How can a Russian citizen obtain a residence permit in Andorra?

More and more often, our compatriots are thinking about immigration from Russia to Europe. At the same time, they often pay attention not to the powers on which the entire European Union rests, but to small countries with a high standard of living. The Principality of Andorra is one of these states. It has everything - excellent living conditions, low taxes, a powerful banking system, excellent medicine - except access to the sea. This disadvantage is fully compensated by the advantageous geographical location (it’s easy to get to any resort from Andorra) and the wonderful landscapes of the Principality itself. However, obtaining citizenship in Andorra for foreigners who do not have an initial connection with the country (relatives, birth) is very difficult and takes a long time. This takes on average 17–20 years. There is an alternative: for investments in government bonds, shares of local companies or real estate, you can obtain a residence permit in a simplified manner. In 2021, the investment size increased significantly and amounted to 400 thousand euros.

Principality of Andorra

The external and internal living conditions of this dwarf state are largely determined by geographical features. The country is located in the east of the Pyrenees, between France and Spain, with which the Principality has been associated since the 13th century. Despite such close relations with France and Spain, Andorra is not part of the European Union and is not a party to the Schengen Agreement. These countries are obliged to defend the Principality from external aggression. However, customs and border controls are still maintained at the borders between these states. Since entry and exit from Andorra is possible only through Spanish or French territories, the departing citizen must have a document permitting entry into the Schengen zone.

Flag and coat of arms of Agdorra

The main source of government revenue is tourism (80% of GDP). Every year the dwarf state is visited by 9–10 million foreigners. A special peak occurs from December to April - the time of the ski resort.

The banking sector also plays a big role. Banks take full advantage of the Andorran tax incentives known throughout the world. Business is poorly regulated by the state. Therefore, this is a real tax haven for private enterprise.

Only 2% of the total land area is suitable for agricultural purposes. Therefore, there is a strong dependence on imports of products and raw materials.

The Principality is a duty-free trade zone, so many goods can be purchased here at 20–40% cheaper than in neighboring countries. By and large, it is Spain and France that determine the economic policy of the state.

The country has only 76 thousand inhabitants. The official language is Catalan. Although unofficially Spanish and (slightly less) French are widespread here. The official currency is the euro. Although no special permits were received from the EU.

Andorra on the map

Residence permit with the right to work

Unfortunately, obtaining this type of permit is extremely difficult. This is especially true for migrants from countries that are not members of the European Union. So Russians and Ukrainians shouldn’t even try to get this “advantage”.

But there is one way out of the situation. A resident of another country can open his own business in Andorra. Only in this way can a migrant obtain a residence permit with the right to work. But in this case, he can only find a job at his own enterprise. At first glance, this procedure may seem simple, but in fact it is a very labor-intensive process. The candidate must meet two important criteria:

• no criminal record;

  Certificate of no criminal record

• permanent residence in Andorra.

After issuing a residence permit, the migrant is required to contact the social insurance authority for registration.

A migrant who has a residence permit with the right to work can call his relatives for the purpose of family reunification.

A foreign citizen with such a residence permit, when moving to another city or to another address, must necessarily inform the migration service about this.

For citizens of EU countries, obtaining a residence permit with the right to work is easier. Residents of these states need to find work in Andorra, and only then apply for a permit. Premature search for a job is necessary so that the migrant can convince the migration service employees that he is a highly qualified and highly sought-after employee in Andorra.

Andorran resident card without work permit

You will also need to obtain a certificate from the employment office stating that no Andorran residents are applying for the chosen job. The main document that serves as the basis for issuing a residence permit is an employment contract.

Benefits of life

Moving to Andorra offers the following benefits:

• Good ecology, due to the absence of industrial enterprises that pollute the environment.
• High quality of life.
• Stable economic and political situation. No global shocks affect the security of Andorrans and the country’s economy as a whole.
• Favorable location. Getting to any European country is easy, although it does not have its own train station or airport.
• Affordable prices for goods and services, this is especially noticeable in comparison with other developed European countries.
• Low crime rate.
• Visa-free visits to France, Spain and Portugal, as well as simplified acquisition of citizenship in these countries.
• Minimum tax burden for individuals and legal entities.

Interestingly, income tax was introduced only a couple of years ago. His rate is 10%. It is permanent and applies only to income from 24,000 euros per year. Corporate profits, dividends and capital gains are also taxed at a rate of 10% (not taxed for the first 10 years). The VAT rate is only 4.5%. Property transfer tax – 1.5–2.5%. The following types of deductions that are considered standard in most other countries are not included: gift, inheritance and wealth.

Active residence permit in Andorra

The first thing you should know is that to be an active resident you must spend at least 183 days a year in Andorra. An active residence permit is valid for 1 year and can be extended for the next 2 years 3 times. After 7 years, the residence permit is renewed every 10 years.

You can get an active residence permit by getting hired in this country. It should be taken into account that social security payments are quite high in the Principality. You must pay contributions to CASS (Andorran Social Security Fund) of approximately 460 euros per month. But keep in mind that these types of contributions in neighboring countries are not very different from this amount. In the first year, contributions in Andorra can be reduced by up to 50%. As a resident, you will not pay income tax as long as your salary is below €24,000 per year. If the annual salary is more than 24,000 euros per year, then the income tax will be 5%, for salaries more than 40,000 euros per year - 10%. Corporate tax in Andorra is 10%, one of the lowest rates in Europe. Corporate tax is at the same level in countries such as Hungary or Bulgaria.

Another option for obtaining an active residence permit is to create your own company in Andorra. In this case, in addition to being the director of an Andorran company, you must own at least 21% of the shares of that company. Dividends you receive from your company in Andorra are not subject to tax while you are a resident. In this case, it is important to note that this only works if your company is located in Andorra. This does not happen with dividends received by an individual from foreign companies.

Flaws

Emigration to Andorra, as well as to any other state, is associated with certain difficulties:

• The local people can hardly be called hospitable towards foreigners, especially those who are applying for jobs. Andorrans often put themselves above other nations and in every possible way push migrants out of the banking sector.
• Long residence requirement. It is really very difficult to get into the country.
• Small sizes. If you wish, you can explore all the surrounding areas in a week.
• No dual citizenship. To obtain Andorran citizenship, you must renounce your native passport.

If you are not afraid of difficulties, and you still dream of going for permanent residence in Andorra, be prepared that you will initially have to obtain a residence permit - active or passive. How to do this will be discussed further.

Andorran citizenship: pros and cons

The Principality is very small, but holders of Andorran citizenship are entitled to a number of significant advantages that are not available in many huge countries:

• excellent ecology, since there are no industrial enterprises on the territory;
• stable political and economic situation. Even major global shocks do not particularly affect the security of citizens;
• more than decent standard of living;
• favorable geographical location, allowing you to quickly get to Europe, although there is no airport or even a train station here;
• low crime rate;
• relatively low prices for the services offered and quality goods, if we take European ones as an example;
• minimum taxes for citizens and companies;
• the opportunity to visit Spain, France and Portugal without a visa, and obtain citizenship of these countries through a simplified procedure.

Income tax was introduced in Andorra quite recently. The rate is 10%, applied to income from 24 thousand euros annually. A similar rate is provided for dividends and company profits (not charged for the first 10 years).

There are no taxes on wealth, as well as inheritance and gift taxes that are standard in other countries.

After the listed advantages, most people from Russia and other countries have a desire to acquire citizenship, but not everything is so rosy in the principality. Judging by the comments and reviews on forums, under articles on thematic sites, there are certain disadvantages of living here:

• local residents are not particularly hospitable and kind to foreigners. This is especially true for migrant workers. Often Andorrans show their superiority over other nations and try their best to push emigrants out of the banking sector;
• small area. Travel enthusiasts have nowhere to turn around - all the beauties of Andorra can be explored in a week if desired;
• length of wait for legalization. The residence requirement is extremely high; there are few people willing to live in the territory for 20 years in order to obtain an Andorran passport;
• illegality of dual citizenship. Before obtaining Andorran citizenship, a Russian citizen is required to renounce his Russian passport.

If the shortcomings do not frighten you, and the dream of moving to permanent residence in the principality remains, you need to prepare for the long, step-by-step procedure of legalization through a residence permit, permanent residence, and only then - obtain Andorran citizenship (if the grounds are sufficient).

Conditions for obtaining a residence permit

Summer in Andorra, photo: pixabay
Before you get a residence permit in Andorra, you need to choose a destination for immigration. Possible options:

1. Studies. There is only one university on the territory of the dwarf state. It produces specialists in the field of medicine, IT and pedagogy. Most classes are conducted remotely. To obtain a residence permit in Andorra, you must submit a document confirming enrollment in any specialty and confirm the availability of money for living during the period of study. Having an Andorran education reduces the residence period for obtaining citizenship to 10 years.
2. Marriage. Andorra provides a residence permit to persons who have entered into a marriage with a citizen of the country. In just 3 years you can get a local passport. Similar time frames for settling into the country are provided for foreigners who have relatives among the indigenous inhabitants of this European power.
3. Employment. The most realistic way to gain a foothold in Andorra with the right to work is to find an employer interested in employing you. Although, to be honest, this is quite difficult to do. Another option is to become a highly qualified specialist, whose equal cannot be found throughout the entire territory of the dwarf state. Most often, foreigners are employed in the following areas: mining, tourism, services. It is much more difficult to become an employee in the medical field. But it is more profitable - the salary of medical staff varies from 4 to 10 thousand euros monthly.
4. Business and investment. These options will be discussed in more detail below.

For any type of migrant, the following requirements apply:

• age over 18 years;
• financial viability;
• no criminal record;
• compulsory residence in the country for at least 90 days a year;
• successfully passed a medical examination on the territory of the Principality;
• availability of insurance.

Types of permits for legal residence

To live in Andorra legally, a migrant must have a residence permit. In this principality you can get two types of residence permit:

1. A residence permit that allows you not only to live in the territory of the principality, but also to work.
2. Residence permit without the right to work. That is, the holder of such a residence permit has every right to live in Andorra, but he will not be able to get a job.

As practice shows, it is quite possible to obtain a residence permit without the right to work. Although this procedure can hardly be called simple, if desired and having all the necessary documents, the migrant has every chance of becoming the holder of a residence permit, and then Andorran citizenship.

As for a residence permit with the right to work, in this case the situation is much more complicated. It is almost impossible to obtain such a permit. The thing is that the Andorran government preserves all possible jobs for the citizens of its principality. Even though there is no unemployment in this country, it is very difficult for a migrant to get a job in this state. One might even say almost impossible.

Residence permit and citizenship by investment

You can get a residence permit in Andorra without the right to work if you have more than 400 thousand euros. This investment amount must be invested in one of the following areas:

• shares of any Andorran company;
• government bonds;
• real estate.

Ski slope in Andora, photo: pixabay
Additional expenses: depositing 50 thousand euros with the State Financial Institute for the main investor and 10 thousand euros for each family member. A spouse and minor children under 25 years of age can participate in one program. If the residence permit is refused, the money is returned to the investor.

Another mandatory condition for issuing a residence permit through investment is the acquisition of real estate ownership or the conclusion of a lease agreement. There are also requirements for the period of residence in the Kingdom - the investor must reside there for at least 90 days a year.

Obtaining a residence permit occurs in the following order:

• Submitting an application. It is reviewed within a month.
• Issuance of a residence permit for 2 years.
• Investments must be made within the next 6 months.
• Extension of a residence permit, first for 2, then for 3 years.
• Obtaining permanent residence in Andorra for 10 years.

Once again, I would like to note that a mandatory condition for issuing an investor residence permit is without the right to work. That is, the migrant cannot engage in labor and professional activities.
An investor can be a manager of his capital, managing an Andorran company without receiving a salary. He has the right to count only on dividends from its activities.

Ways to obtain Andorran citizenship in 2021

Andorra is one of those countries that are biased towards immigrants. Having a high status in the Pyrenees, the authorities cannot allow citizens with little capital, insufficient education or without any work experience to move. Here you need to understand that the idea of ​​​​the existence of this country is the same as in Monaco, San Marino, Liechtenstein - where a community of educated and very wealthy people is gathered. Therefore, it is not so easy for ordinary people to get here, because certain limits have been established.

It is possible to obtain Andorran citizenship in 2021:

1. Upon birth.
2. Through marriage with an Andorran.
3. If the citizen has a passport of France, Spain, Portugal.
4. Through investments in real estate or securities.
5. Through business immigration.

By birth

Only children whose parents or one of the parents are local can emigrate by birth. Also if the child has foreign parents living in Andorra as residents. There is no clause in the migration law to grant citizenship to a child whose parents do not have an Andorran passport. Children born in Andorra with official status, but living in other countries, can return to their homeland upon reaching adulthood. For their emigration it is necessary:

• birth certificate or other document confirming ties with Andorra;
• sample application;
• certificate of absence of offenses;
• medical examination results.

Through marriage with an Andorran

Any foreigner can immigrate through marriage with a resident, but it cannot be said that this method of emigration is suitable for Russians. The population of Andorra is too small - 72,500 people, most of them are Andorrans, Spaniards, French and Portuguese. Therefore, marriages with residents of neighboring countries are most common. But this method cannot be ruled out. it is the most effective for obtaining an Andorran passport.

To obtain citizenship for a foreign spouse, you must:

• marriage certificate with an Andorran;
• absence of offenses in any state;
• financial viability of an Andorran.

As is known, in Andorra it is practiced to issue residence permits for the categories “Passive resident” and “Active resident”. Marriage is considered active; according to local evidence, foreigners in this status must live in Andorra for 20 years, and only then are they allowed to apply for citizenship. The amendment was made only for foreign spouses; they can obtain citizenship after 3 years.

If a citizen has a passport of France, Spain, Portugal

Andorra is not part of the European Union and the Schengen zone, but you can enter its territory through Spain or France. It is worth adding to this that not only French and Spanish residents can visit the small Principality at any time, but also the Portuguese. This means that immigrants and residents of these countries can change their citizenship to Andorran. This point is noted even in legislation. But in order to successfully immigrate and change residence, financial solvency is required. If a Russian tourist has a Schengen visa, then he can also enter Andorra through Spain or France.

Through investments in real estate or securities

Russian investors and entrepreneurs most often purchase residence permits or permanent residence permits for investments. Especially in European countries like Spain, Italy, Switzerland. In recent years, capital has also been invested in the Andorran economy. Given its high standard of living, stability, clean air, over time investors want to move here for permanent residence. Such foreigners are called “Passive Residents”. According to the immigration conditions, they can live in the Principality for at least 90 calendar days a year, and at the same time maintain the status of a residence permit or permanent residence permit of type “A”.

Main conditions to obtain Andorran citizenship:

• investing €400,000 in real estate or securities;
• pay a deposit of €50,000 to the Andorran Institute of Finance;
• add a deposit of €10,000 for each family member;
• provide documents for all family members.

The Immigration and Citizenship Service issues a residence permit type “A” without the right to work. The document is valid for 2 years, extended for another 2 years, then for 3 years. Then permanent residence is granted for 10 years. Only after 17 years of residence do they become Andorran citizens.

Through business immigration

A Russian citizen with capital of €28,000 can implement a business project in Andorra. According to the Law “On Citizenship” dated October 5, 1995, as amended in 2014, entrepreneurship provides a foreigner with a residence permit in the status of “Active Resident”.

The process looks like this:

1. Initially, the businessman must confirm the application with the Department of Foreign Investment. In most cases, a positive result awaits immigrants planning to open a company in the tourism, service sectors, trade, construction, education, and IT industry. Industry and production are not encouraged, since the principality develops mountain tourism and health resorts, and therefore avoids air pollution in every possible way.
2. Select a legal form. Societat Limitada (SL) is a type of LLC, the authorized capital is €3000, for company registration they pay €1112, the annual state fee is €850. Societat Anònima (SA) – JSC option, authorized capital from €60,000, registration fee €803. Andorra Societat Colectiva - division of capital is allowed, the size of the authorized capital starts from €3000, state duty from €800 and above. It is also allowed to purchase an existing business in Andorra.
3. Collection of documents - a certificate of absence of violations in Russia or another state. A passport, bank statements and a business plan are provided. All documents are translated into Catalan and apostilled.

The period for issuing a residence permit will take from 1-3 months. After 20 years of residence in Andorra, a foreigner acquires citizenship.

Business immigration

Amazing conditions have been created for doing business in the dwarf state. But due to the limited market, local authorities carefully protect the interests of their citizens, and only in special cases can they allow foreign companies to work and earn income on Andorran territory. If you manage to organize a business that is not developed in this tiny country, then with a high degree of probability you will be given the green light. The key to success is the absence of competitors among local legal entities.

According to experts, the most profitable for development in Andorra:

• lingual centers for receiving and servicing calls;
• online sales;
• international franchising;
• licensing of intellectual property;
• international consultations;
• development and research.

Foreign businessmen are subject to the same requirements as investors. Additional terms:

• it is necessary to organize at least one workplace for an Andorran;
• 85% of all income must be generated outside the Kingdom.

Why does Andorra attract Russians?

In addition to a high standard of living and a loyal tax system, Andorra has a number of advantages that attract not only citizens of Russia, but also other CIS countries.

Why life in a dwarf state attracts Russians:

1. A banking system whose level of development is in no way inferior to the Swiss one. Bank secrecy in Andorra is not an empty phrase, but the basic principle of the work of financial institutions, protecting information about the deposits and accounts of bank clients and correspondents;
2. Minimum tax burden. In some cases, taxes are not withheld at all. For example, there is no tax on wages, tax on capital, on inheritance and purchase of real estate, on wealth. As for property tax, it directly depends on the size of the property;
3. Correctly chosen pricing policy and effective pricing. Along with a high standard of living, prices for goods and services are quite low;
4. Due to the ban on political activity (creating trade unions, parties, holding political rallies and meetings), there are practically no conflicts of national significance. The sanction for violating the established restriction is deportation from the country;
5. Low crime rate;
6. Good ecology: there are no industrial enterprises in the country, which are the main polluters of the environment;
7. Visa-free regime with Spain, Portugal and France, as well as a simplified procedure for obtaining citizenship of these countries.

However, before becoming a full citizen of the Principality of Andorra, you must obtain a residence permit in the country (passive or active). This can be done in several ways, the features of which will be discussed below.

Buying a property

Photo: pixabay
Purchasing or renting housing is a prerequisite for issuing a residence permit . When purchasing real estate for an amount of 400 thousand euros or more, the opportunity to acquire the status of a residence permit automatically appears. One of the advantages of such a deal is the absence of significant payments. For example, for owning a chalet with an area of ​​500 square meters per year, you will have to pay only 400 euros to the local budget (in Spain, for example, the amount of a similar tax can reach 3,000 euros).

Andorran real estate cannot be called liquid, rather the opposite. Due to the limited market, it may take several years for a residential property to sell. However, gradually, due to increasing investor interest in this small state, demand is growing every year. In terms of profitability, it is better to consider the option of purchasing commercial real estate. The profitability of such investments varies from 3 to 10% per year.

Immigration to Andorra is complex and lengthy. Only super-talented specialists with experience and specialized education have the opportunity to move there to earn money. Wealthy foreigners who have a permanent source of income abroad and dream of simply enjoying life in this beautiful and comfortable country can obtain a local residence permit quite quickly.

Andorra residence permit 2021: the disadvantages are inferior to the pros - growing demand for Andorran real estate

According to official statistics, the demand for real estate in Andorra is also growing, based on data on actually closed transactions. Thus, the total value of properties that changed hands during the second quarter of 2021 increased by 31.9 percent compared to the second quarter of the previous year. Particularly high growth rates were recorded in the case of land plots and parking spaces.

It is noteworthy that the total value of properties in new buildings that changed hands decreased by 99.9 percent. Compared to the average level for the previous twelve months, the figure increased by 84.9 percent. As for the total cost of real estate from the secondary segment, it increased by 34.7 percent. The growth rate of the corresponding indicator compared to the average level for the previous twelve months was 27.2 percent.

During the second quarter of 2021, there was a 17.7 percent decrease in real estate transactions compared to the second quarter of the previous year, and a 2.2 percent decrease compared to the average for the previous twelve months.

The number of properties that changed hands during the second quarter of 2021 decreased by 29.3 percent compared to the second quarter of the previous year, and by 7.3 percent compared to the average for the previous twelve months.

Regarding the type of real estate, in the case of assets in new buildings in the second quarter of 2021, the number of properties changing ownership decreased by 98.1 percent compared to the same period of the previous year. On the other hand, in the case of resale real estate, the figure decreased by 27 percent compared to the second quarter of last year.

What do you need to move?

So, the decision has been made, and you have already firmly decided that you want to become a citizen of this particular country. In this case, check whether you meet the requirements for migrants:

• availability of funds - 30 thousand for you and 12 for each of your wards. Moreover, you will have to put this money on a deposit, which will be returned to you if you change your mind;
• absence of infectious and other dangerous diseases;
• no criminal record;
• availability of own or rented housing;
• source of income;
• You are 18 years old.

If you comply with all of the above points and if you have grounds for migration, you will be able to obtain a long-awaited residence permit for a period of 1 year, after which you will be able to extend it for another three, then again for three, and after that apply for permanent residence.

Required documents

It should be immediately noted that all certificates and certificates you provide must be translated into English, certified by a notary and apostilled. So, the package of documents looks like this:

1. Statement.
2. Passport.
3. Foreign ID card.
4. Marriage or birth certificate (if available).
5. Photo.
6. Certificate of no criminal record
7. Statement from your account about opening a deposit.
8. A document confirming the availability of your own home or an annual rental agreement.
9. Insurance.
10. A certificate from a doctor confirming the absence of diseases.

The entire process until you are issued a residence permit in Andorra will take 2-3 months. But the result will be a document that will be your new temporary passport in this country.

Reasons for moving

So that you do not think that everything is so simple, we offer a list of reasons that may cause your migration. The main ones include:

Starting your own business

It is pleasant that the country’s authorities are interested in such migrants. The most favorable conditions and incentives in Europe for carrying out the activities of the enterprise have been created for them. The country is part of a free economic zone; there is no real estate tax and no control over foreign exchange and other banking transactions. Isn't this the dream of every businessman?

Employment

Only those specialists who fall under the quota will be able to find employment here without any particular difficulties. Otherwise, your employer will face an insurmountable obstacle related to the fact that he will need to prove to the government that there was no suitable candidate among the Andorrans themselves, and therefore they cannot do without you at all. This is due to the fact that the number of jobs in the country is quite limited. Therefore, the authorities make sure that foreigners “do not take away bread” from the local population.

Investments

The influx of capital into the country has never been limited by anyone. Of course, you can invest money in real estate, but keep in mind that buying one apartment will not be a sufficient argument for you to be able to legalize in this state. We will be talking about significantly larger volumes of invested money.

Education

There is only one university in the country, but if you are lucky and are enrolled as students, a residence permit, of course, will be issued to you without any problems.

Marriage and reunion with relatives.

If you choose the path of marriage, then after three years of marriage you will be able to obtain citizenship. The same concessions apply to those who have Andorran roots.

One last thing: before the government issues you a state passport, they will want to test your knowledge of the local dialect, as well as culture, history and legal framework.

A diploma from the only university in the country can be proof of this. If you do not intend to study, then diligently study everything related to this country, for this you will have no less than 20 years.

Before settling in this country, it is recommended to simply visit here first. Find out if you need a visa to Andorra.

Andorra residence permit 2021: the disadvantages are inferior to the pros - an improvement in the forecast for the credit rating

Reputable independent rating agencies also publish positive assessments of the Andorran economy. Thus, Standard & Poor's (S&P) specialists recently revised the forecast for Andorra, changing it from “stable” to “positive”, confirming the rating at the level of “BBB / A-2”.

Standard & Poor's experts recognize the government's continuity in its policy of compliance with international standards. They praised balanced fiscal management based on a moderate fiscal structure and gradual reduction of public debt.

It also highlights the positive effect of Andorra's expressed will to join the International Monetary Fund (IMF), which could lead to an increase in Andorra's rating, as well as intensified negotiations on an association agreement with the European Union, which will allow the Principality to gain access to the EU internal market.

Fitch Ratings specialists, in turn, recently confirmed Andorra’s rating at “BBB +” and gave a “stable” outlook. The latest country report of this rating agency notes that the removal of Andorra from the list of jurisdictions that do not cooperate with the EU in fiscal matters played a positive role.

Fitch Ratings also pointed to several factors that could lead to improved ratings in future assessments, including continued decline in government debt relative to GDP and improving prospects for medium-term GDP growth.

Andorra residence permit 2021: the disadvantages are inferior to the advantages - economic growth

Tourism and the real estate sector support the positive economic dynamics in the Principality. According to the Department of State Statistics, Andorra's economy expanded by 2.3 percent year on year in the second quarter of this year.

This is one percentage point higher than the change in the same period last year. In general, the situation in the second quarter is very similar to that observed in the last quarters of 2018 and in the first quarter of this year: approximately the same growth is recorded in all sectors.

It should be noted that in the second quarter of 2021, the industrial sector continued to hamper the economic growth of the Principality, as its turnover fell relative to the previous period. On the other hand, businesses offering construction and non-financial services showed strong growth.

The dynamics of the country's GDP are highly dependent on the dynamics of the services sector, given that this sector has accounted for more than 80 percent of the Principality's GDP in recent years. The authors of the latest Statistical Report draw attention to this, in particular. The document notes that the construction industry showed an increase in turnover by 5.3 percent, while the positive dynamics of the services sector resulted in an increase in its turnover by 2.3 percent.

Andorra's GDP in 2021 amounted to 2.742 billion euros. Its growth rate in recent years has been moderate. According to macroeconomic forecasts made by the Department of Statistics of the Government of Andorra, the Principality's gross domestic product will grow by 3.2 percent in 2021 and will continue to show growth rates ranging from 3.3 percent to 3.4 percent per year until 2022.

Predictive calculations were made based on growth estimates in France and Spain - that is, in countries with which Andorra maintains “structural relations”. The Statistics Department of the Andorran Government, as part of its macroeconomic assessments for the coming years, expects that 2021 will close with a positive consumer price index (CPI) of 0.8 percent, which is lower than the forecasts of France (1 percent) and Spain (1.2 percent). It is predicted that by 2021 the consumer price index will continue to rise. In particular, it should increase by 1.2 percent, which is again lower than that of neighboring countries.

Andorra residence permit 2021: the disadvantages are inferior to the advantages - the prospect of constructing an airport

The construction of an airport should contribute to additional growth in tourist flow in the direction of the Principality. Last summer, local authorities gave the green light to this project, having previously approved two optimal sites out of five possible. The new air harbor will meet international standards and will be able to accommodate Airbus 320 and Boeing 737 class aircraft, capable of covering distances of 5-6 thousand kilometers without refueling.

Preliminary studies carried out by Toulouse-based Airbus have shown that, despite the technical difficulties, the project is feasible. Construction of the airport in Andorra is expected to cost around 0.8 billion euros. Moreover, if successfully implemented, this investment project will become the largest in the entire history of the Principality.

As analysts note, the construction of an international air harbor in Andorra is a strategically important and extremely timely project. Over 7 million guests visit the country every year, and this figure continues to increase.

The two highways that connect Andorra with Spain and France cannot cope with passenger traffic during the high ski season. Because of this, large traffic jams form at the borders of the Principality. These routes are often closed completely due to the high risk of avalanches. The commissioning of the airport should correct the situation.

How to obtain Andorran citizenship for a Russian citizen

A Russian who wants to obtain an indigenous permit must live in the country on the basis of an active type of residence permit for 20 years or 17 years on the basis of a passive type of residence permit, the last 10 of which with a long-term residence permit. The concept of permanent residence in Andorra is completely absent.

After this time, you can begin to prepare a package of necessary documents and submit an application for citizenship.

Copies of the application are sent to the official and administrative authorities of the Principality. These organizations will be required to provide their recommendations.

If the answer is positive, the result is published in the official gazette of the principality.

Based on the naturalization extract, you can obtain a citizen’s passport. Passports are issued for a period of 5 and 10 years.

Their cost is 49 and 32 euros, respectively.

If the application mentions minor children, then they receive citizenship by default.

If all requirements are met, applicants must collect the necessary documents:

• birth certificate;
• residence registration document (issued by Andorran immigration services);
• certificate of no criminal record;

• certificate and/or diploma of graduation from an educational institution;
• Russian and foreign passports;

• a receipt guaranteeing compliance with the country's Constitution.
• marriage certificate (if available);
• document issued by the Ministry of Education (for those applying after 10 years of residence);
• certificate of residence issued by the city administration at the place of registration of residence;
• a receipt confirming the renunciation of the former indigenous status.

All documents must be translated into Catalan, certified by a notary office and apostilled.

Before accepting citizenship, the applicant must confirm knowledge of the state Catalan language, culture, history and legislation of the country.

Dual citizenship is prohibited in the Principality. If you decide to get an Andorran passport, you will have to renounce your original status.

Over the past five years, the Andorran Ministry of Justice has opened about thirty cases of deprivation or renunciation of citizenship. For 12 of them, a decision was made to deprive them of citizenship.

Status can be revoked if the ministry has irrefutable evidence of second citizenship, military service in a foreign army, or participation in the political or electoral life of a foreign state.

You can renounce the identity of Andorra voluntarily. In this case, the deposit placed with a state financial institution is returned in full, minus possible civil or other debts.