Let’s delve into each method:

Establishing your own company:

“I want to set up my company in Andorra, what steps should I take?”
“What are the requirements for setting up a company in Andorra?”
“How much capital do I need to invest for a move to Andorra?”

These are common queries we address regularly during consulting sessions. It’s natural to have such questions when contemplating a significant change like relocating to Andorra.

To establish your presence in Andorra as an entrepreneur, you’ll need to form an Andorran Limited Liability Company (SL), requiring a minimum share capital of €3,000. This initial investment kickstarts the company’s operations.

Keep in mind, setting up a company involves intricate legal aspects. It’s advisable to entrust this process to professionals like us to ensure a smooth transition and compliance with all regulations.

You might wonder how to contribute the €3,000 for establishing the Andorran company. It’s straightforward: open a bank account in an Andorran institution, although this process isn’t without its complexities due to compliance requirements.

Speaking of compliance, it’s a crucial aspect to consider when contemplating a move to Andorra. The compliance departments scrutinize all transactions, so it’s essential to ensure full transparency to avoid any complications.

Additionally, upon establishing the company, a deposit of €50,000 is required for the administrator. This amount serves as a guarantee and will be refunded upon leaving the country.

The process of establishing your company doesn’t end here. Various procedures, such as registration with the Treasury and Andorran Social Security, are necessary before your company can start operating and issue invoices.

Can I set up my company in Andorra and continue living in my current country?

Yes, it’s possible, but you’ll need to appoint an administrator for your company, which comes with its associated costs. To qualify for Andorran tax residence, spending a minimum of 183 days within the calendar year in Andorra is required.

You can organize these 183 days as you see fit; they don’t have to be consecutive but must fall within the calendar year.

When do these 183 days start counting?

They commence from the moment you obtain the Andorran residence card, not from your arrival in Andorra. This distinction is crucial to consider when planning your relocation.

What if I don’t wish to set up a company but want to work as a freelancer?

Unfortunately, this option isn’t available to foreigners, except for specific university degrees approved by the Andorran Government. As a general rule, establishing a limited liability company is necessary for foreigners.

How much investment is required to move my company to Andorra?

This is one of the most frequently asked questions when contemplating a move to Andorra. We advise against relocating to Andorra unless your annual income exceeds €50,000, as it may not be financially viable otherwise.

To summarize the main expenses involved:

€50,000 deposit for company administration (refundable).
Minimum share capital of €3,000.
Notary and registration fees.
Business setup costs.
Residence card issuance and subsequent renewals.
Self-employed fees.
Home fire safety measures.
Additional bureaucratic fees.

Expect a total variable cost of around €70,000 to set up a company correctly in Andorra, including our fees and notary fees. Additionally, professional guidance throughout the process is indispensable.

We limit our clientele to a maximum of five customers per month to ensure meticulous paperwork and provide personalized attention to each client.

How long does it take to get everything up and running?

Under normal conditions, anticipate approximately six months to have your company fully operational in Andorra. While we’d love to promise a shorter timeframe, honesty is paramount; hence, we provide realistic timelines.

Passive Residency:

“I have sufficient income to reside in Andorra without the need to work.”

Passive residency is a popular option for those who wish to move to Andorra without engaging in employment. This pathway is tailored for retirees, rentiers, or individuals with substantial assets seeking a change in residency without establishing a company.

Can one truly live in Andorra without employment?

Absolutely. Passive residency enables individuals to reside in Andorra without the necessity of employment. However, it entails a significant investment in Andorran assets and requires physical presence in the country.

How much capital is required for this investment?

An initial investment of €600,000 in Andorran assets is mandatory for passive residency, which may include public debt, real estate, or shares in Andorran Investment Funds.

In addition to the investment, the required annual income must exceed 300% of the Andorran minimum annual salary, with an additional “100%” for each dependent.

Are there any other prerequisites?

Yes, apart from the financial criteria, certain documents such as medical insurance, criminal record certificates, and documentation for dependents are necessary to establish passive residency in Andorra.

Can one settle in Andorra with just 90 days of residency?

While residing in Andorra for 90 days may renew administrative residency, it doesn’t suffice for tax residency. It’s essential to understand the distinction between administrative and tax residency to ensure compliance with Andorran regulations.