living in Andorra guide on residency relocation advice

There will be 3 categories of residency available:


1) Passive residency will continue with the application procedure and documents required quite similar to that at present. The most notable change is that instead of the € 30,000 bond currently required, applicants will be required to invest €400,000. This investment can either be in the form of a (refundable) bond as at present, or an investment in property, or a combination of both. For example you may purchase a property for € 150,000, and then the balance of € 250,000 will be retained as the bond. Or you will be able to pay the bond of €400,000 and rent to get to know Andorra. If at some stage you decide to purchase property you may do so using the bond deposited with the Government.

This category it would appear will offer the same freedoms and privileges as at present, but at a higher investment requirement.


2) A residency category for business is to be created. This will allow you to pay income tax to Andorra on company earnings of 10% in exchange for not being required to pay the € 400.000 bond. Details of this category remain vague at this stage, but to prove earnings, it will have to involve submitting accounts (translated ? legalised ?).


3) The final category to be created is for those involved in arts, literature, culture and science; some examples given include singers, writers, and scientists. These persons will be required to pay the current € 30,000 bond and not the extra investment. Again this currently has a vague interpretation, and will involve apparently subjective values of fame.

On 25th January 2012 the head of the opposition party expressed concern over the increase of investment to €400.000 saying it was not the right time and would not be welcome by our neighbouring countries, France and Spain at a time when Andorra was negotiating sensitive reciprocal financial agreements with them. He described the proposed changes as (loosely translated) "an auction of fiscal residences" meaning that it was not in Andorra's interest during double taxation negotiations to suddenly offer a new environment which would be outside the framework of current treaty proposals.

Is this enough to create a delay in the Parliamentary process?

As an urgent message to all of you proposing this year to become a passive resident, I urge you to consider applying now under the old scheme, we have until March. If you are not quite ready to settle, then quite simply apply anyway, take a simple rental, submit the papers and then when you do settle later in the year, or next, you can go about searching for your ideal property. Some of you unfortunately by the nature of documents required will not be able to meet this deadline.

In all cases please contact me for advice on your personal circumstances.

Also below there are some hints at other changes, please read, bookmark this page and keep returning for updates.

The changes are being implemented after studies and comparisons made with Monaco, Singapore and other places that offer residency. The increase in the investment required is intended to put Andorra at a more comparable level than these other countries.

Until more information is forthcoming concerning the two new categories of residency, I am as yet unable to advise in this area. As soon as the regulations, documents and requirements become clear, I will advise on this page.

It has also been intimated to me that the current (and unfair) list of extra document requirements for Russian and East European countries is to be lifted, and the requirements of the new passive residency scheme will apply to all in an equal manner. This is promising for those who have enquired from the likes of Hungary, Poland, The Czech Republic, and so on and who have not been able to produce the volumes of legalised and translated documents required by Immigration. Again I will confirm this as soon as I have further news.

At this stage I am also unsure of which dates in March the law is proposed to pass through Parliament, I will endeavour to keep a close watch on that.

Meanwhile I reiterate that the current scheme remains open, and recently a new quota of 500 places was made available. If you are seriously contemplating taking advantage of this old scheme then apply now, I can of course assist you with any enquiries.

If I have not yet personally contacted those who have indicated to me that they wish to apply in 2012 or beyond, please contact me now.

It is a policy flagship of this Government not only to open Andorra to foreign investment but to actively encourage it. There was a very half hearted effort by the last Government to allow 100% foreign ownership of companies in limited sectors. This has proved to be so far ineffective and bureaucratic. However 100% foreign company ownership by residents is now firmly promised within months.

We have now been assured that any resident regardless of nationality will be able to open and operate a 100% fully owned Andorran registered company within six months from now (January 2012). A complete opening of Andorra without restrictions and regardless of the business sector.

Now this just might tie in with the new category of a business resident as outlined in their proposals above, but what comes first the residency or the business? If I need to be a resident to open the company how do I apply for a business residency ? I'm sure, or at least hope, that all will be revealed as soon as possible.