Residency in Andorra: Are you considering the change?

More and more people —entrepreneurs, investors, families, and digital professionals— are choosing to settle in the Principality to enjoy a high quality of life, attractive taxation, and a safe, natural environment. But to make this change successfully, it's essential to understand which type of residence suits you best and how to apply for it step by step.

In this article, we clearly and simply explain the differences between active and passive residency, the requirements, benefits, and how you can get started today with the support of a specialized team.

Why are so many people choosing to live in Andorra?

Before diving into the details, let’s quickly review the main reasons why Andorra is such an attractive destination:

• Low taxes: maximum personal income tax (IRPF) of 10%, VAT (IGI) at 4.5%, and corporate tax also at 10%.

• Legal and political security: a stable country with solid institutions.

• High-quality healthcare and education systems.

• Stunning natural environment: ideal for those seeking a balance between work and personal life.

• Proximity to France and Spain, with good road connections.

With this in mind, let’s explore which type of residency fits you best.

Active Residency in Andorra: For those who want to work or start a business

Active residency is designed for people who want to settle in Andorra to work or run their own business. It’s a very common option for professionals, freelancers, business owners, or entrepreneurs.

🔹 Types of active residency

• Self-employed (freelancer or business owner)

• Employed (hired by an Andorran company)

In this article, we focus primarily on self-employed residency, as it offers the most flexibility and independence.

Requirements to obtain active residency as a self-employed person or business owner

To obtain this permit, you must meet the following conditions:

• Create an Andorran company and own at least 34% of its shares.

• Be registered as the company’s administrator and demonstrate real business activity.

• Reside in Andorra for at least 183 days a year.

• Have a physical company address (office or premises) in Andorra.

• Make a refundable deposit of €50,000 to the AFA (Andorran Financial Authority).

• Pass a basic medical exam and provide a clean criminal record certificate from your home country.

Application process

• Initial consultation and profile evaluation.

• Company incorporation (notarial process and business registry).

• Submission of personal documents.

• Residency application before the Government of Andorra.

• Meeting with the Immigration Office and medical exam.

• Obtaining the work and residence permit.

This permit is initially granted for one year and can be renewed successively until permanent residency is achieved.

Passive Residency in Andorra: For those who don’t work in the country

Passive residency is the ideal option for people who want to live in Andorra without carrying out any professional or employment activity within the country. It’s very popular among investors, retirees, YouTubers, individuals with passive income, or professionals who bill clients abroad.

There are several types, but the most common is residency for reasons of economic interest.

Requirements for passive residency

• Reside at least 90 days a year in Andorra.

• Deposit €50,000 with the AFA + €10,000 for each dependent family member.

• Invest €600,000 in Andorra (real estate, shares in Andorran companies, public bonds, or bank deposits).

• Have sufficient financial resources (minimum 300% of the annual Andorran minimum wage: approx. €40,000/year).

• Provide a lease or property ownership contract in Andorra.

• Have private health insurance.

• Submit a clean criminal record certificate and pass a medical check-up.

Application process

• Preliminary evaluation and investment strategy.

• Preparation of required documentation.

• Open a bank account and transfer the deposit.

• Submit application to the Immigration Office.

• Obtain passive residence card.

This permit is also granted for one year, renewable, with the possibility of extending it to 3 years and later to 10 years.

Active or Passive Residency: Which is right for you?

It all depends on your profile, your financial activity, and your lifestyle goals. Let’s break it down in practical terms:

❓ Frequently Asked Questions We Receive as Advisors

Can I have residency in Andorra and keep my nationality?
Yes. Andorran residency does not require you to renounce your nationality, unless you opt to acquire Andorran citizenship after many years.

Can I bring my family with me?
Yes. Both active and passive residency allow you to reunite direct family members such as your spouse and children, as long as you meet the financial requirements.

What about taxes?
With tax residency in Andorra, you only pay taxes in Andorra (if you reside more than 183 days and do not maintain strong ties to your home country). That’s why it’s essential to plan and manage your relocation properly.

How We Support You as Advisors

We understand that moving to a new country isn’t just about paperwork. It’s a life decision with personal, family, and financial implications.

That’s why we offer a comprehensive, personalized service:

• Free initial consultation

• Full management of your residency application (active or passive)

• Company incorporation, bank account opening, and AFA procedures

• Support in relocation, renting or buying a home

• International legal and tax advice

• Tailored solutions for investors, families, YouTubers, digital nomads, or freelance professionals

We’re with you every step of the way—with clarity, trust, and a team 100% committed to your success.

Ready to take the first step?
If you’re considering residency in Andorra, there’s nothing better than a personalized meeting to address your questions. No pressure, no obligation.

🔹 Contact us today
🔹 We’ll prepare a proposal tailored to your goals and profile

Because living in Andorra shouldn’t be complicated. With the right support, it’s a natural step toward a more stable, efficient, and fulfilling life.