How To Obtain Residence In Andorra Through Investment

Europe is home to many small countries with thriving economies, enriching local cultures, and natural escapades meshed with modern-day buzz. Andorra is one such country. Pinned on the southwest part of Europe, Andorra is flanked by two juggernauts, Spain and France. It harbors a small but culturally rich population. Tourism is its primary source of income, contributing to a massive 80 percent of the country’s Gross Domestic Product (GDP), which is among the highest in the world. The country has been eager to attract investors, especially after the pandemic disrupted tourism. Several arrangements have been made toward the goal, and we shall discuss one such arrangement.

Andorra runs its own Residence by Investment (RBI) scheme. Unlike many of its European counterparts, Andorra does not manage a Golden Visa Scheme. Thus, any claim of citizenship cannot be made based on investment; however, the said scheme can make it easier and administratively convenient to obtain citizenship in the long run. Let us cover the fundamental aspects of the scheme, how to apply for it, and why you should apply for it.

Why Andorra in the first place

From the point of investors, a plethora of favorable economic, social, and cultural development opportunities are available in the country. Some of them are mentioned below:

• • Andorra is a country with a nearly zero crime rate. This will ensure the personal and proprietary safety of the investor, and their family members, if included, in the country.
  • An investor-friendly tax regime is in place. No wealth tax, inheritance tax, or capital gains tax is imposed. Moreover, corporate taxes, as well as income tax rates, are low.
  • Despite the country not being a European Union (EU) member, it is part of the EU Customs Union and uses Euro as the official currency.
  • There is freedom of movement across France and Spain. A Schengen Visa can be obtained in a day too. There is a streamlined visa process for countries such as Canada, Australia, New Zealand, and the United States of America.
  • Andorra maintains a very impressive education sector.
  • The country’s healthcare system is regarded as among the world’s best.

Investment requirements 

Investment is the keystone of any such scheme. The quid pro quo is the amount you invest in exchange for which you get access to benefits concomitant to a residence in the country.

Under the scheme, the investor must invest EUR 400,000. Of the said amount, EUR 350,000 can be invested in various areas such as real estate, investment funds, businesses, national securities, and whatnot. There is an option to make interest deposits. The remaining EUR 50,000 must be earmarked as a security deposit to be made at the Andorran National Institute for Finances (INAF). The said deposit will be interest-free. Upon the expiration of the residence permit, the security deposit will be returned to the investor.

Other Requirements for Application 

Complementing the investment requirements is a slew of other requirements that must be met. These include:

• • Submission of a medical report stating the good health of the investor.
  • Purchase or rent of a real estate property in the country; proof of the same must be submitted.
  • Documentation about the source of the funds.
  • A Police Clearance Certificate indicating no criminal antecedents must be submitted.
  • Health Insurance is a must. The investor and their family members included in the application must have health insurance.
  • The investor must show that their income is three times higher than the minimum wage in Andorra. Before submitting the application, a one-year deposit must be made in a bank account in Andorra.
  • Must pay up the additional fees stipulated for adding family members to the application.

About Residence Permit and Citizenship

Once the application has been submitted and approved, the residence permit is issued to the investor and their family. The duration of the permit is one year. After the said term expires, the permit can be renewed for two years. Following the expiry of the said period, renewal for another two years is possible. Afterward, the permit holder is eligible to renew the permit for ten years. Note that the renewal process is not automatic and requires the investor to prove their residence in Andorra for at least 90 days.

So far as citizenship is concerned, there is no shortcut route. The permit holder will be eligible to apply for Andorran citizenship only after 20 years of residence. There is, however, a separate rule for children below 16 years of age. The citizenship acquisition is also not automatic as the applicant will have to sit for an exam on local language, history, and geography.

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