Residency in the Principality of Andorra

Residency in Andorra – a guideAdamas Advisors

June 2016

CONFIDENTIAL - COPYRIGHT ADAMAS ADVISORS 2016 2

Introduction to Andorra• Independent country, non-EU member, non-Eurozone member, Euro de facto currency• Fiercely protected fiscal Independence since 1419 (first Parliament or Consell de la Terra)• Parliamentary democracy where rule of law and corporate governance is strong• 468km², 85% mountainous terrain, 300km+ of ski slopes • Low crime rate: 1.5 crimes per annum per 100,000 inhabitants (Japan 4.08, USA 144.92)*• Member of UN and Council of Europe• GDP per capita €37,200ᵃ

Tourism75%

Financial Services

22%

Other3%

Fig 1: GDP Contribution (2013)

*Source: Interpol 2013ᵃSource: World Bank 2013


Taxation in Andorra - Overview1. Income Tax on globally generated income for active residents:

1. Marginal rate – 10%2. €24.000 income tax free

2. Corporation tax:1. 10% on profits for Andorra business companies2. 2% maximum for Companies used as Holdings

3. No income tax for Passive Residents with no gainful activity in Andorra (holdings permitted)4. No inheritance tax5. No gift tax6. No capital gains tax


Residency in Andorra1. Various Types of Residency

i. Passive Resident without gainful activity (Law 9/2012 31/05/12; Art. 95, Art. 96)a. Requires commitment to reside minimum of 90 days per calendar year in Andorrab. Minimum investment (to be certified initially and one each renewal by an Andorran financial institution) of

€400,000 in either:I. Real Estate within the Principality of AndorraII. Shareholding in an Andorran companyIII. Money held on deposit at an Andorran financial institutionIV. Debt issued by the Andorran Government or an Andorran Company

c. A Passive Resident may own an Andorran registered Holding Company for his external assets (no taxation at the company level if only used as a Holding Company)


Residency in Andorra1. Various Types of Residency (cont’d)

ii. Active Resident as a shareholder of a business company registered in Andorra (Law 9/2012 31/05/12; Art. 98, Art. 99)a. Requires commitment to reside minimum of 180 days per calendar year in Andorrab. Company profits taxed at 10% unless Holding companyc. Global income of shareholder taxed at maximum 10% apart from dividends from Holding companyd. Business premises required in Andorra (can be at shareholder residence, licence given by Municipality)

iii. Resident as an individual of scientific, cultural or sporting value (Law 9/2012 31/05/12; Art. 100, Art.101)a. Requires commitment to reside minimum of 90 days per calendar year in Andorrab. Awarded individually on merit


Residency Application Procedure (Passive)1. Initial appointment requested with Andorran Immigration Department2. Initial appointment held. Applicant (and wife if also immigrating, excluding children) must attend

in person with the following documentation:i. Original current passport. Nationals of the member nations of the European Union and the European

Economic Area may, as an alternative, present the original of their current identity document.(1)

ii. Criminal Record certificates from the country of birth, the country of nationality, and all relevant countries of residence, Apostilled and translated by a certified translator into Catalan, Spanish or French.

iii. Sworn declaration confirming the lack of criminal antecedents of the applicant (form provided at immigration).

iv. Signed form consenting to undergo Medical examination in Andorra (form provided at immigration).v. A recent colour passport photograph (3,5 x 4 cm) of each applicant showing their entire face and

uncovered head.vi. Proof of ownership or long-term (5 year) rental contract of a property in Andorra fulfilling the minimum

habitability requirements (i.e. sufficient bedrooms for the proposed occupants. Children under 16 may share bedrooms, over 16 require individual bedroom).

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Residency Application Procedure (Passive)

vii. Proof of marital statusa. Single: Official certificate (if available) or sworn statement (form provided at immigration).b. Married: certified marriage certificate, apostilled and translated by a certified translator into Catalan,

Spanish or French.c. Legally Separated: photocopy and original of separation (and custody judgement if relevant), apostilled and

translated by a certified translator into Catalan, Spanish or French.d. Divorced: certified photocopy of decree absolute or equivalent (and custody judgement), apostilled and

translated by a certified translator into Catalan, Spanish or French.e. Widowed: certified copy of death certificate, apostilled and translated by a certified translator into Catalan,

Spanish or French.

viii. Specimen signature (form provided at immigration)ix. Written commitment to reside in Andorra for a minimum of 90 days per calendar year

(form provided at immigration)

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Residency Application Procedure (Passive)

x. Proof of health, incapacity and old age insurance for themselves and all their dependants or dependants of their spouse/partner, with exception for those dependants who are minors or above 60 years old, for whom health insurance must be maintained. Such insurance to be either issued by an Andorran insurer or form (catalan form provided at immigration) confirming insurance coverage in Andorra to be signed by foreign insurance company.

xi. Proof of applicant’s income in excess of 300% of the current annual minimum salary in Andorra, in addition to proof of 100% of the minimum salary for each dependant. Such proof to be submitted in the form of pension or invalidity certificate, previous year’s tax return, or appropriate banking references from an Andorran bank.

xii. Registration form with the relevant Andorran municipality to be submitted within one month of issuance of Residency certificate.

xiii. For all under age children:a. Certified copy of birth certificate, apostilled and translated by a certified translator into Catalan, Spanish or

French.b. Vaccination certificates (or vaccination book) and medical certificate of health from family Doctor in country

of residence (for children less than 16 years of age)

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Residency Application Procedure (Passive)1. Appointment requested for Medical Examination for applicant (and spouse if relevant) -

approximately 3 weeks notice.2. Medical examination carried out at immigration office medical department3. Once approved, bank issues certificates confirming transfer of funds to INAF (€50,000 for

applicant plus €10,000 per dependant) and deposit of €400,000 (less the funds transferred to INAF)

4. Delivery of Residency Card - applicant need not be present.

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Residency Application Procedure (Active)1. A Residency Application as an Active Resident as a shareholder of an company (whether SL or SA) registered in Andorra

(Law 9/2012 31/05/12; Art. 98, Art. 99) may only be commenced once the relevant Andorran Company has been constituted and registered

2. Steps:a. A Business proposal submitted to the Andorran Ministry of Economy. The Ministry has 2 months to respond.

b. If two months have passed and no request for further information or a rejection has been received, the applicant may prodceed to the constitution and formation of a Company

1. They should submit a request for a company name reservation, and when received, take the confirmation slip together with their passport to an Andorran financial institution and open a capital account for the Company, to be set up in the name of the Company

2. Once the capital account has been set up, the relevant capital is paid into said account : €3.000 for an SL (similar to a Ltd company), €60.000 for an SA (similar to a Plc)

3. With the physical receipt of capital payment an appointment is made with a registered Andorran notary for the constitution of the company

4. Once the constitution has taken place, the notary will register the company (up to two weeks) and a tax number will be issued for the company. The shareholder should then register with Andorran social security (“CASS”) and apply for a reduced contribution of €200 pcm for the first year, €400 thereafter

5. The shareholder may then proceed to apply for residency, using the same procedure as for Passive Residents, with the exception of the need for Health Insurance, the proof of 300% of mínimum Andorran income per month, and the need for a €400.000 investment and €50.000 deposit


Requirements for Applicants from Outside EU

1. Proof of residential addresses for the 5 years prior to application, in addition original and certified copy of address page of passport as relevant.

2. Proof of employment for the 5 years prior to application, including jurisdiction and activity of companies mentioned, as well as labour certificate issued by some jurisdictions or certificates of employment from relevant employers. All apostilled and translated by a certified translator into Catalan, Spanish or French as relevant.

3. Details of bodies corporate in which the applicant holds either a shareholding of more than 25%, or where they have Power of Attorney or representation, said details to include certified copies of the articles of incorporation and statutes in the case of commercial enterprises, or the deed of settlement or subscription for shares or participation in the case of foundations or trusts. All apostilled and translated by a certified translator into Catalan, Spanish or French as relevant.

4. Tax declarations for the 5 years’ prior to application. All apostilled and translated by a certified translator into Catalan, Spanish or French as relevant.

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Useful AddressesAndorran Government Immigration Service (including Medical Department)

Edifici de Serveis de l'ObacCarrer de les Boïgues, 2, Ground FloorAD700 Escaldes-EngordanyTelephone: +376 872 072Fax: +376 872 073Email: [email protected]

Opening Times:

Monday to Friday: 0800-1300Helpine (Catalán or Spanish) Winter: 0800 - 1730. Summer: 0800 - 1500

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mailto:[email protected]


« Il n'est pas certain que tout soit incertain » Blaise Pascale, Pensées (1670)

Adamas SLUPlaça Guillemo 1

AD500 Andorra la VellaAndorra

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Economy & Finance

Residency in the Principality of Andorra