The Principality of Andorra, known for its breathtaking landscapes and pleasant living environment, offers expats the opportunity to establish themselves as passive residents. Unlike active residency, which generally requires a professional activity in the territory, passive residency in Andorra is subject to specific criteria and well-defined conditions for allocation. In this article, we will explore in detail the different passive residency statuses in Andorra, as well as the technical, legal and financial conditions associated with each.

The Different Passive Residency Statuses in Andorra

In Andorra, residents without a work permit and without an entrepreneurial project can obtain passive residency status, classified into three distinct categories:

1. Passive Resident without gainful activity: This status is reserved for individuals residing in Andorra without carrying out any professional activity. Pensioners and annuitants are the main beneficiaries of this status.

2. Passive Resident as a Self-Employed Person: This status is granted to individuals involved in international activities that do not generate local income. International consultants, investors, and online traders are some examples of profiles that qualify for this category.

3. Passive Resident for professionals with international exposure or scientific, cultural or sporting interest: This status is intended for internationally renowned personalities such as high-level athletes, researchers and artists.

Conditions and Procedures for obtaining

Each category of passive residence in Andorra involves specific conditions and distinct administrative procedures:

Passive resident status without gainful employment:

– Presentation of a clean criminal record, both in the country of origin and in the previous country of residence (if applicable).
– Valid passport and civil status certificate (birth certificate, marriage certificate, etc.).
– Health insurance certificate issued by the CASS (Andorran Social Security Fund) and the Andorran Immigration Authority. This insurance must cover the resident and any dependents.
– Medical examination carried out at the immigration medical service, attesting to the applicant’s good health.
– Bank certificate justifying the deposit of a deposit of €50,000 with the AFA, as well as €15,000 for each dependent family member. This deposit is refundable in the event of permanent departure from Andorran territory.
– Minimum financial investment of €600,000 in the Principality of Andorra, which may take the form of real estate or stakes in local companies. This investment must be maintained for the duration of the passive residence.

Passive residency status as a self-employed person:

The conditions are similar to those of Category A status, with the following exception: international professional activities must generate 85% of their income outside Andorra. It is therefore necessary to prove the nature and extent of the professional activities carried out abroad.

Passive residency status for professionals with international exposure or scientific, cultural or sporting interest:

The requirements are similar to Category A status, with additional criteria related to international recognition in sporting, artistic or scientific fields. Applicants must provide evidence of their achievements and international reputation.

Benefits & Insights

Living as a passive resident in Andorra offers a series of advantages both financially and personally:

1. Financial Stability: Passive residents enjoy financial stability and attractive taxation in Andorra. The country offers a maximum income tax rate of 10%, a corporate tax rate of 10%, and no wealth tax. In addition, passive residents enjoy a safe and secure environment, with a low crime rate.

2. Exceptional Quality of Life: The Principality of Andorra offers an idyllic living environment with easy access to nature, modern infrastructure and a rich culture. The country has well-known ski resorts, hiking trails, wellness centers, and many other leisure activities. Passive residents also benefit from a quality education and health system.

3. International Opportunities: Passive Category B residents can continue to develop their international business activities while enjoying the benefits offered by residency in Andorra. In addition, the country’s geographical location, between France and Spain, and its network of international tax treaties facilitate trade and travel.

4. Prestige and Recognition: Passive Category C residents can enjoy the prestige associated with their status and benefit from recognition of their achievements in their respective fields. Andorra offers a discreet and unspoilt living environment, appreciated by public figures.

In conclusion, passive residency in Andorra represents a unique opportunity for expats looking for a new life in an exceptional setting. Thanks to its different statuses and precise conditions for obtaining it, everyone can find the solution that best suits their needs and aspirations. The professionals at Clickand Gestoria, located in Andorra, are at your disposal to assist you in your procedures and provide you with detailed information on the legal and financial aspects related to passive residency in Andorra.

If you are planning to settle in Andorra and want to know more in order to settle in the best possible conditions, our business centre accompanies you from your country of origin and manages the entire administrative and tax procedure.

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Attracting more and more workers thanks to its exceptional living environment and attractive tax advantages, Andorra is positioned as a privileged destination for those looking for professional and personal fulfilment.

There are two types of residency that allow you to settle in Andorra: passive residency and active residency. The latter, which is particularly popular, offers many advantages and meets the aspirations of many professionals.

In this article, we decipher everything you need to know about active residency in Andorra: the conditions for obtaining it, the administrative procedures and the advantages that make this status a real key to living and working in the Principality.

What is active residency in Andorra?

Active residency in Andorra is an option that allows you to reside in the Principality and carry out an economic activity on your own account or as an employee in an Andorran company. It is aimed at talented international professionals who want to grow their careers while taking advantage of the tax advantages that the country has to offer. The quality of life in Andorra is particularly interesting and the residents are happy about it.

What are the requirements for active residency?

To obtain active residency in Andorra, it is necessary to meet certain conditions. First of all, you must prove that you have a professional activity or that you have set up a company in the Principality. You must also live in Andorra for at least 183 real days per year and have a place of residence.

In addition to these conditions, you must deposit in an Andorran bank a share capital of 3000 euros (in the case of the creation of an SL) and a certificate of criminal record free of any financial or money laundering offences. To complete the procedure, you must deposit the sum of 60,000 euros with the Financial Regulatory Authority (AFA), which is a mandatory deposit.

Read the article on the different types of companies in Andorra

How do I get the Andorran work permit?

To move to Andorra as an employee, you must provide proof of an employment contract of indefinite duration. This is what will allow you to apply for a visa. Various other documents will then be requested as part of the procedure, such as an extract from your criminal record, a civil status card with your family record book, the original and copy of the passport or identity document, proof of address and passport photos.

A foreigner who opens a business or simply a business in Andorra can also apply for a work permit, as can investors who own more than 10% of an already existing company. Self-employed individuals who administer and manage their own businesses will be able to apply for a work permit once the company becomes active. Thanks to the work permit, you will be able to access the Principality’s social security.

Permanent Employee Permit

The permanent employee permit is the most well-known work permit in Andorra. In fact, it is this authorisation that is most often granted by the Andorran authorities. In fact, it’s the first one you receive after completing all the paperwork. The permanent employee permit is valid for one year and must be renewed three times every two years. After these periods, renewal occurs less and less frequently, simply once every 10 years.

In short

Active residency in Andorra is an attractive option for talented international professionals who want to advance their careers while taking advantage of the tax advantages that the country has to offer. To obtain active residency, it is necessary to meet certain conditions, such as proving a professional activity or the creation of a company in the Principality, living in Andorra for at least 183 real days per year, having a place of residence and depositing a mandatory deposit of 60,000 euros with the AFA. To work legally in Andorra, it is also necessary to obtain a work permit by providing various documents, such as proof of an employment contract of indefinite duration and a clean criminal record extract. The permanent employee permit is the best known and most often granted by the Andorran authorities.

If you are a foreign investor who is planning to move to Andorra with your family, it is important to consider the country’s education system. Fortunately, Andorra has a unique and innovative education system that provides top-quality education to both local and international students. In this publication, we explore the Andorran education system in detail, from early childhood education to university, primary and middle school, high school and higher education options. Discover how the Andorran education system can provide your children with a quality education in a multicultural and stimulating environment.

Raising young children:

In Andorra, the education of young children is provided by a network of public and private nurseries and kindergartens. Children between the ages of 0 and 3 can attend nurseries, while children between the ages of 3 and 6 can attend kindergartens. Nurseries and kindergartens offer educational programs that promote children’s cognitive, emotional, and social development. The programs are designed to meet the individual needs of each child and to prepare children for primary school.

List of educational institutions for young children in Andorra:

• Crèche Les Petits Lutins
• Crèche Les Petits Poussins
• Les Petits Princes Kindergarten
• Little Explorers Kindergarten
• Les Petits Artistes Kindergarten

Elementary School and Middle School:

Primary and secondary education in Andorra is compulsory for all children between the ages of 6 and 16. Primary education lasts six years and middle school lasts four years. Students usually attend primary school and middle school in the same school. Primary and secondary schools offer educational programs that cover a wide range of subjects, including mathematics, science, Catalan language, Spanish, French, history, geography, arts, and music.

List of primary and secondary schools in Andorra:

• Andorran School of Pas de la Casa
• Andorran School of Encamp
• Andorran School of Canillo
• Andorran School of La Massana
• Andorran School of Ordino
• Andorran School of Sant Julia de Loria
• Andorran School of Escaldes-Engordany
• College of the Sacred Heart
• De la Salle College
• French College of Andorra

High schools in Andorra:

High school in Andorra is optional and lasts two years. Students can choose between two options: the general baccalaureate or the technological baccalaureate. The general baccalaureate is an academic program that prepares students for higher education, while the technological baccalaureate is a vocational program that prepares students to enter the job market. High schools also offer exchange programs for students who want to study abroad.

List of high schools in Andorra:

• Lycée Comte de Foix
• French High School of Andorra
• Andorran Institute of Estudis

Higher education:

Higher education in Andorra is provided by the University of Andorra, which offers undergraduate and postgraduate programs in a variety of fields, including social sciences, health sciences, engineering, and environmental sciences. The University of Andorra focuses on research and innovation and collaborates with universities and research institutions around the world.

List of higher education institutions in Andorra:

• University of Andorra

Unique characteristics of the Andorran education system:

The Andorran education system has several unique features that set it apart from other education systems. First of all, the Andorran education system emphasizes the learning of foreign languages. Students learn Catalan, Spanish and French from an early age, giving them a huge advantage in an increasingly interconnected world.

The Andorran education system emphasizes experiential learning. Students have many opportunities to participate in hands-on activities, such as research projects, internships, and educational trips. This helps them develop practical skills and apply their knowledge in the real world.

Andorra’s education system is inclusive and welcomes international students. Public schools offer integration programs for international students, making it easy for them to adapt to their new surroundings and make friends from all over the world.

In short

The Andorran education system is a unique and innovative model that provides a top-quality education to local and international students. With a focus on foreign language learning, experiential learning and inclusion, the Andorran education system prepares students for success in an increasingly interconnected world. From early childhood education to higher education, the Andorran education system offers a variety of options to meet the needs and interests of each student.