Active shareholder residents finally need to leave a 15.000 EUR deposit
Further to our previous article in October on potential changes to the immigration law there is a final vote on the potential modifications to the residency for active shareholders (autonomos / compte propi).
As previously reported this change will affect all future active residents that apply for residency through the creation of a company in Andorra / working actively as director or board member. The following changes have been confirmed:
- You must be participating with more than 20% in the company rather than the current minimum of 10%
- You must leave a bond / security deposit payment of 15.000 EUR to the government / the financial authority regulating body of INAF
- You must spend 183 days in Andorra
Previously there was no deposit required, but there will be a bond of 15.000 EUR required from now on. This deposit is similar to the 50.000 EUR deposit that passive residents need to leave as bond.
Apparently the government is trying to restrict the influx of so-called autonomos that leave the country with potential debts after little or no economic activity. The deposit may be used to settle debts with government and social security (CASS) and will only be released back to the person interested once residency is given up and all outstanding debts are settled.
Current active resident shareholders per “compte propi” seem not to be affected by this.
The question remains if this will help “filtering” for “better profiles” or if it will overall have an even negative impact to attract young talent and entrepreneurs that may not have sufficient “liquidity” to pay for an estimated 6000 EUR in set up costs for a legal entity between lawyers, tax advisors, notary, municipality and goverment fees plus the newly introduced bond of 15.000 EUR before even considering an investment into getting your business activated. Andorra is eager to attract talent, but apparently also hoping to “attract more quality” rather than quantity…. It remains to be seen.
We will happily provide you information and advise how this may affect your future residency project or current situation. Click here to contact us.