Living in the Principality of Andorra

Nestled in the Pyrenees between France and Spain, at the northern Iberian Peninsula, Andorra is a sovereign, micro independent state. It is one of the smallest countries in the world, with an area of 468km².

 

Characterised by a strong financial system, public safety, unparalleled privacy, and low taxation, Andorra is recognised as a unique natural environment. Its citizens, who benefit from all this great country has to offer, are right up there among the top countries with the highest life expectancy (84.2 years according to the WHO).

Living in Andorra

Living in Andorra: How Is It Possible for Expats?

 

It is no wonder that many foreigners want to call Andorra home. A very safe country, with stringent immigration control and an entry fee system, means that petty, organised, and major crime is virtually non-existent. Social benefits are also very controlled and regulated.

 

One of the newer avenues to gaining residency, in place since July 2012, allows foreigners to own 100% of the capital of an Andorran company and be the Director or CEO. Llei 10/2012, del 21 de juny, d’inversió estrangera al Principat d’Andorra.

 

Do note, this is subject to obtaining an authorisation from the Government of Andorra that verifies the identity and origin of the investor as well as the interest of the project. The usual response time is 30 days after submitting your application.

With a new economic openness, the country’s goal is to attract and encourage foreign investment. Foreign business owners are attracted to the advantageous tax system and social benefits, in addition to Andorra’s solid banking system and excellent quality of life.

 

New measures, including the following, allow the country to focus on enabling business owners to operate within the Principality and employ people in Andorra.

 

On October 2013, a modification of the law concerning the immigration was published (Decret legislatiu del 26-03-2014 de publicació del text refós de la Llei 9/2012, del 31 de maig, de modificació de la Llei qualificada d’immigració). The two most significant changes are:

 

  1. The creation of a new type of authorisation called “per compte propi” (self-employed) for investors who operate their businesses within the Principality.
  2. The modification of the previous permit of passive residence, which provides different modalities (rentiers, international business owners, athletes, scientists etc.)
Living in Andorra

Also, with the aim of standardising the country internationally, the Principality of Andorra has launched a taxation system for companies (Llei 95/2010, del 29 de desembre, de l’impost de societats – Llei 17/2011, de l’1 de desembre, de modificació de la Llei 95/2010, del 29 de desembre, de l’impost de societats) and for individuals (Llei 5/2014, del 24 d’abril, de l’impost sobre la renda de les persones físiques).