Sep 18, 2024
Life in Andorra: taxes and quality of life
Andorra, a small principality situated in the Pyrenees between Spain and France, is known for its stunning mountain scenery, quality of life and attractive tax system. In this article, we will compare life in Andorra with life in other countries, focusing on two key aspects: taxes and quality of life.
Taxes
One of Andorra's biggest draws is its favourable tax system. Here is a comparison with other countries:
- Andorra: Personal income tax is progressive, with a top rate of 10%.
Exemptions: The first 24,000 euros are exempt from tax. For incomes between 24,001 and 40,000 euros, the rate is 5%, and for incomes above 40,000 euros, the rate is 10%. There is no capital gains or inheritance tax. - Spain: Income tax rates can reach up to 47%, and there are taxes on capital gains and inheritances.
- France: Income tax rates can reach 45%, and there are also taxes on capital gains and inheritances.
- Switzerland: Income tax rates vary by canton, but can reach up to 40%. There are also taxes on capital gains and inheritances.
Quality of Life
The quality of life in Andorra is another aspect that attracts many expats. Here is a comparison with other countries:
- Andorra: It offers a high level of security, an efficient and accessible health system, and excellent air quality. In addition, the cost of living is relatively low compared to other European countries.
- Spain: The quality of life is high, with a pleasant climate, a rich culture, and a quality public health system. However, the cost of living can be higher in large cities.
- France: It offers a high quality of life, with an excellent health system and a rich cultural offering. The cost of living can be high, especially in cities like Paris.
- Switzerland: Known for its high quality of life, Switzerland offers a first-class healthcare system and a safe environment. However, the cost of living is one of the highest in Europe.
