Immigration reform

In terms of active residency in Andorra, membership in the Andorran Social Security (CASS) is mandatory for all employees, and similar workers performing an activity on their own account. Employees are subject to a tax rate of a 5.5% up to 10.5%, the employers will be subject to a 14.5%. Self-employed employees will have to pay between a 20% to 25%.

All foreigners working in the Principality must have a work permit.

Once an employee is hired by a national company, this company should apply to the Ministry of Home Affairs for a permit. The granting of permits by the Ministry is subject to an immigration quota.

Foreign investors and professionals who channel their investments through Andorran companies have the right to request a Residence and Work Permit under the Self-Employment regime. This permit can be obtained by complying with two specific conditions, these being becoming a shareholder of the Andorran entity (participation of >10%) as well as being appointed to the Board of Directors of the company. This kind of permit requires the permanent and effective residence in Andorra of the holder and the corresponding contribution before the Andorran public health system (CASS). As a result, the new resident will have access to the Andorran public health system as well as to a subsequent family reunification if required.

In respect of the residency without the right to work status, with the legislative changes operated during the year 2012, there are three types of residency immigration permits without work: residency without lucrative activity, residency permits for professionals with an international outlook and residency permits for reasons of scientific, cultural and sporting interests (all directed to the promotion of this type of residency among the High Net Worth Individuals).

The person who does not have the Andorran citizenship and establishes their main residence in the Principality for at least 90 days per year, without exercising any professional activity.

The holder of a Non-profit Residence Permit is required to invest at least four hundred thousand euros (400.000 euros) in one of the many types of Andorran assets.

It is compulsory to deposit a non-remunerated fifty thousand euros (50.000 euros) bond before the Andorran National Finance Institute (INAF) for the main holder and a ten thousand euros (10.000 euros) bond for each dependent person who will also obtain a Non-profit Resident profile. The deposit made before INAF is deducted from the 400.000 euro investment.

The person who does not have the Andorran citizenship and establishes their main residence in Andorra for at least 90 days per year, in order to develop a professional activity with an International Outlook.

The center of the professional activity must be located in Andorra, the holder has the right to recruit up to a maximum of one person and at least 85% of the income must come from the clients located abroad.

The person who does not have the Andorran citizenship and establishes their main residence in Andorra for at least 90 days per year, thus establishing the center of their professional activity in Andorra, in the following fields: science, culture and sports. At least 85% of the income must come from the clients located abroad.