Passive Residency in Andorra: The Complete and Detailed Guide
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.
