Andorra Residency By Investment Program | A Complete Guide

Overview:

The Andorra Residency by Investment Program falls under the country’s “Passive Residency” visa system. The core mechanism involves investing €600,000 in exchange for a renewable long-term residency permit in Andorra.

Specifically, if you wish to apply for Andorra’s residency by investment, you need to meet the following requirements:

1. Age and Health: You must be at least 18 years old, in good health, and have no criminal record.

2. Income Requirements: The primary applicant’s annual income must be at least three times the local minimum wage. In 2024, Andorra’s annual minimum wage is €13,457.64, so if you want to apply for this program, your annual income must be at least €40,372.92.

Additionally, if you have dependents accompanying you, for each additional dependent, the income requirement increases by €13,457.64. For example, if a couple applies together, they must provide proof of income four times the local minimum wage. A family of four would need to show an income level six times the local minimum wage.

3. Investment Requirements: Your investment in Andorra is divided into two parts:

• First, you must deposit €47,500 interest-free into the Andorran Central Bank (AFA – the Andorra Institute of Finance) to demonstrate financial capacity. If you have dependents, you need to deposit an additional €9,500 per dependent in the AFA account.

• The remaining funds after deducting the interest-free deposit from the €600,000 investment (for a single applicant, this would be €552,500; for a couple, it would be €543,000, and so on) can be freely invested within Andorra. This could include purchasing real estate, funds, government bonds, company shares, or simply depositing the funds in a bank.

4. Visa Fees: The Andorran Immigration Department charges a visa fee of €2,500 for the primary applicant and €500 for each dependent.

5. Residency Requirements: According to the Andorran Immigration Department’s requirements for the passive residency program, you must reside in Andorra for at least 90 days per year. Additionally, your income must come entirely from abroad, meaning you cannot work or operate a business within Andorra.

Advantages of the Program:

Compared to similar programs, the Andorra Residency by Investment Program offers the following advantages:

1. Tax Benefits: Andorra does not impose property tax, real estate tax, inheritance tax, or capital gains tax on its residents.

2. Travel Benefits: Although the Andorra Residency by Investment is not a Schengen visa, it allows you to travel visa-free to Spain, France, and Portugal.

3. Welfare Benefits: Andorra boasts one of the world’s best healthcare systems, top-tier education, and a robust banking system.

4. Fast Visa Approval: The Andorra Residency by Investment Program has a quick and simple approval process. Most applicants can obtain their Andorran residency permit within two to three months.

Application Process:

For the entire Andorra Residency by Investment Program, investors can first apply for a visa before making the investment. The process can be roughly divided into the following steps:

1. Apply for a Visa: In this step, the applicant needs to enter Andorra, open a bank account at an Andorran bank, transfer funds, gather all necessary documents, and submit the visa application in person to the Andorran Immigration Department.

Required documents for this program include:

• Applicant Identity Documents: This includes valid passports and copies for all primary and secondary applicants, passport-sized photos, birth certificates, marriage certificates, and other documents proving the relationship between the primary and secondary applicants.

• Bank-Related Documents: You need a letter of confirmation and relevant transaction records from an Andorran bank proving that you have opened an account in Andorra and transferred funds in preparation for investment in the country.

• Personal Resume Information: The primary applicant must provide work history, residential information, details of companies owned, and tax information for the past five years.

• Criminal Record Certificate: All adult primary and secondary applicants must provide a criminal record certificate issued by the law enforcement agency of their current place of residence within three months before submitting the application.

• Proof of Health Insurance Purchase: You need to purchase adequate Andorran health insurance for all primary and secondary applicants, covering each individual for one year.

• Proof of Andorran Residential Address: You must provide a real residential address in Andorra where you can receive mail, along with relevant proof of this address. This property can be either purchased or rented.

All documents from outside Andorra must be notarized, and all non-Catalan documents must be translated into Catalan.

Generally, the day after you submit your residency by investment application, the Andorran Immigration Department will arrange a brief interview. After this, the processing time for the entire residency by investment program is approximately 3 to 8 weeks. During this period, the Immigration Department will require the primary and secondary applicants to undergo a medical examination at a designated location.

2. Complete the Investment: After approval, you and your family will directly receive an Andorran residency permit. You must complete the entire €600,000 investment within six months of obtaining the residency permit to prevent the permit from being revoked.

Dependents:

Under the Andorra Residency by Investment Program, the primary applicant’s spouse or long-term partner, children under 18, and financially dependent children aged 18 to 25 can jointly obtain visas as secondary applicants.

Visa Validity:

The Andorra Residency by Investment permit is initially valid for two years. After it expires, it can be renewed under the same conditions in a “2+3” format. After the second renewal, which means after holding the residency permit for seven years (2+2+3), you can apply for a ten-year Andorran long-term residency permit, which can be continuously renewed.

Andorra does not issue permanent residency visas. The ten-year long-term residency permit is the final type of visa that a foreigner can obtain.

Foreigners can only apply for Andorran citizenship after legally residing in Andorra for no less than 20 years or after completing their studies within the Andorran education system and residing there for more than 10 years.

Frequently Asked Questions:

What is the Andorra Passive Residency Program?

The Andorra Passive Residency Program refers to a residency permit that allows applicants to live in Andorra independently without engaging in profit-generating work. It mainly includes the following three categories:

1. An investment residency program requiring an investment of at least €600,000.

2. An start-up visa program that requires an investment of at least €60,000 to establish a business in Andorra whose main activities are conducted outside of Andorra.

3. A passive residency program for world-renowned athletes, scientists, and artists, which only requires a deposit of €47,500 in the Andorran Central Bank (AFA).

For all Andorra Passive Residency Programs, participants must reside in Andorra for at least 90 days each year.

Does Andorra have an residency by investment program?

Yes, Andorra offers an residency by investment program with a minimum investment requirement of €600,000.

Can the investment for Andorra’s residency by investment program be withdrawn?

Yes, you can withdraw your investment in Andorra at any time, but once you withdraw the investment, your residency permit will be immediately invalidated.

Will my family members undergo background checks in the Andorra residency by investment program?

No, only the primary applicant will undergo a background check by the Andorran Immigration Department in this program.

If my child is born in Andorra, will they automatically become an Andorran citizen?

No, a child born to foreign parents in Andorra will not automatically acquire Andorran citizenship. However, if the child grows up in Andorra and resides there for at least ten years, they can apply to become an Andorran citizen.