The International Business Residency has in recent times become incredibly popular for a wide range of professionals and entrepreneurs who are looking for a fairer fiscal system for their existing business or “start up” plan. In a country with modern technological infrastructure, low tax, and safety, Andorra has become a haven for “I.T. Nomads”, Business and Financial Consultants, along with more traditional professions such as Airline pilots, and Sports Agents. This category is ideal for anybody who does not require to be “in situ” at any particular workplace.
This category, opposed to category D (Anther business based category) requires the deposit of €50 000 non interest bearing bond to the government (plus €10 000 per family member) however offer a great deal of flexibility when it comes to the time spent within the country and the status of tax residency for individuals.
As Andorran Tax Law currently stands, you are required to be in the country for a minimum of 90 days, but to become a tax residence you require to be in Andorra for 183 days. Under category “B” residents can stipulate that their principle base of economic activity is Andorra, hence live, and exercise their profession under the umbrella of Andorran Tax Law.
Individuals who attain Category “B” Business Residency are not obliged to participate in the local Social Security (Health Care and Pension) scheme, however if they choose not to, they must have private health cover (including a pension/retirement plan) from a third party Insurance Company or a local Andorran Bank.
Requirements for Category “B” International Business Residency are as follows;
- The applicant must supply Police Certificates for their Place of Birth and the place of their last Residency. These certificates must carry the apostille (Treaty of the Hague) international legalization stamp, OR be internationally legalized as a valid document via the Country’s Embassy.
- The applicant must show proof of earnings as a means of supporting him/herself, and if applicable, their family. This document can be raised by one of the Banks of Andorra once an account has been opened and sufficient funds have been deposited. For 2016 the applicant must show proof of earning roughly €35 150.00 for the first applicant and €11 700.00 for each extra applicant applying for residency. A word of caution, different banks interpret this law differently, therefore it would be wise to ensure that the bank you choose can cater to your requirements with these funds.
- Proof of Medical Insurance and a Pension Plan. Applicants of this category (once they are granted residency) can participate in the local Social Security program (CASS) which will cover them and their family for medical requirements inside the country of Andorra (please contact Andorran Premier Property or INVICO S.L. for details of coverage from the CASS program). Until residency is granted, the applicant will have to supply proof of Medical Insurance Coverage, and a Pension Plan from a private company. This Medical Insurance must cover “health, Accident and Pension”.
- Proof of Address. The applicant must show proof of where they are living in Andorra. This can be done via means of supplying a rental contract which has at least 12 months of validity before expiry or Title Deeds of the purchase of a property.
- Sign an undertaking that the applicant (and their family) intend to reside in Andorra for at least 90 days per annum.
- For this category, the applicant must supply proof of Business address. This requires a rental property in the form of an office, showroom, or sufficient space to exercise the applicants profession (there is a minimum of 20m² required for office spaces). There is the possibility of incorporating office space into the home address of the applicant, however, this space must meet strict specifications (please contact the staff of Andorran Premier Properties or INVICO S.L. if you would like more information on these specifications).
What’s more, applicant for Passive Residency Category “B”, must also supply the following extra documentation.
- A Business Plan (existing or “Start Up”) of at least 3 years projection along with all supporting documentation for supporting the business plan.
- The applicant must supply a comprehensive Curriculum Vitae outlining that they have the qualifications AND experience to execute the business plan.
- The applicant must supply all supporting documents of Qualifications and Educational Diplomas to support their Curriculum Vitae. All official Educational Diplomas (University Qualifications etc.) must be originals and carry the Apostille (or be internationally legalized by the Country’s Embassies)
Most International Documents will need to be translated into the national language of Catalan by a Legal Translator. If this translation is executed outside of Andorra, it must come accompanied with an apostille. It is a much more uncomplicated process to have translations into Catalan completed by a local Juristic Translation firm.