A tax resident in Andorra is a taxable person, who lives more than 183 days in andorran territory during the calendar year or have the core of his economic activities or interests in Andorra, directly or indirectly. This means that you have to do all your life in the country at least for six months.
They are not considered tax resident in Andorra the border workers who daily move into Andorra from Spain or France because them have been hired by companies in Andorra.
Currently in Andorra there are two major types of residence depending on whether we work or not. Thus, we differentiate between active residence, in which we live and work, in a real and effective way all year in the country or nonprofit (previously known as passive) residence where no labor or economic activity is performed.
Active residence for being employed (called "residence and work") is to work in Andorra for a company and requires a contract by such national company, which shall process the residence permit at the inmigration service. The residence and work permits are subject to quotas.
Active residence by own account authorizes the foreigner to reside and work in Andorra permanently and effectively, performing an activity on their own. It also has quotas but always, with there is always a good left over. At least by now.. As requirements:
a) Have obtained an authorization of foreign investment to establish an Andorran company which has a stake of 10%
b) A position on the board of the company
c) Evidence in a maximum of 3 months from the date of application for authorization to immigration, that the company holds trade activity in Andorra
All the residents must have a clean criminal record for entering the country. Also, active licenses are renewed. At the begining, the first year, the next 3 every two and from there in 10 years. With 20 years of residence can be obtained the nationality.