A company can continue to exist, seek clients, prepare projects and engage in professional activities without issuing any invoices. But, to Andorra, this situation can have consequences that go far beyond the income statement. An entrepreneur dedicated to strategic consulting has lost the possibility of renewing the residence permit i self-employment because his company did not generate income throughout the 2024. The Superior Court of Justice has endorsed the decision of Government and has made it clear that keeping a company open does not necessarily equate to certifying an effective economic activity.
The TS requires annual income to renew the residence
The case raises a particularly sensitive issue for the professionals who work with one-off assignments: what happens when a business runs on projects and goes a year without invoicing? The response of the magistrates is forceful. The income of one financial year cannot compensate for the absence of invoicing in another, even if the activity has an irregular nature.
Money from other years does not make up for a year without
The affected defended precisely this particularity. As he explained before the court, the High-level strategic consulting does not work like a conventional business. Assignments can drag on for months and income doesn’t always come in on a regular basis. For this reason, he considered the administrative interpretation that turned a financial year without invoicing into a sufficient reason to refuse renewal to be excessively rigid.
In addition, the 2024 had been a complicated year. The businessman alleged a surgical intervention, the completion of multi-year projects and various commercial management to get new customers. He also emphasized the participation in institutional activities and in one Andorran private foundationcircumstances which, according to the defense, showed that he was still linked to the country.
None of these arguments, however, has convinced the superior The sentencedictated on September 16remember that the immigration regulations requires demonstrating that the business activity generates income. It does not establish a minimum figure, an absence that the same court considers undesirable, but it does require verifiable economic elements.
The magistrates make a decisive distinction: it’s one thing to bill different amounts every year and another to pay absolutely nothing. Even in consultancies with important projects, they point out, it is common to agree partial payments before finalizing assignments. In this case they were not credited either.
The documentation presented did not help the appellant. The tax returns confirmed that the company had not earned income on 2024while the medical leave was not provided to prove the health problems invoked. Linking with a foundation could strengthen social roots, but not demonstrate turnover.
The resolution reserves, however, a stretch of ears to the Government. theadministration had sent a file of 440 pages in a single scanned PDFwithout a useful index. After several requests, the documentation ended up being incorporated in triplicate into the judicial system, still without proper organization.
The superior remember that digitizing is not simply about accumulating electronic documentsbut to facilitate consultation. A warning that transcends this litigation and points directly to administrative management.
