The Andorra residence by investment scheme necessitates a minimum investment of €400,000. Investments in real estate or other legal areas are possible. Within 90 days, an investment residence permit in Andorra can be obtained.
Andorra, a small European country, does not have a direct citizenship by investment option. However, depending on the type of residency obtained first, you can still become a resident there and eventually gain full citizenship after 20 years or more. Wealthy investors choose the Andorra investment visa over citizenship because of the attractive tax regime.
Andorra, one of the world’s smallest countries, is located on the border between France and Spain. It is located in Europe but is not a member of the EU.
Andorrans can travel to France and Spain without a visa. It provides people with a favorable tax regime. There is no wealth, income, or capital gains tax in Andorra.
How to Obtain an Andorran Residence Permit Through Investment?
Andorra does not have a direct citizenship-by-investment program. Instead, prospective applicants must apply for Andorra passive residency by investing at least €400,000 in the country’s economy over a five-year period before asking for citizenship.
To legally live and work in Andorra, one must invest at least €400,000 in a permanent and effective manner. This can be accomplished by:
- Investing in real estate in the Principality of Andorra;
- Holding share capital or equity in Andorran resident enterprises; and
- Investing in debt instruments issued by any public administration/private company in the Principality of Andorra.
An investor can obtain a residence permit in Andorra pretty easily: simply invest up to €400,000 and follow the program conditions.
This is a residency permit without the right to work: you cannot work or operate a business in the country with it; all revenue must come from outside the country.
€350,000 can be invested in real estate, national securities, investment funds, or commercial ventures, or it can be left on an interest-free deposit.
Family members are invited to participate. A €10,000 payment will be required for each family member moving with the primary applicant.
Simultaneously, the principal investment will be reduced by the same amount. If an investor applies on his own, he must invest €350,000 and deposit €50,000. If he is married with two children, he must invest €320,000 and save €80,000 — €10,000 for each family member.
Andorra Residency by Investment: Requirements
If you want to invest or register a company in Andorra, the following requirements and paperwork must be presented to the government:
- Proof of income (either a tax return from your nation with supporting bank statements) indicating that it surpasses 300% of the annual minimum wage legislation, plus 100% for each dependent if applicable.
- Clean criminal record, including certificates from all countries where you have lived for at least one year since the age of sixteen.
- Proof of ownership or intend to acquire residential property within a year after submitting application materials
- Make Andorra your permanent home for at least 90 days per year.
Benefits of permanent residency in Andorra
Despite its small size, Andorra is a prosperous country. It is one of the top 30 countries in terms of GDP per capita.
Tourism is the largest source of revenue of Andorra, accounting for more than 80% of the country’s GDP. Every year, more than ten million visitors visit the country.
Andorra does not belong to the European Union or the Schengen zone. However, it is a member of the EU Customs Union, and the euro is the official currency. Citizens of the country can travel freely to France and Spain and obtain a Schengen visa in a single day.
Andorra is a great place for the wealthy. In addition to low corporation and income tax rates, the country offers a favorable tax regime: there is no tax on wealth, capital gains, inheritance, property, or dividends.
Andorra grants an investor a residence visa and permanent residency, among other benefits:
- Visa free travel to Spain and France; Schengen nations are visa-free for 90 days out of 180.
- To maintain status in the country, you only need to live there for 90 days a year;
- There is no automatic exchange of banking information about tax residents;
- High level of education: children study and communicate at school in Catalan, French, Spanish, and English;
- Andorra’s healthcare system is ranked in the top five in the world. The insurance will cover between 75 and 90% of all medical expenses. The average life expectancy in the country is up to 83 years, and the country boasts one of the lowest crime rates on the world.
- Tax benefits: Andorra has great tax benefits compared to many other countries in the European Union
