Residence in Andorra: everything you need to know

Andorra is a country that is constantly evolving and this can be seen by the large number of new residents it acquires every year.

Andorra is a country that is constantly evolving and this can be seen by the large number of new residents it acquires every year. It has an impeccable education and health system, natural areas of great beauty and very good connections with France and Spain. Below we show you the type of residence in Andorra and what particularities each one has.

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Active residence in Andorra

The active residence in Andorra it is intended for all those people who want to live in the country permanently; that is, they want to acquire a long-term job and reside in the territory for at least 183 days a year. Active residents are seen as present members of the community and are expected to work full-time.

Permanence is mandatory in order to be recognized as a fiscal resident and tax a maximum of 10% (depending on income), in addition to also receiving the benefits of passive residents.

How can you obtain active residence in Andorra?

To acquire the active residence in Andorra, as we discussed in the previous section, you need to spend most of your time in the country and fulfill obligations such as paying into the social security program and the medical care system.

They are needed postulated documents, including the birth certificate or copy of the passport, the police certificate, a rental agreement and the marriage certificate in case of family reunification.

side view unrecognizable cut out business people working common office

Once you have all the necessary documentation in hand, there you go two ways to obtain active residence in Andorra and the choice depends on the specific needs of the applicant.

  1. The first option is the self-employment, reserved for entrepreneurs and business owners who wish to establish full-time residence in the country. It is a really attractive option because it requires minimal investment and a low tax rate of 10 % for annual incomes that are greater than €40,000. To be able to access this residence, you must meet requirements such as having the approval of a foreign investment, rent or buy a property, set up the company, make a share capital deposit of €3000, obtain a business license, undergo a medical examination and an interview, register with the Andorran health system and make a deposit of €50,000 in Andorran State bonds. In addition, to qualify, you must have over 34 % of a local company and be an active director.
  2. The second option is through a employment contract The first thing you need is a job offer from a local company, bearing in mind that priority is given to Andorran, Spanish, French and Portuguese citizens. In addition, the following documentation is required: proof of accommodation and postilated police certificate. These two documents must be sent close to the date of arrival, as they are only valid for three months. A basic medical examination is also required.

Passive residence in Andorra

Andorra grants passive residence to foreigners interested in investing in real estate, business projects or bank deposits in the country. The requirements include being over 18 years of age, presenting a certified criminal record certificate, having private health insurance with coverage in Andorra, demonstrating sufficient financial resources for the applicant and his family, reside for a minimum of 90 days in Andorra and make an investment in the territory.

business people shaking hands
In short, the passive residence in Andorra is designed for those who they want to live without working directly in the country, depending on passive income such as pensions, rents, investments and other external resources. It is also ideal for pensioners and high net worth individuals who earn income outside the country.

What requirements are needed?

To access this type of residence in Andorra, you must present the following documents:
  • Criminal record. Before obtaining residency, you must present police certificates proving the absence of a criminal record.
  • Income and health insurance. Proof of stable income is required, at least 300% of the Andorran minimum wage and private health insurance. The same rules apply to each family member in case of moving with relatives, with a rate of 100%.
  • Government bond deposit. For passive residence, a mandatory investment of €47,500 in government bonds is required.
  • Requirement given. Applicants must be over 18 years of age.
  • Proof of accommodation. The residency application must be supported by proof of accommodation, either rented or purchased property.

In conclusion, the residence in Andorra it is divided into active and passive. Each one offers certain advantages to all those people interested in moving. A ICOB we have a team of expert advisors who will help you speed up your move and resolve the entire legal, fiscal and accounting process to build your new future in Andorra.

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ICOB is a company formed by professionals from the legal, accounting and communication sectors that advises on the creation and management of companies in Andorra.

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