Requirements to obtain residency in Andorra

Andorra is a tiny, independent principality tucked in the Pyrenees mountains between Spain and France.  It has no access to the sea but has spectacular mountain landscapes dotted with ski resorts, mountain bike parks and hiking spots that are perfect for winter sports like skiing, mountain biking and hiking. The area of the country is only 468km2 and its population is only about 82,000 people, but it has one of the most favorable tax regimes in the world. We tell you why you should consider applying for residency in Andorra.

What to know about Andorra

Andorra has strong historical, cultural and economic ties with the Catalonia region of Spain and has Catalan as its official language, and is only 2.5 to 3 hours by air from Barcelona in Spain or Toulouse in France. It boasts of a multicultural society that are mostly come from Spain, France and Portugal. Andorra is in Europe but not a member of the European Union or the Schengen area nut is part of the EU Customs Union and has the euro as its official currency.

It is one of the safest countries in the world to live in with a zero crime rate.  Its two border entrances are strictly patrolled by police twenty-four hours.

This tiny principality is considered Europe’s tax haven because of its low corporate and income tax rate or nonexistent taxes. There is no wealth, inheritance, property, dividends or capital gains tax in Andorra.  Its lack of custom duties has made it famous for its high-end, duty-free retail shopping that includes alcoholic beverages, electronic devices, tobacco and clothing.  a.  Andorra is a thriving country with the highest GDP per capita among the top 30 countries.

Because of its beautiful natural landscapes and duty free shopping, Andorra attracts 10.2 million tourists a year, and contributes 80% to Andorra’s GDP.

Another pull for Andorra is the cost of living in Andorra that is 30% lower compared to other European Union countries and the United States.

All these factors make Andorra an ideal place to live and work. However, it is a fairly restrictive country regarding immigration, with certain privileges reserved for Spanish, French and Portuguese nationals, but quite strict with other nationalities. There are however, two ways by which one can be allowed to live and work in Andorra.

Andorra Active Residency

The Andorra Active Residency requires the holder to stay in Andorra for at least 183 days per year and pay tax in Andorra which has a maximum rate of 10% only.

This investment program is called the residencia I treball per compte propi and is for self-employed applicants that would like to base their company in Andorra. It is also a permit through work contract meaning that the holder acquired his or her visa with the help of an employer.

Andorra Passive Residency

The Andorra Passive Residency is the fastest and easiest way to obtain residence in the principality and allows non-citizens to become residents without having to live in Andorra.  All economic activities regarding your business can be managed outside the country.  It is ideal for different professionals in business, internationally accredited athletes, scientists, artists or retired people or those without lucrative activity.

The Andorran residency by investment program is ideal for the following people:

  • High Net Worth Individuals living on their rents, investment portfolios, bank interests and income generated outside Andorra
  • Pensioners who wish to retire in Andorra and be able to enjoy their pension almost in full.
  • International businessmen who wish to conduct international business outside Andorra
  • People looking for second homes via investment

Requirements for the residency by investment in Andorra

  • The applicant must invest a minimum of €350,000 in Andorran assets plus a deposit of €50,000, either in real estate, a fund, bonds or other investments..
  • Applicant must stay in the country at least 90 days in a year.
  • Applicant must earn at least a total of € 38,999.88 or 300% of the minimum Andorra salary in income per year plus 100% extra per dependent.
  • Applicant must submit a Certificate of Good Conduct.
  • Applicant must have private medical insurance.
  • Applicant must have a medical certificate issued in Andorra.
  • A deposit of at least €50,000 plus €10,00 for every dependent whether partner or child.

What are the eligible investments for the Andorran residency by investment program?

  • Real estate in the Principality of Andorra
  • Shares in an Andorran company
  • Debt or financial instruments issued by any Andorran public entity or administration
  • Life insurance from the Andorran Financial Institute
  • Non-interest bearing refundable deposit from the Andorran Financial Institute of at least €50,000

Advantages of the Andorran Residency by investment

  • The Andorran Golden Visa is very convenient for those who travel a lot.
  • The Andorran Golden Visa is not subject to strict border controls.
  • It is a residence permit that allows non-EU nationals to travel visa-free to France, Spain and Portugal.
  • It allows the holder to invest in private banking institutions and have multiple bank accounts or funds to diversify their portfolio.
  • It allows the holder to make investments in the country without having to pay the foreign investment tax or a wealth, income or capital gains tax.
  • After the residency period, Andorran citizenship is possible after 20 years of living in the country.
  • Andorra has a high level of education with the languages of instruction being Catalan, Spanish, French and English.
  • Andorra’s healthcare system is one of the best in the world.