According to the most recent data, more than 2,000 people with passive residence permits reside in Andorra, with Spanish, French and British nationals being the main applicants.
According to the most recent data, more than 2,000 people with passive residence permits reside in Andorra, with Spanish, French and British nationals being the main applicants.
If the data is broken down, of these 2,000 tax residents, about 900 are long-term residents and about a thousand are residents without lucrative activity, the main permit granted. Apart from this group, there are also about a hundred residents in the Principality, as passive residents, for scientific, cultural and sporting interests, as well as all those professionals with international projection who have presented a project to develop in the country.
Regardless of the type of permit granted, living in Andorra is synonymous with high quality of life and means for all its residents a wide range of advantages and facilities in tax matters. If you are thinking of setting up your residence in Andorra and enjoy all the tax advantages offered by the country of the Pyrenees, you are in the right place.
Assap explains what it means to be a passive resident in Andorra, what requirements must be met to apply and what health coverage is required.
Living in Andorra, quality of life with numerous tax advantages
There is no doubt about it. Today, Andorra is considered a reference country in terms of welcoming new residents.
As we have already mentioned, many of the people who are interested in the Principality as a destination to establish their passive residence do so attracted by the important tax advantages (mainly due to the taxation of income from movable capital) offered by the country, but also by the high quality of life in the Principality, with one of the highest life expectancies in the world, one of the lowest crime rates and access to basic, educational and health services of high quality.
What are the requirements to live in Andorra as a passive resident?
As we have mentioned at the beginning, passive residence in Andorra is the residence permit granted to those persons who do not work in the Principality, but who reside a minimum of 90 days a year and can prove sufficient income to live in the country, without being dependent on a job. Among the different types of passive residence, the most requested is the passive residence without lucrative activity (category A), although there is also category B, reserved for persons with international activities who do not profit from them locally, and category C, reserved for residents for scientific, cultural and sporting interests.
The following are the requirements to obtain passive residence without gainful activity:
- Live in the country at least 90 days a year.
- Investing a capital of 400.000€ in a house or making an investment in an Andorran company.
- Deposit a deposit of €50,000.
- Deposit a maximum of an additional €10,000 for each family member.
- Formalize the application for authorization of residence without lucrative activity.
- Passport presentation
- Pass the medical examination.
- Presentation of the criminal record certificate.
- Proof of rental or purchase of a property in Andorra.
- Proof of marital status
- To have private medical coverage.
- Demonstrate financial autonomy with annual income greater than 300% of the local minimum wage.
- Pass the medical examination.
Regarding the authorization and renewal process, once the process is approved and the residency is validated, it is granted for a period of two years, then renewed for two more years, the next renewal for three years, and successive renewals for a period of ten years.
What health coverage does a passive resident need?
As we have seen, one of the requirements for passive residence is to have medical, disability and old age insurance with coverage in Andorra. In this sense, in ASSAP we have the Passive Residents Insurance, a medical insurance with coverage in Andorra and in all the centers arranged in Spain by the company.
What is included in the medical insurance – ASSAP for passive residents?
Reimbursement of all medical expenses in the country (CASS rate) + in all centers arranged in Spain by the company.
What does disability and old age insurance – ASSAP include?
Coverage in case of total disability and a 5-year redeemable savings policy.
*Note: minors and those over 60 years of age will only need medical insurance.
In addition to health care for passive residents, we have a range of more than 50 insurance products, both personal and corporate, that can complement the needs of all passive residents, beyond meeting the legal requirements of the passive residence permit (auto, home, investment, corporate, etc.).
Do you want to establish your residence in the Principality and need more information or personalized advice about our insurance services for passive residents? Ask for a no-obligation quote on our website.