A Comprehensive Guide to Long-term Residency in Andorra
Capital: Andorra la Vella
Population: 85,863 (2023, 185th)
Ethnic Groups: 48.3% Andorrans, 24.8% Spaniards, 11.2% Portuguese, 4.5% French, 1.4% Argentines
Area: 467.63 km2 (178th)
Offical Language: Catalan
Currency: Euro (€)
GDP per Captial: $69,146 (2023, 18th)
Human Development Index: 0.884 (35th)
Country Profile:
Andorra is a small European country located between France and Spain. The country has no airports or railways. To visit Andorra, you need to take a long-distance bus from either Spain or France.
Andorra is covered with high mountain valleys, making it the highest-altitude country in Europe. It is also a globally renowned tourist destination and tax haven, with the lowest crime rate in Europe and the fourth-highest life expectancy in the world.
Andorra is not a member of the European Union, but it uses the euro as its official currency, and the EU imposes zero tariffs on goods exported from Andorra.
Immigration and Visa System:
Andorra divides its visa system into two main categories: the Active Residency Program and the Passive Residency Program. Together, these two systems offer a total of 13 residency permit options.
Active Residency Programs:
Active Residence Programs refers to programs where applicants reside in Andorra for the purpose of working actively within the country. It primarily includes the following two types:
1. Work Visa: Andorra’s work visa can be further divided into two categories: Seasonal Work Visa and Regular Work Visa.
Seasonal Work Visa: Holders of a seasonal work visa can work and live in Andorra for a short period. However, this visa is similar to a tourist visa; once it expires, you must leave Andorra.
Regular Work Visa: This is the most common type of work visa. Andorra is a small country with limited job opportunities. Similar to the United States, if a company in Andorra wants to hire a foreign employee, it must first advertise the job locally and attempt to hire a local employee.
Only after proving that they are unable to find a qualified local employee can the company recruit from overseas and sign an employment contract with you.
After signing the employment contract, your employer will submit the work visa application documents on your behalf to the Ministry of Interior, the Immigration Office, and the Labor Department of Andorra to complete the application process.
While applying for a work permit, you also need to register with the Andorran social security system, CASS (Caixa Andorrana de Seguretat Social), to formally obtain the work visa.
The processing time for an Andorran work visa usually does not exceed one month.
2. Self-Employment Visa: The Andorran self-employed visa, also known as “compte propi,” requires applicants to purchase a €50,000 interest-free bond as financial security and establish a company locally to conduct overseas business.
Regardless of which type of Andorran Active Residence Program you participate in, you need to make this country your primary place of residence, spending more than 183 days each year living there.
Passive Residency Programs:
The Passive Residence Program is designed for economically independent individuals who wish to reside in Andorra but do not intend to work locally. The Andorran Passive Residence Program mainly includes the following three categories:
1. Andorra Residency By Investment Program: This program requires applicants to invest €600,000 in exchange for long-term residency in Andorra.
To participate in this program, you must purchase at least €47,500 worth of interest-free bonds issued by the Andorran Central Bank (AFA, the Andorra Institute of Finance) and hold them continuously.
The remaining investment funds, after deducting the interest-free bonds, can be freely invested within Andorra. For example, you may invest in real estate, funds, government bonds, company shares, or even just deposit the money in a bank.
2. Visa for Professionals in International Business: This program requires you to purchase at least €47,500 worth of interest-free bonds from the AFA and then establish a company in Andorra whose main business operates outside of the country.
During the application process for this Visa, you need to provide a three-year business plan to the Andorran government. You must use your business experience and company development data to convince the Andorran government to grant you the visa.
3. Special Occupation Visas: This includes visas for employees of multinational companies, internationally renowned artists, athletes, and scientists.
For these visas, apart from purchasing a €50,000 deposit with the AFA, there are no other specific requirements. However, you need to provide a series of documents related to your professional qualifications, income, and awards to prove your international recognition in the relevant industry. Article Sponsored Find something for everyone in our collection of colourful, www.fakewatch.is bright and stylish socks. Buy individually or in bundles to add color to your drawer!
To participate in these Andorra Passive Residency Programs, you must reside in the country for at least 90 days each year.
Since 2021, Andorra has also officially announced the introduction of a digital nomad visa program, but the implementation date and specific details of this program have yet to be released. For digital nomads, the feasible option for residing in Andorra is its self-employment visa program.
Dependents:
For most Andorran long-term residency permits, the primary applicant’s spouse and children under 18 can apply together as secondary applicants. Children of the primary applicant who are between 18 and 25 and still studying must submit an application to the Andorran government in order to obtain a visa.
Permanent Residency & Citizenship:
After legally residing in Andorra for seven years, foreigners can apply for a ten-year long-term residency permit. Andorra does not issue permanent residency visas, so this 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.
Taxation:
Andorra is one of the countries in Europe with the lowest tax rates. Personal income tax does not exceed 10%, and the value-added tax (VAT) is the lowest in Europe at only 4.5%. Corporate tax is generally 10%.
This country also does not impose common wealthy-related taxes such as property tax, real estate tax, gift tax, inheritance tax, or capital gains tax on its residents.
The only thing to note is that if you live in Andorra but are not a tax resident of Andorra, you will need to pay a 10% non-resident income tax.
Passport Power:
Andorra does not recognize dual citizenship. Its passport ranks 19th globally. Holders can freely travel (either visa-free or with visa on arrival) to 172 countries and regions worldwide (Jan 11st, 2024).
Useful Links:
Andorra Immigration Department：http://www.immigracio.ad/ca/d-1-residencia-sense-treball-autoritzacio-inicial