A microstate that is located in the Pyrenees mountains between Spain and France, Andorra is known to be a tax-haven of Europe. Famous for its spectacular landscapes, this small country has many ski resorts, mountain bike parks and hiking spots; perfect for those that enjoy outdoor activities while appreciating the beauty of nature. The magnificent nature views that the country offers and the high-end retail shopping in the capital Andorra la Vella, is the main reason, despite its small size, that Andorra welcomes an average of 10.2 million visitors annually. For tourists that want to visit this country, the travel time is around 2.5 to 3 hours from Barcelona or Toulouse, where the nearest major airports are located. If you are an international investor, discover why it is a good idea to invest in Andorra.
An important reason why people choose to live in Andorra is for its safety. The two entrances to the country are patrolled by police to ensure the protection of residents and tourists in the country. The percentage of crimes by the latest report of the United Nations Office on Drugs and Crime shows that Andorra is one of the safest countries in the world, having one to zero homicides per year. Thus, the residents (less than 80,000 people) trust the streets of the small country – even at night – even cyclists can leave their bikes on the street without the need for locking them up.
The safe and beautiful country is home for families that have come from different parts of the world, which makes Andorra the host of a multicultural society. People from different countries choose to invest in Andorra and as their new home because of how low the cost of living is, being 30% cheaper compared to countries like France and the United States. Families in the country spend less on accommodation, food, utilities and transportation, and have the opportunity to invest in the country, save or grow their businesses. Entrepreneurs that want to live in Andorra can choose among different options depending on their plans, whether it is to work or have a business in the country, or to retire in the Pyrenees dream.
International investors that are planning to invest in Andorra and live and work in the country may opt for the Andorra Active Residency, a program that will allow you to make Andorra your home while working in the country. Applicants should stay in the country for at least 183 days per year and pay tax in Andorra, which has only a maximum rate of 10%. There are two choices for this residency permit, the “residència i treball per compte propi” or simply “compte propi”, which is the active residency program for self-employed applicants that want to base their company in Andorra; and the permit through a work contract, wherein you will be able to acquire your visa with the help of an employer.
For investors that prefer to become residents without having to live in Andorra, they can opt for the Andorra Passive Residency, where all the economic activities regarding your business can be done outside the country. To be able to apply for this visa, the foreign investor should spend at least 90 days in the country and will be required to earn 300% of the minimum Andorra salary, a total of €38,999.88 in income per year. There are different types of Passive Residency in Andorra, which are for professionals in international business, internationally accredited athletes, scientists and artists, or the residence without lucrative activity; each with their own specific requirements and benefits.
Whether you choose to live in Andorra permanently or have it as a plan B for when you want to escape to a ski resort in the mountains, Andorra can offer the best of the countryside and the city: perfect for outdoor enthusiasts that still want to enjoy high-end retail shopping.