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ANDORRA - PROPERTIES, RESIDENCE PERMITS AND COMPANY FORMATION

Passive Residence

With the passive residence permit, you can enjoy full tax benefits for your personal assets but you are not allowed to work in Andorra.

The following documents have to be presented with a residence application to the authorities:

1. Certificate of good behavior from your native country and the country of your last residence
2. Passport
3. Confirmation from the Civil Registry Office of your marital status
4. Document proving that you have deposited the security of € 50,000 with the AFA (Andorran Financial Authority) as well as € 10,000 for each financial dependent (this can be organized through an Andorran bank)
5. Originals of the ownership deed or the rental agreement of an Andorran property
6. Documents proving that you have disability, health and retirement insurance (this can also be arranged here in Andorra)
7. Evidence as shown by securities or bank statements of an annual income of at least € 37,814,40 plus € 12,604,80 for each dependent
8. Signed document in which you commit yourself to reside at least 90 days a year in Andorra
9. CV with contact details and last two addresses with dates
10. Biometric passport photo

Please note that the Certificate of Good Behavior and Civil Registry office confirmation and in general all foreign official documents, need to be legalized with an Apostille of The Hague convention (an international notarization628,
Applicants for the passive residency will be required to invest an additional € 400,000 in Andorra (including the deposit with the AFA) as part of the application process. This investment can be made either in real estate, in an Andorran company, in Andorran government bonds, or as an interest-free deposit to the AFA. The investment can also be placed as a deposit in an Andorran bank, or in Andorran financial products.

Applicants from Russia, Belarus, Ukraine, Albania and all countries of the former Russian Federation (except those currently member of the European Union) have to present following additional documents:

. List of places of residence for the past five years, by providing a copy of the document called internal passport that some countries have or council certificates.

. List of jobs over the past five years, indicating the name and location of the companies by providing a copy of the document called labor passport  available to some countries, or certificates of different companies where worked.

. List of legal entities in respect of which the applicant holds more than 25% shares and / or powers of legal representation, company statutes and registrar certificates, the constitution deed and the subscription of shares in the case of foundations or trusts.

. Statements of the income tax declarations over the last five fiscal years.

The passive residence permit is given first for 2 years, afterwards it extends for another 2 years, then for 3 years and thereafter for 10 years.

Processing of an application usually takes 4-6 weeks.

Passive residence with VIP status

Applicants with special achievements in international sports, culture, arts or research and development can apply for exemption by the Government to avoid the obligatory investment.
This permit only requires a € 50,000 depository bond.

All other conditions are the same as with standard Passive Residence permits.

85% of the professional activities have to be carried out outside of Andorra

90 days is the minimum obligatory time to stay in the country.

Passive residence in connection with international business

This permit is for applicants who wish to form an Andorran company but do not wish to be in Andorra permanently. This permit requires a € 50,000 depository bond, but does not require any additional investment than the investment of forming an own Andorran company.

This solution places the applicant in the Andorran tax and regulations system. It also gives the right to partially work in Andorra, as up to 15% of the business activity can be generated inside Andorra. The difference to an active residence permit (residence with work permit) is that one cannot be part of the Andorran social security system.

There is limitation on the number of employees in such a company. Apart from the owner, it can only have one additional employee.

The applicant has to present:

• Proof of sufficient financial means to support oneself. This is normally issued by a local bank, which certifies that the applicant possesses 300% of the minimum Andorran salary and 100% additionally for each dependent. The required funds are approx. € 36,000 for the applicant and € 12.000 for each dependent, which should be deposited in the local bank. After the bank certificate has been issued, the funds can be used freely.

• Proof of private medical and disability insurance that is specifically valid in Andorra.

• Original of rental contract or title to a property that complies with the requirement to register an office space.

• A declaration that one will reside for a minimum of 90 days per year in Andorra.

• Certificate of Good Behavior – translated and with an  Apostille of The Hague convention

• Evidence of civil status from the Civil Registry Office.

• Non-interest bearing depository bond (fully refundable upon departure) of € 50,000 for the applicant plus € 10,000 for each dependent.

• CV detailing the qualifications and work experience of the applicant and to prove he has the qualifications and/or experience in the relevant business area.

• A copy of all documents proving the qualifications listed in the CV.

• Biometric passport photo approx. 35x40mm in color against a white background.

Together with this, one has to present documentation that the Andorran company has been formed. Within one month after the application has been presented, the applicant has to document that the company has registered a place of business with one of the Andorran communes.