Aunque la mayor parte de sus ingresos personales o actividades económicas se realicen fuera de Andorra, puede beneficiarse de la residencia pasiva. Esto permite que cualquier individuo ahorre impuestos y mantenga un estilo de vida cómodo al mismo tiempo.

You’re probably wondering whether you can become a citizen once you secure a passive residency permit. You can, but not right away. Each permit is granted for two years. After that, it is renewed for another two years, then a further three years and then ten more years. Once you have reached twenty years of residency, you can apply for citizenship.

Confused? Don’t be—we’re here to help. Read on as we break down the different types of passive residency in Andorra and walk you through the application process.

Condiciones para obtener la residencia pasiva

Obtener la residencia en Andorra es relativamente sencillo, pero tiene sus peculiaridades. Antes de obtener un permiso de residencia, deberá cumplir una lista de condiciones. Esto incluye:

Criminal background check: Before becoming a resident, you’ll be required to present proof of a clean criminal record via police certificates from your country of origin.

Proof of income and health insurance: You will need to provide proof of a steady source of income and some form of private health insurance. Your personal income level must be no less than 300% of the average minimum salary for an Andorran resident. If you plan on moving with a family, the same rules apply to each family member. However, for them the rate is 100%.

Government bond deposit: To obtain passive residency you will need to make a mandatory investment of €47,500 into a government bond.

Age requirement: Applicants must be over 18 years of age.

Proof of accommodation: Your residency application needs to be backed by proof of accommodation. This could be a rental property or a home you've purchased.

There are many more caveats involved in ensuring the success of your application. It’s also worth mentioning that your application needs to be in Catalan. Of course, we can assist you with this, along with any other hoops that you’ll have to jump through.

Tipos de residencia pasiva en Andorra

Right now, there are three distinct routes you can take to gain passive residency in Andorra. You may be eligible for one of them or even all three. Each comes with its own set of requirements that need to be met, however in all cases you will need proof of private medical insurance. Without this, you cannot properly fulfill the standard immigration prerequisites laid out by the Andorran government.

Each of the three options has its own unique benefits. Let’s take a look at the types of passive residency Andorra currently offers.

Residencia sin actividad lucrativa

Okay, the name is long and intimidating, but residency without lucrative activity is actually pretty straightforward. Essentially, this is what is known in Andorra as “Type 1” residency. To obtain this type of residency, individuals will need to make a total investment of €600,000. (This includes the €50,000 government bond deposit mentioned above.)

Even once you obtain this visa, you are not yet considered a true tax resident. You need to spend at least 90 full days per calendar year in the country. (If you spend 183 days or more here, you will become a fiscal resident and will be liable for income tax.) As we mentioned earlier, you cannot earn less than 300% of the minimum Andorra salary.

Once you've applied for residency, you will have a 7-month window to prove your investment to the country and get all of your proverbial ducks in a row.

Investments do include property or real estate, but if you prefer to rent you can invest through various other means. Ways in which you can reach the €600,000 investment threshold include:

Cuentas de inversión

Acciones de sociedades andorranas

Inversiones en el mercado inmobiliario

Bonos públicos

Remember, the government does not care so much about how you invest, so long as you meet their prerequisites for residency without lucrative activity.

Profesionales del Comercio Internacional

“Type II” residency is geared towards any individual who does business abroad. With this type of passive residency, interested applicants are required to form an Andorran company. This is in addition to the government bond listed above. Once your Andorran company is formed, you will need to spend at least 90 days within the country each year and conduct 85% of business outside of the country.

Your company will be subject to Andorra’s corporate tax rate of 10%. In the process of applying for this type of residency, you will need to submit a proper 3-year business plan along with all required documents. You must also show that you have experience with the type of business you are planning to create.

Most people prove business acumen and experience by submitting a resumé, but it is also useful to collect several references that relate to the business you are trying to create. Once the government approves your business plan and company, you will have seven months to bring that company to fruition. Making sure you have all of your bases covered prior to the 7-month threshold is key here.

Residencia basada en logros: atletas, científicos y artistas acreditados

The third and final type is based on international accreditation. It is geared towards individuals who are professional athletes, performers, scientists, artists or anyone who has a high status as an individual. Bear in mind that to qualify, 85% of your work must happen outside of Andorra’s borders. There is not currently a requirement for investment for this type of residency outside of the €47,500 government bond.

Dicho esto, no puede pretender ser algo que no es. La aprobación de su solicitud dependerá de la documentación adecuada de sus logros. Esto es lo que debe proporcionar al gobierno:

Documents proving success within your field, notable achievements and overall qualifications

A detailed income report

Awards and accreditation within your field or practice

Recommendations from reputable peers

Solo una vez que haya demostrado su estado en su campo, puede beneficiarse de este tipo de residencia pasiva.

Prueba de seguro

Anyone who wants to apply for a passive residency will need to hold three types of insurance. You will also need to prove your current enrollment. Failure to hold insurance will result in your application being rejected.

Los tres tipos de seguros que necesitará tener son:

Incapacidad

Médico

Vejez

Depending on what country you’re from, you are probably only familiar with health insurance. That means you probably don’t hold incapacity or old age insurance. We can absolutely assist with arranging this. To give you an idea of price, local insurance companies will charge around €1,250/year for all three types of coverage.

Diferencias entre Residencia Pasiva y Residencia Activa

Andorra also offers active residency to prospective residents. The path to each is quite different, as are the benefits. So, what separates active and passive residency? Well, it all starts with how often you plan on staying in the country. Active residency is reserved for individuals who want to live and work here year-round.

Por otro lado, la residencia pasiva está reservada para personas que vayan a pasar 183 días o menos en Andorra. La mayoría de las veces, los residentes pasivos solo pasan alrededor de 90 días al año viviendo y trabajando en el país.

Those who hold active residency will also have to fulfill and meet certain duties at all times. Passive residents are not required to uphold such duties. What must one do as an active resident? Let’s break it down below.

Los deberes incluyen:

Being enrolled in CASS, Andorra's healthcare and social security system

Poseer un permiso de inmigración en todo momento.

Notifying the government of any changes to marital status, address or dependents

As a passive resident, you will not need to partake in these duties. Passive residency is ideal for self-employed individuals and entrepreneurs who want to live here. If you want to live and work in Andorra full time, opt for active residency so that you can take advantage of the myriad of benefits. You’ll know exactly what type of residency works best for you based on how much time you plan on spending in the country.

Adquirir la ciudadanía andorrana

Becoming an official citizen of Andorra is not easy. As an adult you have two options: naturalisation or marriage. The former requires that you’ve resided in the country for over twenty years and the latter at least three.

This duration is reduced to ten years for children who have completed their studies in Andorra's school system. If a child is born in Andorra, they're eligible for citizenship immediately if one or both parents are citizens or have been living here legally for at least ten years. Children born abroad to Andorran parents are also eligible (even if only one of the parents is Andorran.)

¿Cómo es la vida en Andorra?

Despite its small size, Andorra will never cease to amaze you. Expect to see a casual blend of rural and urban—there will be days when you spot cattle and cutting edge sports cars on the same street. The property market is diverse; everything from small studio apartments to large chalets are up for grabs. First class banking, exceptional healthcare and education, an excellent tax system and duty-free living are some of the main advantages of living here.

Because it’s nestled in the Pyrenees, you can make the most of every season with an array of outdoor activities, such as hiking, mountain biking and skiing. For those who enjoy late nights, you’ll be happy to know that Andorra does have a nightlife culture if you know where to look. It also enjoys a thriving après-ski scene.

The possibilities are endless. It’s a great place to set up a base and call home.

¿Necesita más información?

One thing to consider when applying for passive residency is any additional documentation that may be necessary. Certain EU countries do require extra documentation in order to apply. These countries include Poland, Bulgaria, Czech Republic, Latvia and Romania. Failure to provide extra information can make the process more difficult or even prevent you from obtaining residency entirely. Of course, we’d love to help make this part of the process easy for you.

¿Necesita más información? ¡Póngase en contacto con nosotros hoy mismo! ¡Nuestro objetivo es ayudarle a agilizar los trámites para su nueva vida en Andorra!

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