Andorran residency guide: Everything you need to know about residency categories and the residency requirements.
Residence in Andorra: The Andorra kingdom is nestled in the Pyrenees Mountains. It is three hours away by car or by helicopter from Toulouse or Barcelona. The country has the highest standard of education and health care and a highly competitive tax system for individuals and businesses. It also has a large range of leisure and recreation activities and is only a few hours from the capital of Barcelona and the city of Toulouse. The best way to get around the country is to visit the country and enjoy the high quality of life in the most beautiful mountains and valleys. It is also a fantastic place to go.
Relocating to Andorra, one of Europe’s smallest countries, doesn’t need to be difficult. The following guides will explain Andorran Immigration law. It will also help you decide which of the two primary categories of residence permits will best meet your needs and detailed instructions on how to apply for residency will also be provided.
How do I get the Residence in Andorra?
Andorra is a prosperous civilization that cooperates with the international economy but maintains a certain sense of isolation from the rest of Europe. It is an ideal location because it offers good access to a beautiful outdoor area with all the benefits of modern life. This post will be your guide to the technicalities required to apply for an Andorran residency permit. It too has a very attractive tax system and a very attractive income tax system.
1. Residency requirements in Andorra
In Andorra they can also offer active and passive residence certificates.
Create a company and perform a business activity with an active independent-worker’s permit.
A passive residence visa is a type of non-lucrative residency providing the right to live in Andorran without employment. A valid Passive Residence Visa ensures freedom of entry to the Principal Islands without the possibility of employment. A passive residency visa offers you expert guidance to start the application process to register Active or Passive residency in Andorra. It is available from Andorra Partners to explain what is required to secure residency.
2. Types of Residence in Andorra (permit)
There are different classifications of residential permits: active residents and passive residents of Andorra. Active Residence Permits are for people willing to work and live in the nation. Passive Residence Permit is more suitable for someone who earns money abroad but wants to stay there for part of the year. Others passive residents might want to leave Andorra or form their own company registered locally that will conduct most of its business abroad. Andorran social security and health care schemes are most suitable for those making most of their money from abroad.
2.1 Passive residence in Andorra
Residence without gainful employment which is directed to persons who establish their main residence here for all purposes, with a minimum presence in the country: 90 days per year. This permission is granted for a period of one year and can renew at expiry for one or more consecutive periods: 3 years + 3 years, + 10 years.
This kind of residence doesn’t permit to have an Andorran company with professional activity. This residence just permits to have capital gains from other countries.
It’s very important to present a health insurance in Andorra, documents that prove that you own at least the minimum annual income in a bank and to pass a satisfactory medical examination.
2.2 Active residency in Andorra: residency with a work permit.
The residence and work permits in Andorra are subject to fixed limits varying by the task. Additionally renewals can depend on whether a company meets a particular nationality. According to officials in the ministry of the Interior the country had ordered workers to renew their visas by putting new work permits in force. Residence permits are more restrictive than the model of non-lucrative residency known for foreign workers as active residency’ active residence. This is done when an organization hires another person.
If you have a professional activity and you want to apply to this residency, you need to create an andorran company.
Also, you need to live in the Principality of Andorra at least 183 days per year and you will need to do an extra economic contribution of 15.000€. This amount will be considered as a bank deposit.
After doing this additional deposit you will need to present a clear criminal record, a bank certificate and you will be able to do the medical examination to apply for the active residency.
You will also need a business plan for your andorran company.
2.3 Overstaying the Andorran tourist period – Visa Free Travel
The resident permit or residence is intended for retiree’s or people who want to live for up to 90 days in Andorra. Because Andorran has never been a part of the Europe, nor was it signator of the Schengen Agreement. The only way into this tiny nation who is shoehorned into the border between Spain and France is via road and a newly created heliport which makes for boarder control between the three countries. Upon entry non euro tourists may apply for a visa that was issued when they registered their initial entry in Europe. If a vacationer wishes overstays their vacation must apply for a residence permit at his residence.
2.4 Residence in Andorra by Passive residence for international athletes, scientists and artists
It primarily focuses on sports and academic study. Applicants to that category need to fulfill the standards required and satisfy business requirements. This category covers a large number for science academic work, sports and cultural activities.
2.5 Passive residence for international business professionals – International Professional Services
This kind of residence is for those kind of professionals that have economic activities, but their main income tax come over other countries (not Andorra).
This type of residence is not so common at the Principality of Andorra at it requires to follow a specific business plan and a company formation to reside in Andorra.
This kind of residence needs to have international client base. You will be supporting documents to check all the requirements for this residence.
3. Applying for Andorra Residence Permit
It provides a fairly simple and fairly easy process for seeking Andorra residency permits. Some applicants can complete some steps on their own country but you are required to actually stay in Andorran for items like opening a bank account. If this requires more than one month of work, you may need to return to your current country and go back to where you grew up. If you are applying for passive residency or if you make your application without the help of an Andorran employer it may make sense to hire a professional consultant.
4. Residence in Andorra by Investment
Andorra lies along the border between Spain and France and is currently in Europe, but not in the European Union. It offers residential residence via an investment programme in which minimum €400,000 must be invested. The investment can be in real estate and the country is one of the smallest countries in the world. It is possible to apply for citizenship and a passport after a lengthy residency period that requires 10 years per resident in the country. Residents enjoy free entry to France and Spain and enjoy favourable tax treatment. It does not apply to wealth, income from the tiny country of South Africa. This is the passive residence type. You will have access to this kind of residence if you have a property owned by you or your family in Andorra.
5. Advantages of Andorra residency
There are a huge tax advantages for those who decide live in Andorra: having a property owned by you, a work permit, an andorran company. Those who have the Andorran residence will be able to pay their taxes in the Principality of Andorra.
The personal income tax rate is 10%maximum (dividends are totally exempt of taxes) and the corporate tax rate is also the 10%. Tax purposes are the most common purposes for people who chose changing their tax residence to Andorra.
You will spend the sufficient tax days to be consideres a tax resident in Andorra, sufficient means need a minimum stay of 90 or 183 days per year.
6. How hard is it to get a residence in Andorra?
It’s not really; our process is fairly standard and easy. The most important plan are preparing the required documentation, having the sufficient income that the immigration law establishes and other necessary things that are essential to this task. For many a recency requirements must be provided such as your birth certificate within the recent three months which may indicate an unintentionally long preparation period. When doing an undertaking several separate steps can depend on each other like apostillation of birth certificates or other forms of documentation the time to complete the job will be difficult to predict and sometimes it will take.
7. How do I get Andorra residency visa?
It’s possible to obtain residence / residency permit online in andorra. One is to work for Andorran company another being self-employed. The requirements may differ for each option. Ask us for further information.
8.Why should I choose Andorra as my home country?
This geographic position and atmosphere make Andorra ideal for winter and summer outdoor sports and fresh air is really high quality. Healthcare, education and government are unique.
Andorra la Vella is the capital of the Principality of Andorra.
9. Show the tax advantages of living in Andorra?
VAT of 4.5% on corporate income tax and up to 10% personal income tax on income less than €40,000.
