Residency categories in Andorra: A, B, C and D

Andorran Residency is either active or passive. Active residency is for those who want to start a business in Andorra or transfer their economic activity to the Principality. Passive residency is for those who do not wish to develop any business activity within the country for the local market.

Choosing between the two depends on the individual’s status and activity. For each of the profiles there is a type of residency suitable for you. Choosing the right one will depend on your future plans. We will illustrate further the typical residency scenarios as colloquial subcategories A, B, C and D for you. These subcategories do correspond to official legal forms or sub-statuses of active/passive residency in Andorra.

Categories of residency in Andorra

Andorra has many attributes that attract the attention of people and entrepreneurs all over the world. It is an ideal destination for those who enjoy snow sports. If to this we add that the tax burden is really low compared to other jurisdictions in Europe, the attraction for this country of the Pyrenees increases.

To enjoy these advantages, you should choose the type of residency that best suits your needs. From people who wish to retire to a nice, quiet and safe place to businessmen eager to take benefit of the economic and tax opportunities that Andorra offers.

Active residency was covered in the opening paragraphs. Let’s explain Passive residency in further detail. This is intended for people who wish to live in Andorra but continue their economic activity outside Andorra. These individuals include entrepreneurs whose activity is mostly aimed to foreign clients. It is also favoured by those involved in sports, science, art or entertainment.

Let’s take a closer look at each illustrative residency type and the requirements to apply for them.

Passive residency

• Category A: People living in Andorra without professional activity.
• Category B: People having income generated from international activity, not local business activity.
• Category C: Personalities with international prestige like scientific researchers, artists, athletes.

Active residency

• Category D: Business owners.

Passive residency category A

This type of visa, Passive residency category A, is the simplest and most suitable method for people who want to live in Andorra without any lucrative activity and willing to make an investment in the country.

Below you will find the requirements for this visa type

• Financial security and income over 300% of the Andorran minimum wage + 100% per each dependent.
• A medical exam taken in Andorra.
• Private health insurance valid in Andorra.
• Certificate of clean criminal records.
• A contract of purchase or rental of a real estate in Andorra.
• Initial non-remunerated deposit at the AFA of € 50.000 + € 10.000 for each dependent, fully refundable when passive residency is not prolonged.
• Within the 6 first months of residency authorization, an investment of € 350.000 must be done in an Andorran property or a deposit into an Andorran bank.
• The minimum stay in Andorra is 90 days per year.

The application procedure does not take long, up to 2 months; although the accompaniment of an advisor specialized in Andorran immigration will help you to carry out the procedures correctly, avoiding unnecessary delays.

Please note that the documents you’ll bring from your country of origin must be translated into Catalan and duly legalized before submitting them.

Passive residency category B

Passive residency category B is suitable for professionals who offer their services at an international level and are planning to set up a company in Andorra. Among the profiles that most choose this category of residency are professionals who can develop their activity regardless of their place of work. These can be consultants, IT specialists or traders. Their international clients and commercial activity abroad should cover at least 85% of their total activity.

The requirements for this visa type are:

• Financial security and income over 300% of the Andorran minimum wage + 100% per each dependent.
• Private complete insurance valid in Andorra covering invalidity, sickness and pension.
• A contract of purchase or rental of a real estate in Andorra.
• Initial non-remunerated deposit at the AFA of € 50.000 + € 10.000 for each dependent, fully refundable when passive residency is not prolonged.
• Within the 6 first months of residency authorization, an investment of € 350.000 must be done in an Andorran property or a deposit into an Andorran bank.
• The minimum stay in Andorra is 90 days per year.
• The company’s head office must be located in Andorra.
• A detailed business plan must be submitted.
• 85% or more of its revenues must come from countries outside Andorra.

In the first 7 months you must establish your company according to the business plan presented in your application. This residency is initially granted for 2 years and can be renewed in accordance with Andorran regulations. Also, it is possible to hire 1 employee only, holding the Andorran residency. If your stay in the country is between 90 and 183 days per year, you will be exempt from personal income tax unless you wish to change your status and become a tax resident.

Passive residency category C

The passive residency category C is designed for special profiles of international recognition and prestige such as famous personalities, accredited athletes, writers, artists, show business personalities or scientists. They must prove their qualification at the time of application. The visa is initially granted for a period of 2 years and renewable as long as they can justify that they continue to have international recognition.

The applicant must:

• Establish permanent residence in Andorra for a minimum period of 90 days per year.
• Renew your visa according to Andorran regulations.

The requirements for this visa type are:

• CV and clear demonstration by providing evidence of their scientific, cultural or sporting activities and qualifications.
• Valid passport.
• Certificate of marital status.
• Certificate of clean criminal records.
• Initial non-remunerated deposit at the AFA of € 50.000 + € 10.000 for each dependent, fully refundable when passive residency is not prolonged.
• Proof of purchase or rental of a real estate in Andorra.
• Private complete insurance valid in Andorra covering invalidity, sickness and pension.
• Financial security and income over 300% of the Andorran minimum wage + 100% per each dependent.
• At least 85% of its revenues must come from countries outside Andorra.

Please note that the documents you’ll bring from your country of origin must be translated into Catalan and duly legalized before submitting them.

Active residency category D

This Active residency category D is the right type of visa for those interested in developing an economic activity in Andorra. This visa is granted for the creation of a company in Andorra, participation or acquisition of an existing company in Andorra.

A detailed process must be followed where you must comply with the conditions established by Andorran law. Below are the requirements you must complete in your application:

• You must relocate your permanent residence to Andorra. This means spending more than 183 days a year in Andorra which can be interrupted by business trips and holidays.
• Register and contribute to the Andorran Social Security with a contribution approximately € 465 per month. You will be entitled to the Andorran, French and Spanish health system.
• Form or acquire a company in Andorra with a minimum shareholding of 20%.
• Initial non-remunerated deposit at the AFA of € 15.000.
• Exercise the role of company administrator.

For more information about Andorran visa types and the whole process just complete the contact form and one of our consultants will contact you as soon as possible.