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.
9. Best healthcare system in the world: Andorra, according to the rating of the leading medical journal The Lancet. France is not even at the TOP 10.
10. The largest thermal complex in southern Europe – Andorra’s Caldea – is open all year round. All the ski resorts of Andorra are open for 5 months of the year; the price for a SKI-PASS for the entire season for residents is 270 euros.
11. The prices for luxury goods, electronics, food and alcohol are 10-25% lower than in the EU countries, including France. Therefore it’s no surprise that about 3 million French every year come to Andorra on shopping trips.
12. Andorra is the only country in the world, where 3 primary education systems are present: Andorran, French and Spanish. All systems involve the study of 3 languages – Catalan, English, (or) French and (or) Spanish. Skiing is a compulsory part of the national educational system. All Andorran residents have the opportunity to study French, Spanish and Catalan languages for free.
13. Andorra is the 14th oldest country in the world, preserving its neutrality for more than 700 years.
14. Andorran healthcare system is the best in the world, according to HAQ index of the leading world medicine magazine The Lancet. France is only 15th.