- November 14, 2022
- Posted by: andorrasolutions
- Category: News Andorra
The Andorran parliament is currently debating an amendment to the law that would affect the bond / security deposits required to obtain active residency and the minimum investment amount required to apply for passive residency in Andorra. This initiative is related to the measures that the government intends to implement in the modification of the Immigration Law to alleviate, among other things, the significant increase in the price of housing in Andorra in recent years.
As indicated by Xavier Espot Zamora, head of the Government of Andorra, one of the measures in this extraordinary package is to increase the bond deposited with the AFA for new residents in Andorra, as explained below:
- The bond for active residence, self-employed residence, would increase from the current EUR 15,000 to EUR 50,000. Also the minimum shareholding in the company to be created in the country would increase from 25% to 34%.
- For passive residency and residence permits without employment, the amount to be invested in the country would be EUR 600,000, although this could be reduced to EUR 400,000 if the investment is made directly into the housing fund promoted by the executive. Currently the amount is EUR 400,000.
These changes will only affect new residents, with no retroactive effect.
This particular measure is intended to curb the arrival of new residents interested in developing a self-employed activity in Andorra or living in the country without work. The government’s intention is to reduce the flow of new residents, in order to limit the impact on the demand for housing. The country is currently suffering the consequences of an increased demand for housing over the last two years, which has driven a significant rise in the cost of housing and particularly in rent.
We emphasise that the amendments to the Immigration Law, which include the changes to the bond, are being processed as a matter of urgency, so that it could be passed at any time. Unfortunately, we do not have any more information on this and therefore we are not sure whether this amendment will be made this year or next year.