The Golden Visa, residence by investment or non-profit residence in Andorra is officially called “passive residence” and is the quickest and easiest way to obtain a residence in the Principality.
Andorra is a rather restrictive country with regard to immigration: with certain privileges for Spanish, French and Portuguese nationals, but quite strict with other nationalities.
However, the Golden Visa or residence by investment allows you to obtain the right to live in the Principality in a much simpler way, even if you are a non-EU citizen, which makes it very popular for citizens from countries such as Mexico, Brazil, Russia, etc.
What is the Andorran Golden Visa or residence by investment?
The Andorran Golden Visa or residence by investment is an easy and quick way to live in Andorra or have a second residence in the country: it only requires investing €600,000 in Andorran assets.
Who is the Andorran Golden Visa for?
The Andorran Golden Visa is aimed at people who wish to reside in Andorra without working as an employee and living mainly on their passive income.
Thus, it is ideal for the following profiles:
- HWNI (“High-Net-Worth Individual”) living on their rents, investment portfolios, bank interests and income generated outside Andorra in general.
- Pensioners who wish to retire in Andorra and be able to enjoy their pension almost in full (ideal for Spanish, Portuguese or French).
- International businessmen who wish to conduct international business outside Andorra.
- People looking for second homes via investment.
In general, the Golden Visa involves an investment of approximately €600,000, in addition to being able to prove that you are financially independent.
What are the requirements to obtain this non-profit residence?
These are the specific requirements to obtain the Andorran passive residence by investment:
- To have a real estate property in Andorra or a rental contract.
- Invest in Andorra at least €550,000, either in real estate, in an Andorran fund, in bonds or other investments.
- Minimum residence stay of 90 days, this criterion being very flexible.
- Certificate of good conduct.
- Private medical insurance.
- Medical certificate issued in Andorra.
- A deposit of more than €50,000, plus €10,000 per dependant (for the partner or each child coming to live in the Principality with this residence), with the Andorran Financial Authority until the passive residence is resolved.
- Proof of income of more than 300% of the Andorran minimum wage, currently at 1083.33€. In addition, if you have dependants, you must add 100% extra per dependant.
In general, the Golden Visa involves an investment of approximately €400,000, in addition to being able to demonstrate that you are financially independent.
What investments are eligible for this type of residence?
This type of residency requires an investment of €550,000 in the country, plus a non-remunerated deposit of €50,000 which is refundable once the residency is cancelled.
Probably many of the residency agents or lawyers who want to process your residency will tell you that the best way to obtain the Golden Visa in Andorra is through real estate investment, but this is far from the truth.
Motivated by the commissions paid by real estate agencies, some advisors encourage their clients to purchase real estate, even though this is not always the best alternative.
There are many other ways to obtain the Andorran Golden Visa quickly and easily. The qualified Andorran immigration law states that at least €600,000 must be invested, yes, but it can be in any of the following types of assets:
- Real estate located in the Principality of Andorra.
- Shares in the share capital of an Andorran company.
- Debt or financial instruments issued by an Andorran entity.
- Debt instruments issued by any Andorran public entity or administration.
- Life insurance products contracted with Andorran financial institutions (e.g. Unit Linked).
- Or a non-interest bearing refundable deposit from the Andorran Financial Institute (at least €50,000 of the €600,000 must be deposited here).
- Thus, an easy way to obtain residency would be to invest in a fund with Andorran ISIN in a bank in the Principality. It is as easy as transferring funds from your local bank to an Andorran bank or taking out a unit linked fund for succession planning.
How to invest is a decision that should be taken calmly and for which it is advisable to seek the advice of private banking professionals.
What advantages does the Andorran Golden Visa offer?
Passive residence, despite its entry barriers (it is mainly for people with a lot of capital), offers a series of very attractive advantages.
- It is very convenient for people who travel a lot, as it only requires staying in the country for 90 days instead of the 183 days of self-employed residence.
- It is subject to a less exhaustive control than active self-employed residence. Generally, the Andorran police do not check that the 90-day requirement is met.
- It is a residence permit that can be obtained by all types of non-EU nationals and allows them to travel freely in Spain, France and Portugal.
- In other words, with passive residence, non-EU passport holders (Russian, Ukrainian, Uruguayan, Argentinean, etc.) will not be limited in their stay as tourists and will not need a special visa.
- It allows you to invest in private banking financial institutions and you can have bank accounts or funds to diversify your portfolio in the face of country risk.
- It allows you to make investments in the country without having to pay the foreign investment tax, which is a not inconsiderable saving.
Can I pay taxes in Andorra without being a tax resident there?
Although some advisors make the mistake of selling the Golden Visa as a panacea that allows you to lower your tax bill and continue living in your home country, there is a very important detail that must be clarified: the principles of international taxation are above residence permits, and this Golden Visa is merely a migratory authorisation to reside in the country legally.
This means that if you only reside in Andorra for 90 days and spend the rest of the year in your country of origin, you can be sure that the Tax Agency of your country will come after you.
In other words: to enjoy Andorra’s taxes you will have to take into account not only the immigration legislation of each country, but also the tax legislation and double taxation treaties.
How to take the first step?
The release of travel restrictions and increased international mobility has boosted the reactivation of foreign investment in Andorra, and especially the demand in the luxury housing market by those with high purchasing power.
If you want to apply for a Golden Visa in Andorra, trust our experts and our wide network of real estate and private banking partners.
If you have any doubts and would like us to help you with the process, please write to us at [email protected] or via the contact form.