Andora is the sixth smallest landlocked principality surrounded by Spain and France. The country has good living standards, proximity to spain and france, low costs and taxation. Euro is widely used in Andorra as defacto currency. The official language is Catalan, although Spanish, Portuguese widely spoken.
The Principality of Andorra is not a member of European Union and Schengen area. Access to the Principality is made through France or Spain. Thus, any national from a third-country travelling to Andorra must get information from the French or Spanish Embassies or Consulates (depending on the country of entrance) about the need of a Schengen visa, and when deemed necessary, about the visa obtaining procedures.
Andorra gets more than 10 million tourists annually. Andora’s financial sector experiencing steady growth in construction, real estate, tourism. Andorra is an innovative country in the technology fields and the country has 100% fibre optic connectivity.
Andorra has attractive tax regime for foreign investors
- 10% income tax
- No income tax on the worldwide income,
- No inheritance or gift taxes,
- No wealth tax,
- No capital gains tax
- The corporate tax in Andorra is 10%.
Andorra offers residency by investment (RBI) scheme to High net-worth (HNW) foreign investors.
Andorra Golden Investor Scheme
Article 96 of Andorra legislation offers path to residency for investment activity, in real estate , government bonds or debt instruments or bank deposit
Under the Decree approving the Regulation of immigration permits of residence without gainful activity of 2012, a foreign-national who makes an economic contribution to the country or provides international professional services from Andorra, may become, together with his or her family, an Andorran resident.
Article 96. Investment in Andorran assets
The principal owner of a non-profit-making residence must permanently and effectively invest an amount of at least four hundred thousand euros (400,000 euros) in one or several types of assets that are indicated below:
- Real estate located in the territory of the Principality of Andorra.
- Holdings in the share capital or in the equity of companies resident in the Principality of Andorra.
- Debt instruments or financial instruments issued by entities resident in the Principality of Andorra.
- Debt instruments issued by any Public Administration of the Principality of Andorra.
- Bank deposit Non-remunerated deposits at the Andorran Bank or Financial institutions
You must live also atleast 90 days per year but are not strictly enforced. In addition, investors must deposit €50,000 in a bank or institution and €10,000 per person. The residence permit issued does not allow to work in the country.
Due to high volume of immigration, the Andorra government has introduced new quotas for immigration.
| Date | Description |
Places
|
| 04/25/2018 | Decree of 25-4-2018 by which approves the Regulation of general quota of the authorizations of residence and work, and of the authorizations of border work. | 900 |
| 06/06/2018 | Decree of 6-6-2018 by which approves the Regulation of general quota of the authorizations of immigration of residence and work by own account. | 250 |
| 08/08/2017 | Decree of 03/8/2017 approving the quota regulation of immigration permits for homeless residency. | 600 |
| 11/20/2013 | Decree of 11-20-2013 by which approves the Regulation of general quota of the immigration authorizations of work without residence | 100 |
Permanent residency is technically not possible in Andorra. All Andorran residence permits have an expiry date. Unlike countries part of the European Union where after residing for five uninterrupted years you can apply for permanent residency, Andorra simply doesn’t have an option for you to stay a resident indefinitely through permanent resident status
Andorra Citizenship
To get the citizenship of Andorra it is necessary to live 20 years on the territory of the Principality with “passive” residence or 20 years with “active” residence status, free of criminal record.
Andorra passport is one the best passports in the world but it is extremely difficult to get. You must live atleast 20 years in Andorra to become a citizen.
It is very important to note that dual citizenship is forbidden in Andorra. This means if you take citizenship, you must abandon previous citizenship.
Schengen Area
According to unofficial Andorra Guide, It is not possible to fly directly into Andorra, it is necessary to enter the Schengen Area first. This means one must enter the Schengen with an appropriate visa, then enter Andorra. This essentially means Schengen visa rules apply de facto to Andorra. Many residents of Andorra often enter the Schengen area via Spain and France; more specifically Barcelona and Toulouse.
“The entry and circulation regime in France and Spain for foreigners holding an Andorran residence permit is identical to that applicable to foreigners holding a French or Spanish residence permit.”, according to Decree no. 2003-740
