Move to Andorra getting the status of the active resident
Active residence VS passive residence in the Principality of Andorra
During your expatriation and your moving to Andorra, there are two solutions to acquire the nationality of the country: become an active resident or a passive resident. Regarding this second status, we strongly advise you to refer to the news recently published on this site.
The status of active Andorran resident is granted to persons who benefit from an immigration authorization with regard to the professional activity (salaried or not) that they exercise in the Principality. Active resident status is also known as "work residence".
The active residence in Andorra is also attributed to the creators or buyers of companies. We return to it in the second part of this article.
The three main criteria to take into account
To benefit from the status of active tax resident in Andorra, you will be obliged to respect the following criteria:
- justify a work contract in the country, or establish / acquire a local company by depositing 15 000 euros which will serve as a deposit with the financial regulator INAF (Institute Andorran National Finance). You must own at least 20% of your shares, be the Director or sit on the Board of Directors;
- establish your permanent residence in Andorra for at least 183 days a year, with the possibility of interruption for holidays or business trips;
- contribute to the functioning of the social security system managed by CASS by contributing to it.
In summary, the status of active tax residence in Andorra is therefore linked to the justification of a job or the creation of a company in the territory.
How to move to Andorra with the status of active residence
In order to move to Andorra and obtain the status of active resident, the following steps must be taken with the Ministry of the Interior:
- prove that your age is at least 18 years old;
- to justify a clean criminal record;
- submit to a medical examination;
- display the desire to establish your tax residence in Andorra and move your home there.
For all the paperwork related to your moving to Andorra, Set Up gives you a precious help. Do not hesitate to contact us!
Create or take over a business in the Principality: essential information
Moving to Andorra as a shareholder of a company
In fact, the status of active residence in Andorra is very often granted to the creators or buyers of companies with regard to their situation of shareholder. A work permit is intended for them.
The latter is issued during the creation of a company in Andorra, the acquisition of an organization or participation in a local company.
Regarding the different legal forms of companies in Andorra, refer to the following article.
A foreign national is likely to obtain the status of active resident when taking over a company located in the Principality. In order to be eligible, you must acquire more than 20% of the capital of an Andorran company. You can then benefit from the work permit intended for the shareholders. The applicant must also be a director of the company or sit on the Board of Directors.
To move to Andorra will allow you to live in a country known for its attractive taxation. The corporate tax rate (between 2% and 10% of tax on profits) is the lowest in Europe. VAT (IGI, Indirect General Tax) is also quite low since its rate is set at 4.5%.
How to proceed?
If you are the creator and director of your own company, you will be able to obtain active residency status in Andorra immediately after registering with the companies register.
The statutes of your company must mention a defined commercial activity (services, trade, etc.).
You will also have to pay contributions to the Andorran social security as an independent contractor. This provision will open in exchange the granting of a valid insurance in Andorra as medical cover and retirement.