Residence in Andorra: living in a unique destination
In recent years, Andorra has become a highly solicited destination for citizens of many different countries who have decided to move to this country nestled in the Pyrenees Mountains.
Many are the attractions of the Principality of Andorra: safety, its magnificent nature, the high quality of life, the wide array of leisure and recreation activities, its benchmark educational and healthcare systems, its highly competitive tax system for both individuals and companies, and finally, its location: Andorra is just three hours away by car or half an hour away by helicopter from cosmopolitan cities such as Barcelona and Toulouse.
Residing in Andorra: new legislation, more facilities.
Passive residence in Andorra: residence without gainful employment or tax residence
The new immigration legislation has gone from speaking of passive residency to speaking of resident permits without work, distinguishing 2 different models:
- Residence permits for internationally acclaimed professionals.
- Residence permits for reasons of scientific, cultural and sports interest
In general terms, the non-lucrative residence in Andorra models (passive or residency without work in Andorra) have been designed for physical persons who are not from Andorra and who set up their main residence here for all purposes, with a minimum presence in the country of 90 days per year. These permits are granted for a period of 1 year and can be renewed upon expiry for the following successive periods: 3 years + 3 years + 10 years (a special treaty applies to Spanish, Portuguese and French nationals).
These permits require the following documentation and processes:
- Impeccable police report with no criminal record.
- Passport and marriage certificate.
- Bank certificate accrediting the required deposit of €50,000 in the INAF (Andorran National Finance Agency), with an additional deposit of €10,000 per dependent.
- The original sale or rental contracts corresponding to a property in Andorra.
- Proof of insurance covering disability, illness and retirement (if the person is over age 60, he/she will only need to present proof of health insurance).
- They must pass a medical examination carried out by the medical department of the Andorran Immigration Agency.
- Proof of economic solvency: display proof of income greater than 300% of the minimum wage in Andorra (plus an additional 100% for each dependent).
- Applicants must invest €400,000 in Andorra. As part of the application process, this investment can be made in real estate in Andorra; it can be a bank deposit, an investment in an Andorran company; or it can take the form of an interest-free deposit in the INAF (Andorran National Finance Agency). This last requirement is not a necessary for applicants who are currently active in sports, art or research and development.
For non-lucrative residence permits for internationally acclaimed professionals or for applicants of scientific, cultural or sports interest, the applicants must also meet the following requirements:
- The base from which the person carries out his/her distinguished activity must be established in the Principality of Andorra.
- The applicant must have at least one employee with an official work contract.
- At least 85% of the professional activities must be carried out outside of Andorra.
- The applicant must present a business plan for direct evaluation and approval by the Government of the Principality of Andorra.
Active residency in Andorra: residency with a work permit.
Far more restrictive than the non-lucrative residency model, the residence permit with work in Andorra, known as “active residency” is applicable to all foreign people who work in Andorra. For these purposes, the company in Andorra who hires a foreigner must process the residence permit with the Andorran Ministry of the Interior.
The residence and work permits in Andorra are subject to assigned quotas which vary depending on the task to be undertaken. Renewals also vary, depending on the nationality of the applicants.
Active or passive residency in Andorra: countless advantages.
All the holders of residence permits in Andorra, both passive and active, acquire rights such as:
- Family reunification.
- Registration of vehicles, aircrafts and boats in Andorra.
- Property acquisition in Andorra.
- Official recognition of the driving licence with the Andorran equivalent.
- They may open nominated bank accounts.
- They may undertake unlimited financial transactions.
- They can be the holders of investments and /or businesses in Andorra.
If you are thinking about taking up residence in Andorra, at Andorra Sotheby’s International Realty, whether it is buying or selling a property, we can help you with all the necessary procedures and provide you with the appropriate information according to your type of residency: active or passive. We have a department of specialised experts who will advise you and walk you through all the necessary documentation and formalities to set up your residence in Andorra.