Living in Andorra: requirements and 5 ways in 2024

Many users, especially Spanish ones, are looking for information about the requirements to live in Andorra, especially Spaniards. This article details five updated ways to settle in Andorra, based on the changes to the Andorran Immigration Law until 2024.

Andorra has various types of residence permit different, each with its own requirements, rights and obligations, procedures, and necessary documentation. Here's a summary everything you need to know to live in Andorra.

Table of contents

Active Residence vs. Passive Residence

Active Residence

It allows you to live and work in Andorra. It requires permanent residence in the country and paying taxes to the CASS (Andorran social security) for carrying out economic activity. Ideal for young people and workers.

Passive Residence

It allows you to reside in Andorra without working. You only need to be in the country for more than 90 days a year. Ideal for retirees and high net worth individuals who do not need to work.

Minimum requirements to live in Andorra

  • ID: DNI (EU/EEA) or Passport (other countries).
  • Certificate of background clean penalties.
  • Statement criminal record sworn.
  • Documentation that verifies the stay in Andorra (rental contract, property title, etc.).
  • Documents of the marital status (official certificates, sworn statements).
  • Medical check basic.

The 5 ways of living in Andorra

1. Worker or employee

The most direct way, requires being hired by an Andorran company. This can be with an indefinite or temporary residence permit, depending on the employment contract. Additional requirements:

2. Liberal or qualified professional

Similar to being self-employed in Spain, for university-educated professionals who can register in Andorra. For more information about being self-employed in Andorra, consultation here. Additional documents:

3. Businessman or entrepreneur

Requires start a business and establish a company, being the director of the company and holding more than 34% of the share capital. Additional requirements:

4. By family reunification

For immediate family members of active residents, with authorization from the residence hall holder. Additional requirements:

(*) Economic capacity: minimum income of 70% of the Andorran minimum wage for each adult and 40% for each minor.

5. Passive or non-profit residence

Ideal for those who do not wish to work in Andorra, although requires a large investment in the country's assets.

  • €600,000 investment in Andorran assets
  • Deposit of €47,500 in AFA.
  • Deposit of €9,500 for each additional family member
  • health insurance and retirement.
  • Minimum residence of 90 days per year.
  • Income greater than 300% of the minimum wage.
  • Registration in the Comú.
  • Immigration application for passive residents.

Comparison: Living in Andorra vs. Spain

Let's use Barcelona as an example, although it would apply to any city. Advantages of living in Andorra:

Proximity to Barcelona:

  • Short distance: just two hours away by car, allowing frequent visits.

Taxes when living in Andorra

  • Personal income tax: 0-10%.
  • VAT: 0-4.5%.
  • Corporate tax: 10%.
  • Quotes: 22% of the salary.

For more information on taxes in Andorra, see here.

In conclusion

Living in Andorra offers several advantages, from a favorable tax environment to a high quality of life and security. Depending on your needs and situation, there are several ways to establish yourself in this small country in the Pyrenees. The most common option is to become an entrepreneur or to buy a house and become a passive resident.

Due to the difficulty of obtaining a job contract as a foreigner and the high amount of deposits to the AFA, currently the best option to live in Andorra is to be a qualified professional. Although it is an option restricted to university graduates, it has a very low cost and is very interesting.

Consider all the requirements and benefits of each option to make the best decision. If you are looking for a place with low taxes and an excellent quality of life, Andorra could be your ideal destinationYou can see the advantages and disadvantages of Andorra here.

Do you want to live in Andorra?
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Living in Andorra: requirements and 5 ways to do it

Frequent questions

In general, there are 5 different ways to live in Andorra as a foreigner, each with its objectives, type of permit, requirements and documentation.

In Andorra, the term active residence is used to name the residence permits that authorize to live and work, and passive residence for those that only authorize to live, but not to work.

You have to either get an employment contract with an Andorran company, or be a self-employed professional with a tertiary education degree, or create a company in Andorra and work there as an entrepreneur.

Be identified and without a criminal record and have an investment objective or economic activity there (employment contract, professional title, company or investment in the country).