Andorra is the best choice for those who seek to live in a safe country with beautiful landscapes and with an advantageous tax system. Yearlong outdoor activities that include road or mountain cycling during the warm weather, and skiing in the Pyrenees mountains during winter, welcome an average of 10.2 million visitors annually; a very touristic country regardless of its small size. One of the best options is to obtain the Andorra residency by investment. Aside from the wonderful views Andorra offers, the cost of living in Andorra tends to be 30% lower compared to other EU countries, with the possibility of living in an 80 m² apartment in La Massana for as low as €650/month. Whether you want to visit the country or move in, the travel time is around 2.5 to 3 hours from Barcelona and Toulouse, where the nearest major airports are located.
The main benefit of living in Andorra is the tax system that the country has, for its unusual burden on the citizens. It is stated that a married couple residing in the Pyrenees country has to earn at least €40,000 before they pay any income tax, and after that, their tax will be capped at a maximum of 10%; the same amount of tax is applied to corporate income, which is advantageous to entrepreneurs that want to start a company in the country. Andorra also welcomes those who enjoy high-end retail shopping, as there is no sales tax and VAT is only 4.5%; one of the lowest compared to other European countries. Furthermore, people choose to live in Andorra for its safety, as the country has almost no violent crime, having one to zero homicides per year. With its two entrances to the country patrolled by police, Andorra is known as one of the safest countries in the world.
Types of Golden Visa
In order to live in that country, foreign citizens can apply for two different types of Andorra residency by investment:
- Andorra Active Residency – after staying in the country for at least 183 days per year and paying tax in the country, you will be allowed to live and work in the country. There are two choices under this program, the “residència i treball per compte propi” or simply “compte propi” which is the active Andorra residency by investment program for self-employed applicants that are going to base their company in Andorra; and the permit through work contract, wherein you will be acquiring your visa through the help of an employer.
- Andorra Passive Residency – allows non-citizens to become residents without having to live in Andorra. Under this program, all the economic activities regarding your business can be managed outside the country. To be able to apply for this visa, the applicant should spend at least 90 days in the country and will be required to earn a total of €38,999.88 (300% of the minimum Andorra salary) in income per year. This passive Andorra residency by investment program has different types, for professionals in international business, internationally accredited athletes, scientists, and artists, or the residence without lucrative activity; each with their own specific requirements and benefits.
For the advantages that the Pyrenees microstate offers, many international families have decided to turn Andorra into their home. The country is known for its multicultural society, welcoming expats from all over the world but keeping Andorra’s essence. The government offers free Catalan classes to newcomers for them to learn the official language of the country. This also happens to be a great place for newcomers to meet and get to know other residents and exchange advice on the best hiking spots during the summer, or the ski resorts near Ordino and La Massana that offer a year-round pass for less than €170.