DIFFERENCE BETWEEN THE ACTIVE  AND THE PASSIVE RESIDENCE PERMITS

ANDORRA, THE DESTINATION FOR THOSE SEEKING TO IMPROVE THEIR QUALITY OF LIFE

Andorra has become a very attractive destination for all those who seek to improve their quality of life. For its unique natural environment, for its level of safety, for its excellent healthcare system and its varied educational systems, as well as for its unique tax system. These are just some of the advantages that invite many Spanish citizens to start a new life in Andorra. Is that your case? If so, to live in Andorra you will need a residence permit. Andorra offers different types of residencies, among which the active residency and passive residency stand out.

Here, we explain the differences between the two types of residencies, their benefits, as well as the requirements needed to obtain each of these.

ACTIVE RESIDENCE PERMIT

Active residency permits will allow you to live and work in Andorra. This permit requires that the person who acquires it reside, permanently and effectively, more than half a year (183 days) in Andorra. Among the different types of active residencies, self-employed residency and hired employee residency stand out. If your intention is to start your own company you will need the self-employed residency permit, while if your objective is to work in an Andorran company you will need the hired employee residency permit.

Requirements for obtaining the self-employment residence permit
To obtain a self-employed residency permit you must:

– Accredit your training and experience in a Curriculum Vitae.

Form a company in Andorra or acquire at least 20% of an Andorran company. To do this, you will need a permit, called a Foreign Investment Authorization.

– Hold a position in the administrative body of that company.

– If you are a new member of the company, you must register a business activity for it, as well as keep it active and operational, during the period of the residence permit.

– Make a mandatory interest free (recoverable) deposit of €15,000 in to the AFA or Andorran Financial Authority.

– Obtain your country’s criminal record certificate, as well as that of other countries where you have lived.

– Present the rental agreement or purchase deed of an Andorran property.

– And finally, you will have to pass a medical check-up with the Andorran Department of Immigration.

 

 

Conditions for obtaining a residence permit to work as an employed person
In order to obtain a residence permit as an employee or a work permit you must:

– Accredit your training and experience in a Curriculum Vitae.

Find a company willing to hire you. Two factors influence this: the requested profile and the available quota. Since in Andorra, companies are obliged to prioritize the recruitment of nationals and residents (a measure to reduce the unemployment rate), so if they finish a recruitment process with two candidates with the same profile, but one is Andorran and the other Spanish (resident in Spain), they must hire the Andorran. On the other hand, companies have an annual recruitment quota, granted by the Department of Immigration, to hire people from outside the country. Therefore, you must find a company that wants to hire you, for your profile, and that has part of its quota available to do so.

– Obtain your country’s criminal record certificate, as well as that of other countries where you have lived.

– Present the rental agreement or purchase deed of an Andorran property.

– And finally, you will have to pass a medical check-up with the Andorran Department of Immigration.

Renewal of the residence permit
Your first active residence permit is valid for one year. Once this first year has passed, you will have to renew every two years, three more times. Once you have been in Andorra for seven years, you will have to renew your active residence permit every 10 years.
Unlike an active residence permit, a passive residence permit will allow you to live in Andorra, but not work. To be eligible for it, you must show that you have enough wealth or income to be able to survive without working. Passive residence permits require at least 90 days of residence in Andorra per calendar year. There are different types of passive residences, among which stand out: non-profit residence, as well as residence for professionals with an international projection and residence for reasons of scientific, cultural and sports interests.

Non-profit residence

If you apply for this residence you must make a minimum mandatory investment of 350.000€ in Andorra. You can invest in real estate, equity or the country’s corporate funds or in debt instruments.

Residence for professionals with an international projection

With this residence you will not have to make the investment of 350.000€, however, you must constitute or acquire an Andorran company that carries out 85% of its activity outside Andorra.

Residence for reasons of scientific, cultural and sporting interest

With this residence you will not have to make such an investment, but you will have to demonstrate proficiency in the field, as well as justify income.
Non-profit residence
Non-profit residence is designed for all those who seek to establish their effective residence in the Principality, without exercising any professional activity in Andorra. From the date of its acquisition, the holder has six months to make, permanently and effectively, the minimum mandatory investment of at least €350,000 in Andorran real estate, participation in the share capital of an Andorran company, in own funds of companies of the country or in debt instruments issued by resident entities or by any Andorran Public Administration. This investment may vary, as long as it is not interrupted and is maintained throughout the duration of the residence permit.
Residence for professionals with an international projection
The residence for professionals with an international projection does not require a minimum mandatory investment of 350.000€, but it does require to constitute or acquire an Andorran company that carries out 85% of its activity outside Andorra. The newly created companies must prove, by official documentation, the economic viability of the business, which must generate sufficient financial resources to enable the principal holder, as well as the persons under their care, to reside in the Principality of Andorra.
Residence for reasons of scientific, cultural and sporting interest
The residence for reasons of scientific, cultural and sporting interests is designed to welcome all those people who are recognized for their achievements in these fields. This type of residence also does not require a mandatory minimum investment, provided that proficiency is demonstrated and income from the field is justified.
Requirements for obtaining a passive residence permit
To obtain the passive residence permit you will need to:

– Prove that you have sufficient financial means to be able to reside in the country without working there. For practical purposes, you must prove that you have an income exceeding 300% of the minimum wage in Andorra and 100% of it for each dependent person.

– Realizar un depósito obligatorio no remunerado (pero recuperable) de 50.000€ para el titular principal y de 10.000€ adicionales para cada persona a su cargo, en el momento de solicitar el permiso de residencia en Andorra.

– Realizar una inversión mínima obligatoria de 350.000€, dentro de los seis primeros meses de adquisición: en bienes inmuebles, participaciones en el capital social de una empresa andorrana, en  fondos propios de sociedades del país o en instrumentos de deuda emitidos por entidades residentes o por cualquier Administración Pública Andorrana. Deberá mantenerse de forma ininterrumpida durante la vigencia del permiso de residencia.

– Presentar el contrato de alquiler o compra de una propiedad andorrana.

Disponer y mantener vigente, durante toda tu estancia, un seguro por enfermedad, incapacidad y vejez, que cubra explícitamente el 100% de los gastos médicos en Andorra.

WE’LL HELP YOU WITH YOUR RESIDENCE PERMIT

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