Non-profit residence
The current legal framework for immigration develops what many know as passive residence. This residence authorization does not allow the investor to have a work permit but, nevertheless, it does allow the development of economic activities through capital companies in which the investor is a shareholder and beneficiary of the result of the same by means of the distribution of the dividend. However, he may not hold a remunerated position in the company in question. In this sense, the investor can carry out the management of his assets, make investments in all types of assets and receive earned income from other jurisdictions.
These authorizations are very attractive due to the need to stay only 90 days in the Principality, being even able to aspire to tax residence in case of a correct planning based on the tax residence criteria of Andorra, the country of origin or other countries where there are relevant economic interests.
This residence is ideal for international businessmen who receive income from work or economic activities coming from outside the Principality and for people who seek to obtain passive income with their wealth (who usually disinvest in their country of origin and reinvest in the Principality of Andorra). This residency status is accessible through an investment in the country of 600.000.-€ from which a deposit of 47.500.-€ non remunerated before the Andorran financial regulator (AFA) plus 9.500.-€ for each dependant must be deducted.
The Non-Profit residence is mainly addressed to people who have assets or businesses at international level and who decide to become residents in Andorra only to live, with the possibility to manage their assets and businesses.
We set out below the common requirements for access to this type of residence
- Deposit of €47,500 in the AFA for the holder, recoverable and non-interest bearing;
- Administrative fees of €2,500 in the AFA for the holder;
- Deposit of €9,500 in the AFA for each dependant;
- To have financial means equivalent to three times the minimum annual salary to support the holder and his/her dependents in Andorra;
- Acquire or rent a home in Andorra;
- Private medical insurance for disability and old age with coverage for Andorra*;
- Minimum residence: 90 days per year.
*Minors and over 65 years of age: medical insurance only.
Individual Terms and Conditions
- Investment in Andorran assets of 600.00€ minus the amount borrowed on deposit:
- Real estate* located in the Principality; or
- Shares in the share capital or equity of companies resident in the Principality; or
- Debt or financial instruments issued by entities resident in the Principality; or
- Public debt instruments issued by any public administration of the Principality of Andorra.
- Life insurance products contracted with entities resident in the Principality of Andorra.
*One of the properties acquired must have a minimum value of 400.000€. The amount required is reduced from €600,000 to €400,000 in case of investing in the government’s Housing Fund, a fund created by the Andorran public administrations with the objective of financially endowing projects for the construction of subsidized housing.