How to Choose the Best Type of Residence in Andorra for Your Personal Situation
How to Choose the Best Type of Residence in Andorra for Your Personal Situation
If you are considering moving to Andorra, you should know that choosing the right type of residence is a key step in your process.
At PSF, we understand that each person has different needs, which is why we have prepared a guide to help you make the best decision based on your personal situation.
Types of Residence in Andorra
1️⃣ Active Residence
Ideal for: Entrepreneurs, self-employed individuals, or people who want to work in Andorra.
If you want to start a business or work in the country, active residence is a great option. Andorra offers a business-friendly environment with simplified bureaucracy and an attractive tax system.
Main requirements:
- Establish a company in Andorra and own at least 34% of its shares.
- Effective residence in the country (minimum of 183 days per year).
- Make a deposit to the AFA (Autoritat Financera Andorrana), refundable upon leaving the residence.
- Health insurance and contributions to CASS (Caixa Andorrana de Seguretat Social).
Advantages:
✔ Ability to run a business in a competitive environment.
✔ Access to a favorable tax system.
✔ Right to bring family members under active residence.
Who is it NOT ideal for?
❌ If you do not want to work or actively manage a business in Andorra.
2️⃣ Passive Residence
Ideal for: Investors, rentiers, or individuals who want to live in Andorra without working.
If you want to enjoy Andorra’s benefits without the need to work in the country, passive residence is the best option.
It is designed for individuals with external income who seek to enjoy Andorra’s high quality of life without engaging in local economic activities.
Main requirements:
- Minimum stay of 90 days per year in Andorra.
- Minimum investment in Andorran assets (real estate, bank deposits, investment funds, etc.).
- Make a deposit to the AFA, refundable upon leaving the residence.
- Private health insurance and proof of sufficient income to sustain oneself in the country.
Advantages:
✔ No obligation to reside 183 days in the country.
✔ Reduced taxation, especially for investors.
✔ Enjoy Andorra’s high quality of life without work obligations.
✔ You can continue working outside the country.
Who is it NOT ideal for?
❌ If you want to work or actively run a business in Andorra.
3️⃣ Residence for Professionals with International Projection
Ideal for: Professionals working remotely or providing services outside Andorra.
If you are a freelancer, consultant, or remote worker, you can opt for this type of residence, which allows you to live in Andorra without operating within the local market.
Main requirements:
- At least 85% of your income must come from outside Andorra.
- Meet the same investment requirements as passive residence.
- Make a deposit to the AFA.
Advantages:
✔ Opportunity to work in a secure and attractive environment.
✔ Tax benefits without operating within the country.
Who is it NOT ideal for?
❌ If you need to work in Andorra or generate local income.
Which Option is Best for You?
✅ If you want to work in Andorra and run a business, active residence is the best choice.
✅ If you are looking for a tax haven and only need to reside for a few months a year, passive residence is ideal.
✅ If you work remotely with international clients, residence for professionals with international projection is your best option.
Each case is unique, and at PSF, we can advise you on which option is best for you and inform you about the necessary investments in each case.
Contact Us
If you would like a more personalized consultation, you can reach us via the contact form or by email at info@psf.ad.
We will be happy to help you make the best decision.
Plus Serveis i Família Team