Active Residency – working for yourself
Through forming a company in Andorra. This residency is suitable for clients who plan to move to Andorra, since there is a requirement to stay in the country for more than 183 days per year. Procedure to form a company lasts at least 2-4 months plus 1 month to obtain residency. It is necessary to rent an apartment (around 500 EUR per month), to pay yourself a salary, minimum 1000 EUR net plus 20% social and pension insurance. Possible family reunion.
- Client is a tax resident of Andorra and is given an Andorran Tax Number
- If the client is a tax resident of Andorra, Automatic Exchange of Information will not be applied with any country other than Andorra
- Flat rate tax of 10% on worldwide income
- Dividends from Andorran company are not taxed
- Tax declaration should be submited until the 30th of June in the year following the fiscal year
- No double taxation. All taxes paid on income abroad will not be paid in Andorra
- Forming a company in Andorra
- Forming a company and openning personal bank account in Andorra (subject to approval of the bank)
- Collecting the neccessary documents for active residence permit
- Renting an appartment
- Application to immigration authority. Client must attend in person.
- Obtaining the residence card
* Whole process can take from 4 up to 10 months
Period of Authorization
The first authorization is for one year, renewable three times for periods of two years. Within seven years, the successive renewals provide for periods lasting ten years, except for nationals of states that have signed and ratified an agreement with the Principality of Andorra.