Many people are looking for information and the possibility of being able to live in Andorra, especially to move from Spain. Andorra offers several types of residence permits. Each of them requires certain requirements, procedures, documentation, rights and obligations.
Therefore, depending on the objectives of each particular case, residents in Andorra can obtain one type of authorisation or another. Therefore, we will explain below the different options and possibilities of being able to live and be a resident of Andorra.
Difference between passive and active residence
Anyone interested in living in Andorra must first be clear about what type of residency they want to obtain, the active residency in Andorra or the passive residency.
– Passive residence: the person concerned is only granted permission to reside in the territory of Andorra, but may not work in the country.
– Active residence: this type of residence permit allows you to both reside and work in Andorran territory.
Depending on the type of residence, there are different particularities, exceptions and classifications. For example: active residence can be for work as an employee or self-employed person. On the other hand, the most common type of residence in Andorra is passive, non-profit residence.
The five ways to live in Andorra
Depending on the objective and the professional or economic activity of each person to be carried out. There are five different types of residence permits to live in the Principality of Andorra. All of them have the same requirements and required documentation, which are listed below:
– Identification document. You must have the original and a copy of your ID card (DNI) for persons resident in the European Union, for the rest of the world Passport.
– Clean criminal record certificate, of the country of residence up to the present time as well as the country of origin.
– Sign the affidavit of previous criminal records.
– Documentation confirming your stay in a property in Andorra (title deeds of a property or rental contract).
– Documentation on marital status:
- If you are a single person: completed and signed declaration of single status or official certificate of single status.
- If you are a married person: official marriage certificate.
- If you are a divorced person: original and photocopy of the judgment of separation .
- If you are a widow/widower: original and photocopy of the spouse's death certificate.
- If you are an unmarried partner: official certificate from the Andorran Civil Registry.
– Medical check-up successfully carried out.
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1. Employee or Worker (employed by others)
The person concerned must be employed by an Andorran legal companywhether it is private or public. In this case, it can obtain paid employment and active residence, after a minimum of 183 days of tax residence. The duration of the residence permit in this case is directly dependent on the employment contract. Depending on the employment contract, the residence permit will be either indefinite or temporary.
In order to obtain this type of residence, in addition to the above-mentioned documents, the following documents may also be requested:
– Employment contract of the Andorran entity where you are going to work.
– Curriculum vitae of the recruited person, in order to have complete information on his or her training and previous experience.
– Proceedings on pay and working conditions: requested documents such as diplomas, social security points, academic proofs, among others.
– Sign the training plan affidavit.
– Diligence of registration to the Comú.
– Completed application for immigration authorisation for employed and active residents.
The registration in the Comú where you live is done at the latest 3 months after receiving the authorisation, as you committed yourself by signing the diligence.
We would also like to point out that obtaining an employment contract is complicated for foreigners because the Andorran government restricts the hiring of non-residents, especially for permanent contracts.
2. Graduate or liberal professional
In this case, a self-employed work and residence permit must be obtained as a qualified professional. This would be equivalent to a self-employed person in Spain or another European country. In Andorra it is somewhat more complex because only persons with a tertiary education equivalent to at least a bachelor's degree can carry out certain defined economic activities.
The approval of this type of residence depends directly on the Andorran government, depending on the degrees and the centres that have issued them, the quotas available in Andorra for this profession and other characteristics of the economic activity. When we speak of qualified professionals, we are referring to engineers, lawyers, economists, architects, etc.
Similar to the previous residency, the requirements are:
– Curriculum vitae together with relevant information on their previous experience and training.
– Submit the signed application for immigration authorisation for self-employed active residents.
– Proof of having obtained authorisation to practise the liberal profession by the Government of Andorra and the relevant professional association within a maximum period of three months.
– Registering with CASS and pay monthly contributions as a qualified professional.
In this case the residency is cheaper than for example that of the businessman and entrepreneur that we will see below, as it does not involve the cost of incorporating a company with all the expenses that this entails and neither is the payment of the deposit of €15,000.00 to the AFA made as it is not a foreign investment. You can read more information about the incorporation of Self-Employed in Andorra.
The disadvantage of this type of residency is that it is very restricted as you must have a higher education degree and this must be approved by an educational institution in Andorra. Then you must be registered and receive permission from the Andorran government to practice your profession within the country. Another important and complicated point is that the profession can only be practised if it is approved by the Andorran government and, above all, the same person will be responsible for the income and debts.
3. Entrepreneur or businessman
This type of residency is considered easier to obtain but also more expensive. The first step is to set up a business in Andorra by incorporating an Andorran company. The next step is to obtain a permit for active residence and self-employment through investment from abroad. The applicant must be the administrator and partner of the newly created company. After residing in Andorra for at least 183 days, tax residency is obtained.
The additional requirements for obtaining residency are as follows:
– Curriculum vitae of the person concerned with all relevant information about their experience as well as their training.
– Signing and submitting the application for immigration authorisation for self-employed active residents.
– Have obtained the foreign investment authorisation.
– To effectively incorporate the company.
– Have minimum 20% of the shares of the company of the total share capital.
– To be the administrator of the company.
– Proof that the company is the proprietor of a properly registered and active tradein a maximum of 3 months.
– Pay the deposit of €15.000 to the AFA (Andorran Financial Authority).
– Playing the CASS registration and pay monthly employer's contributions.
In this way it is possible to engage in any activity without problems in the territory of Andorra. The maximum direct tax payable is always less than 10% on income received, liability is limited and there is considerable operational flexibility through the company.
The main disadvantage of this type of residency is the high cost (incorporation and maintenance of the company, share capital, the deposit deposited with AFA, among others). It also requires more time due to the formalities (two to three months depending on each case).
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4. For family reunification
This type of active residence permit is obtained on the basis of the Andorran residence permit of a family member who has his or her residence, and is therefore called family reunification residence.
The following documentation, in addition to the common documents mentioned above, must be provided:
– Documents accrediting the health insurance of the person to be reunited and his or her sworn declaration of commitment.
– Copy of the holder's immigration authorisation.
– Documents proving the availability of financial means equal to 100% of the minimum wage in Andorra.
– Other documentation according to family member, age, profession, etc.
5. Passive or non-profit residence
This type of residence is suitable for those persons who are not going to work or engage in any work activity within Andorran territory. This is usually the common type of residence for retired people, retired sportsmen and women, people with large family assets, multinational executives who travel frequently, etc.
The passive residence permit requires large capital investment and requires a minimum of 90 days of effective residence in Andorra. With passive residence permit no wage income can be obtained of any kind from Andorra, but are allowed to receive capital income (dividends and interest).
In addition to the usual requirements, the following must be submitted:
– Commitment to live in Andorran territory for at least 90 days per year.
– Have contracted health and pension insuranceprivate or public.
– Demonstrate income received in excess of 300% of the Andorran minimum wage in force at the time.
– Be registered in the Comú and have the certificate within a maximum period of one month.
– Complete and submitting an application for immigration clearance for passive residents in Andorra.
– Pay the deposit of the deposit of € 50.000,00 to the AFA (Andorran Financial Authority).
– Invest minimum €400,000.00 in Andorran assetssuch as those listed below:
- Real estate located in the territory of Andorra.
- Finance or debt instruments by entities resident in Andorra.
- Participations in the funds or share capital disclosed by an Andorran company.
- Public debt instruments issued by an Andorran administration.
- Life insurance products contracted in entities in Andorra.
- Pay the corresponding non-remunerated deposits to the AFA (Andorran Financial Authority).
- Sign and submit the declaration of commitment as the investment will be made within six months at the latest.
The important point to note in this type of residence is that the main holder can also manage the residence of his family members with the same permit, having them under his care. The family members will only pay the basic documentation mentioned at the beginning and €10,000.00 for each of them will be paid to the AFA. For example, a retired couple would deposit €60,000.00 at the AFA institution.
Conclusion:
After knowing these five ways to obtain Andorran residency, the most common is usually the entrepreneur or businessman. This is usually managed by the majority of youtubers and bloggers. Others, such as sportsmen and celebrities, manage passive residency by purchasing a property for the minimum amount mentioned above.