The Principality of Andorra is the 6th smallest nation in Europe, and being located between Spain and France, is headed by statesmen from both countries.
Due to its location in the eastern Pyrenees mountain range, Andorra consists predominantly of rugged mountains and is known for its ski and summer resorts, duty free shopping and beautiful architecture in the Old Quarter.
The country has the highest age for life expectancy and is one of the safest countries in which to live.
Tourism is the country’s major source of income with over 10 million visitors arriving annually and contributing to 80% of the GDP.
Encouraged by favourably low taxes the banking sector also contributes significantly to the economy, and activity includes asset management and insurance, accounting for almost all of the remainder of Andorra’s economic income.
Residency requirements depend on whether an investor is ‘passive’ or ‘active’ as described below.
No purchase of real estate is required but see right under Investment.
‘Passive residence’ -
Investment of 50,000 EUR in government bonds,
residence without employment in Andorra (no less than 3 months pa) and health insurance must be obtained
Generation of an income of at least 37,814.40 EUR per annum
(300% of the average Andorran wage) with additional income required for family members
An investment of 400,000 EUR in government or public bonds, real estate,
Andorran company shares etc, if no ‘lucrative activity’ is carried out
(the initial 50,000 EUR investment will be refunded with this option)
‘Active residence’ –
This includes investment of at least 3,000 EUR of share capital in an Andorran bank, together with self employment in one’s own company incorporated in Andorra;
either renting or purchasing a property of at least 20m2;
at least 6 months main residency pa; the provision of work permits, payment of healthcare and social security for any shareholders.
This depends upon the type of residency required, but are approximately
15,000 EUR towards the INAF.
During the period of residency, regular checks are made regarding, for example,
proof of income, insurance, and background checks.
The information required is dependent upon the residency option chosen,
Initially, passive residence permits are given for 2 years, and can be renewed.
After 20 years, you can apply for citizenship.