About Andorra

Nestled in the heart of the Pyrenees Mountains between France and Spain, Andorra is a charming and picturesque country that captivates visitors with its stunning alpine landscapes, rich history, and unique blend of cultures. Notably, Andorra is celebrated for its tax haven status and duty-free shopping, making it a sought-after destination. Moreover, it beckons outdoor enthusiasts with a plethora of recreational activities, from exhilarating winter sports like skiing and snowboarding to invigorating hiking and biking adventures during the warmer seasons.

Geographical Position:

Andorra occupies a distinctive and strategically significant position at the heart of the Pyrenees Mountains. Positioned in southwestern Europe, this small, landlocked nation shares its borders with France to the north and Spain to the south.

Size and population:

Covering an area of approximately 468 square kilometers, Andorra ranks among the smallest countries in Europe. Its proximity to France and Spain has given rise to a rich tapestry of linguistic and cultural influences. While Catalan is the official language, both French and Spanish are widely spoken.

Economy:

Andorra boasts one of the highest standards of living, securing the 12th position on the International Living Index. With a well-established financial and banking sector, stemming from its historical role as a tax haven, Andorra's economy has flourished. Recent efforts to adhere to international financial transparency standards have led to changes in banking practices. Nonetheless, the financial sector remains a substantial contributor to the nation's prosperity. In recent years, Andorra has actively diversified its economy beyond its traditional pillars of banking and tourism. The government has been proactive in attracting foreign investments, fostering innovation, and bolstering sectors such as technology and healthcare.

Legal system:

Andorra's legal system is a blend of civil law, customary law, and its own historical legal traditions. Positioned as a sovereign microstate nestled between France and Spain, Andorra's legal framework bears the influence of its neighboring nations, along with its distinctive historical and cultural context.

Banking system:

Andorra boasts a robust international financial system and banking sector, with over 60% of liquidity held by its top 30 banks, ranking them among the world's most liquid. While recent reforms have enhanced transparency and regulatory compliance within Andorra's banking system, the nation continues to leverage its reputation as a financial hub to attract global investors and maintain a stable financial landscape.

Why Andorra?

Visa-free entry to France and Spain

Simplified and expedited visa procedure for UK, USA, EU

Low tax rates – remarkably low tax rates, with income and profit taxes capped at just 10%. Additionally, there's no dividend tax on dividends disbursed by an Andorran company.

No double taxation All taxes paid on income abroad will not be paid in Andorra.

Avoidance of double taxation agreements with Spain, France, Portugal, UAE and constantly growing

Capital gain tax is 10%. Capital gain tax stands at a mere 10%. However, residents who have owned an apartment for over a decade or sell shares representing less than 25% of a company's capital incur no capital gain tax.

Tax on Royalties is 5%.

IGI (Value added tax) is 4.5 %. Certain essentials like medical services enjoy a tax rate of 0%, while others like banking services are subject to a still-reasonable rate of 9.5%.

No property tax.

Property transfer tax: 1,25% (Government) plus 0.5% – 1,25% (Comu – Municipality tax)

No automatic exchange of information for local tax residents

High standard of public safety and low crime rate.

Residence in Andorra

1) ACTIVE RESIDENCE

Active Residency in Andorra grants individuals the right to permanently reside and work in the country, provided they meet certain conditions. Here are the key details.

Conditions:

– Establish a local company in Andorra

– Engage in self-employment within your Andorran company

– Establish of permanent and effective residence in the Principality of Andorra.

Authorization period

The initial authorization is valid for one year and can be renewed up to three times, each renewal for the duration of two years. After seven years, successive renewals are granted for ten-year periods, except for nationals of states with agreements signed and ratified by the Principality of Andorra.

Required documents and conditions

• Valid passport.
• Certificate of criminal records from the country of origin, the country of your nationality, as well as the countries of residence.
• Rental contract or copy of the property title or another certificate that accredits the accommodation in a public establishment
• Document verifying your marital status
•  Curriculum vitae with original and photocopy of diplomas or other documents certifying professional qualification
• Medical examination report

Having obtained the corresponding foreign investment authorization to set up an Andorran company in which you have a stake greater than 34% and having legally set up the reference company.

• Hold a position in the administrative body of the same of the same company you've established in
Andorra.

• Within a maximum period of 3 months from the date of submitting your immigration authorization application, you must demonstrate that the company legally established in Andorra is the owner of a duly registered trade and is actively operating within the Principality of Andorra.

• At the same time you submit your immigration authorization application, you are required to cash out and deposit the amount of fifty thousand euros (€50,000) with the Andorran Financial Authority (AFA).

2) DIGITAL NOMAD RESIDENCE

It can be requested, in accordance with current legislation, by any newly arrived person who, in order to carry out their work, does not require a specific geographical location and uses telecommunications and technology:

• Establish your main and effective residence in the Principality of Andorra for at least 90 days per calendar year.

Authorization period

The initial residence permit is granted for a period of two years, the first renewal is granted for a period of two years, the second renewal for a period of three years and the subsequent ones for a period of ten years with certain exceptions.

Documentation and conditions:

To qualify for Digital Nomad Residence, you must fulfill the following conditions:

Original and photocopy of valid passport. Nationals of member states of the European Union and the European Economic Area can, alternatively, present the original and a photocopy of their valid national identity document.

Certificate of criminal records from the country of origin, the country of your nationality, as well as the countries of residence.

Having obtained a favorable resolution from the ministry in charge of the economy to be considered a person who, in order to carry out his work, does not require having a specific geographic location and uses telecommunications and technology, in accordance with what is established by regulation.

Documentary demonstrate that you are the owner or tenant of a home or equivalent that meets the minimum habitability conditions required by regulation, or that you have initiated the procedures to acquire a home in the Principality of Andorra under the same conditions, which must conclude in the period of one year from the submission of the residence application.

Document proving marital status Certify that they have sufficient financial means, in accordance with the requirements established by law, to allow the applicant and the persons in his care, or in the care of his spouse or stable partner, to reside in the Principality of Andorra for the entire period of validity of the residence.

Insurance for illness and incapacity for the applicant and for the persons in his care Medical examination information

3) PASSIVE RESIDENCE THROUGH INVESTMENT

It can be requested, in accordance with current legislation, by any newly arrived person who:

Establish your main and effective residence in the Principality of Andorra for at least 90 days per calendar year without carrying out any work or professional activity there.

Investment

The principal holder must permanently and effectively invest an amount of at least 400,000 euros in one or more types of assets indicated below:

a) Real estate located in the territory of the Principality of Andorra.
b) Shares in the share capital or equity of companies resident in the Principality of Andorra.
c) Debt or financial instruments issued by entities resident in the Principality of Andorra.
d) Debt instruments issued by any public administration of the Principality of Andorra.
e) Life insurance products contracted with entities resident in the Principality of Andorra.
f) Deposits with the Andorran Financial Authority (AFA).

If the corresponding investment has not been made, the applicant must state, at the time of formalizing the application, the commitment to make the aforementioned investment effective within six months.

The principal holder of a residence permit must cash in and deposit with the Andorran Financial Authority the amount of forty-seven thousand five hundred euros (47,500 euros) unpaid. In addition, the main holder must also deposit the amount of nine thousand five hundred euros (9,500 euros) unpaid for each of the people in his charge who acquire the status of resident without gainful activity.

Authorization period

The initial residence permit without the right to work is granted for a period of two years, the first renewal is granted for a period of two years, the second renewal for a period of three years and the subsequent ones for a period of ten years with exception of the nationals of the states that have signed and ratified an agreement with the Principality of Andorra.

Important note:

• All official documents issued by foreign state authorities must either be authenticated with the Apostille of the Hague Convention or duly legalized.