Today we are going to make a small synthesis of what we have been talking about for months: residences (either active residence or passive residence) in Andorra. We do not stop confusing these terms and although there are already articles for both active and passive residence, today we will give a brief and general version of what is to reside in Andorra and how these residences operate at the country level.
Firstly, I want to expand slightly on what it means to have a residence in general. Andorra is not within the EU, we do not yet have the 4 freedoms, so residence in the country is not free, but is subject to government approval. This way of functioning is still being polished by the public entities of the principality and it is assumed that until the integration of Andorra in the EU does not occur, there continues to be a certain process of entry to the country.
If you want to work in the country, active residence. If the residency is going to be fiscally effective, it is also the option to follow. For 90% of the people the active residence is the ideal and there is not much more to debate in this sense. So much for those who simply want to work in the principality as in any other country as those who wish to invest here taking advantage of their tax and business facilities, is the ideal option.
Subsequently, there is passive residence. It's another world, with another set of totally different requirements. I will not repeat, but despite the fact that 90 days are requested for the validity of the same, the truth is that the situation at the time of truth is much more complicated. This is why this type of residence has many limitations and generally affects an extracommunity profile with very high incomes.