Taking into account the accumulated experience that we have managing residence matters, our experts in Andorra know that obtaining residence in Andorra is not an easy matter and it is always highly recommended that, if the tax residence has been transferred to the Principality, the permit obtained has to be adapted to the professional situation, without forgetting the importance of properly managing the situation of residence in the state from which you come.
In terms of determining tax residences, internal regulations on personal income tax generally use quantitative criteria (number of days), and qualitative criteria (economic or vital interests). Qualitative criteria can be based on interpretations or subjective reasoning.
From our experience in addwill, we have seen that in cases in which a person leaves their residence in another country to become a tax resident in Andorra, but maintains bonds in the state of origin (such as sources of income, assets or personal relationships), this can cause a conflict of residence and that the two states consider that person tax resident in each of the two jurisdictions. 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 is a resident, but in any case, the determination of the place of residence will depend on a series of issues that it is totally advisable to control.
From addwill Andorra, our experts recommend that in the event that a person has transferred his residence to the Principality but maintains ties with the country of origin, that carries out a tax audit on his residence; through a detailed assessment of his personal and economic situation, which, 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 to promote some changes to his situation.
Last November, the Andorran magazine Dona Secret interviewed our partners Maika Nin, director of the Principality office, Eduard Navarro and Sergi Rovira at the addwill Andorra headquarters. All these issues were discussed in depth in this interview. 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.