Foreign investment in Andorra has become a growing trend in recent years. More and more entrepreneurs, content creators, and companies have decided to settle in the Principality. And what is the amount to make a foreign investment in Andorra?
How do you make a foreign investment in Andorra?
Andorra is a country of opportunities, and nowadays, it is possible to invest in different areas to obtain the corresponding residence permit in the country. The Principality is famous for its low taxation, which includes corporate tax and IGI (Andorran VAT). On the other hand, it has an excellent health system and three educational models (Andorran, Spanish, and French). This makes it a perfect country to settle down with the whole family.
To make a foreign investment in Andorra and to be able to process the residence permit, it is necessary to perform any of these actions:
- Opening a bank account. Investing by opening an account in any of the Andorran banks is possible. However, it is necessary to maintain a stable capital in the territory.
- Open an investment account. Another alternative is to open a bank account, but this time, investing. In the Andorran entities, it is possible to find different financial products to invest in different risk levels.
- Setting up a business in Andorra. Another alternative is to set up your own business in the Principality. To do so, you use equity capital that must create wealth in the country. That is to say, you must offer services and/or products to nationals but also stimulate Andorran trade and, of course, create labor.
- Buying shares. Foreign investment in Andorra can also be constituted by purchasing shares of a company in the Principality.
- Buying debt bonds of a company. In addition to shares to form part of the share capital, buying debt bonds of an Andorran company is also possible. These bonds offer an inevitable return.
- Acquiring government bills and bonds. If you want to hold fixed-income products, purchasing them directly from the government is a good alternative.
The last alternative to make a foreign investment in Andorra is purchasing real estate. However, a measure suspending the purchase of housing by foreigners was recently published in the BOPA. Although this is a temporary measure aimed at alleviating the shortage of rentals in the Principality, it is not known when permits to invest in Andorra through the purchase of a home will be processed again.
The price of foreign investment in Andorra
Until recently, the amount to invest in the Principality was 400,000 euros. However, the Principality has decided to tighten the measures to acquire the residence, thus requesting from potential investors the amount of 600,000 euros. That is to say, you can invest in any of the items we have pointed out above, but the amount to be paid must be 600,000 euros. You can buy bonds and assets for this amount or open a current account where this capital is kept.
The amendments made to the Principality’s Immigration Law 9/2012 are the ones that have raised the amount of the deposits if you want to obtain a residence permit. Let us recall that this amount is required for persons wishing to apply for active self-employed residence (opening a company or business) and passive residence. The latter is intended for citizens who do not carry out any lucrative activity.
On the other hand, persons wishing to take up active residence on their own account by setting up a company must also make a non-interest-bearing deposit with the Andorran Financial Authority (AFA). This amount amounts to 50,000 euros until a few years ago, only 15,000 euros.
In the case of people who want to apply for the passive non-profit residence, that is, people who want to move to the Principality but not to work, must also make the corresponding investment. It should be noted that if you want to make a foreign investment in Andorra to acquire a passive residence and invest in the housing fund promoted by the Principality, the amount remains at 400,000 euros.
From MCA Assessors, we invite you to contact us if you want to move to the Principality and obtain the corresponding active or passive residence permit. We will advise you and accompany you throughout the procedure so that you can meet the requirements and cover all the steps to follow. For example, we can help you with the opening of a bank account in the Principality, an essential requirement whether you want to set up a business in the Principality, work as an employee, or simply settle in the Pyrenees and enjoy your retirement. At MCA Assessors, we are experts in foreign investment in Andorra.
