Andorra: Country and Foreign Investment
Entry and Residence
Tourist visas are issued freely. The New Law on Residency was introduced in 2012 and applies to all applicants from June 27, 2012. From this date onwards, two categories of residency have been introduced:
Category A: This has the same requirements as the previous 'passive residency' (see below) and requires a 'top up' investment of EUR400,000. Applicants must commit to spending a minimum of 90 days per year in the country and the principle applicant must deposit a bond of EUR50,000 for him/herself and EUR10,000 for each dependent with the Andorran Institute of Finance. The bond may be deducted from the required investment of EUR400,000 and will be returned should the applicant return the permit. All applicants must produce proof of real estate rental or ownership, provide legalised police certificates and have private medical insurance.
Category B: Essentially a business permit. The permit will be granted to businesses who conduct at least 85% their activity outside Andorra. Instead of the 'top up' investment, category B permit holders are subject to a 10% tax.
Category C: The 'Cultural Permit' is for musicians, artists and the like. Individuals must carry out at least 85% of their activities outside Andorra and must be able to provide proof of their international achievements. A refundable deposit of EUR50,000 for the head of household and EUR10,000 for each dependent must be paid to the Government.
On July 17, 2012, the government announced that the new quota of 500 permits per year would be split as 300 for category 'A' type permits, and 100 each for categories 'B' and 'C'.
Prior to the introduction of the new law, the Law on Passive Residence Permits November 2006 established that a quota would be determined periodically according to the “economic and social needs of the Principality of Andorra”.
An initial quota of 500 such permits was set. Passive residents are not permitted to carry out any professional activity in the principality.
New entrants to the Principality were required to:
- Show minimum annual income of 300% higher than the minimum wage in Andorra for the head of the family plus a supplement of 100% for each dependent family member;
- Prove good conduct in their previous domicile;
- Produce health insurance and a pension plan;
- Own or rent a house or apartment in the Principality;
- Pay a non-interest-bearing deposit of EUR30,000 plus EUR7,000 for each dependent to the Andorran National Institute of Finances (INAF) which was refundable on departure.
Work permits are not easy to get. In principle they are issued only to EU and EFTA nationals, and then only if there is no Andorran national available for the job.