Andorra Residency by Investment in 2024 Explained by Experts

Why Invest in Andorra?

Beyond its stunning mountains and prime location at the heart of the European Union, Andorra offers even more. Investing in Andorra presents numerous advantages for individuals and businesses seeking a stable and attractive environment. Here are five key benefits:

• Business-Friendly Environment. Andorra offers a pro-business environment with a streamlined process for company formation (1-2 months). The government actively encourages foreign investment, with regulations designed to support entrepreneurs and businesses, including a modern banking system and easy access to financing options.
• Strategic Location. Situated between Spain and France, Andorra provides easy access to major European markets. It offers proximity to two of Europe’s largest economies, making it a convenient base for business operations.
• High Quality of Life. Andorra is known for its safe, clean, and peaceful environment, with stunning natural landscapes. It has a high standard of living, making it appealing for families and retirees.
• Political and Economic Stability. Andorra is politically neutral and economically stable, providing investors with confidence in the long-term security of their investments. The country has enjoyed consistent economic growth and a resilient financial system.
• Residency Leading to Citizenship. By investing in Andorra, you can obtain residency, which also opens the path to Andorran citizenship after 20 years of continuous residency. While citizenship requires a long-term commitment, it comes with the benefit of full rights as a European microstate citizen, including visa-free access to over 170 countries. 

Andorra Golden Visa: Explained by Experts

The Andorra Golden Visa, also known as Residency by Investment, offers non-EU nationals a route to obtain residency in Andorra through significant financial investments. The program is designed to attract high-net-worth individuals who are seeking residency in a safe, politically stable country while maintaining financial privacy and favorable taxation.

It is important to note that while this visa is commonly referred to as a "Golden Visa," the actual status it grants is residency, not citizenship, though it can be a stepping stone toward permanent residency and eventual naturalization after 20 years. 

In both Andorra and Europe, "Golden Visa" programs have become popular due to the ease with which they grant residency in exchange for investment, allowing non-EU nationals to reside, travel, and, in some cases, gain access to favorable tax environments. While Andorra’s program stands out due to its low tax rates and beautiful living conditions, it is part of a broader trend in Europe, where countries like Spain, Portugal, and Greece have also implemented similar programs to attract foreign capital. Andorra's program, however, is notable for its limitation on employment, classifying recipients as passive residents who must rely on income from investments outside of local employment.

Advantages of Residency in Andorra

Andorra provides an attractive residency program with numerous benefits for individuals seeking favorable tax conditions, visa-free travel, and privacy. With its high-quality healthcare and education systems, Andorra presents a comfortable and secure living environment with the following pros: 

Visa-Free Travel

Andorra residency grants you the privilege of visa-free travel to neighboring countries like France and Spain, making it convenient for those frequently moving within Europe. It also provides access to the Schengen Area, allowing for seamless travel across 26 European countries.

Expedited Visa Processing

Residents of Andorra can benefit from faster and simplified visa application procedures when seeking entry to the UK, the USA, and Canada, making international travel beyond Europe more accessible.

Favorable Tax Conditions

Andorra offers a low-tax environment, where there is no taxation on wealth or inheritance for residents and a low 10% tax on dividends, capital gains, and profits. This makes it attractive for investors seeking tax efficiency.

Banking Privacy

Andorra stands out for its banking privacy, as there is no automatic exchange of banking information for tax residents. This provides a level of financial discretion not commonly found in other European jurisdictions.

World-Class Healthcare and Education

Andorra provides top-quality healthcare, with its medical system being ranked among the top five in the world. Moreover, its educational system is robust, offering multilingual instruction in Catalan, French, Spanish, and English.

Eligible Investments to Get Andorra Residency

There are two types of Andorran residency through investment: active and passive. 

Passive residency through investment in Andorra is ideal for those who live in Andorra while relying on income generated from overseas sources. To qualify, applicants must invest a minimum of €600,000 into Andorran assets, which can include:

1. Real Estate: Property located within Andorra.
2. Company Shares: Holdings in the equity or share capital of Andorran-based companies.
3. Debt or Financial Instruments: Investments issued by Andorran public or private entities.
4. Life Insurance: Policies issued by Andorran financial institutions.
5. Non-Interest Bearing Deposits: Placed with the Andorran Financial Authority (AFA).

However, if the investment is directed into the Fons d'Habitatge d'Andorra, a social housing fund structured as a SICAV (with both public and private contributions), the minimum required amount is reduced to €400,000. Along with the primary investment, passive residents must also deposit €47,500 with the Andorran Financial Authority, plus an additional €9,500 for each dependent. Such residents must live in Andorra for at least 90 days per year. 

Active residency through investment is designed for individuals who intend to establish and operate a business within Andorra. The requirements for active residency include an increased AFA deposit of €50,000 and a higher ownership stake in Andorran companies. Active residents are required to demonstrate active involvement, ensuring that their business operates and that they reside in Andorra for at least 183 days annually. However, some applicants involved in digital, innovation, or entrepreneurship projects may be exempt from the AFA deposit.

Investments are refundable once the residency permit expires or is no longer required.

How Much Does It Cost to Get an Andorra Residency by Investment?

Below is a detailed breakdown of the financial requirements and additional costs associated with Andorra's residency options for both passive investors and active business entrepreneurs.

These figures are estimates, and actual costs may vary based on individual circumstances and specific investment choices. 

Andorra Residency by Investment General Requirements

To qualify for residency in Andorra, applicants must meet certain core criteria applicable to residency by investment:

1. Criminal Background Check: Applicants are required to present a recent police clearance certificate from their country of origin, typically issued within the last three months, confirming a clean criminal record.
2. Proof of Financial Independence: Financial self-sufficiency is essential. This often involves showing a bank balance of at least €38,000, with additional funds for dependents, to confirm that you can support yourself and any family members without needing assistance from Andorran welfare systems.
3. Health Insurance: Until eligible for the Andorran public healthcare system, applicants must obtain private health insurance. This ensures reliable access to healthcare throughout your stay.
4. Minimum Stay Requirement: Residency in Andorra comes with a minimum annual stay obligation, typically ranging from 90 to 183 days, depending on the type of residency, to ensure a significant presence in the country.
5. Investment or Employment: Based on the residency type, you may need to either make a minimum investment of €400,000—whether in real estate or financial products—or demonstrate active employment or a business setup in Andorra.
6. Required Documentation: Key documents include a valid passport, proof of residence in Andorra, and a CV or biography. All submitted documents must be translated and properly legalized.
7. Address Requirement: All residency types, including through investment, necessitate proof of an Andorran address. This can be met through ownership of a property or a rental agreement for temporary accommodation.

Documents Required for Andorra Residency by Investment

Andorra residency through investment requires a thorough compilation of documents to establish your eligibility. Here is what you will need:

• Proof of Investment. Provide evidence of the required investment, whether in real estate, government bonds, or securities. The minimum investment is €400,000.
• Bank Statements and Financial Proof. Submit bank statements showing sufficient funds to live in Andorra and a security deposit of €50,000, with an additional €10,000 per dependent. A bank recommendation letter verifying the source of funds is also required.
• Identification Document. Certified copies of passports (both national and international) are necessary for the applicant and all dependents.
• Police Clearance Certificates. A police clearance certificate, no older than three months, is required for each applicant and dependent to confirm no criminal record.
• Proof of Residence. You must show proof of a permanent address in Andorra, typically through a real estate purchase or a long-term lease.
• Corporate and Employment History. Business owners must include corporate documents, while employed applicants should provide proof of employment for the last five years.
• Medical Insurance. Applicants and their dependents must have valid medical insurance in Andorra.
• Marriage and Birth Certificates. A marriage certificate for spouses and birth certificates for children must be submitted as proof of family relationships.
• Employment and Tax Documents. You will need to provide employment contracts, pay stubs, and tax returns from the past five years to demonstrate consistent income and compliance with tax obligations. ​

The above list is not exhaustive and serves as a general guideline. All documents required for Andorra residency by investment must be translated into Catalan, Spanish, or French and notarized. In addition, police clearance certificates and marriage certificates must be certified with an apostille to meet the application standards. This ensures that all legal and official documents are valid and recognized under Andorran immigration rules​. 

Step-by-step Guide on How to Get Andorra Residency by Investment

The Andorran residency by investment process involves document preparation, bank account setup, and investment transfer, followed by the issuance of a renewable residence permit.

Step 1. Document Preparation

Timeline: 2 weeks
Collect documents such as passport copies, proof of income, medical insurance, proof of address, criminal background checks, and medical records. All the documents must be translated and apostilled. 

Step 2. Open a Bank Account

Timeline: 1 week
You need to open a bank account in Andorra to hold the investment and living expenses. This step includes passing bank due diligence and securing the required deposits. You will be required to prove the source of your income. 

Step 3. Submit the Application

Timeline: 1-2 days
The applicant submits the completed application, along with all supporting documents, in person in Andorra to the Andorran Immigration Department (Servei d’Immigració d’Andorra), part of the Ministry of Interior. You may be required to attend an interview as part of the process.

Step 4. Medical Examination

Timeline: 1 week
A medical exam is necessary to confirm that you meet Andorra’s health requirements for residency. This step should be completed after submitting the application. The investor undergoes a comprehensive medical examination, including a Mantoux test on the first day. The reaction to the test is evaluated three days afterward.

Step 5. Residence Permit Issuance

Timeline: 3-8 weeks
If all conditions are met, including the investment transfer, you will receive your Andorran residence permit. Residence permits are granted to the investor, their spouse, minor children, and children under 25 who are enrolled in university. It is possible to obtain the permit remotely through a trusted representative without traveling to Andorra.

Step 6. Post-Investment Fulfillment

Timeline: Within 6 months
You must finalize any investments committed during the application process, such as property purchases or financial deposits. You will need to transfer the required investment amount, which can be in real estate or other approved investment options. 

Step 8. Residence Card Renewal

Timeline: 2 years initially, then renewable for up to 10 years
The residence permit is valid for two years initially, renewable every two years for the first five years, and then every 10 years thereafter.

5 Tips from Golden Harbors to Get an Andorra Golden Visa

Applying for an Andorra Golden Visa (or Residence by Investment) can be a smooth process if you follow the key steps carefully. Golden Harbors advises all clients to consider the following tips to simplify their immigration journey:

Choose the Right Investment Option

Research the various investment routes that qualify for the Andorra Golden Visa. Options include real estate purchases, investments in government financial institutions, or creating a business in Andorra. The best investment route depends on your financial situation and future plans. Make sure to check with immigration consultants for up-to-date information on minimum investment thresholds and their requirements.

Submit a Comprehensive Application

Your Golden Visa application must be complete and error-free. Include all required documents, such as proof of investment, financial stability, and personal identification. Make sure the documents are correctly translated and apostilled if needed. Expert consultants can review your application and ensure it is compliant with Andorran regulations, minimizing the risk of delays.

Keep Your Documents Up to Date

Ensure that all documents, including bank statements, legal papers, and personal documents, are recent and valid. Documents that are older than 6 months may not be accepted in the application process. Therefore, obtain updated copies of all critical documents before applying for your visa.

Understand the Residency Requirements

Andorra requires you to spend at least 90 days a year in the country to maintain your residency status. Make sure you understand this commitment and plan your travels accordingly. Fulfilling the residency requirement is also essential if you want to apply for permanent residency or citizenship in the future.

Seek Expert Advice

Navigating the Andorra Golden Visa process can be complex without expert help. Consider working with experienced immigration consultants or legal professionals who can guide you through the application process, help prepare the necessary documents, and address any legal concerns. Our team offers tailored services to ensure a seamless path toward obtaining your Andorra residency.