Moving from Spain to Andorra: Getting Tax Residency Right

Moving tax residency from Spain to Andorra requires not only obtaining an Andorran residence permit but also correctly ending Spanish tax residency. The key test is staying in Andorra more than 183 days a year and shifting your centre of economic interests. In Spain, Modelo 030 must be filed to deregister, and it’s worth knowing that Spain’s tax agency scrutinises such moves closely, especially when part of the income or assets remains in Spain. It’s also important to check that the client’s Andorran company does not create a permanent establishment in Spain. The double-taxation treaty between Spain and Andorra allows dividends, interest, and royalties to be taxed correctly between the two jurisdictions, but this requires proper structuring before the actual move.