With the increase to the number of new permits being issued the Andorran government has confirmed the continuance of its policy to encourage foreign investment into the Principality to continue to stimulate the labour market and the promotion of social cohesion.
February 2022
Residence with self-employment:
Applicants for Andorran residence have the option to establish a business either through a corporate entity or as self-employed. A number of years ago the authorities placed a cap on the number of applications for self-employment to better manage the system, with the cap being increased as necessary. Earlier this month the Council of Ministers approved the increase to the general quota for residence with self-employment by 250 new permits. Of these, 50 are reserved for liberal professions with the remaining 200 for other activities.
The last increase to the number of permits was 5 months ago in February 2021, when the quota was also increased by 250 permits, of which 218 have already been issued. The need to increase the quota so soon after the last review demonstrates the popularity of the program and Andorra as a destination for foreign investment and workers. The Andorran authorities note the positive effect the program has on the national labour market and its wider social benefits to the country.
Online Business Applications:
As part of the continuing development of the government’s electronic platform and the development of the wider digital economy in Andorra, more government services have passed online. Applications for authorization for foreign direct investment into Andorra have moved online, together with applications to reserve a corporate name. Both processes can now be completed electronically. Approvals and other notifications will be given by the relevant authorities electronically to further speed the process.
June 2021
New limit on residence permits approved
The Andorran Council of Ministers has formally approved the Regulation which increases the number of new migration permits for residence and self-employed activity by a further 250 permits.
The previous limit, set in May 2019, was almost exhausted and as part of the continuing process to encourage foreign direct investment, it was necessary, under the provisions of the Regulation, for the Ministers to increase the quota of available permits.
As a result of the policy to encourage new residents to come to Andorra, the country has enjoyed the positive effects of foreign investment on the national labour market and increased social cohesion.
October 2020
February 2020:
Rail connection to Barcelona:
The Minister is considering a proposal for the construction of a passenger and freight rail link from the Andorran capital, Andorra la Vella direct to Barcelona. The proposed link would cut the present journey time by bus and the price of a ticket is expected to be considerably cheaper, while also reducing vehicle traffic and congestion, with corresponding environmental benefits as a result. The promotor of the project estimates the rail service could attract 500,000 passengers a year.
The estimated cost of €220million is thought to be less than half the cost of the Andorran airport which is also under consideration.
The Minister of the Economy and Business, Mr Jordi Gallardo, is reported to be looking at combining the rail project with other infrastructure proposed by Andorran business leaders with the long term aim of opening the country for business
FAFT Recommendations ‘Largely Compliant’:
The most recent report by Moneyval recognises the progress Andorra has made to meet international standards and has now re-rated the jurisdiction on the FATF Recommendations. The re-rating applies to the transparency of beneficial ownership, the regulation and supervision of financial institutions and non-financial businesses and professions; Andorra is now rated as ‘Largely Compliant’.
The Recommendation concerning national cooperation and coordination is assessed as ‘Compliant’.
Furthermore, the Report notes Andorra has made significant strides in complying with its international obligations and is now rated as ‘Compliant’ on 10 of the FATF Recommendations and ‘Largely Compliant’ on 27 Recommendations with only 3 of the 40 Recommendations remaining rated as ‘Partially Compliant’.
November 2019:
The number of resident permits for Residence by Investment that have been approved since 2012 to September 2018 has risen to 3,130, as the popularity of Andorra as a destination continues to increase year on year. Residence granted to individuals with a sporting, cultural or scientific profile also shows strong growth.
The Head of government, Xavier Espot, stated that despite the increase in the investment to be made in Andorra rising from €30,000 in 2012 to €400,000 today there continues to be significant growth in the numbers of residents under this programme. He considered that the increase to the investment sum confirmed the wish by the applicants to have a permanent connection with the Principality and the government’s wish to attract such residents.
Naturalisation
The government is currently looking at ways to provide an alternative means to residents who wish to obtain Andorran nationality through naturalization. At present, applicants must reside in Andorra for at least 20years and pass an interview and an oral exam. It is proposed that by attending a new course being prepared by the Ministry of Education applicants will no longer have to attend and interview or examination.
See also the following updates:
Andorra entrepreneurship before the EU's association agreement
The Principality of Andorra welcomes President Macron
Andorra Updates: Companies and Foreign Investment
Andorra Taxation Updates
For more information about Citizenship and Residence services in Andorra, please visit our dedicated website or request or Citizenship and Residence e-brochure.
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