Andorra is a small nation in Europe between France and Spain. Taxation in Andorra is capped at 10% and tax residence can be obtained with only 90 days a year of physical presence. Andorra offers a few residence by investment programs. However, the state of Andorra is small, and as a result, there’s a quota imposed on each category.
Those categories and their quotas are as follows…
- Self-Employed (250 Person Quota)
- Professional With International Outlook (30 Person Quota)
- Residence Without Work (490 Person Quota)
Andorra Self-Employed Visa
This is the most accessible of the three available residence by investment programs. Nevertheless, its minimal stay requirements are strict, with reduced permit lengths.
Self-employed applicants should be present for ½ a year within Andorra’s borders (183 days). Also, the first permit provided is only valid for 1 year, unlike the next two options which provide a 2-year permit. But upon renewal, the self-employment permit can be extended to 2 years.
To be considered self-employed, Andorran authorities require the following:
- Authorization to form a foreign company in Andorra. The owner’s participation in shares must be greater than 20%, and the referenced company should be legally constituted.
- The owner should be a member of the administrative body within said company.
- The company’s legal constitution should be certified within 3 months of entering the border after the immigration application gets authorized. The owner should be referred to as the holder of an active and registered trade within Andorra.
- When submitting the immigration authorization application, an unpaid deposit of 15,000 EUR is required. The cash is deposited to the AFA (Andorran Financial Authority).
Andorran Residence without Lucrative Activity
This program, also known as the Andorra Golden Visa, can be earned by investing 400,000 EUR. The investment lasts for as long as the participant plans to reside. This program allows multiple investment channels, which include:
- Investing in equity/capital of companies residing in Andorra.
- Purchase of real estate within Andorra.
- Debt and finance instruments. Must be issued by legal entities residing in Andorra, or by Andorran public authorities.
- Depositing non-remunerated investments in AFA.
Before an investment is approved, an investor needs to deposit 50,000 EUR at Andorra’s Financial Authority. Additionally, the investor needs to be deposit an extra 10,000 EUR per non-working dependent who would gain residency without lucrative activity (employment in Andorra is not allowed). Both amounts are accounted into the 400,000 EUR investment.
After approval, an investor will be given a permit to live in Andorra. They can stay there, but working is not allowed. However, they can still tend to and manage their investments during their stay.
Permits vary in their length. At a minimum, a 90 day residency period is expected from the investor. However, Andorra favors participants who plan on residing for at least a year. Each permit lasts up to 2 years with renewability.
Of all investment types, it is highly recommended that an investor considers real estate if they plan on long-term residency. Real estate choices allow for an easier renewal process.
Andorra Professional with an International Outlook
This category may be considered an upgrade for the self-employment option. It’s designed for professional business owners who would like Andorran residency.
To qualify for this program, the following requirements are necessary:
- The business base or HQ has to be within Andorran territory. The same applies to professional activities.
- Professionals that are part of an international project must hire a person through Andorra’s employment scheme.
- The majority of the professional or business services should be provided to other territories or countries outside of Andorra (85% minimum).
This program has similar deposit requirements to Residence without Work Activity schemes. The program’s owner must deposit an unpaid 50,000 EUR to the AFA. They should deposit an extra 10,000 EUR per unpaid accompanying dependent.
Permits provided by this scheme are valid for 2 years and are renewable.