Right now, there are three distinct types of passive residency in Andorra. You may be applicable for one of the three or even all three. Each comes with its own set of requirements that need to be met. In all cases you will need proof of private medical insurance. Without this proof, you cannot properly fulfill the standard immigration prerequisites laid out by the Andorran government.
Additionally, each may boast its own unique benefits. Let’s take a look at what type of passive residency Andorra currently offers.
Residency Without Lucrative Activity
Okay, the name is long and intimidating, but residency without lucrative activity is 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 €400,000, including the €50,000 with the government.
Even once you obtain this visa, you are not yet considered a true tax resident. You need to spend at least 90 full calendar days per year in the country. If you spend 183 days or more in the country, you will become a fiscal resident and will be liable for income tax. Additionally, you will need to meet that standard of earning 300% the minimum Andorra salary mentioned above.
Once you do apply 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 do prefer to rent, you can invest through many other mediums. Ways in which you can reach the €400,000 investment threshold include:
Shares in Andorran companies
Investments in the property market
As mentioned above, the government does not care so much about how you invest, so long as you meet those prerequisites for residency without lucrative activity.
Professionals in International Business
“Type II” residency is geared towards any individual who does business abroad. With this type of passive residency, interested applicants are required to formally create 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 and all required documents. You must have experience with the business you are planning to create.
Most people prove business acumen and experience by submitting a resume. 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 7-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.
Achievement Based Residency: Accredited Athletes, Scientists, and Artists
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 €50,000 government bond.
With that said, you cannot just claim to be something you’re not. Approval of your application will be contingent upon proper documentation of your achievements. Here is what you must provide to the government:
Documents proving success within your field, notable achievements, and overall qualifications.
A detailed income report.
Awards and accreditation within your field or practice.
Reputable recommendations from fellow peers.
Only once you prove your status in your field will you qualify for this type of passive residency.