Brexit Result Brings Tax Haven Surge
When the UK voted to leave the EU in June, the financial markets in London and around the world saw big drops in share value and the country’s currency Sterling, but a recovery a few days later saw much of the decline reversed.
The result of the referendum came as a surprise to many, including the financial markets, with opinion polls showing a small but consistent majority in favour of remaining.
The British Government had warned that should the voters decide to leave the EU there could be dire economic consequences, with property prices falling and interest rates rising – but shortly after the decision to leave had been made the Governor of the Bank of England Mark Carney indicated that interest rates were likely to be cut from an already historically low of 0.5%.
One result of the UK’s decision to leave the EU that hasn’t been reported widely is a surge in enquiries for people to move to the tax haven of Andorra.
Tribune Properties who specialise in Andorra property for sale and gaining residency in the country comment that the rise in the number of people interested in moving there has been mainly due to the situation in Gibraltar, another popular low tax destination in Europe.
‘Gibraltar and Andorra have both been attractive to people looking for a low tax country for some years now, but many considering Gibraltar and some existing residents have switched their attention to Andorra since the decision to leave the EU’, Tribune Properties comment.
They also say it’s not just the British who have now focused on Andorra, but other Europeans as well.
For some time there has been a worry among some tax advisers that a British government might try to rein Gibraltar in as it’s a British overseas territory, and they might ask for more information about Gibraltar residents and their financial status.
But the EU vote is a more immediate worry to those living in Gibraltar and those who had been considering moving there – with the UK out of the EU Spain could close their border with Gibraltar, and making movement in and out of Spain difficult.
Given that many who move to Gibraltar spend much of their time on the Costa del Sol, the low tax is no longer as attractive with a restriction on the freedom of movement and they are now looking at Andorra which is an independent country with a very similar low tax status.
To gain residency involves making an overall investment – include a house or apartment – of 400,000 Euros, and the Andorra residency process takes between 45 and 60 days usually.
Good three bedroom, two bathroom properties with views and parking are available for around 350,000 Euros with the balance payable to the government as a security bond which is returnable should residency in Andorra be given up at any time.
Houses are available from 550,000 Euros and the most popular region among those taking Andorra residency is la Massana.
For a free residency guide and details of properties currently available in Andorra visit www.propertyandorra.com