A residence permit with the right to work in your own company, or an active residence, is suitable for those who really plan to live here most of the time, at least 183 days a year. This residence allows you to operate in Andorra and pay taxes in the amount of 10%.
Besides, a residence permit provides the following benefits:
– Visa-free entry to the territory of France and Spain.
– Tax incentives.
– High quality of life.
– Free school education, quality medical care.
Authorized capital – 3.000 euros Non-refundable deposit to the State of Andorra for the entire period of holding the residency — €50,000. An office or housing where the company will be registered.. Additional expenses: Accounting — from €180 per month Social security — €580 per month |
How to get an active residence:
Andorra has a quota system, which provides for the issuance of a limited number of residence permits with the right to work in one’s own company.
To obtain this residence permit in Andorra, one must first reserve a quota and then register a company. To do this, a special permit is requested from the government of Andorra. The processing time for an application is approximately 1 month.
A business license is issued only for those types of activities that the government deems appropriate and capable of making a significant contribution to the country’s economy.
The application includes a detailed business plan, which we will assist you in preparing. It is necessary already at this stage to provide a certificate of no criminal record with an apostille and a copy of the passport with an apostille.
After obtaining permission to open a company, you can start the process of opening a company account in an Andorran bank to deposit the authorized capital (minimum 3,000 euros).
Next comes the actual registration of the company, for which already at this stage you will need an office or housing where the company will be registered. Unfortunately, in Andorra there is no possibility to have a fictitious legal address.
After the company is registered, you can apply for a residence permit in Andorra.
Required investments to obtain an active residence:
–Authorized capital – 3,000 euros..
Non-refundable deposit to the Andorran government for the entire duration of the residence — €50,000.
– An office or housing where the company will be registered.
Additional expenses:
Accounting — from €180 per month
Social security — €580 per month
Immigration under this program will require the following documents:
- 1. International passport valid for at least 1 year.
- 2. Certificate of no criminal record from the country of citizenship, country of birth (if different), residence for the last 5 years.
- 3. A color photograph 3.5 x 4.5 cm, not older than 6 months.
- 4. Documents confirming the availability of housing in Andorra (it does not matter, whether it is rented or owned).
- 5. Marriage certificate (it will be necessary to request a duplicate with a fresh date of issue, as it is regarded by local authorities as a reference).
- 6. Summary.
- 7. Permission from the government of Andorra to open a company.
For children:
– Passport
– Birth certificate
– Vaccination certificate
– Health certificate
IMPORTANT! Documents must contain an apostille, must be translated into Catalan by a sworn translator of Andorra. Validity of certificates and marriage certificates should not exceed 3 months from the date of issue. In the case of a marriage certificate, a duplicate with a fresh date of issue is taken and executed as described above. |
Having received a residence permit in Andorra to work in your own company, you can start registering with all relevant authorities, such as tax, social insurance, etc. and obtain a business permit, i.e. activate the company in a specific location for specific activities, including inspections by fire inspectors, etc.
The entire process will take approximately 5 months. This residence permit is issued for a period of 1 year, extended three times for 2 years, and then you get permanent residence in Andorra for a period of 10 years. With an active residence, stay in the country and conduct activities are strictly controlled upon renewal.
We will be happy to help you go through all the stages of registering a company in Andorra, up to obtaining a residence permit in Andorra based on working in your own operating enterprise, and even further, in the process of adapting and developing your business, we will help you resolve current issues in order to start in Andorra passed for you as comfortably and predictably as possible.
Comparative characteristics of passive and active residences in Andorra
| Active residence | Passive residence | |
Share capital €3,000 | Investment €1,000,000 | |
| Non-refundable deposit | €50,000 | €50,000 for the first family member €12,000 for each additional family member |
| Insurance | Social security – €580/month. | Private insurance €1,200–2,000/year |
| Real estate | Office or apartment where the company will be registered. | Buy or rent |
| Minimum stay per year | 183 days | 90 days |
Comparative table of characteristics of countries with low taxation in Andorra.
| Andorra | Cyprus | Latvia | |
| Corporate tax | 10% | 12.5% | 15% |
| Dividends | 0% | 0% | 10% |
| Personal tax residence | Yes | Yes | Yes |
| Minimum stay | 183 | 183 | |
| Investments (minimum) | 1,000,000 passive 50,000 active | 300,000 | 250,000+tax |
| Gift tax | 0% | 20% | 25% |
| VAT | 4.5% | 19% | 21% |
Tax rates in Andorra
(Dividends of Andorran companies are always 0%)
| Standard and maximum bet | Minimum bet | |
| VAT | 4.5% | 0% |
| Corporate income tax | 10% | 2% |
| Income tax for non-residents | 10% | 10% |
| Personal income tax | 10% | 0% |
| Purchase of real estate for tax residents for more than 3 years | 4.5% | – |
| Sale of real estate, with a price increase | Max. 15% Standard. – 0% | 0% |
Residence permit in Andorra without the right to work
Passive residence, is primarily suitable for those who have significant savings or a steady income and do not plan to operate in Andorra.
