How to Prepare for Your Relocation to Andorra?
The Principality of Andorra is increasingly attracting expatriates due to its efficient education system, low crime rates, sunny climate, high quality of life, robust healthcare system, and highly favorable taxation. If the idea of settling in Andorra appeals to you as well, this article will guide you through the necessary steps to realize this project.
The Expatriation Boom in Andorra
The global health crisis has led to a massive influx of individuals seeking to settle in Andorra. The tax advantages, exceptional quality of life, and other assets of this small country have attracted numerous investors and expatriates. But who can settle in Andorra? How to become an Andorran resident? What are the conditions to obtain the famous Andorran “green card”? Here’s a summary of what you need to know.
To become a resident in Andorra, several conditions must be met
Criteria and Steps for a Successful Relocation to Andorra
1. Probationary Period:
The residency permit in Andorra is initially granted for one year and can be renewed three times, each for two years. After seven years of residence in Andorra, the renewal is valid for ten years.
2. Three Fundamental Criteria:
Whether you plan to reside in Andorra for one year or for the rest of your life, three essential criteria must be met to obtain a fiscal residency permit:
– Reside in Andorra for more than 183 days per year.
– Have your main source of income in Andorra.
– Have your family (spouse and minor children) also residing in Andorra.
3. To Obtain Citizenship:
It’s important to note that obtaining Andorran citizenship is not necessary to become a resident in Andorra. Dual citizenship is not allowed in Andorra. However, if you wish to obtain Andorran citizenship, you have two options:
– Wait for 20 years of residence in Andorra, renounce your other nationality, have a clean criminal record, and pass an exam attesting to your “good integration” into the country.
– Marry an Andorran citizen, reside in Andorra for at least three years after marriage, and prove your integration into the country.
Relocation to Andorra: Conditions for Active and Passive Residents
Whether you plan to work in Andorra or manage your own business, the conditions for obtaining a residence permit are essentially the same, with some differences.
1. Being Employed by a Local Company:
If you are employed by an Andorran company, you must provide a valid employment contract with a company in the country. This allows you to reside in Andorra while engaging in professional activities.
2. Being a Freelancer or Business Owner:
If you plan to become a freelancer in Andorra, the first step is to obtain a foreign investment permit required for starting a business. You will need to provide various administrative documents, including your passport, a clean criminal record with the Apostille of The Hague, civil status documents, a housing certificate, and a resume.
Additionally, you will need to deposit €15,000 (refundable and non-interest-bearing) with the Andorran Financial Authority and pay €465 per month to the Andorran Social Security Fund. If the business involves multiple people, the expatriation candidate must hold more than 20% of the share capital and be a member of the board of directors.
3. Applying for Passive Residency:
Passive residency in Andorra is ideal for individuals without professional activity, living off their wealth, assets, or pensions, as well as retirees who want to benefit from the favorable taxation and quality of life in the country.
To obtain a passive residency permit, you must effectively reside in Andorra for at least 90 days per year without engaging in professional activities in the country. You must also meet the following criteria:
- Invest at least €600,000 in Andorran assets (real estate, stocks, bonds, shares, etc.).
- Provide a refundable and non-interest-bearing deposit of €50,000 to the Andorran Financial Authority, and €10,000 for each family member concerned.
- Buy or rent a home in Andorra.
- Subscribe to health, disability, and old-age insurance with coverage for Andorra.
- Provide a criminal record from the country of origin translated with the Apostille of The Hague.
- Provide a civil status certificate translated with the Apostille of The Hague.
Exceptions for Passive Residents
There are also exceptions allowing one to obtain passive resident status in Andorra, including:
– Scientific, cultural, or sports interest: If you have international recognition in the fields of science, culture, or sports, and bill at least 85% of your services outside the Andorran territory, you can obtain passive residency.
– International character of professional activity: If your professional activity has an “international” character and you bill at least 85% of your services outside of Andorra, you can also obtain passive residency.
Fiscal Residency in Andorra
Andorra offers a particularly advantageous tax regime, approved by neighboring countries and equipped with a growing network of double taxation agreements. Taking advantage of these benefits while living in a country not considered a tax haven is a unique opportunity that attracts many expatriates every year.
It’s important to note that administrative residency and fiscal residency in Andorra are two distinct things, although they are closely related. The administrative residency permit is issued by Andorran immigration services, while fiscal residency is obtained in accordance with local tax legislation.
Expat Assistance
All administrative procedures related to expatriation in Andorra, including the residence permit application, are primarily available in Catalan. Therefore, it is strongly recommended to seek assistance from a professional in expatriation assistance in Andorra. Our tax experts can analyze your file, advise you on the best approach to minimize risks related to inspection or requalification of your status.
Additionally, we can assist you with procedures such as notarial acts, opening a bank account, and other tedious formalities related to your expatriation in Andorra.
Expatriation in Andorra offers many benefits, both personally and fiscally. By adhering to the mentioned criteria and steps, you can confidently consider your expatriation project to this small paradise in the heart of the Pyrenees. Whether you are an active worker, freelancer, retiree, or a recognized expert in your field, Andorra has something to offer to everyone.”
Do you have questions? Do you need assistance?
