ARINEU
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Residing in Andorra is the goal of many people... Here we present some advantages and disadvantages when making decisions. ​ PROS AND CONS Between the main advantages include its tax system, its per capita income (the seventh in Europe), its excellent natural environment and its high level of security The disadvantages are that: Its tax system is not valid for many companies or businesses (not everything is valid), there are activities that, even if authorization is obtained from the Government of Andorra for investment, banks will cause problems when opening a checking account ... The Admin of the company or business must be a tax and legal resident or the activity must have facilities in the Principality and staff under their charge. Transactions with banks (income and transfers) must be very clear and justified with many details. Andorra does not belong to the EU and even if it is negotiating, it has a long way to go to achieve it, it is also committed to maintaining its borders, which makes it difficult for the movement of goods and business transactions! The rental of real estate is expensive and there is also no stock on the market, the purchase of real estate is also complicated by its high price... Andorra has lost a lot of potential in terms of "digital nomads" and foreign investment for Portugal (which is to congratulate them for the good they have done). Andorra is committed to attracting "low cost" tourism, nothing against it, but other countries prefer "quality over quantity" which added to the "quality" of its workers are "added value" when looking for quality investors (exactly what countries like: Ireland, Luxembourg, Portugal, etc. have done) Tips: If you want to have your company or business in Andorra and you do not want to be a resident or have commercial facilities in the Principality, there is no problem, but surely the bank account must be outside the country (in a foreign bank) which is also valid . You can have your bank account in any country as long as it is willing open it. Prerequisites to obtain residency: ​ The options: Active or Passive Residence 1 - Active residence: 2 ways ​1.1 - Active on behalf of others ​ Exercising a professional activity as an employee, that is, having a job offer from an Andorran company. In addition, establish your main residence in the principality, which is effective at least 183 days a year. ​ Besides: Take advantage of the established regulatory fee. Certificate proving the rental or purchase of a property in Andorra. Be at least 18 years old Present the complete "impeccable" criminal record certificate, both from your country of origin and from others where you have lived, legalized by The Hague. Employment contract of the employing Andorran company. Carry out a satisfactory medical review before the Immigration Department of Andorra. Curriculum vitae. Certificate of marital status. Passport valid for at least 6 months Current passport size photo 1.2 - Active on your own Create your own company in Andorra. Requirements that must be met: ​ Establish your main residence in Andorra, which must be effective at least 183 days a year. Have a position in the administration of the company. Be the owner of at least 20% of the company created or acquired. Certificate proving the rental or purchase of a property in Andorra. Present the complete "impeccable" criminal record certificate, both from your country of origin and from others where you have lived (legalized by The Hague) Carry out an activity on your own. Carry out a satisfactory medical review before the Immigration Department of Andorra. Curriculum Vitae with supporting certificates legalized by the competent authority of the country of origin. Certificate of marital status. Passport valid for at least 6 months. Recent passport size photo. ​ *** Beneficiaries of a "professional" tax residence authorization in Andorra must deposit a deposit of €15,000 (quince mil euros) to INAF (Andorran Financial Authority). They will be refundable in case of non-renewal or abandonment of the country This measure will be required of the new non-resident self-employed, creation of new non-resident companies or assets that are part of the Board of Directors and "do not affect" at already residents. ​ *** It is valid for one year, which can be renewed three times for periods of two years. After these seven years, the residence work permit must be renovate each 10 years. ​ *** The conditions to obtain a business bank account in Andorra are the following: - That the main partner is resident in the principality - Or that the structure of the professional activity develops in the principality (Community premises with employees, etc.)... otherwise, the banks veto the opening of an account and the company will be in limbo. - You can have a bank account in another country, it is valid, even if your business is in the Principality and operate with full normality. From www.marineu.net we can present solutions to this problem and your business will be able to operate without problemas. ​​ ​ 2 - Passive Residence ​ Certificate of "impeccable" criminal record, country of origin or others where you have lived (legalized by The Hague) Passport valid for at least 6 months Marital status certificate Health, retirement or disability insurance certificate Those over 60 years of age (health insurance certificate) Certify an income equal to or higher than the average level of the country To be over 18 years old Live at least 90 days in the Principality Have an official address Provide a bank document that shows a deposit of €50,000 (fifty thousand euros) in favor of the AFA, unpaid, plus an additional deposit of €10,000 (ten thousand euros) for each family member. Medical examination at the Andorran immigration service Justify an income greater than 300% of the annual minimum wage in Andorra. Obligation to invest a minimum of €400,000 (four hundred thousand euros) in the Principality of Andorra. This investment can take various forms and non-remunerated mandatory deposits in favor of the AFA are deducted from this amount. ​ Other types of residence in Andorra There are several types of residence permits in Andorra. Each one has its particularities that we must respect if we do not want to have legal problems. These are the types of permits that currently exist: ​ Residence for reasons of scientific, cultural or sporting interest. Permit designed for researchers, artists or athletes who want to carry out their non-profit activity in Andorra. It is essential to have a certificate that accredits the corresponding knowledge, such as a university degree, for example. Residence due to admission to geriatric centers, medical cures or private therapists. This permit is intended for health-related areas that require a long recovery period. Residence for professionals with international projection. If you have a business outside of Andorra, but you want to live there, this is your permit. The main office of your company must be in Andorra and you must have at least one person hired. This must carry out 85% of its activity outside the principality. In addition, other requirements must be met, such as having a full Business Plan or living 90 days a year in Andorra. · Main advantages of having your residence in Andorra on your own The “easiest” residence permit in Andorra to obtain is the one for your own account. It is chosen by many people who can carry out their professional activity anywhere. Obtaining the Andorran residence permit in this way has many advantages. It will not depend on other people, only on you and that your business works. Its benefits will be greater due to the tax advantages available to the principality. Companies pay a maximum of 10% of their profits and their IGI (VAT/VAT) of 4.5% is the lowest in all of Europe. Reduced labor costs and social contributions (6.5% for the worker and 15.5% for the employer = 22%) If you work for someone else, you will depend exclusively on this job for your residence permit to be renewed and, therefore, your stability will be in question. The turnover is linked to the renewal of the permit. You can greatly improve your quality of life, which directly affects its longevity. It is a quiet place to live and raise a family, because its security is excellent. Its health system is very good and efficient. You will be able to enjoy nature and fresh air. You will live away from the pollution of big cities, but without losing any of its advantages. In Andorra and its surroundings you will find innumerable leisure and recreation activities. Banking and finances Andorra has a traditional family banking system, there are not many entities; Credit Andorra, Banca Mora, Andbank, the other 2: Banc Sabadell d'Andorra was acquired by Banca Mora and Vallbank by Credit Andorra. ​ Education and formation Andorra has a good quality educational system, in fact there are 3 systems; Andorran, French and Spanish... The percentage of students who opt for university degrees get a place in neighboring countries. Public services Public services are good, they have their deadlines and as far as Administration is concerned, everything goes through the Government (Registry of Companies, Mercantile Registry, Liberal Professions, etc.)