Andorra is one of the most fashionable destinations thanks to its low taxation, its security and its privileged geographical location. It is not surprising that more and more citizens are moving their residence to the small country of the Pyrenees.
The report “The definitive guide to living in Andorra” is now available, with detailed information on Andorra’s tax framework, residence and society.
Click here to download it for free.
How to obtain a residence permit in Andorra?
Residency in Andorra can be obtained in the following ways:
- Active residence:
- Employee: the residence of those who get a work contract in an Andorran company
- Self-employed: the residence for all those who want to start their own business in Andorra
- Passive residency: the equivalent of the “golden visa” of other countries, intended mainly for annuitants and retirees
- Residence for health reasons: for example for admission to a geriatric center
Of the passive residence we already talked about on another occasion, so today we will analyze the active residence.
For whom is active self-employed residence?
Active self-employed residence is the most common way to move to Andorra. Content creators, digital marketing experts, traders and investors, consultants…. Most professionals who change their residence to Andorra do it by this way.
In fact, if you do not have the capital for passive residence (€400,000) or a job offer, active self-employed residence is the only way to settle in the country (except for family reunification).
What are the requirements?
The requirements to be met for obtaining active self-employed residence are as follows:
- To be the administrator of an Andorran company.
- To own at least 20% of the company created.
- Deposit €15,000 with the Andorran Financial Authority as a non-interest-bearing deposit with the application for self-employed residence.
- Effectively reside in Andorra for at least 183 days per year. Attention: during the renewal process the police may check that you have actually lived in Andorra, even by asking neighbors.
- Exercise a real activity in the country with a minimum income.
- Have a place to live in Andorra, either purchased or rented.
The active self-employed residence is valid for one year, then renewed three times for two-year periods. After the first seven years, it is renewed every 10 years.
How to obtain an active self-employed residence permit?
Before submitting the dossier to immigration to obtain the active self-employed residence permit, it is necessary to incorporate a company in Andorra.
Once the company is constituted, the following documentation must be submitted to the immigration department of Andorra:
- Application for authorization of active self-employed residence duly signed by the Client together with the passport duly apostilled (together with the deposit of 15,000 euros in the AFA).
- Affidavit of criminal record of the place of origin and birth.
- Documentation to prove marital status.
- Documentation to prove accommodation in Andorra (rented or owned).
- Curriculum vitae of the applicant.
- Consent for medical tests.
After providing all these documents, the Andorran immigration department will decide on the application for an active self-employed residence permit.
The application can only be denied in case of presence of serious background or risk of laundering and reputation for the country.
Can I bring my family?
The active self-employed residence in Andorra allows the grouping of descendants, spouse, dependent ascendants of the resident and other persons under the legal guardianship of the resident. The regrouping can be done three months after obtaining the residence.
Until now this “express” reunification was only available to French and Spanish citizens, and citizens of other countries had to wait one year. However, the law has changed this 2021 and now the deadline is always three months, regardless of the country of origin.
What are the advantages of active self-employed residence?
After years of practice in the country, we believe that the main advantages of active self-employed residence are as follows:
- It is ideal for regrouping the family in Andorra.
- It is cheaper than the passive residence, since the cost of incorporation of the company and a deposit of 15.000€ is much lower than the 400.000€ of the passive one.
- It is ideal for digital nomads and freelancers.
- It is an easy way for Latin Americans and non-Europeans to reside in Andorra, without any additional requirements with respect to Europeans.
How to take the first step
If you are interested in changing your tax residence to Andorra, we recommend reading the report “The definitive guide to living in Andorra”, with the most complete information on Andorran taxation, residence and society.
With the recent boom of youtubers who have changed their residence to the Principality, dozens of websites of fake advisors have emerged offering the service of incorporation of companies in Andorra, but they do not make the relevant legal and tax analysis.
It is necessary to emphasize the importance of being well advised: on more than one occasion we have encountered clients who chose unqualified advisors to create their company and ended up with serious problems before the tax administration of their country of origin.
From Andorra Inc we guarantee the maximum rigor for the transfer of tax residence.
You can contact us without obligation in the following ways:
- By sending an email to [email protected]
- By writing to Andreu through Linkedin
- Or by filling out the form below: