Real Estate Investments in Andorra: Requirements for Passive Residency

Construccio Sostenible Andorra

Andorra has become an attractive destination for those looking to invest in real estate and establish passive residency.

Its benefits and safety have captured the attention of investors and families seeking to set up a second home in a privileged environment.

Let’s discuss the main requirements and advantages of obtaining passive residency in Andorra through real estate investments.

What is Passive Residency in Andorra?

Passive residency in Andorra is designed for individuals who wish to live in the country without working or actively engaging in business within the territory. This type of residency offers flexibility and allows residents to enjoy Andorra's tax advantages, where income tax is significantly lower than in most European countries.

Requirements for Obtaining Passive Residency

To apply for passive residency in Andorra, applicants must meet specific financial and investment requirements:

1. Passive Residency Without Lucrative Activity:

This type of residency is intended for individuals who wish to establish their residency in Andorra without engaging in any work or professional activity.

Requirements:

  • Make a permanent and effective investment of at least €550,000 in Andorran assets (real estate, shares in companies, etc.).
  • Demonstrate sufficient economic means to support yourself and any dependents, showing an income above 30% of the annual minimum wage in Andorra, plus 100% of this amount for each dependent.
  • Deposit €47,500 with the Andorran Financial Authority (AFA) and an additional €9,500 for each dependent who will acquire residency.
  • Hold a rental contract or own property in Andorra.
  • Have no criminal record.
  • Obtain health, disability, and old-age insurance that covers 100% of medical expenses in Andorra and maintain it throughout the stay.
  • Sign a residence commitment and maintain the above insurance policies for the duration of residency.

2. Passive Residency for Professionals with International Reach:

This option allows you to continue your professional activity as long as you establish or acquire a company based in Andorra.

Requirements:

  • The company must provide at least 85% of its services outside Andorran territory.
  • The company may employ a maximum of one person.
  • Deposit €47,500 with the Andorran Financial Authority (AFA) and an additional €9,500 for each dependent who will acquire residency.
  • Hold a rental contract or own property in Andorra.
  • Have no criminal record.
  • Obtain health, disability, and old-age insurance covering 100% of medical expenses in Andorra and maintain it throughout the stay.
  • Sign a residence commitment and maintain the insurance policies specified above.

Benefits of Real Estate Investment in Andorra

Investing in Andorra’s real estate market is not only a requirement for passive residency but also offers multiple benefits:

  • Tax Advantages: Andorra boasts one of the most competitive tax regimes in Europe, with significantly low income and wealth taxes.
  • Stable Real Estate Market: Unlike other destinations, Andorra’s real estate market demonstrates remarkable stability, with prices generally on the rise due to limited supply and increasing demand.
  • Quality of Life: Andorra is renowned for its safe environment, high-quality healthcare and educational services, and stunning natural beauty, making it an appealing destination for both investors and families.
  • Access to International Mobility: Passive residency in Andorra facilitates mobility across Europe, providing access to various investment opportunities and lifestyle benefits throughout the region.

Application Procedure

The application process for passive residency includes several steps, such as:

  • Document Collection
  • AFA Approval
  • Property Inspection
  • Obtaining the Residency Permit

Andorra presents a unique opportunity for those seeking stability, tax benefits, and a secure environment through real estate investments. With a growing market and an attractive residency policy, passive residency enables investors to enjoy the country's advantages without direct work commitments.

If you are considering Andorra as your next investment and residency destination, this option could be ideal for achieving both your financial and personal goals in a privileged setting.

Ready to take the next step? Exploring passive residency options in Andorra with PSF could be the beginning of a new chapter of stability and growth.

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