Residence in Andorra

Residence and self-employment

Foreigners who apply for an active residence in the Principality of Andorra to carry out a self- employment activity can obtain an active residency permit, also called residence for self-employed, if they obey different requirements determined by Law 10/2018, mainly:

a) Have obtained the authorisation for foreign investment, granted by the Government of Andorra to set up an Andorran company in which the intended foreign investment is higher than 20% of the share capital, and have legally set-up that company.

b) To be the manager of the incorporated Andorran company.

c) Prove that the incorporated company owns a trade activity registered in the Principality of Andorra, and that it has been registered within a maximum of three months, from the date of entrance of the application to the Andorra Immigration Service.

d) Make a cash deposit to the Andorran Financial Authority (AFA) – formerly called the Andorran National Institute of Finance (INAF) – the amount of €50.000 non remunerated. In the event that the authorization holder resigns, or in the event that the authorization is canceled or not renewed, the deposit is returned.

Aleix Advocats will accompany you in all the necessary procedures:

• To obtain the active residence card, namely in the foreign investment authorization demand, the incorporation of a company in Andorra.
• Opening of the company’s bank account.
• Obtaining a tax number.
• Registration of the company and the partners and administrators in the Andorran Social Security Fund.
• Registration of the commercial activity of the company.

• Request the authorization of active residence, that is, the card of residence and work in Andorra on their own account for the main holder of the authorization as well as for the members of their family.

Concept of residence without gainful activity

People who request passive residence because they do not have lucrative activities, and wish to reside in Andorra must establish their main and effective residence for at least 90 days a year.

Holders of passive residence permits cannot develop any professional activity in Andorra, but they can carry out everything necessary for the management of their activities relating to the heritage and, especially, functions of company director, in which they would happen to own shares equal to or greater than 50% of the capital if the position of director is non remunerated.

People who wish to benefit from a passive residence, i.e. without paid work, on the one hand, must invest permanently and effectively an amount of at least six hundred thousand euros (€600,000) in Andorran assets: real estate; shares in the share capital of companies resident in the Principality of Andorra; debt or financial instruments issued by resident entities or public administrations of the Principality of Andorra; insurance products, among others. If the investment is made in the Habitats Fund, directly or indirectly and permanently and effectively, the deposit is reduced to €400.000.

On the other hand, they must deposit €47.500 unpaid to the Andorran Financial Authority (AFA) and an additional €9.500 unpaid per dependent who comes to reside in Andorra.

These amounts are deducted from the €600,000 investment in Andorran assets mentioned above. They must also subscribe to private insurance and justify a certain level of income to enjoy the residence permit without work. The amounts deposited as a guarantee for the AFA are returned in case of non-renewal of the residence permit of passive residence.

Aleix Lawyers will accompany you in all the necessary procedures:

• For opening a bank account in Andorra.
• Obtaining the necessary certificates to justify that you have sufficient income to live in Andorra without working.

Firstly, to prove that you have made all the necessary guarantee deposits with the Andorran Financial Authority. Secondly, to justify that you have done or will do within six months, the demand for passive residence, the required investment in Andorran assets. Thirdly, to look for and certify that you have taken out insurance that covers you for illness, disability and retirement in Andorra. In addition, to search and justify that you have accommodation in Andorra. Finally, to request the authorization of passive residence, or residence without work.

A natural person who does not have Andorran nationality and who establishes his main and effective residence in the Principality of Andorra for at least 90 days per calendar year, to develop a professional activity in the following terms, is considered a professional with international projection :

a) The headquarters or base from which the professional activity is carried out is located in the territory of the Principality of Andorra.

b) In the development of his professional activity in the Principality of Andorra, the professional with international projection has, at the most, one person contracted under the labor regime.

c) The services provided by the professional with international projection are primarily intended for persons or entities not resident in the Principality of Andorra. This requirement is considered fulfilled as long as at least 85% of the services provided by the professional with international exposure are used in any other country or territory other than Andorra.

d) The holder of a residence permit for professionals with international exposure must deposit €50,000 unpaid to the Andorran Financial Authority (AFA) and €10,000 for each person additional to their charge. It must meet certain requirements in terms of qualification and professional experience and it must demonstrate the economic viability of its project.

The amounts deposited as a guarantee with the AFA are returned in case of non-renewal of the residence permit.

Aleix Advocats will accompany you in all the necessary procedures:

• Application for foreign investment authorization.
• Setting up a company with international activity.
• Opening a bank account in Andorra, to justify that you have experience in the activity you want to develop from Andorra with invoicing abroad.
• Obtaining the necessary certificates to justify that you have sufficient income to live in Andorra.

To certify that you have made all the necessary security deposits with the Andorran Financial Authority, to seek and certify insurance that covers you for illness, disability, and retirement in Andorra, to seek and justify that you have accommodation in Andorra and finally to apply for a residence permit without work.

This type of residence permit in Andorra is for people who enjoy international recognition for their talent in the world of science, culture or sport. They must establish their main and effective residence in Andorra for at least 90 days a year.

These people can continue to develop their professional activity if the main beneficiaries of this activity are natural or legal persons who do not reside in the Principality of Andorra. (85% of the services must be provided in other countries.)

These people must justify that their activity, in one of the aforementioned sectors, allows them to live with their families in Andorra without having to work for the duration of the authorization.

The holder of a residence permit for reasons of scientific, cultural or sporting interest must deposit €47,500 unpaid to the Andorran Financial Authority (AFA) and an additional €9.500 per person in their unpaid charge. The amounts deposited as a guarantee with the AFA are returned in case of non-renewal of the residence permit.

Aleix Lawyers can help you in all the necessary steps to apply for your residence for reasons of scientific, cultural or sporting interest in Andorra, and in particular to justify your quality as a person recognized in these fields at an international level:

• For opening a bank account in Andorra.
• To obtain the necessary certificates to justify that you have sufficient income to live in Andorra without the need to work.
• To certify that you have made all the necessary guarantee deposits with the Andorran Financial Authority, to seek and certify that you have taken out insurance that covers you for illness, disability, and retirement in Andorra, to search and justify that you have accommodation in Andorra and finally to request residence authorization for reasons of scientific, cultural or sporting interest.