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Tax residency in Andorra for traders, advisors, models, YouTubers, influencers or programmers

Tax residency in Andorra for traders, advisors, models, YouTubers, influencers or programmers

It is a fact that residing in Andorra on a permanent basis is a very attractive option for some citizens of Spain, France and other European countries. In addition to a high quality of life and the enchanting landscapes, Andorra offers them the opportunity to pay less tax on the income derived from their wealth or professional activities than they otherwise would in their country of origin. We have already taken an in-depth look at the benefits of tax residency for:
– Persons without lucrative activity
– Residency for purposes of scientific, cultural or sporting interest

But there’s more…

Passive residency for professionals with international presence

Legally, non-Andorran individuals who establish their main effective residence in Andorra for at least 90 days per year are considered to be professionals with international presence. These professionals carry out their professional activity from Andorra, either individually or by hiring an employee.
Another essential requirement is that at least 85% of their yearly invoices must be related to services provided to persons or entities that are not resident in the principality.
Therefore, influencers (gamers, YouTubers, professional bloggers, models), software developers, programmers, web designers, SEO experts, community managers, photographers, video producers, lawyers, traders, advisors, consultants, etc. all qualify for this type of tax residency; in short, digital nomads who provide their services remotely and establish their operational base in Andorra.

What are the requirements?

Some of the requirements have already been mentioned in the previous paragraph:

  • Committing to establishing actual residence in Andorra for a minimum of 90 days per calendar year.
  • Andorra must be the headquarters for professional activities but a maximum of 15% of services may be provided within the country.
  • Only one person may be hired on an employment basis.

Other requirements that must be met are:

  • Having sufficient financial resources to live in Andorra for the duration of the residency permit (300% of the annual minimum wage for the permit holder, with 100% added for each dependant, if applicable). This may be substantiated with a certificate or retirement or invalidity insurance, as well as the previous year’s income tax statement from the country of residence and/or the appropriate financial certificates.
  • Undergoing a medical examination and not suffering from any infectious diseases or those that require quarantine, as established by the international health regulations of the WHO.
  • Having a suitable insurance certificate for Andorra which covers all the medical or health expenses of the holder and their dependants.
  • Providing proof of a clean criminal record through a certificate from the country of origin, country of nationality and countries of residence.
  • Proof of the rental or purchase of a building unit.
  • Making a non-remunerated deposit of €50,000 with the AFA (plus €10,000 for each dependant).
  • Having a viable business plan.

Those who meet these requirements can process their application for passive residency. If the application is successful, a two-year permit will be issued. Once the initial permit expires, it can be renewed for another two years, followed by an extension of three years. After these renewals, residency will be granted for a period of ten years.
The Advantia Assessors team stands out due to its expert knowledge of the procedures and formalities required to obtain tax residencies in Andorra. How can we help you?