ANDORRA: BUSINESS IMMIGRATION

ANDORRA: ADVANTAGES

Below are key benefits of holding a residency permit and opening a business in Andorran:

1. 1. 1. Andorra offers one of the lowest tax rates in Europe;
      2. There is no taxation on dividends, on inheritance and on luxurious goods such as cars;
      3. There is no tax on an annual revenue that is up to € 24,000. A net income that is between € 24,001 and € 40,000 euros, the effective tax rate is set at 5% and of 10% on a net income that is above € 40,001 euros;
      4. With an Andorran residence, you may easily move within Schengen zone without asking for a visa;
      5. A bank system considered to be unparalleled. The Andorran banks are among the most stable and solvent in the world;
      6. Andorra is a multilingual country in which French, Spanish and Catalan and English are widely spoken and used;
      7. The possibility to grant Andorran citizenship to born children in Andorra if the parents hold a residency in the country;
      8. An affordable cost of life in comparison with the surrounding countries. Many products and goods are less expensive in Andorra due to its low VAT rate which is set to 4.5%;
      9. With an Andorran residence permit, it will facilitate the application for a visa to the USA, Canada, Australia and New Zealand;
      10. Access to an excellent quality of life with one of the best healthcare services;
      11. Andorra has one of the lowest crime rates in the world.

ANDORRA: REQUIREMENTS

According to the conditions outlined by Andorran immigration laws to obtain a residence and work permit under the International Business category or “compte propi” (self-employed), the applicant must meet the following:

OPTION 1 (International Business category)

1. 1. Perform 85% of the business services and revenue outside of Andorra;
   2. Present a coherent businees and financial plans. Create and register a business in Andorra. Capital company for S.L. should be at least € 3,000 and for  S.A. € 60,000.
   3. Make a security deposit of € 47,500 for a single applicant and an additional amount € 9,500 for each family member part of the application to the Andorran Financial Authority (AFA). It may be refunded once you either leave the country altogether or become an Andorran citizen;
   4. Reside in the country for at least 90 days a year in order to maintain the Andorran residence permit;
   5. Confirmation documents you have sufficient funds to cover all your expanses for living (single application) € 43,250 and € 14,420 (for each person in charge) and to cover your business project in Andorra;
   6. Subscribe to an Andorran medical insurance;
   7. Justify an address in Andorra that may be confirmed by a rental agreement or ownership deed of a property in Andorra.

OPTION 2 (Self-employed category)

1. 1. Authorization to set up an Andorran company in which you have a stake of more than 20% of shares;
   2. Hold a position in the administrative body of the same company;
   3. Create and register a business in Andorra during the 3 months following the granting of an Andorran residence permit and have at least the 20% of shares of the company;
   4. Deposit € 15,000 to the Andorran Financial Authority (AFA) at the same time as the application for immigration authorization is submitted;
   5. Confirmation documents you have sufficient funds to cover all your expanses for living (single application) € 43,250 and € 14,420 (for each person in charge) and to cover your business project in Andorra;
   6. Subscribe to an Andorran medical insurance;
   7. Justify an address in Andorra that may be confirmed by a rental agreement or ownership deed of a property in Andorra.

ANDORRA: LIST OF DOCUMENTS

It is important to note that the documents must be translated into Catalan, Spanish or French and legalized (have an apostille) according to Andorran guidelines. Below is a list of required documents to apply for a passive residency permit in Andorra:

1. 1. Passport and national ID card;
   2. Birth certificate;
   3. Family booklet, marriage certificate: issued within the last 3 months (if applicable);
   4. Obtained diploma(s) with the complete list of university records;
   5. Vaccination booklet for children under the age of 18 years old;
   6. Health insurance coverage valid in Andorra;
   7. Documents confirming the source of income and occupation;
   8. Tax assessment for last 5 years;
   9. Bank certificate and bank statements from a bank in Andorra justifying you have sufficient resources (€ 43.250 for single application and € 14.420 for spouse and/or € 14.420 for each person in charge like child). This total amount isn’t blocked in the bank. You can spend this amount to cover your living expenses;
   10. Police certificate from your country of citizenship and/or of residence;
   11. Registration documents of the andorran company;
   12. Confirmation of an accommodation in Andorra and a legal address for the business;
   13. Business plan and financial plan for the intended business to operate in Andorra;
   14. Registration confirmation at a “Comú de la Parroquia” of your residence in Andorra;
   15. OPTION 1 Confirmation of transfer of the deposit amount to the Ministry of Finance of Andorra that is of € 47,500 for a single applicant and an additional € 9,500 for each accompanying family member.
   16. OPTION 2 Confirmation of transfer of the deposit amount to the Ministry of Finance of Andorra that is of €15,000.

ANDORRA: PROCESS

Below is an overview of a process to follow under the immigration programme of International Business residency in Andorra. Some steps of the process may differ based on the local policy, your familial or personal situation. For this reason, this information is for reference purposes only:

1. 1. We suggest to begin with a comprehensive consultation with our experts in immigration field in Andorra. We will be able to answer all your questions concerning the specifics of the process and provide you with additional information on the conditions, requirements and analyse your profile.
   2. Our team of dedicated professionals will help you with your company setup, registration, ongoing corporate structuring requirements and to obtain the authorizations from Andorran government to conduct your business in the country.
   3. We will assist you in preparing and legalizing, apostille and authentification based on Andorran guidelines all necessary documents.
   4. Once your documents are prepared and legalized, our local translators may translate all documents into one of the officially accepted languages: Catalan, Spanish or French.
   5. We will also be able to help you register an office facility, including serviced office space, purchase or rent a commercial premise and a residential property. In the case that you cannot travel to Andorra, we can represent you as a proxy and accomplish some steps on your behalf.
   6. Thanks to the excellent collaboration with a number of Andorran banks, we can assist you with the opening of a bank account (both personal and commercial bank accounts). We will review and ensure the  that the documentation that will be provided to the bank prior to submission are correct and satisfy the bank’s expectations.
   7. After the bank account is open, you will be asked to transfer the minimum fund to support yourself and your family during your stay in Andorra.
   8. Once your file is complete and ready to be submitted to the Andorran immigration authorities, we will book an appointment for you to present your application for a residency permit under the international business programme.
   9. You will then be asked to pass a medical exam.
   10. If your application is approved, you will be asked to transfer to the Ministry of Finance of Andorra the required deposit amounts of  € 47,500 for a single applicant and an additional € 9,500 for each family member.
   11. After the deposit amounts are received by the Ministry, a residence permit with a validity of 2 years will be issued.
   12. The following renewal will be valid for a period of 2 years and the second renewal for 3 years. After 7 years of residency, a permanent residency card may be issued which is valid for 10 years.
   13. You may be eligible to apply for Andorran citizenship after 20 years of residence in the country. If all your studies were accomplished in Andorra, you may be eligible to apply for Andorran citizenship after 10 years. It is important to note that Andorra doesn’t recognize dual citizenship. In this case, you will be required to renounce your previous citizenship when becoming an Andorran citizen by naturalisation.

ANDORRA: PERSONNAL TAXES

Andorra also offers tax advantages for individuals. The tax rate is 0% on income up to € 24,000 and 5% on income between € 24,001 and € 40,000. For any higher income, the tax rate is 10%. There is also another option: pay a tax amount of € 30,000 regardless of the amount earned. This option is very worthwhile if your income is higher than €300 000. Inimex can offer you assistance whether it is advising you on certain levels or helping you with obtaining a tax number.

Additionally, the VAT rate is only of 4.5% in Andorra. Most of the products and good in Andorra are much more less expensive than in France or in Spain where the VAT rate is of 21%. This way, many of our clients purchase a luxurious car in Andorra considering the lower prices compared to its neighbour’s countries.

ANDORRA: SET UP A BUSINESS

Andorra is one of the best places to set up a business considering it offers one of the most favourable tax systems. For instance, there is no such thing as dividend or wealth tax or inheritance tax. The corporate tax rate reaches a maximum value of 10%. International companies can benefit from a tax rate of 2%, meaning when they make most of their profits outside Andorra. The official registration fees in Andorra are as follows:

1. 1. Incorporation Notary fees: € 900
   2. Companies House Registration fees: € 1017
   3. Commercial License Registration fees: € 416

You can count on our services while setting up a business and obtaining the necessary authorisations in Andorra. Inimex assists its clients through the various steps and provides them with the necessary tools in order to make the implementation of their business a success. Therefore, we can support you in the business registering process in Andorra and come along with you during the formal steps. We can also help you find a commercial space to rent, provide audit reports, accountants, a business legal address and much more.

ANDORRA: REAL ESTATE INVESTMENT

The Inimex team assists its clients in their real estate search. The local knowledge of our real estate experts enables us to give the best advice on the property’s type, location and neighbourhood according to the needs and the aspirations of each client. Our translators and real estate specialists can offer significant help in the evaluation of the property and in the price negotiation. We aim to protect the client’s interests when making real estate transaction in an environment or a language they are not familiar with.

As property acquisition abroad can be challenging, our collaborators guide each client in the various steps of property purchase. A visit of the property can be made in our presence to potentially request an evaluation of the property. If the client decides to make an offer on the property and the negotiated price is accepted by both parties, the client will be asked to transfer an amount that is equivalent to 10% of the property price to the notary handling the transaction. The client can then proceed with the finalization of the purchase act and become an owner of his new home in Andorra. The notary fees in Andorra are set to 4% when acquiring a property.

CITIZENSHIP

There are three ways to become an Andorran citizen:

1. 1. Naturalisation: Andorran citizenship is granted if you have legally lived in Andorra for 20 years, or 10 years if you have completed your studies in Andorra.
   2. Descent: A child born in Andorra automatically obtains citizenship if their parents are residents.
   3. Marriage: You can apply for citizenship after 3 years of cohabitation in Andorra with an Andorran spouse.

At VIP Serveis Andorra, we are more than willing to guide you through the entire process of obtaining Andorran citizenship. Our standard procedure to apply with our clients is as follows:

1. 1. 1. First, we will advise you on the immigration and citizenship process in Andorra.
      2. You will need to prepare and legalise all necessary documents.
      3. Our sworn translators will prepare the documentation in Catalan.
      4. We will submit your citizenship application to the local Andorran government agency.
      5. The decision on your status will be published in the Butlletí Oficial del Principat d’Andorra.
      6. You will be invited to a citizenship ceremony and receive your naturalisation certificate once you swear allegiance to the Principality.
      7. When you receive your naturalisation certificate, we can assist you in applying for a passport at the local office in Andorra la Vella.

OTHER INFORMATION

1. 1. To obtain Andorran citizenship, you must renounce all previous nationalities.
   2. Once the necessary requirements are met, you must submit the citizenship application and will be granted a provisional passport (not full citizenship). After that, you will have 5 years to renounce your current nationality.
   3. During that period, you must pass an exam on Andorran history, geography, and the Catalan language, to obtain full citizenship and the definitive passport.

ANDORRA: TESTIMONIALS

You can find below two testimonies for our clients who chose Andorra as a destination:

Testimonial 1
“We are a family of 4, and both my husband and I are over 50 and approaching retirement. We are really fond of the European lifestyle, and have visited Europe more times than we can count. We have basically touched every country, and found every single place absolutely fantastic. We were not exactly sure where we should go once we retire, but both of us wanted to go somewhere in Europe. So we started looking for agencies online, and found a few agencies that were okay. They responded to us and talked about their services, and frankly we had trouble keeping track of which one we had talked to, and which ones we had not. That was when I got in touch with Inimex, and they were different. The first person we talked to, David, was very friendly and focused mostly on answering questions we had, instead of pushing the sales. That really made a difference for me and we quickly decided to do this golden visa program with Inimex. They also explained to me everything in detail, even how to find an electrician in Andorra in case I ever need one. We managed to arrive in Andorra the moment we finished all the preparation of the documents from home. When we arrived, we applied for a passive residence. It took us less than a month to obtain it, and we got 2 years of residence right away. It turned out that Andorra, one of the few European countries we had overlooked, was the best. It has awesome roads and malls; everything is cheap because there is no tax; lots of good food from the region; easy to reach from France and Spain, and everyone was super friendly. My husband and I hike up one of those 2000 meters mountains whenever we get some time. The high Pyrenees have this special smell in the air that I just love. Inimex even helps us in case we need to travel to other places in Europe and helps us in buying almost everything. I would wholeheartedly recommend Inimex to everyone who wants to come to Andorra”.

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Testimonial 2
“I have a successful business, which makes me travel a lot. There are so many complicated issues when it comes to business trips in Europe, as visas and each countries’ legal issues even give my travel arranger headaches. I checked a few countries in Europe for me to immigrate to, but most of them have really big restrictions or lots of time commitment requirements. One exception is Andorra, which looks rather attractive, but still seemed very complicated to me. Inimex managed to explain to me in good detail and answered all my questions and concerns about moving to Andorra, so I was very happy to work with them.  They helped me at every single step and tried to let me care about my own business issues instead of immigration ones. Finally, after a few days, they told me I could come to Andorra now. They picked me up at Barcelona airport, took me all the way to the city, and helped me settle down. They helped me to acquire an apartment, open a bank account, prepare my application file, apply for residency, obtain a fiscal identification number, enrol to a health insurance, and everything else we needed. The local agent helped me every day for a week straight, telling me where to buy furniture, where to buy a car, how to move to my residence, and accompanied me to all governmental meetings. I am very grateful for Inimex’s help. To me, they feel like a strong family more than a company. I also really like Andorra, mostly because now I do not have to pay taxes everywhere and I can put all of my global income declared in Andorra, a true tax paradise. I also like the good weather, the clear sky, the developed cities and the lack of crime in Andorra. My Andorran permit allows me freedom of travel in Europe, which makes my business much easier to perform. Inimex still helps me from time to time, and I think they treat me more like a friend than a customer”.

OUR SERVICES IN ANDORRA

1. 1. Residence permit for financially independent (wealthy) applicants.
   2. Residence permit for entrepreneurs.
   3. Residence permit for representatives of sports, science or culture.
   4. Family reunification process.
   5. Opening a bank (private or business) account.
   6. Registration at public or private school.
   7. Rent / purchase of real estate.
   8. Exchange of a driver’s license for an Andorran one.
   9. Translation services.
   10. Extension of a residence permit.
   11. Permanent residence permit.
   12. Andorran citizenship.