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April 1, 2024
7 min

How to Get Andorra Residence Permit by Investment

Brittany Collins

Exploring the prospect of an Andorra residence permit by investment of €400,000 opens up a world of opportunities. This small but affluent nation in the Pyrenees Mountains between Spain and France offers attractive investment options, particularly for high-net-worth individuals.

We will delve into the specifics of obtaining an Andorran residence permit through investment. We’ll discuss financial requirements, types of permits available, and benefits associated with residing in this picturesque country within the Schengen Area.

We will also shed light on active vs passive residencies offered by the Government Of Andorra and the conditions attached to each type. Furthermore, we’ll guide you through applying for citizenship via investment and provide insights into popular programs among wealthy individuals seeking an Andorra residence permit by investment.

How to Get Andorra Residence Permit by Investment

How to Get Andorra Residence Permit by Investment

Andorra Residence Permit for Wealthy Individuals

Andorra offers an attractive residency program. The 'Residence Without Lucrative Activity' visa is famous among French and Spanish nations due to its flexible investment choices and minimal physical presence requirements.

The 'Residence Without Lucrative Activity' visa requires a financial commitment through an investment in Andorra’s economy. You can invest in real estate or deposit into an Andorran bank account.

The most striking feature of this residence permit is that it only requires spending 90 days per year in Andorra. This flexibility makes it appealing for those who wish to maintain their business activities elsewhere while enjoying the benefits of residing in Andorra:

  • flexible investment choices: you have more freedom regarding where you can invest your money within Andorra;

  • limited physical presence requirement: you are required to spend just 90 days per year physically present in Andorra;

  • tax advantages: as a resident of Andorra, you can take advantage of its favourable tax regime;

  • safety and lifestyle: Andorra has one of Europe’s lowest crime rates and high standard of living conditions.

Obtaining an Andorran residence permit by investment allows access to numerous advantages, including mobility freedom across Schengen zone countries, without requiring additional visas each time travel plans arise. It also opens up opportunities towards asset diversification strategies and potential wealth management solutions locally available there.

Specific financial commitments must be met to apply for this residency permit. These vary depending on individual circumstances but typically involve investing substantial amounts into the local economy over specified periods before being granted such status.

Therefore, careful planning and professional advice should always precede taking steps towards achieving the desired outcome.

5 Benefits of Obtaining an Andorran Residence Permit

An Andorran residency is more than just another address for the affluent and discerning. It’s a gateway to a world of opportunities that transcend borders. The perks are many, from visa-free travel to lifestyle enhancements.

Beyond its geographical advantages, residing in Andorra also has significant lifestyle improvements. Known for its high standard of living and excellent healthcare system, this nation provides an ideal environment for individuals and families seeking tranquillity amidst nature’s beauty.

1. Safety. Safety is practically guaranteed here, with one of the lowest crime rates worldwide.

2. Nature. Surrounded by stunning mountainscapes perfect for hiking or skiing, depending on seasonality.

3. Taxation. A favourable tax regime makes it attractive, especially to those keen on wealth management solutions.

4. Visa-free travel benefits with an Andorran resident permit. An Andorran residence permit offers visa-free travel within France and Spain. It means you can move across these nations without the hassle of acquiring individual visas. Schengen visas to other states you can get within 1 day.

5. Outdoor activities. Andorra’s mountainous terrain is ideal for outdoor sports such as hiking, mountain biking, and skiing.

In addition to these perks, becoming a resident opens up possibilities like asset diversification strategies.

Owning real estate properties abroad is often seen as a way to spread investment risks while enjoying potential returns from property appreciation over time.

Investing in an Andorran Golden Visa could be worth considering if you’re looking to improve your quality of life while securing financial stability.

Andorra residency benefits

Grandvalira is the largest ski area in Southern Europe, with over 200 kilometres of slopes. The resort includes several different sectors and offers activities for all levels of skiers and snowboarders

Expenses to Get Andorra RP by Investment

All candidates must deposit €50,000 cash and an additional €10,000 for each dependent listed on the application at the Andorra Institute of Finance (AFA), regardless of the investment option they select for. When the applicant renounces residency or becomes a citizen, these sums are reimbursed.

The total investment must be at least €400,000. To qualify for any form of resident status through investment in this European microstate, there are several financial prerequisites:

  • make non-refundable contributions to a government fund;

  • invest in tangible assets such as property;

  • deposit a significant amount into an approved financial institution; or 

  • purchase public debt securities issued by the Government Of Andorra.

The applicant must demonstrate that they earn 100% of the minimum salary for each dependent and 300% of the annual minimum pay from sources outside of Andorra. The minimum yearly wage in Andorra is €13,460. A family of three, for instance, would require foreign annual income to be equal to 500% of the minimum wage, or €67,300.

It ensures that new residents contribute positively towards the national economy rather than becoming burdensome on social welfare systems already established within the country’s borders.

So, if you’re ready to take on the challenge and meet the financial requirements, Andorra’s residence permit by investment might be a dream come true for wealthy individuals seeking a new home.

Who Can Get Andorra Residency by Investment

Foreigners under 18 without criminal records can apply for Andorra Golden Visa. Together with investors, a spouse, minor children and children under 25 who study at a university may participate in the investment program.

The investor must also meet the requirements of the program:

  1. Buying or renting real estate in Andorra.

  2. Medical health report.

  3. Proof of savings and income.

  4. Prove the legality of the origin of funds.

  5. Police clearance certificate.

  6. Full coverage health insurance.

Other Ways to Get Residencies in Andorra

Thinking of moving to Andorra? Consider the distinctions between active and passive residencies in Andorra when relocating. The government offers active and passive residency permits, each with its conditions and benefits.

The Government of Andorra provides 13 different types of residence permits. Passive residencies are for those who wish to settle or retire in Andorra without engaging in any employment. In contrast, active residencies are intended for people looking to live and work within the country.

Active Residency. Commit to establishing your primary economic activity within Andorran territory and spend at least 183 days per year living locally.

Passive Residency. This permit allows holders to reside here without having any professional obligations on local soil, ideal for retirees or investors. However, they must still meet specific financial requirements, such as significant deposits into an approved bank account or purchasing property worth over €400,000.

All resident permits issued by the Government of Andorra are initially valid for one year but can be renewed annually, provided all stipulated conditions remain met. Active residents need to demonstrate that their primary source of income comes from activities conducted within national borders, while passive ones have more flexibility regarding where funds originate.

Foreign nationals must demonstrate a clean criminal record in the past five years and no threat to public order, security, health or society for their permit application to be accepted.

Residence Without Lucrative Activity

The healthcare system in Andorra is rated among the top five in the world. 90% of all medical costs are covered by insurance. Up to 84 years is the country’s average life expectancy

The Documents to Apply for Andorra Golden Visa

  1. Forms for opening a bank account.

  2. Originals and copies of the national and international passports.

  3. A bank statement.

  4. A letter of recommendation from a bank.

  5. Disclosure of origin and proof of the legality of funds transferred to the bank.

  6. Evidence of the place of residence for the last 5 years.

  7. Proof of employment for the previous 5 years.

  8. Corporate documents for business owners.

  9. Tax returns for the last 5 years.

  10. Police clearance certificates are issued for at least 3 months.

  11. A marriage certificate.

  12. Confirmation of a permanent address in Andorra.

  13. Medical insurance.

Step-by-Step Procedure for Obtaining the Andorra Residence Permit

1

2 weeks

Collection of documents

If applicable, investors collect, translate and apostille documents, get medical insurance, and conclude a real estate lease agreement.

2

1 week

Opening a bank account in Andorra

An investor passes Customer Due Diligence to open an account, proving that all the money has been earned legally. After that, the bank helps prepare the remaining documents and choose investments.

3

2 days

Application to the Migration Service of Andorra

An investor needs to apply in person in Andorra. An interview is held on the second day. The application will be considered within 3 to 8 weeks. During this time, the investor and their family will pass Due Diligence. Therefore, we study all documents in advance and warn about possible risks.

4

1 week

Medical examination and money transfer

A complete medical examination takes up to 4 days. An investor passes the medical test.

5

3—8 weeks

Getting a residence permit

A residence permit can be received without coming to the country through a trusted representative.

6

6 months

Fulfilment of an investment condition

The investment should be made within 6 months after obtaining a residence permit.

Applying for Andorran Citizenship Through Investment

Andorra does not offer a citizenship-by-investment program. While the country provides a form for residency-by-investment, often called "passive residency", obtaining citizenship in Andorra is a separate and more complex process.

As of the last update, to become a citizen of Andorra, one needs to be a resident in the country for a minimum of 20 years. If one has been schooled in the country for at least 6 years, the residency requirement reduces to 10 years.

Furthermore, dual citizenship is not recognised in Andorra, meaning that to become a citizen of Andorra, you must renounce any other citizenships you hold.

Requirements for Andorran citizenship by Investment:

  • no criminal record;

  • financially stable;

  • health insurance.

The time frame to Andorran citizenship

  • year 1: you get a one-year residence permit;

  • years 2—4: renew your permit annually and start integrating into Andorran society;

  • year 5: apply for permanent residency;

  • years 6—20: wait for citizenship.

It may take a while, but with low taxes and high quality of life, becoming an Andorran national by investment is worth the wait.

Exploring Alternative Global Citizenship or Residential Permits Programmes

The beauty of these alternative programs is their flexibility and speed. For instance, countries like Malta and Cyprus have established themselves as attractive destinations for wealthy individuals seeking fast-track naturalisation processes through their respective investment routes for obtaining permanent residency.

In addition to European countries, Caribbean nations such as St Kitts & Nevis and Antigua & Barbuda offer enticing Citizenship by Investment Programs (CIPs), requiring significantly lower financial commitments than their European counterparts.

Other Ways to Obtain Second Citizenship or Residency

Country

Investment amount

The Malta Permanent Residence Programme requires an investment starting from €150,000

The Cyprus Golden Visa program demands an investment of at least €300,000 in real estate projects

St Kitts and Nevis

A non-refundable contribution starting from $150,000 into the National Transformation Fund can get you a passport here

Antigua and Barbuda

One can obtain citizenship here with just a $100,000 donation to the National Development Fund

All these programs provide visa-free travel across numerous countries, including Schengen Area nations, the United Kingdom, among others. It’s worth noting that each country has specific requirements regarding physical presence during the application process; some might not require any stay, while others may demand a few days' visitations annually.

Beyond Europe and the Caribbean regions, other parts of the globe also host similar schemes. Countries like Vanuatu in the Pacific region offer swift processing times under its Development Support Program DSP, where the minimum donation required is around $130,000 for a single applicant.

Australia provides several visas under the Business Innovation stream, demanding AUD 2.5 million business turnover requirements over the last two years before applying.

Conclusion

  1. To get an Andorra residence permit, you must invest significantly in Andorra, involving at least €400,000. For example, it could be in real estate, a local business, or government bonds.

  2. You need to maintain a residence in Andorra. It doesn’t necessarily have to be the property you invest in. You can rent a property and invest in other areas, such as a business or government bonds.

  3. While you don’t need to live in Andorra full-time, you do need to spend at least 90 days in the country each year to maintain your residency status.

  4. You must undergo background checks and provide documentation proving your investment and financial stability.

  5. The application process involves several steps and requires various documents. Working with a legal advisor or consultant familiar with the process is advisable to ensure everything is completed correctly.

Frequently Asked Questions

  • How Much Does it Cost to Get Andorra Residency?

    Individuals could gain Andorra residency by making a significant passive investment in the country — around €400,000 in real estate or a local business. It is a passive residency, requiring the individual to spend at least 90 days in the country annually.

  • Can I Get Andorra Citizenship Through Investment?

    Andorra does not offer a direct citizenship-by-investment program. Still, you can gain residency by investing at least €400,000 in real estate or a local business and living in the country for over six months each year.

  • What Are the Benefits of an Andorra Residence Permit?

    Andorra offers several benefits to individuals who choose to become residents, particularly those who qualify for passive residency, a status designed for people who intend to spend part of their time in the country without engaging in active employment.

    Here are some benefits of Andorra’s residency program:

    • tax advantages;

    • high quality of life;

    • location;

    • outdoor activities;

    • access to the property market;

    • security.

  • What Documents Am I Required to Submit When Applying For a Residence Permit in Andorra?

    1. Forms for opening a bank account.

    2. Originals and copies of the national and international passports.

    3. A bank statement.

    4. A letter of recommendation from a bank.

    5. Disclosure of origin and proof of the legality of funds transferred to the bank.

    6. Evidence of the place of residence for the last 5 years.

    7. Proof of employment for the previous 5 years.

    8. Corporate documents for business owners.

    9. Tax returns for the last 5 years.

    10. Police clearance certificates are issued for at least 3 months.

    11. A marriage certificate.

    12. Confirmation of a permanent address in Andorra.

    13. Medical insurance.

  • Is it Possible to Have Dual Citizenship in Andorra?

    No, Andorran citizens are not permitted to hold dual citizenship. They must give up their original citizenship.

  • What Are the Tax Advantages of Relocating to Andorra?

    Andorra is considered a tax haven for wealthy people. Several income taxes are exempt from taxation for residents:

    1. Income from Andorran government bonds.

    2. Dividends and other income from investments in Andorran companies.

    3. Capital gains and losses.

    4. Government grants and scholarships.

    5. Literary, artistic or scientific awards.

    6. Inheritance.

    The corporate tax is 10%. In some cases, the rate can be reduced to 2%. VAT in Andorra is only 4,5%.

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