Company Formation a passive category.
Category B is a passive/active option, a company, residency and flexibility of being in Andorra
Please note that this category is currently under review, renewals in this category especially have become quite onerous and in general I only recommend this category as a last resort, where possible category D active residency should be considered.
This residency option also known as the International business category is intended for a person who wishes to form an Andorran Company but only wishes to spend 90 days or more per year here and where 85% minimum of the business ( up to 100%) is conducted outside Andorra. This is the distinguishing point about Category B as opposed to Category D active residency in which a degree of permanence is required, with a minimum of 183 days per year. In Category B the payment of the deposit of € 47,500 in addition to forming a company provides the applicant with residency and flexibility.
In Category B Immigration policy states that you will still be classed as a passive resident, however you are liable for company tax in Andorra. You are NOT required to join the local social security system CASS, and private medical insurance is obligatory. Please note that as a passive resident in this category as in Category A you may not necessarily be a tax / fiscal resident. Under this category you are required on paper ( and time here is not monitored) to spend a minimum of 90 days per year. To become liable as a tax resident you are required to spend more than 183 days per year, otherwise you are exempt from personal tax in Andorra. You can also choose to become a fiscal resident if that is what you require, regardless of how long you actually stay here. Dividend didtributions from Andorran companies once corporate tax has been declared are not again liable under personal tax (IRPF) even if you are a fiscal resident.
For applicants under Category B - the applicant must provide:
From outside Andorra:
- Apostillised/Legalised Police certificates from your country of birth, country of current passport and in some cases the country of your last residency before Andorra. Some personal circumstances can be complicated but I can guide you through all of the obtaining and verification of correct stamps both with my database of records and client s documented experiences and with those at Immigration. This will be one of the firsty areas we will need to discuss. Please note the new and current regulation that requires all police certificates to be clean and that they will not accept any certificate that is not regardless of the severity or the date of the conviction.
- Apostillised/Legalised proof of civil status. This will be a marriage certificate, divorce certificate or a single declaration form as appropriate, again we can secure these documents often very easily.There are further restrictions on documents validity which we again will discuss.Civil Unions and partnerships now may also be recognised. You should note that Immigration does not recognise the status of "partner" nor fiancé (e). As an unmarried couple you can apply together and live together but you will be required to pay the single bond each of € 47,500. (Once married or a civil partnership carried out in Andorra you can apply for the refund as you would have paid € 57,000 together as a married couple)
From inside Andorra:
- Show proof of sufficient means to support yourself and family. This is currently proven by bank certificate of 300% of the minimum salary and 100% additional for each dependent, this involves openeing a local account and depositing the required funds currently (for 2023) € 46,300.68 and € 15,433.56 for each dependent (including ALL children regardless of age).
- Proof of private medical insurance valid for Andorra. You will require private medical insurance to satisfy the Immigration requirements for medical coverage in Andorra. The wording of the specific declaration that they require though contains THREE separate insurances and the translation from Catalan causes problems. In effect you require three insurances, namely medical, incapacity and old age. The latter causes the main problem in that insurance against old age simply does not exist. In this latter two policies, they are requiring all residents between the ages of 18 and 60 to have these extra covers. Incapacity is quite straight forward and may well be covered in by a medical insurance policy but old age will not be. For this final category of insurance, they require proof of a pension plan, and proof that is by having signed the pre-mentioned Immigration declaration that simply refers to insurance against old age! We can obtain all of these policies in Andorra where the declaration is guaranteed to be signed and the cost for all three insurance will start at around 1,400 euros annually. Please note that the pension plan portion of the insurance is fully refundable with profits at your 60th birthday. Residents under 18 and over 60 years old only require health insurance which can start at around 890 euros. If you have existing medical cover from an International insurer it may be possible to use this for medical and incapacity but Immigration are now making this very difficult administratively, it is best to speak to me first.
- There is now another option for International insurance cover, which company has undertaken to complete the necessary documents as required by Immigration.
- Produce a rental contract or title to a property that complies with Immigration requirements and also satisfies the minimum requirement of an office space, that is a room with 20 square metres or more. Please note that a rental contract must now be in the name of the principal applicant only. As husband and wife this has created problems but it must be in the principal applicant's sole name.
- Sign an undertaking that they will reside for a minimum of 90 days per year in Andorra.
- Pay to the Government (after the above documents have been accepted) a non-interest bearing deposit (fully refundable upon departure) of € 47,500 for the head of household and € 9,500 for each dependent.
- Pay to the Government (Immigration) € 2,500 plus € 500 for each initial issue of the residency card on approval
The applicant must produce the following documents:
- A full business proposal with a 3 year projection and submit all supporting documents to prove the business plan.
- A curriculum vitae detailing the qualifications and work experience of the applicant and to prove he has the qualifications and/or experience in the area of business.
- A copy of all documents proving the qualifications listed in the CV.
- Within 7 months after the application have completed the company formation as per the approved business plan.
If you intend relocating with children, please see my section for relocating to Andorra with a family where extra documents are required in support of children'a application.
The residency is granted initially for a period of 2 years, then for 2, 3 and then every 10 years. At renewal you do not have to be present, the documents required are obtained locally and the process is quite straightforward providing no changes have been arbitrarily made by the resident to areas such as insurance and banks without first seeking my advice.
If you are a national of any of the former Eastern European States (Eastern Bloc non EU countries) then until it is announced to the contrary you will require considerably more documentary proof in support of your application. The requirements now demanded by Immigration for nationals of these countries can be onerous and time consuming, we will need to discuss these requirements in detail, please contact me. These countries include ( but not exclusively) Russia, Ukraine, Belarus, Albania, and all of the now independent but former dependencies of the Russian Federation.
As from February 2014 the former Eastern European States ( Eastern Bloc) EXCLUDES ALL nationals of EU member states. This is a big change in Andorran policy since up until this date Andorra has not recognised member states of the EU as actually part of the EU for the purposes of Immigration to Andorra. If you have enquired before as a national of an EU country and that includes Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia, then please contact me immediately, the door is now open.
So what do I do next?
Once you have satisfied your self with what is required the next step is to turn to the page
titled "Application Process"