Traditionally known as a “Passive Residency” allows the greatest amount of flexibility as long as the applicant does not partake in any professional activity within the borders of Andorra competing with local business or employees for market position. A great deal of flexibility is given to those who require to travel, as the resident can spend up to up to 275 days per year outside of Andorra.
Up until 2015, this form of Passive Residency was the only one that existed in Andorra, which enabled foreign citizens to relocate to Andorra and take full benefits of the fiscal structure of low tax and private banking. Ideal for individuals who have off shore companies and require a base from where to manage the company, as the individual is permitted to work from Andorra, on the condition that they are not competing directly with an Andorran company.
Also, very popular with retirees who like to spend their warm Summer’s on the Spanish Coast, or in their French Property, and spend up to 90 (or 183 days) in Andorra while being vigilant not to classify for any other external tax regime.
Requirements for the Category “A” Residency
- Police Report from the country of origin and the last place of residence
- Proof of your Civil Status
- Passport Photo
- An Address within Andorra
- Private Health
- Proof of Earnings (sufficient means to support yourself and/or your family)
- An investment within Andorra of €350 000*
- A payment of €50 000 into the Andorran Central Bank, (A.F.A.) of which €2 500.00 constitutes the service fee for the application of Passive Residency with the Andorran Government, and €47 500 is a fully refundable deposit, held on account with the A.F.A. until the applicants departure from the Principality.**
* This investment of €350 000 can be made in Sovereign Debt, Property, an Andorran Bank Investment portfolio or Shares in an Andorran Public company.
** This quantity varies depending on the family members that wish to adopt Andorran Residency. €50 000 is the required amount for the first person. €10 000 is required by each of the other family members taking up residency at the same time. This payment is made up of a €500.00 service fee for the immigration service of the application process for Passive Residency, and €9 500 is held on as a non interest baring deposit with the Andorran Central Bank (A.F.A.) which is fully refundable upon departing the Principality.
In turn, the larger the amount of deposit paid, is subtracted from overall Investment required to be made for the Residency Application. This is to say, if a family of three people apply for residency, totalling €70 000, the applicants investment in the Principlaity is reduced from €350 000 to €330 000 due to the extra deposit money being held on deposit with the Andorran Central Bank (A.F.A.).
What you must know!
To enable you to maintain this Category “A” residency permit, you must reside within Andorra for a minimum of 90 days. If you reside in Andorra for more than 183 days, you are automatically considered as an Andorra Tax Resident, and therefore obliged to lodge a Tax Declaration with the Andorran Authorities annually.
A mortgage on a property of at least €350 000 is accepted as the required investment, and with interest rates at record low’s this is currently the most popular form of investment being made by new Andorran Residents.