Monaco And Andorra Tax Havens Raise Entry Price

Monaco And Andorra Tax Havens Raise Entry Price



Monaco and Andorra Tax Havens Raise Entry Price
While Monaco is​ a​ well known European tax haven,​ Andorra has remained little known outside of​ the​ financial community despite enjoying the​ same tax advantages and arguably more private banking than her better known rival.
In contrast to​ the​ similar financial benefits both Monaco and Andorra residents enjoy,​ the​ two small countries have quite different climates.
Monaco has good all year round weather and is​ located next to​ the​ French Riveria,​ while Andorra is​ in​ the​ Pyrenees and between early December and late April attracts nearly ten million tourists for ski holidays. Monaco has year round tourists,​ peaking twice a​ year in​ May for the​ Grand Prix,​ and September for the​ Yacht Show.
Neither Andorra or​ Monaco have their own airports Nice airport has a​ helicopter link,​ a​ ten minute ride direct to​ Monaco,​ Andorra is​ not so fortunate and the​ nearest airport is​ Barcelona,​ a​ three hour drive away from the​ principality.
Both countries have opted to​ stay out of​ the​ EU,​ preserving their ability to​ maintain a​ no income tax policy.
The biggest difference is​ the​ entry price for becoming a​ resident which entails buying or​ renting a​ house or​ apartment.
One bedroom apartments in​ Monaco start at​ 800,​000 Euros,​ but in​ Andorra the​ same size apartment starts at​ less than a​ third of​ the​ price at​ 250,​000 Euros. And while a​ house in​ Monaco is​ a​ rarity,​ there is​ a​ good choice of​ houses for sale in​ Andorra,​ with prices starting at​ under a​ million Euros.
Rising Prices
Given Andorra’s property price advantage for wouldbe residents choosing between Europe’s primary tax havens,​ it​ has come as​ a​ surprise to​ many that the​ closing costs for buying a​ property in​ Andorra has not only been less than half that of​ Monaco,​ but also less than buying a​ property in​ many other mainland European countries at​ around four and a​ half per cent.
But Andorra has just raised property closing costs by introducing a​ three and a​ half per cent sale of​ goods and services tax on​ property purchases from January 1,​ 2018 bringing the​ tax haven more in​ line with neighbouring France and Spain.
Demand for property in​ Andorra and Monaco is​ unlikely to​ be affected by the​ recent increases though,​ according to​ European tax haven specialists Tribune Properties.
‘Andorra and Monaco have historically seen an increase in​ property activity and residency applications when taxes are increasing elsewhere. the​ new German government has recently increased the​ top rate of​ income tax and the​ United Kingdom has seen an increase in​ the​ number of​ indirect taxes,​ making the​ zero per cent personal income tax both Andorra and Monaco offer an attractive preposition to​ high income earners.
Andorra’s property inflation has been over ten per cent annually for the​ last three years,​ and when the​ 2018 figures are released we would expect it​ to​ be four years in​ a​ row,​ with no sign of​ a​ levelling off of​ demand for the​ year ahead.
With Andorra and Monaco’s high speed cable and broadband internet access more and more company owners are moving their residence to​ low and no tax countries and running their companies from a​ distance geographically,​ while being able to​ share information with their head office in​ real time’.
As well as​ buying a​ property in​ Andorra or​ Monaco,​ both countries require residency applicants to​ establish a​ local bank account and deposit around 50,​000 Euros Andorra or​ 100,​000 Euros Monaco,​ take out private health insurance,​ and to​ live there for six months of​ the​ year.




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