Last November, the Andorran magazine Dona Secret interviewed our partners Maika Nin, director in the Principality’s office, Eduard Navarro and Sergi Rovira at the headquarters of addwill Andorra.
Maika Nin explained that residing in Andorra is not that easy and recommended that, if the fiscal residence has been moved to Andorra, it is essential that the permit obtained is adapted to the professional situation and to know how the situation is in the state from which the person proceeds.
As for determining tax residences, the internal IRPF regulations generally use quantitative criteria (number of days), and qualitative criteria (economic or vital interests). Qualitative criteria can be based on subjective interpretations or reasoning. For this reason, from addwill it is highlighted that if a person has left residence in another country to become a tax resident in Andorra, but maintains links in the state of origin (such as income sources, assets or personal relationships), this could cause a residence conflict and that two states consider the person a tax resident. If these two states have a double taxation agreement signed, and in force, this will be the one that will end up determining where the person resides.
From addwil Andorra, our experts recommend that if a person has moved the residence to the Principality but maintains links with the country of origin, that they carry out a tax audit on their residence; by means of a detailed assessment of his personal and economic situation (fiscal due diligence), knowing the interpretations of the tax agencies, will allow us to determine if this person may be in a compromised scenario or if it is convenient for him to promote some modification in his situation.
In the December publication of Dona Secret you can find the entire article. You can read it by clicking here.
For any question or to obtain more information about it, do not hesitate to contact our professional experts in Andorra by phone +376 833 833, by email email@example.com or by clicking here.