Residency in andorra

Residency in Andorra:

 

Living in the Principality of Andorra

One of the main attractions of foreign investors interested in living in Andorra, and/or in moving their business activity, by creating a company in Andorra, is the economic and fiscal prospect of the Principality of Andorra.

The country offers a low tax rate for companies and individuals who are tax residents in the Principality of Andorra, thus promoting entrepreneurship and the creation of businesses in Andorra or companies with international activities.

There are also people who decide to live in Andorra because of its natural environment, its tranquility, its security and the balance that the Principality offers between an urban and mountain lifestyle.

There are important communities of French, Spanish, Portuguese and English in Andorra that lives in Andorra in good harmony. The Spanish Embassy in Andorra, the French Embassy in Andorra and the Portuguese Consulate in Andorra are very active for their nationals who come to live in Andorra.

Services of Aleix Lawyers for Expatriation in Andorra or having residency in Andorra

Aleix Advocats advises people interested in coming to establish their residency in Andorra in the different stages of their expatriation.

We prepare all the necessary procedures to obtain the residency permit in the Principality of Andorra, proposing the category of residence most appropriate to the personal and/or business profile of each costumer.

Our law firm in Andorra manages the requests for the necessary documents to be presented to the authorities in order to obtain the active residency card and/or work permit, or the passive residency card, the registration of vehicles, the bank accounts opening and the creation of companies in Andorra.

Our office also has a network of reliable collaborators in the real estate sector in Andorra who will allow you to find an opportunity adapted to your needs for the selection of housing in Andorra, whether it be for sale or for rent, and will be able to advise you when signing promise-of-sale contracts or rental contracts.

Thanks to insurance brokers in Andorra with whom we can get in touch, you could alsobenefit from the best offers in life insurance contracts, disease and/or disability. It should be noted that some of these insurances are obligatory when applying for passive residence in Andorra or for other types of residence permits for immigration in Andorra.

Residence permit in Andorra for working and expatriation: the different options

The new Andorran legislation applicable for immigration in Andorra provides new kinds of residence permits in Andorra in order to increase the attractiveness of the Principality as a place to live and expatriate.

Traditionally, there were two types of residence permits in Andorra:

On the one hand, active residence permits (residence and work authorisations): these are immigration permits for individuals who want to carry out a waged or unwaged professional activity in Andorra, whether employed or not.

On the other hand, passive residence permits (residence with no gainful activity): these are permits designed for individuals who do not want to carry out a professional activity in Andorra.

The old legislation also provided for situations of mixed immigration permits, aimed at students and those working in research.

In June 2018, the Law 10/2018 of 17 May was published, which introduced various relevant innovations in the immigration authorisations in the Principality of Andorra.

Active residence

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:

– 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.

– To be the manager of the incorporated Andorran company.

– 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.

– Deposit 15.000 €, unremunerated, at the Andorran Financial Authority (AFA) – formerly called Andorran National Institute of Finance (INAF). In the event that the holder of the immigration authorisation is deregistered

Aleix Advocats will accompany you through all the necessary procedures to obtain the active residence permit, and therefore for the previous request of the authorisation of foreign investment, the incorporation of a company in Andorra, the opening of the company bank account, the obtaining of a tax number, the registration of the company’s business activity and finally the application for active residence permit, that is the residence for self-employed in Andorra, as well for the holder of the authorisation than for the members for his family.

Passive residence

Residence with no gainful activity

Anyone who wishes to apply for passive residency permit in Andorra must fix their main residence in Andorra and effectively live here for at least 90 days per year.

The holders of a passive residence permit cannot carry out any professional activity inside Andorra. However, they can, carry out any activities necessary to manage their assets, specifically as manager of any Andorran company in which they hold the equivalent of, or more than 50% of the shares, if the position is unpaid.

Anyone wishing to be a passive resident in Andorra, that is without a remunerated work, on the one hand, must invest permanently and effectively an amount of at least 400,000€ in Andorran assets: unmovable assets, shares in the capital of Andorran companies, debt or financial instruments issued by resident entities or Andorran public administrations, insurance products, among others.

On the other hand, they must deposit an amount of 50.000 €, non remunerated, before the Andorran Financial Authority (AFA) and 10.000 €, non-remunerated, for each person in charge of the investor who comes to live in Andorra.

These amounts are deducted of the amount of 400.000 € invested in Andorran assets.

They must also subscribe a private insurance and justify a certain level of income to obtain the passive residency permit.

The amounts deposited as a guarantee before AFA are returned in the event of non-renewal of the passive residence permit.

Aleix Advocats will accompany you through all the necessary procedures to open a bank account in Andorra, to obtain all the necessary certificates to justify that you have sufficient income to live in Andorra without a gainful activity in Andorra, to prove that you have made all the necessary guarantee deposits before the Andorran Financial Authority, to justify that you have made or will make the required investment in Andorran assets within six months, since the passive residence application; to look for and prove that you have subscribed an insurance policy that covers the illness, disability and retirement in Andorra; to look for and prove that you have an accommodation in Andorra and finally to apply for the passive residence authorisation in or residence without gainful activity permit.

The concept of the professional with international scope

This kind of residence is aimed at individuals who do not have Andorran nationality and are willing to establish their residence in Andorra for at least 90 days a year, in order to carry out an activity on the following terms:

– The registered office or centre of the professional activity must be located in Andorra.

– In the development of his professional activity, the professional with international scope must have one employee maximum in the Principality of Andorra;

– The services provided by the professional must be aimed principally at non-resident individuals or legal persons located abroad. This requirement is accomplished when at least 85% of the services provided by the professional with international scope are for other countries or territories different from Andorra.

– The holder of a residence permit for professionals with international scope must deposit 50,000€, non remunerated, at the Andorran Financial Authority (AFA) and another 10,000€, non remunerated, for each of the familiars on his charge.

– The holder of a residence permit for professionals with international scope must has to accomplish some qualification and career requirements and has also to justify the economical viability of his project.

The amounts deposited in guarantee at the AFA are returned if the residence permit is not renewed.

Aleix Advocats will accompany you through all the necessary procedures to apply for the authorisation of foreign investment, to set up a company with international activity, to open a bank account in Andorra, to justify that you have experience in the activity that you want to develop from Andorra to the outside, to obtain all the necessary certificates to justify that you have sufficient income to live in Andorra, to prove that you have made all the necessary guarantee deposits before the Andorran Financial Authority, to look for and prove that you have subscribed an insurance policy that covers the illness, disability and retirement in Andorra; to look for and prove that you have an accommodation in Andorra and finally to apply for the authorisation opened to professionals with international scope.

The concept of residence on the grounds of scientific, cultural and sporting interest

This type of residence permit in Andorra is aimed at persons with international prestige in the fields of science, culture or sport.

They must fix their main and effective residence in Andorra for at least 90 days a year.

They can continue to carry out their professional activities if these are mostly intended to non-residents individuals or legal persons. (85% of the services must be used outside of Andorra).

They must prove that their activity in one of the above-mentioned sectors enables them to support themselves and their family in Andorra without a gainful activity in Andorra, for as long as the permit lasts.

The holder of the residence permit on the grounds of scientific, cultural or sporting interest must deposit 50,000€, no remunerated, at the Andorran Financial Authority (AFA) and another 10,000€, non remunerated, for each of the members of family in his charge.

The amounts deposited in guarantee at the AFA are returned if the residence permit is not renewed.

Aleix Advocats can help you with all the formalities needed to apply for you the residence in Andorra on the grounds of scientific, cultural and sporting interest and, in particular, to justify that you are a person with international prestige in those grounds, to open a bank account in Andorra, to obtain all the necessary certificates to justify that you have sufficient income to live in Andorra without a gainful activity in Andorra, to prove that you have made all the necessary guarantee deposits before the Andorran Financial Authority, to look for and prove that you have subscribed an insurance policy that covers the illness, disability and retirement in Andorra; to look for and prove that you have an accommodation in Andorra and finally to apply for the authorisation of residence on the grounds of scientific, cultural and sporting interest.