Andorra is becoming one of the most preferred countries for living and working purposes. The people, infrastructure, opportunities, laws, culture, and numerous other things are the attention-gaining points of this place. If you are planning to settle down there, it is wise to educate yourself on some of the vital taxing terms. Or if you are already a resident of Andorra but are confused about some tax-related terms, then this post will infuse clarity. Here is what a probable or existing citizen should know about the residencia fiscal andorra.
What are the types of residents in Andorra in the context of taxing?
Every citizen must fulfill his or her duty as an income taxpayer. And, before that, it becomes imperative to understand the eligibility criteria. The legislations of Andorra talk about two categories of people when it comes to residence tax. These are mentioned below.
- Active Residents- They are called Work Residents because this category is for those who fulfill the working conditions of the nation. Professional workers, entrepreneurs, project promoters, etc. are some of the types in this segment. Their income is Working in the Principality.
- Passive Residents- Those who do not fit in the previous category do not fall automatically in this list of Passive Residents for tax purposes. They may be called non-profit-making residents. However, these are the people who are seeking realization from investments like financing, real estate, and more; these are gains on Principality.
There might be another category for tax residents comprising of those who do not fall in either of the above sections. These might be people with exceptional talents or skills. Culturally respected people may also be a part of this taxing residence scheme. If you cannot differentiate between this and the active category, or for any other confusion, it is best to seek the professional help of tax consultants.