Exploring Passive Residency in Andorra: A Refuge in the Pyrenees

Andorra, a small and charming country nestled in the Pyrenees, has caught the attention of those seeking a tranquil life and a favorable tax regime. Its temperate climate, picturesque landscapes, and relaxed lifestyle make this destination a unique haven. Discover how Passive Residency in Andorra can be the key to unlocking the doors to a new way of life.

The Charm of Passive Residency in Andorra

Passive residency is an appealing option for those wishing to live in Andorra without the obligation to work. This permit allows foreigners to establish their principal and effective residence in the country for at least 90 days per year. Ideal for those looking to escape stress and enjoy a privileged natural environment.

Who can apply?

Those who wish to reside in Andorra without engaging in any economic activity can apply, provided they are willing to meet certain financial and legal requirements.

Advantages of Passive Residency in Andorra

A Fiscal Paradise in the Pyrenees

Andorra, in addition to its natural beauty, offers a favorable tax regime. With one of the lowest tax rates in Europe, it has become a refuge for investors and those looking to ease their tax burden.

Exceptional Quality of Life

Passive residency in Andorra not only offers tax benefits but also provides the opportunity to live in a safe and tranquil country with an exceptional quality of life. With top-notch healthcare and education infrastructure, Andorra stands as an attractive destination for those valuing well-being.

Access to Nature in the Pyrenees

Located in the Pyrenees, Andorra offers unique opportunities to enjoy winter sports and outdoor activities. Whether skiing in the mountains or exploring scenic trails, this country has much to offer nature enthusiasts.

Requirements to Obtain Passive Residency in Andorra

For Individuals

There are four types of passive residency:

1. Passive residency without lucrative activity:

   - Invest at least €550,000 in country assets.
   - Demonstrate sufficient economical means.
   - Deposit €47,500 in the A.F.A. and an additional €9,500 per dependent.
   - Lease or purchase a property in Andorra.
   - Have no criminal record.
   - Secure health, disability, and old-age insurance coverage.

2. Passive residency for professionals with international projection:

   - Provide at least 85% of services outside Andorra.
   - Limit the company to one employee under a labor contract.
   - Fulfill legal and insurance requirements.

3. Passive residency for scientific, cultural, and sports interests:

   - Professional activity must enjoy international recognition.
   - At least 85% of services outside Andorran territory.
   - Fulfill legal and insurance requirements.

4. Passive residency for admission to private geriatric centers or similar facilities:

   - Allows residence in such facilities.
   - Deposit €47,500 in the A.F.A. and €9,500 per dependent.
   - Fulfill legal and insurance requirements.

For Companies

Passive residency also extends to companies seeking to establish their fiscal residence in Andorra. With options ranging from passive residency without lucrative activity to the possibility of continuing professional activity internationally, Andorra provides an attractive framework for businesses.

Investment Requirements and Application Process

To obtain passive residency in Andorra, applicants must make a minimum investment of €600,000 in Andorran assets, which can be real estate, bank deposits, or stakes in local companies. This investment must be maintained for at least five years.

The application process involves submitting a detailed form, a copy of the passport, a criminal record certificate, proof of income and accommodation, as well as a health certificate. The evaluation by the General Directorate of Immigration in Andorra takes two to three months.

Tax and Legal Considerations

Although passive residency in Andorra may be attractive to many, it is essential to highlight that the principles of international taxation surpass residency permits. Passive residency is a migratory authorization to reside legally in the country, but enjoying Andorra's tax advantages involves considering tax legislation and agreements to avoid double taxation.