Live from your income in a European country, safe and with quality of life.
The non-profit residence is one of the ways that Andorra allows foreign citizens to settle in the country. It is intended for people who, according to their situation, enjoy financial freedom and therefore intend to live, but do not develop any work activity in it.
In this article we explain in more detail all the nuances and conditions required to access this type of residence.
What are the advantages of residing in Andorra
The Principality of Andorra is a small country located in the heart of the Pyrenees on the European continent. It does not belong to the European Union but perhaps that is why it has a series of conditions that become very attractive to change your residence:
- some very interesting fiscal conditions, which allow a considerable tax savings compared to other countries,
- the environment, quality of life, security are other reasons to change here. If you want to know more, we developed it here.
Types of permits granted by Andorra
The Immigration Service is the government entity that manages the processing of all residence permits in the country according to the situation of each citizen. In general, residence permits are grouped into:
- Active residence: comprising employees, self-employed professionals and entrepreneurs who want to establish their business.
- Passive residence: Any person who wants to reside in the country without exercising a lucrative activity. Here also professionals with international projection are included, for scientific, cultural or sports reasons.
Details about non-profit residence (passive)
In this article we focus on the non-profit residence, what conditions it requires and the necessary procedures.
The definition given by Govern on this type of residence is:
A passive resident is a natural person who does not enjoy the Andorran nationality and who establishes his or her principal and effective residence in the Principality of Andorra without exercising any labor or professional activity.
To qualify for this residency these are the general requirements that have been to meet:
- Demonstrate that the main holder has annual income above 300% of the current annual minimum wage, adding 100% of this indicator for each of the dependents. This aspect is evidenced, among others, by means of a retirement and / or disability pension certificate, an income declaration for the year prior to the last country of residence and the corresponding bank certifications. Example: per principal holder, base salary x 12 months x 3 (300%).
- Have coverage and insurance for illness, disability and old age.
- Own or rent a home.
- Sign a commitment to establish the principal and effective residence and keep the mentioned insurance in force.
- The main holder must make cash and deposit in the Andorran Financial Authority (AFA) the amount of 50,000 euros unpaid. In addition, you also have to deposit the amount of 10,000 unpaid euros for each of your dependents.
Types of non-profit residence and its specific requirements:
This model of residence in Andorra can be granted in different situations that we detail below.
Residence without lucrative activity
To qualify for this permit without exercising any gainful activity in the country, the owner is asked to make an investment in it:
- You must invest permanently and effectively an amount of at least 350,000 euros in one or several types of assets that are listed below:
- Real estate located in the territory of the Principality of Andorra.
- Shareholdings in the share capital or equity of companies resident in the Principality of Andorra.
- Debt or financial instruments issued by resident entities to the Principality of Andorra.
- Debt instruments issued by any public Administration of the Principality of Andorra.
- Life insurance products contracted with resident entities in the Principality of Andorra.
- Unpaid deposits to the Andorran Financial Authority (AFA).
- Deposit in the Andorran Financial Authority (AFA) the amount of 50,000 euros unpaid. In addition, the principal owner must also deposit the amount of 10,000 unpaid euros for each of the dependents who acquire the status of resident without gainful activity.
Residence for professionals with international projection
As the title explains, if on the other hand you develop an activity at the international level, these are the necessary requirements:
- The headquarters or the base on which the professional activity takes place must be located in the territory of the Principality of Andorra.
- Count at most with a person hired on a work schedule.
- At least 85% of the services provided by the professional must be used in any other country or territory different from the Andorran.
- To prove the economic viability of the activity that it intends to carry out and to demonstrate that this activity will generate the sufficient economic resources that allow it, both her and her dependents, to reside in Andorra.
Residence for reasons of scientific, cultural and sporting interest
Artists, scientists or athletes who enjoy international recognition for their talent in the world of science, culture or sports.
- At least 85% of the services provided have to be used in any other country or territory different from the Andorran.
- He must prove that he enjoys international recognition for his talent in the world of science, culture or sports.
At PSF, we can help you
At Plus Serveis i Família we have the knowledge, experience and resources needed to assess you throughout the process.
We are available to answer your questions and queries – https://psf.ad/en/contact/