Residence by Investment in Andorra

The Principality of Andorra is one of the smallest countries in Europe with a population of less than 100,000 people. Most foreigners get to know the country in winter: it is one of the best ski resorts in the Pyrenees. They move here not only for the beautiful nature: Andorra has a high standard of living, good education and medicine. In addition, tax residency in a tiny state promises considerable benefits. The terms of immigration program do not compel you to spend all year in Andorra. Obtaining a local residence permit allows you to become a "citizen of the world" and enjoy a favorable tax regime.

Program Features

• €400,000 of minimum capital
• Returnable and potentially profitable investments
• About 2 months for residence permit registration
• Stay in the country from 90 days a year
• You can get passive income
• Residence for the whole family
• Travelling without visa to Spain, France and Portugal
• Low taxes for residents and businesses

 About the Program

Andorra grants a residence permit without the right to work (passive residence) to wealthy foreigners who invest capital in the country. The program is regulated by the immigration law, the latest version of which was adopted in 2019. The investment program is in demand among Spaniards and French who become residents of the Principality and enjoy the local favorable tax regime. Get a residence permit in Andorra can also come from "third" countries.

The main condition is to invest at least €400,000 in the country. €350,000 can be invested in real estate, securities, business or left on an interest-free deposit. The other €50,000 can be put in a bank as a guarantee of solvency. The amount must be saved for the entire period of validity of the residence permit.

Officially, holders of a residence permit must spend at least 90 days a year in the country. Tax residency is optional for those who stay in the Principality for less than 183 days a year. Many people apply for a residence permit for this purpose, because Andorra's tax regime is considered one of the most profitable in Europe. For example, the income tax rate for individuals:

• 0% - for income up to €24,000 per year,
• 5% - up to €40,000,
• 10% - in all other cases.

The first residence permit is issued for a period of 2 years, then it can be extended for 2 years, then for another 3 years. After 7 years of residence, a 10-year extension is available (in fact, a 10-year card is a permanent residence permit, although the law does not specify this concept). The next step may be to obtain citizenship by naturalization. It is obtained after 17 years of residence in the country, with the mandatory refusal of the first passport.

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Requirements for Investors

• No criminal record.
• Pass a medical examination and have health insurance.
• Prove that there is a sufficient level of income. The investor's income should be at least 3 times higher than the average level in the country, and his family members should have at least the average. The established average income of Andorrans is about €1,000 per month, so the amount for the main applicant should be about €36,000 per year, and for each relative – €12,000 per year.
• Have an official address in Andorra (property owned or leased).

 Documents

The list of ducuments for the main applicant:

1. ID.
2. Certificate of no criminal record from each country of residence for the past 10 years.
3. A photo 35x45 mm.
4. A rental agreement or agreement of intent to purchase, a copy.
5. An extract from the Civil Registry office about your marital status (duplicative certificate).
6. An insurance policy issued by a local insurance company.
7. A bank certificate confirming the required level of income.
8. A copy of the passport: the first page and the page with registration for the last 5 years.
9. A list of places of employment with the position, name and address of companies for the past 5 years. This can be a work record or letters of recommendation from your workplace.
10. Statutory documents of companies owned by the applicant (more than 25% of shares) or controlled by him (if he is an official representative in them).
11. Tax returns for the last five years, copies.

 The list of documents for children of the applicant:

1. Original foreign passports.
2. Birth certificates. You must request a duplicative certificate since the migration service takes it away.
3. Vaccination certificates. The child must be vaccinated by age in accordance with international standards (vaccination calendar).
4. The certificate from the school indicating the calendar and academic years, for example, first grade - 2016-2017.
5. Medical certificates from the therapist about the general state of health.

The certificates are valid for 3 months. All foreign-language documents must be translated into Spanish or Catalan by an official translator with an apostille. If the translation is legalized at the Spanish Consulate or at a local authorized translator in Andorra, apostille is not required.

Rights and Obligations

The owner of a passive residence has the right to live in Andorra all year round, but they must spend 90 days a year in the country. In practice, it is extremely difficult to check exactly how long a foreigner was in Andorra, because there is no border control with neighboring countries.

Obtaining this status does not automatically change your tax residence, if you spend less than 183 days a year in the country. At the same time, you can declare the center of vital interests in Andorra and use the local tax regime. There is no tax on wealth, capital gains, dividends, inheritance; the income tax rate is 10%.

Holders of a passive residence permit in Andorra do not have the right for hired labor. However, it is possible to receive passive income, for example, from real estate rentals or dividends from business activities.

Andorra has no airports or access to the sea. You can only enter the country from the territory of France or Spain. Therefore, although the Principality is not a member of the Schengen area and the European Union, its residents are facilitated to move around Europe. You can visit France, Spain and Portugal without visa.

The investment residence permit is renewable: it can be extended an unlimited number of times, as long as the basis is preserved. In 17 years after receiving the first permit, you can request citizenship by naturalization, but you will have to give up your first passport.

 The whole procedure of obtaining residence permit in Andorra takes up to 6 months.

Photos: pixabay.com

Quoting conditions of Prian.info materials