it's a holiday and tax paradise in one!'

But with increased property prices it could be time for potential tax exiles to act now.

Article Source: http://www.find-investment-advice.com

For residency and property information in Andorra visit YourAndorra.com The travel guide includes today's weather in Andorra and for the upcoming ski season Andorra ski holidays The nearest airport for Andorra is Barcelona, and the guide also includes reviews and hotel booking information for hotels in Barcelona

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Taxes Articles Via RSS!

Additional Articles From - Home | Finance | Taxes

Debt Questions Answered - How Tax Deductions Can Save You Money - By : Stuart Brown
Tax Advantages To Having A Home Business - By : David Ogden
The Importance Of Your Tax Return - By : Geoff Hibbert
Income Tax Form- Significant Guide For Taxes Forms - By :
Sales Tax Nightmares Come to an End - By : Art Gib
Tax Shelters: Normal Payback For US Tax Shelters Is 4 Years - By : Ramapati Singhania
Income Tax Preparer- Free Useful Information For Tax Repairer - By :
Paying Taxes on Michigan Lottery Winnings - By : Allen Wright
Tax Shelter: Till A Fair Tax Is Introduced, Use It! - By : Ramapati Singhania
Income Tax History- Free Interesting Roadmap For Tax History - By :

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Article RSS Feeds
Blog

Adsense Websites
Bankruptcy Help
Chocolate Recipes
Ebay Selling
Mortgages
Payday Loans
Video Ipods
Weight Loss

Best Health Articles
Find Affiliate Advice
Find SEO Advice
RSS Feed Directory
Currency Trading Guide