Living in Andorra: requirements and 5 ways in 2024

Many users search for information about requirements to live in Andorra, especially the Spanish. This article details five updated ways to settle in Andorra, based on the modifications of the Andorran Immigration Law until 2024.

Andorra has various types of residence permit different, each with its requirements, its rights and obligations, its procedures and its necessary documentation. But in this article we are going to summarize everything and talk about the ways to live in Andorra.

Active Residence vs. Passive Residence

The first concept that must be taken into account to know how to live in Andorra is the difference between active and passive residence that Andorran legislation makes.

Active Residence

Allows you to live and work in Andorra. Requires moving and settling permanently in the country. Includes the obligation to pay taxes CASS (Andorran social security) for exercising economic activity.

Passive Residence

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

Common Documentation for All Forms

These are the common requirements that all ways to live in Andorra share:

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. It can be with an indefinite or temporary residence permit (restricted to the duration of the employment contract). Additional documents:

Work contract.
Curriculum vitae with relevant information.
Academic tests, titles and proof of experience in the activity.
Authorization request immigration.
Affidavit of the training plan.
Registration to the corresponding Common.

Hills hard This way of residing in Andorra is get an employment contract being foreign, especially undefined.

2. Liberal or qualified professional

Equivalent to the figure of self-employed in Spain. For university-educated professionals that they can enroll in Andorra. Additional documents:

Curriculum vitae with relevant information
Application authorization of immigration
Prove that the authorization to practice the titled profession
Accredit the collegiate correspondent
TOlta in the CASS and to contribute monthly under a qualified professional regime.

The advantage In this way, it is not required to establish a company or deposit in the AFA, and that has low costs.
The disadvantages are that there are restrictions according to degree, approval, quotas, school and activity to be carried out.
You can get More information about the profession titled here.

3. Businessman or entrepreneur

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

Foreign investment authorization.
Deposit of €50,000 in AFA.
Registration in the CASS as an entrepreneur.
Curriculum vitae
Immigration Authorization Application
Prove that the company is the owner of a duly registered trade

Advantages: any activity that can be framed within the corporate purpose of a company can be carried out No problem.

Disadvantages: high cost, both in monetary terms like time.

By family reunification

For immediate family members of active residents. It only applies to direct relatives of the person holding the original residence in Andorra. In addition to the common requirements, you need:

Private health insurance.
Immigration authorization of the holder.
Economic capacity or solvency.
Other documents according to the family member

Effective residence must also be demonstrated with three full months' contributions to Social Security. The economic capacity is granted by demonstrating the receipt of income equivalent to the 70% of the Andorran minimum wage for the regrouping of each adult and 40% for each minor.

Passive or non-profit residence

The most suitable for those who do not wish to carry out any activity in the country. That is, neither self-employed nor employed. It is usually the way to retired elderly or managers who travel a lot, retired athletes or large family assets. It has to be done a large investment in assets of the country. Requires:

Investment of €600,000 in Andorran assets or €400,000 in social housing
Deposit of €47,500 at the AFA
health insurance and retirement.
VLive in the country for a minimum of 90 days a year.
Demonstrate income greater than 300% of the annual minimum wage
Sign up for the Common
Application immigration for passive residents.
Make the deposit of the deposit of €47,500 to the Andorran Financial Authority (AFA).

ANDThe main owner can make his family members residents providing basic documentation and paying an additional €9,500 as a deposit to the AFA for each family member.

Comparison: Living in Andorra vs. Barcelona

Since Barcelona is very close to Andorra, many people from that city wonder if it is better to live there or in the Catalan city. The Principality offers significant advantages:

Lower housing costs. In Andorra rent and housing are also expensive but nothing to do with the city of Barcelona.
Greater security. Barcelona is one of the European cities with the most crime. Instead in Andorra crime and delinquency are practically non-existent.
Greater legal certainty. In Barcelona you can have a business and be completely unprotected from theft, attacks on businesses, etc. Home squatting is also common, the opposite of Andorra.
Lower taxes. Catalonia is one of the regions with the highest taxes from Spain. If we already commented here the difference in taxes between Spain and Andorra and we saw that there was no color, even less with Catalonia.
Lower cost of living. Andorra is much cheaper than Barcelona. He cost of living in Andorra around €1,500.

Barcelona is just two hours by car from the Principality. A person accustomed to Barcelona could live there in Andorra most of the time and frequently visit the capital of Catalonia.

Taxes when living in Andorra

Personal income tax: 0-10%.
VAT: 0-4.5%.
Corporate tax: 10%.
Social security: 22% of salary.

More about taxes in Andorra here.

In conclusion

Living in Andorra offers various 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 settle in this small country in the Pyrenees. The most common is being an entrepreneur, or buy a house and become passive residents.

Because obtaining an employment contract as a foreigner is difficult 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 destination.

Do you want to live in Andorra?

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Frequent questions

❓ How can you live in Andorra?

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

❓ What is the difference between active residence and passive residence?

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.

❓ How to live and work in Andorra?

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.

❓ What requirements must be met to move to Andorra?

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).