Optimizing your tax situation in Andorra: legal strategies

Optimizing your tax situation in Andorra: legal strategies for securing and enhancing your assets

Introduction - What if your tax situation could finally become a lever for freedom?

You are an entrepreneur, investor or owner of significant assets. For several years now, you've been experiencing increasing tax pressure in your country of residence, ongoing regulatory instability and economic uncertainty that is undermining your projects.

Your objective is simple: to protect your assets, reduce the tax burden on your income, and prepare for the transfer of your assets within a legal and secure framework.

Andorra, a small state nestled between France and Spain, is attracting more and more executives and wealthy families. And with good reason: it offers a competitive, clear and internationally recognized tax system, without the excesses and risks of other offshore jurisdictions.

This article explains how to optimize your tax situation in Andorra in a legal, structured and sustainable way, using a proven methodology and the support of an expert firm like ENGAGE.

Click here to book a strategic meeting with an ENGAGE consultant.

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1. The French context: tense tax environment, expanding mobility

1.1. Tax pressure as a driver for asset reorganization

In France, the wealthiest taxpayers operate in a dense, unstable and particularly costly tax environment. The marginal income tax rate can be as high as 45%, to which must be added 17.2% social security contributions, taxation of capital via the real estate wealth tax (IFI), and inheritance taxes that can climb to 45% even between parents and children.

Added to this is growing administrative complexity, with a proliferation of reforms, fluctuating interpretations of tax case law, tighter controls and unstable incentive schemes.

In such a climate, budget predictability becomes a real challenge, and asset protection a strategic issue. Many managers and investors find that their economic success is accompanied by a steady erosion of their tax base, weakening their ability to pass on assets and limiting their capacity to invest.

Faced with this situation, international mobility is becoming an essential asset management tool, not an escape route.

The challenge is not to escape taxation, but to manage it within a compliant, clear and sustainable framework, striking a balance between contribution and optimization.

This approach is part of a long-term approach to wealth structuring, aimed at protecting capital, smoothing financial flows and preparing succession under tax-efficient conditions.

In this context, Andorra represents a particularly relevant alternative: a sovereign state, a member of numerous international conventions, offering a competitive but rigorously regulated tax framework, and enabling wealthy taxpayers to plan their income and assets in complete legality.

It is this fundamental distinction - between evasion and organization, between opportunism and strategy - that today defines theresponsible tax optimization approach that ENGAGE promotes for its customers.

1.2. The emergence of competitive taxation

The European Union is currently promoting a tax system based on transparency, cooperation and responsibility. While it requires member and partner states to adopt practices in line with international OECD standards, it also recognizes their sovereign right to freely define their tax policies. This latitude opens the way to differentiated models, capable of combining attractiveness and compliance.

Andorra was an early adopter of this virtuous path. In barely a decade, it has gone from a historically closed and confidential model to a modern, regulated and internationally recognized financial center.

The Principality has aligned its legislation with European requirements: adoption of international accounting standards, automatic information exchange agreements, active fight against money laundering and tax fraud, signature of double taxation agreements with major European economies.

This far-reaching transformation has enabled Andorra to gain in legitimacy while preserving its DNA: clear, stable and moderate taxation.

Rather than opposing competitiveness and transparency, the country has chosen to reconcile them in a balanced model, where legal certainty and predictability of rules become levers of economic attractiveness.

As a result, the Principality today attracts a demanding and highly qualified international clientele - business leaders, investors, pensioners, professionals - who seek above all the stability, clarity and competitiveness of a modern tax framework.

This transformation has turned Andorra into a true European wealth center, where tax optimization goes hand in hand with compliance, and where economic success is accompanied by a solid, sustainable and recognized institutional framework.

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2. Andorra: an attractive, stable and compliant tax environment

2.1. A simple income tax capped at 10%.

Andorra'spersonal income tax (IRPF ) embodies clarity and stability, based on simple principles: moderate rates, measured progressiveness and no wealth tax.

Its scale, capped at 10%, is designed to be clear and fair: the first bracket up to €24,000 in income benefits from total exemption, the next up to €4040,000 from reduced taxation at 5%, then a single rate of 10% applies above that.

This deliberately transparent system enables every taxpayer to accurately forecast their tax burden, without the variations and complexity often associated with other European jurisdictions.

There is no tax on capital held or on direct line transfers - a singular feature that makes Andorra a privileged environment for families wishing to preserve and pass on their wealth over the long term.

Let's take a concrete example: a taxpayer earning €400,000 in annual income would pay €36,800 in tax, i.e. an effective rate of 9.2%, compared with almost €226,500 in France (tax and social security contributions included).

The difference, in excess of €189,000 per year, illustrates Andorra's tax philosophy, based not on sanctioning success, but on valuing initiative and long-term predictability.

More than just competitive rates, Andorra has designed a modern framework that complies with OECD standards, guaranteeing transparency, legal certainty and international confidence.

This combination of regulatory stability and tax moderation offers high-income executives, investors and families the opportunity to sustainably structure their income and assets, in an environment that respects compliance and growth.

Choosing Andorra as a tax residence means opting for a tax system that rewards the creation of value, while preserving the freedom to do business and pass on wealth.

2.2. Competitive corporate taxation

Andorra'scorporate income tax (CIT), capped at 10%, is one of the most attractive and predictable in Europe. This uniform rate, applied to all profits earned in the country, guarantees the long-term tax stability so sought-after by company directors and institutional investors.

Certain strategic activities can even benefit frompartial exemptions, incentive schemes orspecific allowances. This proactive policy positions Andorra as a modern, competitive business location, while remaining fully aligned with OECD and European Union standards.

Another decisive advantage is that dividends distributed to residents are fully tax-exempt, and capital gains on the sale of long-term holdings benefit from favorable tax treatment. These measures encourage the capitalization and reinvestment of profits, rather than having them taxed away.

This clear, easy-to-understand tax framework is attracting a new generation of international entrepreneurs, eager to relocate their decision-making centers in a stable, transparent and economically rational environment. Andorra makes it possible to reconcile economic efficiency with legal compliance, offering a favorable environment for the development of family groups, holding companies and diversified investment structures.

For managers, it's an opportunity to :

• sustainably reduce their company's tax burden,
• repatriate their profits within a legal and optimized framework,
• strengthen the competitiveness and financial solidity of their structures,
• while operating from a country with exemplary political, banking and regulatory stability.

By choosing Andorra, entrepreneurs are not just looking for a tax advantage: they are investing in a safe, modern and sustainable jurisdiction, where every economic decision can be part of an overall wealth strategy.

2.3. No wealth tax or inheritance tax

Andorra also stands out for its total absence of taxation on capital and the transfer of assets. No tax is levied on assets held - whether real estate, financial investments or shareholdings - and direct line transfers are fully exempt.

This uniqueness offers wealthy families the opportunity to prepare their succession with peace of mind, without fear of the gradual erosion of capital accumulated over the generations.

Where many European countries heavily tax transfers, Andorra adopts a patrimonial approach based on the preservation and continuity of family capital.

Gifts between parents or spouses benefit from the same treatment: no tax is due, whatever the value of the property transferred.

This exceptional legal framework provides a degree of freedom for estate planning that is rare in Europe, allowing the implementation of tailor-made strategies:

• anticipation of inheritance through staggered gifts,
• gradual transfer of family businesses while maintaining control,
• protection of heirs through life insurance or local trusts.

In practice, this policy favors a long-term vision of wealth, where the transfer of property is no longer perceived as a tax constraint, but as a strategic act of continuity and family stability.

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3. Andorra's appeal: beyond taxation

Tax optimization is not simply a matter of finding an attractive tax rate: it is part of a global ecosystem, in which political stability, legal certainty and quality of life play as decisive a role as taxation itself.

This is precisely where Andorra stands out, offering much more than an advantageous regime: a sovereign, transparent and harmonious framework, designed to attract demanding investors while guaranteeing international compliance.

Over the years, the Principality has built up a solid institutional infrastructure, combining administrative rigor and economic pragmatism. As a result, it offers its residents a coherent, secure environment, where every aspect - from business law to daily life - contributes to genuine wealth stability.

This coherence rests on two essential pillars:

• firstly, exemplary political stability and legal certainty, which inspire confidence and ensure the sustainability of investments;
• secondly, a privileged living environment that is safe, healthy and qualitatively superior, making Andorra a destination of choice for those seeking a balance between economic performance and quality of life.

It is this dual promise - institutional security and excellence of lifestyle - that has enabled Andorra to establish itself as a true European wealth hub, combining light taxation, regulatory stability and everyday well-being.

3.1 Political stability and legal certainty

Today,Andorra is recognized as a stable, modern parliamentary democracy, founded on solid institutions and responsible governance. Its legislative framework, inspired by the best European standards, guarantees a high level of legal certainty and regulatory predictability that is rare in today's international context.

The Principality has an independent judicial system, an efficient and accessible administration, and business laws harmonized with European standards, making it a particularly secure environment for investment and wealth management.

Unlike some tax jurisdictions perceived as opaque, Andorra is not considered a tax haven by the OECD. On the contrary, it has been undergoing a profound transformation for over a decade:

• signing of numerous bilateral double taxation agreements, including one with France in 2013;
• adoption of international standards for automatic exchange of information (CRS, FATCA) ;
• strict mechanisms to combat money laundering and tax fraud.

These developments have enabled the Principality to win the confidence of the European authorities and major financial institutions, while consolidating its reputation as a serious, compliant and sustainable financial center.

This controlled transparency appeals to a demanding international clientele, looking not for an opaque safe haven, but for a stable, legitimate and recognized tax framework.

As a result, investors, executives and wealthy families find Andorra to be a legal and responsible optimization territory, where legal certainty, administrative clarity and institutional trust are advantageously replacing the complex and risky arrangements of yesteryear.

Far from tax avoidance schemes, the Andorran model is in line withinternational integration and compliance, offering residents an environment where the serenity and durability of their assets are fully guaranteed.

3.2. A premium living environment

Andorra 's attractive tax environment is just as appealing as its exceptional quality of life. The Principality is not just a territory for tax optimization, but a place of stability, security and well-being, which meets the expectations of families and high-net-worth executives alike.

Living standards are high, underpinned by a solid economy, low unemployment and a rigorous fiscal policy. Crime is virtually non-existent, making Andorra one of the safest countries in Europe.

Its unspoilt natural environment - alpine valleys, forests, ski resorts, pure air - makes it a privileged residence for those seeking serenity without sacrificing economic dynamism.

The country also offers a high-performance, accessible healthcare system, ranked among the best in the world by the World Health Organization, as well as a high-quality, multilingual education system, integrating French, Spanish and Andorran curricula.

This excellence in public services, combined with a controlled cost of living, creates a rare balance between comfort, security and purchasing power.

Its immediate proximity to France and Spain - just two hours from Toulouse or Barcelona - further enhances this appeal. Residents can enjoy the peace and quiet of a mountain micro-state, while remaining connected to Europe's major economic and cultural hubs.

Finally, long-term political and fiscal stability is one of the pillars of confidence for investors and wealthy families. Andorra's approach is one of continuity, far removed from the sudden changes in legislation or taxation that characterize other jurisdictions.

This unique combination of light taxation, institutional security and exceptional quality of life has transformed the Principality into a veritable European heritage hub.

Today, it attracts an international clientele of executives, investors and annuitants who wish to combine optimization, conformity and art of living, in an environment that is both safe, modern and long-lasting.

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4. Case study : Marc, a French entrepreneur and the success of a structured project

Marc, 47, is an accomplished entrepreneur. Based in Bordeaux, he founded and managed an engineering consultancy company for over twenty years, which he gradually grew to become a benchmark in its sector.

When he sold his shares to an international industrial group, the valuation reached a level he could never have imagined at the outset: a net capital gain of 2.8 million euros.

But euphoria soon gives way to fiscal reality. In France, this capital gain is subject to income tax and social security contributions, at an overall rate of around 30%. In other words, of the €2.8 million realized, over €800,000 would be absorbed by taxation - a substantial drain on the fruit of a lifetime of hard work and entrepreneurial risk.

For Marc, this situation raises a fundamental question: how can he protect the capital he has just created without exposing himself to an excessive tax burden, while remaining within a legal, transparent and sustainable framework?

Like many business leaders before him, he realized that France did not reward risk-taking, and that a considerable proportion of the value created ended up escaping those who had produced it.

It was at this point that he became interested inAndorra, not as a tax haven, but as a strategic alternative for structuring his wealth in a rational, compliant and sustainable way.

The aim is not to avoid taxation, but to place taxation in a balanced framework, where economic success is encouraged rather than penalized.

This reflection marks the starting point of a global asset restructuring, which will transform its relationship with taxation, investment and inheritance.

ENGAGE carries out a complete asset audit:

• Analysis of professional and private assets,
• Study of recurring income (dividends, rents, interest),
• Marc's objectives: reduce taxes, secure capital, prepare to pass on to his children.

4.1. The proposed strategy

After an in-depth wealth audit, ENGAGE designs a three-pronged structuring strategy for Marc, combining tax efficiency, legal certainty and a long-term vision.

The aim: to transform a one-off sale of a business into a long-term asset management project, while ensuring that the entire process is internationally compliant.

4.1.1. Creating an Andorran holding company: the cornerstone of the system

ENGAGE recommends setting up an Andorran holding companyto hold and manage the financial interests arising from the sale of the company.

This structure enables Marc to centralize all his asset income - dividends, interest and capital gains - while benefiting from the tax regime set out in Article 38 of the Andorran Corporate Income Tax Law (LIS).

This regime exempts income corresponding to the distribution of dividends or capital gains realized on the sale of shares, when the subsidiary company is resident in France or in a country that has signed a double taxation agreement with Andorra.

In other words, an Andorran holding company with a stake in a French company can collect dividends or capital gains on disposals without being subject to local taxation, regardless of the size of the stake or the length of time it has been held.

This mechanism, which complies with OECD standards, avoids any double taxation on cross-border flows, while guaranteeing total transparency vis-à-vis tax authorities.

What's more, the 2013 Franco-Andorran tax treaty supplements this system by capping the withholding tax on dividends paid from France to a company resident in Andorra at 5% - compared with 30% in the absence of a bilateral agreement.

As a result, Marc can repatriate the results of his French holdings to his Andorran holding company within a fully compliant framework, with limited tax friction and increased investment flexibility.

Dividends received by the holding company can then be reinvested without further taxation in financial assets, investment companies or real estate projects, in line with a continuous capitalization logic.

In practice, this legal and tax architecture ensures that Marc's investment income is optimized over the long term, while at the same time effectively preparing for the transfer of his business assets.

It provides a strategic foundation for managing capital from a stable, compliant and tax-efficient jurisdiction, in full compliance with international transparency requirements.

4.1.2. Transfer and effective establishment of tax residence in Andorra

The second pillar of ENGAGE's strategy is to establish Marc's tax residence in Andorra, in strict compliance with the provisions of the Franco-Andorran tax treaty.

The aim of this approach is not to seek a simple domiciliation, but to genuinely transfer the center of Marc's economic and personal interests to the Principality, on a lasting and indisputable basis.

In concrete terms, ENGAGE orchestrates a complete relocation process, combining tax, administrative and asset-related aspects:

• Purchase of a main home in Andorra and actual residence for at least 183 days a year;
• Possible affiliation to the Andorran health system, renowned for its quality and simplicity;
• Opening local bank accounts for day-to-day management and investments;
• Integration into economic and social life (economic activities, local involvement).

This actual installation gives Marc the status of Andorran tax resident, recognized by the French authorities thanks to the bilateral agreement.

This status enables him to benefit from the progressive scale of the Andorran IRPF, capped at 10%, and to avoid French taxation on Andorran-source income and capital gains.

ENGAGE ensures that all conditions of compliance and international transparency are met: declarations of transfer of residence, banking obligations (CRS/FATCA), and updating of French tax registers.

Over and above the tax benefits, this relocation gives Marc invaluable legal and asset stability. By becoming an Andorran resident, he is able to integrate his project into a global wealth management strategy, where income, investments and inheritance can be organized within a secure, long-term framework.

"In Andorra, tax residency is not simply a change of address, it's a choice of stability and patrimonial sovereignty.

4.1.3. Setting up a tailor-made Andorran life insurance policy

The third component of ENGAGE's strategy is the creation of a personalized Andorran life insurance policy, the cornerstone of Marc's wealth management.

Designed for high-income residents, this product consolidates capital, optimizes inheritance and secures investments within a tax-advantaged framework.

Unlike traditional French life insurance, which is often rigid in its composition and treatment, the Andorran contract stands out for its exceptional investment flexibility: it can integrate international assets, unlisted companies, dedicated funds or customized investment vehicles, while remaining compliant with European prudential regulations (Solvency II directive).

From a tax point of view, income generated in the contract is not taxed until it is withdrawn, enabling tax-deferred compounding.

On settlement, the benefits paid to beneficiaries are not subject to inheritance tax in Andorra - a major advantage for trans-generational wealth planning.

What's more, tax-neutrality between payments, arbitrages and withdrawals guarantees flexible, tax-optimized management over the long term.

ENGAGE structures this contract in anintegrated asset engineering approach:

• It is a family protection tool, allowing Marc to freely designate his beneficiaries;
• it becomes an instrument of yield and diversification, thanks to a rigorous selection of financial supports adapted to its profile;
• and is in line with the strategy of holding via the Andorran holding company, allowing dividends or capital gains to be reinvested in a capital-intensive, tax-exempt environment.

This system complements and reinforces the coherence of the overall structure:

• the holding company controls financial flows and consolidates capital;
• tax residency guarantees legal certainty and international compliance;
• andlife insurance offers a powerful lever for protection, transmission and capitalization.

4.1.4. A global, compliant and sustainable strategy

Through this tripartite architecture, ENGAGE illustrates the philosophy that guides its support: anticipate, structure, secure.

Every step of the process - from setting up the holding company to investing in life insurance - is designed to maximize wealth performance within a 100% compliant framework.

Marc is thus able to significantly reduce its tax exposure, while guaranteeing the traceability and legality of every decision it takes.

This approach demonstrates thatAndorran tax optimization, far from being a haphazard or artificial affair, is based on rigorous and transparent engineering, built around solid legal principles and clear international rules.

With ENGAGE,tax expatriation becomes an integrated wealth structuring strategy, geared towards longevity, compliance and inheritance.

4.3. The results

In the space of two years, the strategy devised by ENGAGE has profoundly transformed Marc's tax and asset situation.

Thanks to a coherent, compliant and sustainable structuring, he was able to reduce his income tax by around 75%, while securing all his financial flows.

His dividends, now received via his Andorran holding company, are taxed at a maximum of 10%, compared with over 30% previously.

The financial income capitalized within his Andorran life insurance policy benefits from a deferred tax regime, enabling continued asset growth without immediate tax friction.

In addition to simply reducing costs, this restructuring provides the company with lasting legal and fiscal stability. Its investments are now housed in a clear framework, recognized by the European authorities, and fully compliant with international transparency obligations (CRS, FATCA, etc.).

His family's inheritance has also been anticipated: his children's inheritance is now totally tax-exempt in Andorra, while remaining perfectly compliant with French law thanks to the bilateral double taxation treaty.

Marc thus has a consolidated vision of his assets, where each asset, each flow and each project is part of a logic of continuity and control.

This transformation is not based on trickery or evasion, but on a responsible, long-term asset strategy governed by the law.

"Tax optimization is not an escape: it's a responsible and sustainable way of structuring your wealth, which puts taxation back at the service of your life project."

Thanks to this integrated approach, Marc is no longer subjected to taxation - he steers it, in full compliance with the law, to protect, enhance and pass on his assets in the best possible conditions.

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5. The 7 steps to successful tax optimization in Andorra

5.1. Stage 1 - Full asset audit

Thewealth and tax audit is the starting point for any successful optimization strategy. It's not a simple diagnosis, but a comprehensive, methodical and customized analysis, enabling us to precisely map all your financial flows, assets and commitments, both in France and abroad.

ENGAGE examines the structure of your assets in all their dimensions:

• your professional, financial and property income,
• your holdings in French and foreign companies,
• your real estate and personal investments,
• your life insurance policies, bank portfolios and investment vehicles,
• as well as your inheritance and matrimonial regimes.

This in-depth analysis enables us to identify areas of tax friction, structural inconsistencies and available optimization levers.

ENGAGE assesses not only the current taxation applicable to each flow, but also the future impact of legislative and conventional changes, in order to build a sustainable and adaptable strategy.

The audit concludes with a comprehensive asset report, including comparative simulations (France/Andorra) and customized recommendations, enabling precise measurement of potential gains, associated risks and implementation timetables.

A genuine strategic decision-making tool, this audit offers a clear, quantified and well-argued vision of your situation. It forms the foundation of the tax and asset optimization strategy that will then be deployed, within a fully compliant and secure framework.

5.2. Step 2 - Advice on changing tax residence

The transfer of tax residence is a key stage in the process of international wealth optimization.

Poorly prepared, it exposes the taxpayer to the risk of double taxation or requalification by the French tax authorities; well managed, it becomes a structuring tool for stability and legal certainty.

ENGAGE supports its customers at every stage of this transition, to ensure a compliant, documented and sustainable change of tax residence.‍

5.2.1. Tax residence criteria under Andorran law

Under Andorran domestic law, an individual is considered resident in Andorra for tax purposes if he or she meets one of the following two conditions:

Stay on Andorran territory for at least 183 days a year.

One-off or "sporadic" absences - business trips, vacations, family stays - are not deducted from the calculation of days present.

This criterion is therefore assessed strictly and factually: it must be supported by documentary evidence (invoices, contracts, subscriptions, proof of local expenses, etc.).

Make Andorra the center of its economic interests.

This means, even if the law does not expressly state it, that the majority of the taxpayer's assets and income must be located in the Principality: management company, investment portfolio, real estate, professional income, or Andorran bank accounts.

ENGAGE verifies that these conditions are met in a coherent and demonstrable way, by organizing the relocation of the customer's assets, finances and personal life according to a proven methodology.

‍5.2.2 The risk of double tax residency: anticipating to secure the future

In some cases, a taxpayer may meet the tax residence criteria of both Andorra and his or her country of origin (France in particular).

In this case, we speak of a conflict of residence.

Two situations may then arise:

• No tax treaty between the two states.‍
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  The taxpayer can, in theory, be considered a tax resident of both countries at the same time. However, Andorra's personal income tax law (Llei de l'Impost sobre la Renda de les Persones Físiques - IRPF) provides for mechanisms to eliminate double taxation, ensuring that the same income is not taxed twice.
  
  In practice, the main taxation will generally take place in the country of origin of the income.

• Existence of a bilateral tax treaty.
  
  ‍This is the case of 2013 Franco-Andorran agreementwhich came into force in 2015, as well as similar agreements with Spain, Belgium, Luxembourg and Portugal.
  
  These agreements establish prioritized criteria designed to objectively determine the taxpayer's country of residence for tax purposes:
  
  1. Permanent residence: if you only have a home in Andorra, Andorran residence is required.
     If you keep a home in France, even one considered secondary, this criterion is not exclusive.
  2. Center of vital interests: this is the decisive criterion, assessed on the basis of a number of indicators (place of main activity, location of assets, residence of spouse and children, center of economic, social or community relations).
  3. Habitual place of residence: if vital interests are indeterminable, the country where the taxpayer spends the most time during the year will be taken into account.
  4. Nationality: as a last resort, if none of the above criteria is decisive, tax residence is attributed to the country of which the person is a national.
  5. Consultation between tax authorities: in the case of dual nationality or lack of common nationality, the two countries can consult each other to reach a joint decision.

ENGAGE ensures full compliance of the file, analyzing each of these criteria with regard to the personal, professional and family situations of its customers.

The objective: to secure recognition of Andorran tax residence while preventing any subsequent challenge by the French administration.

5.2.3. Comprehensive support for a flawless transfer

ENGAGE does not limit itself to strategy: the firm orchestrates all practical and declarative procedures:

• Drafting and filing of transfer declarations with the French tax authorities (form n°2042, departure declaration, etc.);
• Updating banking and asset information with financial institutions;
• Legal and financial structuring of assets to align their ownership with the new residence;
• Audit of the consistency between economic flows, official addresses and reporting obligations (CRS/FATCA).

The firm also ensures that Andorran residency is evidenced by concrete proof: main residence, affiliation to the health system, domestic subscriptions, membership of professional or cultural clubs, etc.

This comprehensive support is designed to create an indisputable tax base, guaranteeing customers full recognition of their status by the French and Andorran authorities.

5.2.4. A tax transfer transformed into a life project

A change of tax residence is not just a tax operation: it's a project of patrimonial sovereignty.

It provides a stable, consistent and predictable framework for wealth, income and investment.

Thanks to ENGAGE's expertise, this transition takes place in a 100% compliant, secure and sustainable environment, where international mobility becomes a lever for responsible asset management.

In other words, moving to Andorra for tax purposes is much more than changing countries: it's choosing a model of life and wealth governance based on transparency, control and freedom.

5.3. Step 3 - Choosing the right (administrative) residence permit

Before settling in the Principality, it is essential to obtain an administrative residence permit, issued by the Immigration Service in accordance with Andorra's Immigration Law.

This authorization determines the resident's legal status, the rights associated with residency, and whether or not he or she can carry out an economic activity on the territory.

It is therefore not yet a tax residence, but the administrative foundation for any long-term settlement and wealth strategy in Andorra.

ENGAGE helps its customers choose the tax regime best suited to their profile, whether they are entrepreneurs, investors, international executives or high net worth families.

5.3.1. Two main legal frameworks: active and passive residents

Andorran immigration law distinguishes two main categories of residence permits:

1. Active residents, who carry out a professional, commercial or salaried activity in Andorra;‍
2. Passive residents, who reside in the country without carrying out any direct economic activity, but contribute to it through investment, asset management or international activity.

5.3.1.1. Active residence: for managers, entrepreneurs and professionals

Active residency is for those wishing to settle and work in Andorra.

It mainly comprises :

• employees of an Andorran company;
• entrepreneurs or managers of a locally incorporated company;
• self-employed professionals.

This status requires an effective presence in Andorra and participation in local economic life.

It entitles you to Andorran social security cover (CASS).

The actual residence requirement is at least 6 months.

ENGAGE intervenes at this stage to structure the business, create the company if necessary, and secure all administrative procedures with the Immigration Service and the Andorran Financial Authority (AFA).

5.3.1.2. Passive residences: a flexible and attractive framework for investors and annuitants

Passive residences are designed primarily for investors, pensioners, retirees and international professionals who want to manage their assets in Andorra in a stable, tax-advantaged environment.

There are several categories of passive residence authorization, the common denominator of which is:

- An effective residence requirement of at least 90 days per year;
- The obligation to take out private health insurance (the passive residence regime does not give access to benefits from the Andorran Social Security Fund);
- The obligation to make a deposit with the Andorran State, recoverable but not remunerated, for the principal holder (up to a maximum of approx. €50,000) and for any dependents (up to a maximum of approx. €10,000 each).

The main forms of passive residence are as follows:

5.3.1.2.1. Residence without gainful employment

This type of residence permit is intended for pensioners who do not wish to carry out any professional activity in Andorra (which does not prevent them from setting up one or more companies and running them free of charge).

Today, this status is the most common among private investors and high net worth families.

It includes an investment obligation. Although it is commonly considered that the amount of the investment is €600,000, it should be noted that the deposit mentioned above is equivalent to the investment.

It follows that the amount of the investment to be made is equal to €600,000 minus the amount of the deposits made with the Andorran state.

5.3.1.2.2. Residence for professionals with international projection‍

Designed for managers, consultants, entrepreneurs or creators whose activities are mainly international, the residence for professionals with an international outlook offers a tailor-made administrative solution for those wishing to establish themselves in Andorra without locating their entire business activity there.

This scheme, provided for in Andorra's Immigration Act, is aimed at self-employed people or company directors whose income comes mainly from abroad (over 85% of invoicing abroad), but who are looking for a stable administrative and patrimonial base within a recognized European framework that complies with OECD standards.

This plan entitles you to

The ENGAGE team takes charge of the complete preparation of the file, checking legal compliance, and coordinating with local authorities.

Each request is tailored to the customer's profile: nature of the business, level of income, existing legal structure, family situation and asset objectives.

"The status of professional with international projection embodies the Andorran philosophy: to allow entrepreneurship and prosperity within a clear, sober framework that respects international standards."

This status is a perfect illustration of Andorra's vocation: to be a European hub for international economic players, a territory where professional mobility is combined with legal certainty and coherent assets.

For global managers, it represents the missing link between flexibility and compliance - a balance that ENGAGE helps to build with method and vision.

5.3.1.2.13. Residence for scientific, cultural or sporting purposes :

This category of passive residence is reserved for people recognized for their exceptional contribution in one of these fields, and who wish to settle in the Principality.

These statuses require effective residence for at least 90 days a year.

ENGAGE ensures the preparation, conformity and complete presentation of the file, in coordination with the local authorities and banking institutions, to guarantee a smooth and secure acquisition of the chosen status.

5.3.2. Other specific legal status

In addition to the classic categories of residence without gainful employment, Andorra's Immigration Law also provides for specific regimes designed to adapt to changing international profiles and new forms of professional mobility.

5.3.2.1. The digital nomad residence

Created in response to the boom in remote working and the international mobility of talent, digital nomad residency is one of the most recent and flexible schemes available under Andorra's Immigration Law.

It is aimed at freelancers, entrepreneurs or remote employees whose activities are carried out exclusively online - consultants, developers, content creators, project managers, digital investors or international service providers.

The aim of this status is clear: to enable these professionals to set up in Andorra without creating a local business, while continuing to exercise their profession freely for customers or companies located abroad.

5.3.2.1.1. A flexible and secure administrative framework

The digital nomad scheme is based on a simple philosophy: to offer a stable, tax-predictable administrative environment, while preserving the holder's geographical and professional freedom.

The application for residency is based on an affidavit attesting that the activity is carried out remotely, as well as on the presentation of documentary evidence of professional activity (contracts, certificates from foreign employers, or proof of regular income).

Once authorization has been granted, the resident benefits from a clear legal status enabling him or her to :

• legally reside in Andorra,
• work remotely without having to set up a local company,
• and access to a high-quality living environment in the heart of the Pyrenees, between France and Spain.

This status does not authorize the exercise of a commercial activity in Andorra, but it offers valuable administrative and fiscal stability for professionals whose income comes from abroad.

5.3.2.1.2. Strategic advantages of the plan

Choosing the digital nomad residence means adopting a lifestyle and work model based on controlled mobility and asset security.

The main advantages are as follows:

• Attractive tax framework: no wealth tax, IRPF capped at 10%, no double taxation on foreign-source income.
• Management flexibility: freedom to choose customers, missions and financial flows without excessive bureaucratic constraints.
• High quality of life: safety, unspoilt natural environment, fast connections to France and Spain, high level of public services.
• Clear administrative recognition: the residence permit confers a stable, renewable legal status that complies with European transparency standards (OECD, CRS, FATCA).

5.3.2.1.3. A balanced solution between freedom and compliance

This status is attracting a new generation of professionals looking to combine freedom of movement with legal stability.

For them, Andorra represents an ideal alternative: a safe, transparent and fiscally competitive European territory, halfway between traditional residence and digital expatriation.

ENGAGE supports its customers throughout the entire process - from selecting the scheme to compiling the file, right through to final validation of residency - ensuring that every element complies with the requirements of Andorran legislation and is consistent with the applicant's international tax situation.

"The digital nomad status illustrates the spirit of Andorra: entrepreneurial freedom, a secure environment and measured taxation. It is aimed at those who want to control their mobility without compromising their security."

5.3.2.2. Residence through family reunification

It enables the spouses, children and direct ascendants of a principal resident to settle in Andorra under simplified conditions.

This system promotes continuity of life and family cohesion, while guaranteeing access to essential services such as health, education and social security.

ENGAGE coordinates the entire process, from preparation of the administrative file to final approval by the local authorities.

Over and above the strictly legal aspects, the firm supports its customers with a global approach to setting up a business, integrating the wealth, inheritance and personal aspects of the project.

In Andorra, each residence status reflects a lifestyle and asset strategy. The challenge is not just to settle down, but to do so within a coherent, stable and lasting framework.

5.3.3. A strategic choice at the heart of the heritage project

Choosing the right administrative residency permit is more than just a formality: it's a strategic decision that will determine the success of your move and the consistency of your future tax status.

Each regime gives rise to different rights - in terms of length of stay, investment, employment or family reunification - and entails specific obligations.

ENGAGE supports you every step of the way by :

• analyzing your overall profile (financial, professional, family);
• identifying the most advantageous and long-lasting status;
• ensuring complete compliance of the administrative file;
• coordinating exchanges with local authorities and banking partners.

"Choosing the right residency status means finding the right balance between freedom, security and strategy. In Andorra, this decision determines your future wealth structure.

Selecting the right administrative residence permit is the first concrete step in your move to Andorra.

This clear, stable legal foundation is the foundation on which you can organize your tax residence, investments and inheritance, in a compliant, transparent and sustainable environment.

5.4. Stage 4 - Legal and tax structuring

Legal and tax structuring are at the heart of any international wealth strategy.

It is at this stage that the architecture is designed to protect capital, optimize tax flows and prepare the transfer of assets within a compliant, long-term and recognized framework.

ENGAGE assists its customers in this decisive stage, where taxation meets wealth management: setting up companies and holding companies, managing shareholdings and organizing inheritance.

5.4.1. Tailor-made architecture, designed for heritage coherence

The creation of an Andorran company or an asset holding company makes it possible to centralize investment and business income in a clear and stable tax environment.

This structure acts as a management and transmission hub, offering both :

• a reduced tax rate on profits (10% maximum), and possible application of the tax regime set out in art. 38 of the Corporate Income Tax Act mentioned above(exemption of income corresponding to the distribution of dividends or capital gains realized on the sale of shares),
• a total exemption for dividends received by residents,
• and tax-neutral capital gains on the sale of long-term holdings.

Financial flows from foreign companies can be legally repatriated to Andorra thanks to the Franco-Andorran tax treaty, which limits the withholding tax on dividends paid from France to 5%.

This mechanism avoids double taxation, while maintaining total transparency vis-à-vis tax authorities.

5.4.2. Creating an Andorran company a lever for control and efficiency

The Andorran company - whether a S.L. (Société Limitée) or a S.A. (Société Anonyme) - is a powerful tool for entrepreneurs and investors.

It allows you to :

• invoice international services,
• hold financial or real estate assets,
• receive and redistribute dividends,
• manage cross-investments (in France, Spain, Switzerland or Luxembourg),
• and structure family projects or transfers.

ENGAGE draws up a tailor-made strategy for each customer, in compliance with Andorran company law and tax regulations, ensuring consistency between legal structures, economic flows and the tax residence of the manager.

5.4.3. The Andorran holding company: a steering and transmission instrument

For company directors or investors with significant business assets, setting up an Andorran holding company is often the most efficient solution.

It allows you to :

• centralize shareholding,
• receive dividends within a privileged tax framework,
• reinvest without tax friction,
• and prepare the transfer of shares within a totally tax-free framework between lineal relatives.

Article 38 of the Andorran Corporate Income Tax Act provides for full exemption of dividends and capital gains from holdings in foreign companies, including French companies, subject to certain conditions.

This provision, combined with the Franco-Andorran tax treaty, reduces effective taxation on cross-border flows to 5% or less, in line with international standards.

In this way, the holding company becomes a true asset management center: it secures income, optimizes redistribution and prepares for future transfers within a harmonized legal framework.

5.4.4. A compliant, sustainable and transparent structure

Unlike some opaque tax jurisdictions, the Andorran model is based on transparency and international recognition.

The structures created are fully compliant with OECD, CRS and FATCA standards, guaranteeing the traceability of flows and the legal security of operations.

ENGAGE ensures that each assembly is 100% legal, auditable and sustainable, by integrating :

• a bilateral tax analysis (country of origin / Andorra),
• a consolidated asset valuation,
• and a governance system adapted to the size and complexity of the portfolio.

5.4.5. A long-term heritage vision

Legal and tax structuring is not an end in itself: it's the starting point for a wealth management strategy.

By consolidating their assets under an Andorran entity, investors gain greater clarity, security and transferability.

This approach transforms taxation into a lever for value enhancement, rather than an imposed constraint.

"Structuring doesn't mean complicating: it means giving lasting form to your wealth strategy. In Andorra, taxation becomes a management tool, designed to ensure the long-term future of your capital.

5.5. Step 5 - International compliance

No wealth strategy, however well conceived, can be effective unless it is based on impeccable international compliance.

ENGAGE makes this step a top priority, ensuring that every decision we take - whether to transfer residence, set up a company or manage assets - is perfectly aligned with French and Andorran tax obligations.

5.5.1. Bilateral compliance, a guarantee of legal certainty

ENGAGE guarantees full compliance with French law, through rigorous and documented support:

• Declaration of foreign accounts to the French tax authorities,
• Official notification of transfer of residence,
• Strict application of the Franco-Andorran tax treaty, to avoid any double taxation on income, dividends or capital gains,
• Align financial and banking flows with transparency obligations (CRS, FATCA, OECD standards).

This dual compliance - local and international - is the key to a long-lasting, worry-free installation.

It protects the taxpayer against any risk of residence requalification, tax reassessment or questioning of the legitimacy of the arrangement.

"Compliance is not an administrative detail: it's the foundation of legal and tax certainty."

5.5.2. Anticipate, trace, justify: the three pillars of sustainable compliance

ENGAGE takes a proactive approach to compliance, based on three principles:

1. Anticipate : Before any transfer or investment, a complete analysis is carried out to identify reporting obligations and anticipate possible tax consequences (exit tax, taxation of unrealised capital gains, revaluation of residence).‍
2. Traceability : All flows - banking, assets, professional - are documented and justified in a logic of traceability. This rigor guarantees consistency between declared income, legal structures created and cross-border flows.‍
3. Proof : ENGAGE ensures that each transaction is backed up by compliant documentation: company articles of association, certificates of residence, intra-group agreements, proof of investment or asset ownership.

This method transforms compliance into a tool for credibility and asset performance, rather than an administrative constraint.

5.5.3. Secure the strategy for the long term

Compliance is not a one-off event, but an ongoing process.

ENGAGE regularly monitors the customer's situation, taking into account changes in legislation, new tax treaties and international transparency practices.

Every stage of the process - from the creation of the holding company to the management of revenues - is verified, validated and documented to ensure its legality and sustainability.

This constant vigilance guarantees the stability of Andorra's tax status and long-term wealth security, even in the event of a change of residence, asset transfer or restructuring.

"Compliance is the guarantee that your strategy, designed today, will stand up to tomorrow's scrutiny."

Thus, international compliance is much more than an administrative step: it is the invisible backbone of Andorra's entire strategy - a guarantee of stability, credibility and fiscal peace of mind for years to come.

5.6. Step 6 - Optimizing succession‍

5.6.1. Andorran life insurance: a pillar of international wealth strategy

Today,Andorran life insurance is one of the most effective and flexible instruments for managing and passing on wealth.

Designed within a stable legal framework that complies with European standards, it combines security, flexibility and tax optimization to support a global wealth strategy.

Unlike many equivalent products offered in the European Union, Andorran life insurance offers broad investment freedom: policyholders can access a wide range of investment vehicles - external funds, discretionary management mandates, structured products, private assets and alternative investments - while retaining a tax-efficient architecture.

5.6.1.1. Capitalized growth and deferred taxation

The principle is simple: as long as income and capital gains remain within the contract, they are not taxed.

This tax-neutrality during the compounding phase means that assets can grow within a framework of unlimited tax deferral, optimizing the cumulative effect of returns.

At the time of surrender, only the portion of gains actually withdrawn is subject to Andorran income tax, according to a progressive scale capped at 10%.

This mechanism makes Andorran life insurance an intelligent and legal tax optimization tool, suitable for those who wish to freely arbitrate their investments while controlling the applicable tax.

5.6.1.2. Exempt transmission and transgenerational planning

In the event of death, benefits paid to beneficiaries are exempt from inheritance tax in Andorra.

This advantage, which is rare in Europe, makes it possible to pass on a large sum of capital without tax friction, while ensuring perfect continuity between generations.

The policyholder also retains considerable freedom in designating beneficiaries and drafting distribution clauses, offering precise control over the transfer of family assets.

Andorran life insurance thus becomes an instrument of estate governance, as well as a financial tool.

5.6.1.3. Compliance and legal certainty: a controlled European framework

Andorran life insurance is governed by Law 12/2017 on insurance and reinsurance, incorporating the principles of the Solvency II directive.

Companies operating in Andorra are subject to strict control by the Andorran Financial Authority (AFA), guaranteeing the security of capital deposits and the transparency of operations.

ENGAGE works exclusively with leading insurers and partners, able to offer tailor-made solutions that meet the expectations of a demanding international clientele.

Each contract is structured according to the customer's profile - resident, investor, annuitant or company director - and integrated into a global wealth strategy, coordinated with tax, inheritance and banking aspects.

"Andorran life insurance combines freedom of investment with legal rigor. A tool for stability and long-term transmission.

5.6.2. Inheritance planning: anticipate to pass on with confidence

Inheritance is the final - and often the most sensitive - stage in a successful wealth strategy.

In Andorra, this is based on an exceptional framework: total absence of inheritance tax between relatives in the direct line, neutral taxation on gifts, and the flexibility of civil law in terms of asset management and division.

This context creates a unique opportunity for high net worth families: to prepare for succession without tax erosion, while retaining control and coherence over the structures created.

5.6.2.1. A methodical, tailor-made approach

ENGAGE designs an individual estate plan for each customer, integrating civil, tax and family aspects.

This plan may include :

• staggered donation of shares to gradually transfer ownership while maintaining management powers,
• supervised integration of heirs into family companies or Andorran holding companies,
• progressive control clauses (usufruct, inheritance agreements, differentiated voting rights),
• the strategic use of life insurance contracts to organize distribution among beneficiaries,
• and the creation of sustainable family governance, guaranteeing harmony between the generations.

The aim: anticipate to avoid conflicts, ensure a smooth transmission and preserve the cohesion of the estate.

5.6.2.2. Compliant, international planning

ENGAGE's estate planning is always based on double compliance:

• compliance with Andorran civil law, particularly with regard to inheritance and property rights,
• alignment with international treaties (including the France-Andorra tax treaty), to avoid any double taxation or conflict of jurisdiction.

This approach guarantees the legal stability of the system, even when the heirs reside abroad or hold assets in several countries.

"Anticipating succession means protecting your loved ones and giving lasting meaning to your estate. In Andorra, this anticipation becomes an opportunity, not a constraint."

Thus, Andorran life insurance and estate planning form the two pillars of a successful wealth strategy: the first helps capital to grow in a tax-efficient environment, while the second ensures that it is passed on with peace of mind.

Under ENGAGE's supervision, these tools become the foundations of a stable, transferable and long-lasting international heritage.

5.7. Step 7 - Follow-up, monitoring and adjustments‍

The success of a wealth strategy is measured not only by the time it is implemented, but also by its ability to remain effective, consistent and relevant over time.

Tax, financial and regulatory environments are evolving: anticipating these changes is essential to preserve acquired advantages and adapt structures to new economic realities.

That's why ENGAGE provides comprehensive annual support, based on regulatory monitoring, strategic updating and proactive management of asset changes.

5.7.1. Annual monitoring to ensure compliance and performance

Every year, ENGAGE carries out an in-depth wealth and tax assessment, designed to :

• verify compliance of existing structures (companies, holdings, contracts, bank accounts) with French, Andorran and international legislation;
• update reporting obligations relating to tax residence, foreign-source income and bilateral agreements (in particular the France-Andorra tax treaty);
• adjust the wealth strategy to changes in the customer's personal, professional or family situation.

This regular monitoring ensures that every decision taken - from initial structuring to day-to-day management - remains effective, legal and aligned with long-term objectives.

"Follow-up is the key to sustainability: a good structure is only as good as its adaptation.

5.7.2. Ongoing tax and regulatory watch

ENGAGE maintains a constant international watch on developments likely to affect Andorran residents:

• tax reforms in France and Europe,
• new bilateral agreements,
• adaptations to Andorran law on companies, residency and investment,
• developments in compliance standards (OECD, CRS, FATCA, anti-money laundering).

This vigilance enables us toanticipate reforms, rather than endure them, and to make the necessary adjustments (asset reorganization, change of structure, modification of investment or transfer strategy).

ENGAGE thus transforms compliance into a dynamic management tool, ensuring that the customer's asset structure remains optimized, documented and defensible at all times.

5.7.3. Transmission and family governance

Wealth management also includes governance and intergenerational transmission.

ENGAGE ensures that the strategy implemented remains consistent with the evolution of the family's assets: integration of heirs, adaptation of inheritance clauses, updating of life insurance contracts, or adjustment of holdings within holding companies.

The aim is to pass on an organized, compliant and lasting estate, without tax friction or breaks in continuity.

This approach guarantees the stability of family capital and the preservation of asset values over several generations.

5.7.4. Tailor-made, long-term support

ENGAGE does more than just implement solutions: the firm becomes a long-term strategic partner, a wealth management anchor between France and Andorra.

Thanks to a multi-disciplinary team of tax, legal, accounting and investment specialists, each customer benefits from comprehensive and confidential support, tailored to the evolution of their assets and their future projects.

"Our mission doesn't end with the creation of a structure: it begins with it. We support our customers over the long term, to keep their strategy alive and kicking."

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6. France/Andorra comparison: a decisive differential

Comparing Andorra's tax system with that of France shows the extent of the economic and wealth differential.

This contrast is not simply a matter of tax rates: it reflects two radically different tax philosophies.

Where France multiplies taxes and administrative layers, Andorra has chosen simplicity, stability and coherence.

6.1. Comparison table - France vs Andorra

6.2. A philosophical difference, not a tax loophole

This table clearly illustrates that Andorra is not based on a model of evasion, but on a model of fiscal rationality.

There's nothing "secret" or opaque about its system: it's transparent, codified, controlled and recognized by international institutions.

The Principality has signed a double taxation agreement with France, joined the OECD transparency framework (CRS, BEPS, FATCA) and adopted a comprehensive tax code in line with European standards.

This clear, modern framework enables international taxpayers - executives, investors, wealthy families - to structure their income and assets in a stable, predictable environment, without disrupting their original obligations.

6.3. A tax system that promotes growth, not penalization

Whereas French taxation often aims to redistribute from the top down, Andorran taxation is geared towards a principle of proportionality and encouraging investment.

It rests on three pillars:

1. Moderate rates - no confiscatory brackets, a clear 10% ceiling.
2. Capital neutrality - no taxation on assets and transfers.
3. Simplicity of management - single declaration, easy-to-read taxes, no multiple contributions.

This model encourages initiative, talent retention and the capitalization of productive assets.

It allows profits to be reinvested rather than dissipated in tax charges, while remaining within a legal framework recognized by France and the European Union.

"In Andorra, taxation is not a burden: it's a tool for economic freedom and transmission."

6.4. A safer, more predictable environment overall

Beyond the numbers, Andorra's attractiveness also lies in its legal and institutional security.

The country benefits from remarkable political stability, an independent judiciary and a pragmatic tax administration geared towards clarity and cooperation rather than punishment.

No abrupt reform or retroactive taxation will call established strategies into question.

This long-term predictability enables wealthy families, entrepreneurs and international investors to plan with confidence - something that few European jurisdictions offer today.

6.5. A sustainable and accepted differential

Andorra's tax system does not seek to compete with the big states: it seeks to offer a balanced alternative.

This model is neither aggressive nor artificial, but based on a conviction: a clear, stable and measured tax creates more value in the long term than an opaque and confiscatory system.

So for a high-income taxpayer or business owner, the difference between France and Andorra is not just a percentage:

it represents a paradigm shift from pressure to management and preservation.

"Andorra is not an escape. It's a choice for clarity, security and balance."

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7. Mistakes to avoid

Setting up in Andorra or structuring your assets there is a strategic move that requires method, consistency and anticipation.

While the Principality offers an exceptional tax environment, certain mistakes - often the result of a lack of preparation or unsuitable advice - can compromise the soundness of the entire system.

ENGAGE systematically identifies and prevents these risks to ensure that every customer enjoys a smooth, compliant and sustainable transition.

7.1. Underestimating tax residency criteria

This is the most common mistake - and often the most costly.

Becoming an Andorran tax resident involves much more than signing a lease or opening a bank account.

It is necessary to demonstrate a real economic and personal center of interest:

• effective presence for more than 183 days a year,
• main accommodation in Andorra,
• localized daily life (health, consumption, leisure, schooling, etc.),
• transfer of revenue and asset management centers.

An "administrative" installation with no tangible economic or family reality runs the risk of being requalified for tax purposes by the French tax authorities, with heavy, retroactive reassessments.

ENGAGE supports its customers in documenting, proving and securing every element of their home, to avoid any ambiguity.

"A tax residence can be proven, not declared."

7.2 Ignoring the France-Andorra tax treaty

Andorra and France have signed a double taxation agreement which sets out the allocation of the right to tax income.

Many expatriates make the mistake of thinking that this treaty neutralizes all French taxes: this is not true.

Some income remains taxable in France, including :

• income from real estate located in France,
• public retirement pensions,
• and, in certain cases, dividends or capital gains from French companies.

Misinterpreting these provisions can lead to double taxation or unintentional reporting violations.

ENGAGE coordinates the bilateral tax system, analyzing each flow in detail and applying the treaty rules article by article.

7.3. Poorly structured professional income

Another common mistake is to maintain an active French company while declaring your tax residence in Andorra.

This situation creates a risk of tax consolidation in France if the tax authorities consider that the company's effective management remains in France.

In this case, the company may be reclassified as a French tax resident, and all its profits taxed, even those earned abroad.

ENGAGE is therefore carrying out an in-depth analysis of the existing structure:

• dissolution or transfer of the company if necessary,
• creation of an Andorran entity,
• redefinition of billing and decision-making flows,
• alignment of the head office with the manager's actual residence.

This reorganization ensures consistency between tax residence, professional activity and source of income.

7.4. Neglecting estate planning

Ignoring the question of succession is a classic mistake, especially for families with international assets.

In the absence of structuring, assets located in France may remain subject to French civil and tax law, with inheritance taxes of up to 45% for direct descendants.

ENGAGE sets up suitable inheritance mechanisms:

• family governance clauses,
• intelligent dismemberment (usufruct / bare ownership),
• integration of heirs into existing companies,
• Andorran life insurance contracts,
• and coordination between French and Andorran civil law.

This planning avoids blockages, conflicts and the erosion of assets at the time of transfer.

7.5. Choosing an unsuitable or "turnkey" assembly

Every asset situation is unique.

Using a standard template found online or a simplified expatriation solution can be disastrous.

Certain ill-conceived schemes (fictitious residences, inactive companies, undeclared trusts) may be considered abusive under French and international law.

On the contrary, ENGAGE develops tailor-made strategies, legally and fiscally audited, where each element - company, contract, flow - is based on real economic justification.

This approach guarantees legal, sustainable and indisputable optimization.

"Optimization should never be standardized. It must be designed, proven and adapted to the customer's reality."

7.6. Failure to monitor and update regularly

Even the best structuring can lose its coherence if it is not followed over time.

Legislation evolves, family situations change and agreements are renegotiated.

Failure to adapt strategy can lead to risks of non-compliance, or even inconsistency between declarations and economic reality.

ENGAGE provides comprehensive annual monitoring, including tax watch, document updates and flow adjustments.

This ongoing control guarantees the stability and conformity of your assets over the long term.

7.7. Summary

Settling in Andorra is a major tax and asset opportunity, provided you act methodically, rigorously and with support.

The most common mistakes - whether made in good faith or as a result of poor advice - are rarely corrected without consequences.

ENGAGE helps you anticipate, secure and formalize every stage of your strategy, so that your installation is not only profitable, but above all safe, compliant and sustainable.

Would you like me to write the article's final conclusion (section 8) - summary + "Contact ENGAGE" call to action - in the stylistic continuity of this text?

Perfect. Here's a much enriched, fluid and high-end version of your section 8. Why ENGAGE? in the signature ENGAGE tone: expert, educational, but also embodied and engaging.

I've reworded the end to remove any reference to lawyers, focusing instead on tax specialists, wealth advisors and Franco-Andorran experts.

The text is designed to be published as it is on the site or in a longer article, building up to the final call to action.

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8. Why choose ENGAGE?

Tax optimization in Andorra is more than just a change of address or an administrative move: it's a global wealth project, involving your assets, your residence and sometimes your family's future.

This project requires absolute method, expertise and compliance.

ENGAGE supports its customers at every stage of this transformation, building tailor-made solutions that combine legal certainty, tax consistency and long-term strategy.

8.1. A comprehensive, structured approach

Every situation is unique. That's why ENGAGE favors a holistic approach, taking into account all your personal, professional and financial parameters.

The aim: to transform your Andorran project into an integrated, stable strategy aligned with your life goals.

The firm is involved at every key stage:

1. Customized wealth and tax analysis → Complete mapping of your income, assets, companies and international flows, identification of optimization levers and assessment of net tax gain.‍
2. Legal and international structuring → Creation of Andorran companies or holding companies, setting up life insurance contracts, managing bilateral flows between France and Andorra, estate structuring.
3. Obtaining administrative and tax resident status → Selection of the appropriate regime (active resident, passive, investor, international projection...), complete preparation of the file, coordination with the Andorran authorities.‍
4. Operational implementation and annual monitoring → Assistance with account opening, banking management, CRS/FATCA compliance, declarative monitoring and strategic adjustments.‍
5. Regulatory watch and continuous adaptation → Monitoring of French and Andorran tax reforms, proactive analysis of international conventions and updating of structures to ensure their sustainability.

8.2. A multidisciplinary Franco-Andorran team

ENGAGE brings together a team of tax specialists, corporate lawyers, wealth management consultants and international structuring experts, all bicultural and trained in Franco-Andorran practices.

Their mission:

• ensure total security in the implementation of each strategy,
• guarantee legal and reporting compliance at every stage,
• and turn your move to Andorra into a real, lasting and transferable asset opportunity.

The ENGAGE team also works with a network of Andorran private banks, insurance companies, notaries and chartered accountants, selected for their reliability and rigor.

8.3. The ENGAGE philosophy: safety, transparency and sustainability

ENGAGE stands out for its professional ethics based on conformity and clarity.

Each proposed solution is documented, justifiable and compliant with international standards (OECD, CRS, FATCA).

The aim is not to evade taxes, but to manage them within a perfectly legal framework, to offer each client long-term stability.

"Tax optimization should never be an escape: it's a thoughtful and responsible organization of one's wealth."

8.4. Tailor-made support, from diagnosis to handover

ENGAGE sees its mission as a long-term partnership.

From the initial wealth audit to estate planning, each client benefits from confidential, structured and progressive support, integrating the fiscal, financial and personal dimensions of their project.

Because, when it comes to wealth management, the value of advice is measured over time, ENGAGE is committed to ensuring the continuity and conformity of your strategy at every stage of your journey.

8.5. Contact ENGAGE

Are you planning to structure or transfer your assets to Andorra?

Our experts are with you every step of the way - from analysis to implementation - within a legal, transparent and sustainable framework.

Contact ENGAGE for a personalized asset audit

Click here to book a strategic meeting with a Franco-Andorran tax consultant

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9. Conclusion - Anticipating, structuring, transmitting

Choosing Andorra to optimize your tax situation is not about escaping from a system: it's about adopting a method.

It's the choice of a transparent, stable and recognized framework that favors clarity and compliance over opacity and speculation.

The Principality is not a destination of opportunity, but rather a territory of wealth strategy, designed for those who wish to combine economic freedom with legal certainty.

Its moderate tax model, rigorous regulatory environment and institutional stability make it a reliable partner for international wealth management, not an ephemeral tax haven.

9.1. Andorra, a choice for consistency and control

For executives, investors and high-net-worth families (HNWI), settling in Andorra means regaining control of their tax affairs.

It also means intelligently structuring their assets, aligning their income and international structures, and preparing for the transfer of capital within a neutral, legal and sustainable framework.

In Andorra, tax becomes a management tool, not a constraint.

Taxation doesn't punish success, it frames it.

This difference in philosophy - between confiscation and coherence - is at the heart of the attractiveness of the Andorran model.

9.2. The key: a rigorous, compliant method

But this strategy can't be improvised.

Behind every project to set up a new business, every transfer of assets or the creation of a holding company, there is an extremely precise legal and tax process.

An error of residence, a misinterpretation of the tax treaty or an incomplete declaration can be enough to undermine the whole system.

That's why successful tax optimization in Andorra is based on a single principle: method.

A method based on analysis, consistency and compliance.

ENGAGE is part of this approach:

• every decision is studied,
• each structure is checked,
• each document is validated.

Nothing is left to chance, because when it comes to wealth management, rigor is the first form of security.

9.3. ENGAGE: your trusted partner between France and Andorra

ENGAGE supports entrepreneurs, investors and wealthy families at every stage of their strategy:

from initial audit to residency, from structuring to transfer.

Our team of Franco-Andorran tax specialists and advisors provide ongoing support, based on transparency, compliance and long-term performance.

"Andorra is not a tax destination: it's an investment decision. And, like all asset decisions, it requires preparation, structure and support."

9.4. Make a strategic decision, not just a fiscal one

If you're thinking of rethinking your tax situation or structuring your assets within a stable, recognized framework, do so with method, support and vision.

ENGAGE helps you to anticipate, structure and pass on, in complete security.

Click here to book a strategic meeting with an ENGAGE consultant