More and more people are betting on live in the Principality. To do this, it is necessary to have residence in Andorra, through a permit. Contact MCA Assessors to handle this process, which can be complex. It is important to meet a series of requirements so that the permit resolution is satisfactory.
Residency options in Andorra
If you want to obtain residency in Andorra, we tell you that there are two different types and it is important not to confuse them. Each one has its basic requirements and special conditions to qualify for one or the other. This is how we find active residence and passive residence. On the other hand, we must tell you that there is also another type of permit that is granted to people who are of scientific, cultural or sporting interest.
Within the types of residence in Andorra, we find that there is an active tax residence. This is intended for people who work in the Principality or who have a business project to develop in the country. On the other hand, passive residence is for those who, without working in the Principality, want to invest in it and reside in its territory. Even people who want to retire can take advantage of this type of residence in Andorra.
All about active residence
Active residence is granted to people who work in Andorra. There are two ways to obtain this type of residence permit: exercising a professional activity in the Andorran territory or creating a company. In the first case, you must have a job offer from an Andorran company. If you want to create a company or have a project to develop in the Principality, you can obtain this active residence.
In the latter case, the business activity through a company must meet certain conditions:
- You must have at least one employee.
- The headquarters of the society must be in one of the seven parishes into which the territory of the Principality is divided.
- A percentage of the production of goods or services must be dedicated to the foreign market. In some cases, this must be up to 85%.
If you want to benefit from an active Andorran residence, it will be necessary to make a deposit of at least 15,000 euros with the Andorran Financial Authority. If the authorization is not renewed in the future, this amount is returned. The procedures, in case of accrediting the performance of a professional activity (through an employment contract) or the creation of a company, are carried out before the Ministry of the Interior. The following conditions must be met:
- Reside, at least, 183 days a year in Andorra.
- Be at least 18 years old.
- Submit a criminal record certificate.
- Have a work contract or promise from an Andorran company.
- Create a company and own more than 10% of its shares.
- Undergo a medical evaluation.
- Establish tax domicile in Andorra.
Residence in Andorra for investors or passive residence
People who do not work in the Principality can benefit from passive residence, but must also meet a series of requirements and conditions. In this case you must provide:
- Criminal record certificate.
- Valid passport and certificate of civil status.
- Certificate of illness, disability or retirement.
- If you are over 60 years old, then it is necessary to provide a health insurance certificate.
- Prove withsufficient means. These must be greater than 300% of the country’s minimum wage.
- Reside 90 days a year in Andorra.
- Deposit more than 47,500 euros with the Andorran Financial Authority, plus a deposit of 9,500 euros per dependent.
- Submit to a medical evaluation.
- Invest in Andorran assets worth 600,000 euros and can be done through shares or the purchase of a property.
On the other hand, it is important to highlight that passive residence, in turn, is divided into three different categories. This is how you can find people who live in the Principality without having a professional activity(category A); to people who have an income generated by an international activity and not an activity within the Andorran territory (category B) and, finally, the type C passive residence permit. >. This is granted to people of cultural, scientific or sporting interest.
Why obtain residency in Andorra?
Andorra has a geographical location nestled in the Pyrenees, which gives it beauty, in an unsurpassed natural environment. But in addition, the Principality is becoming an attraction for digital nomads, entrepreneurs in the communications and new technologies sector, but it is also one of the preferred destinations of the retirees. The country is famous for its low taxation. You should know that, for example, the general VAT in Andorra (IGI) is 4.5% compared to the 21% paid in Spain. The IRPF for example, will never be higher than 10% and is paid based on the incomeobtained. There is even a 0% personal income tax!
On the other hand, the Andorran healthcare system, both public and private, is of high quality and has highly prestigious doctors. The lack of crime and criminality is another of the attractions of the Principality.
