living in Andorra guide on residency relocation advice

Any foreign individual over 18 years of age can obtain a passive residency permit for Andorra issued by the Immigration Department.

People have asked me whether they can carry on an internet business here, or continue consultancies or employment in other countries. In practice, yes, and many people with passive residency run their own businesses from home. This might be a technical breach of your passive residency permit, but in practice there is no problem. It is only if you are doing business in Andorra, employing people here, have a commercial premises etc., that you will need a business and work permit.

Applicants need to either own or rent a property in Andorra and agree to reside in Andorra for a minimum of 183 days per year, although this is not strictly monitored. Please note that you are NOT required to purchase any property and a rental contract is sufficient for the application for passive residency. I am aware that some agencies and internet based websites are not actually explaining this !

The applicants must prove at the time of application and at the time of subsequent renewals that they have funds available in a local bank equivalent to 300% of the annual minimum wage, and an extra 100% of that figure for each family member and for 2012 the current minimum wage is €951.60 per month (€11,419.20 per year). That means one person will need to show funds of €34,257.60, two persons €45,676.80, three persons € 57,096.00 and so on for each child in increments of €11,419.20. This is proven by a bank certificate. Please note again that you do NOT have to prove continual annual income contrary to what you may have read elsewhere, AND you can use this deposit to pay the Government bond (But be careful I can introduce you to the Manager as some banks will not allow this).

Applicants must also prove that they have private medical insurance, however a local company in Andorra will arrange medical coverage certificates the same day, without medicals etc., from about 890€ per year per person. This cover is now unlimited in Andorra for those under 49 years of age and constitutes a good deal which will also cover the requirements for residency applications.

Applicants require a police report from their country of birth as on their passport and, also their last country of residence if not the one of birth. These documents and the marriage Certificate if relevant need also to be Apostillised with the stamp of the Hague Convention, (please see the section headed Apostilles). In the event that your country is not a signatory to the convention, then the documents will need to be legalised and stamped at either the Spanish or French embassy in that country. A medical interview is also required upon acceptance of the documents. Once the Doctor signs the report you must then deposit the bond with Government.

The procedure is conducted in the official language, Catalan. Upon successful application, the applicant will be required to pay to the Andorran government a non interest bearing but refundable bond. The bond is currently € 30.000 for a single applicant and € 7.000 for each other member of the same household including children of all ages. Please note here again that you CAN USE the funds deposited in the bank to obtain the bank certificate to pay the bond to the Government but some banks demand a double deposit. To avoid this please ensure that I assist you in where to open the account. Once the applicant has been accepted, his residency is issued for a period of one year, renewable after the first year for a period of 3 years. Final approval, once the documents have been submitted takes two to three weeks.(For French, Spanish and Portuguese nationals the first renewal is after two years)

I have successfully processed many applications and have extensive contacts within the Andorran Government. The procedure briefly outlined above sounds complicated, but need not be providing that you have someone here helping and advising. On the page headed " Application Process" I have tried to produce the easiest explanation I can as to what is required and how you should consider proceeding. If you intend relocating with children, please also refer to my page headed "Family Relocation".

Andorra is a perfect destination for those considering retirement. No personal taxation, a high standard but moderate cost of living, political and economic stability with no strikes, little unemployment and the lowest crime rate in all Europe, a climate of up to 300 days per year sunshine and a lack of humidity easing arthritis and rheumatism pains, make Andorra a healthy retirement destination.

There are many social activities organised by an International club, you will very quickly find a new circle of friends from many countries in Europe and around the world.

Andorra is not a publicised destination for retirement, but has a quiet and sociable atmosphere, good restaurants, great outdoor activities, good English speaking doctors, in fact everything needed to make retirement a truly exciting new holiday.

For people considering retiring then coming to live in Andorra, I have two words of advice......."ACT NOW!"

I say ACT NOW for a very specific reason. When you retire, and I am applying this mainly from my knowledge of the United Kingdom although it may be the case in most countries, you may have the opportunity on your retirement date to take a lump sum from your pension pot. The Inland Revenue then relieves a large portion from you as tax. If however you can show you are resident elsewhere such as Andorra, you may be able to avoid, not evade, but legally avoid handing over such a large sum in tax, and as a UK non-resident you may be able to avoid paying income tax at all on pension income!

Now this is not intended in any way as financial advice, but you might just want to have a word with a financial advisor, each person's situation is unique. I can arrange advice in your country through international financial advisors that have experience in relocating people to Andorra.

I am here to help you through the process, from moving your effects from your country to Andorra to the successful conclusion of residency here. I can put you in contact with recent retirees for their experience of Andorra.

If I can be of assistance in answering any questions you may have on this or any other subject in Andorra, please feel free to contact me, without of course any obligation.