Andorra Residency Requirements: Complete Guide for 2024

The residence in Andorra It is an attractive destination for those who wish to benefit from a favorable tax regime, enjoy a high quality of life, and reside in the safe and prosperous environment offered by this small country in the Pyrenees.

Herein complete guide for 2024, we explain all the requirements, application processes, procedures and types of residency in Andorra available, whether you are looking for a tax residence, active or passive, in Andorra. Also, so you can move to Andorra with peace of mind and security, we provide key considerations to ensure your smooth transition. Using the most up-to-date legislation General Council Y the BOPA, as the Law 42/2022 of December 1 on the digital economy.

1. Advantages of Obtaining Andorran Residency

1. Tax Advantages:

Andorra is known for offering one of the most competitive tax regimes in Europe. Tax rates are significantly lower compared to other countries in the region. For example, Personal income tax (IRPF) is a rate between 0% and 10%. Besides, There are no taxes on wealth, inheritance or donations, making it an attractive destination for high-net-worth individuals and entrepreneurs.

- Tax Comparison with Other Countries: In Andorra, The maximum direct taxation is 10% with all taxes. This contrasts sharply with the 50% or more of Spain, France, and Portugal. You can see the Taxes in Andorra vs Spain here.

2. Quality of Life:

Andorra is a country known for its high quality of life, with a excellent health system, his trilingual education system (Catalan, Spanish and French), and a rate of extremely low crime. In addition, it offers a privileged natural environment, ideal for those who enjoy outdoor sports such as skiing and other winter sports, hiking, and cycling.

- Security and Stability: Andorra is one of the safest countries in the world, with extremely low crime rates. In addition, its political stability Y economic turn it into a ideal place to reside long-termThe political neutrality of Andorra and its strong economy based on tourism and financial services provide a stable and predictable environment.

3. Geographical Proximity:

The Andorra's location between Spain and France offers a strategic advantage for those who need quick access to major European cities. Barcelona and Toulouse are just a few hours away by car., facilitating international travel and connecting with other parts of Europe.

2. Types of Residence in Andorra

Tax Residency in Andorra:

What is Tax Residency? Tax residency in Andorra is what allows you to benefit from its tax regime Favorable. This type of residency is especially attractive for both business owners and employees, investors, and high-income earners looking to optimize their tax burden.
Specific Requirements: To obtain it, it is necessary to have a residence permit, pass at least 183 days a year in the country and demonstrate that Andorra is your center of economic interests.
Tax Benefits: Andorran tax residence implies substantial tax benefits: an IRPF between 0% and 10% for individuals, both employers and employees or others, and a fixed Corporate Tax of 10%.

Active Residence in Andorra:

This type of residence is intended for people who want to work or start a business in Andorra. You can apply for it as an employee (with an employment contract) or as a self-employed person (or by creating your own company). Active residency entails the obligation to contribute to the Andorran social security system (CASS).

Residence for Others: Ideal for those who get a employment contract in an Andorran companyThis process is simple and is usually handled by the hiring company. It requires obtaining quotas by the Government of Andorra and obtain the necessary work permit. It may be temporary (seasonal) or indefinite (all year).
Self-Employed Residence: This modality is aimed at entrepreneurs and self-employed who wish to establish their business or economic activity in Andorra. It is obtained creating a company in the country, or being self-employed as a qualified professional. If you do it as a business owner, you will have to pay a bail of €50,000 to the Andorran Financial Authority.
Residence by reunification: the direct relatives of a person who is already a resident (spouse, children and dependent adults) can also be residents through this modality, which is why it is called family reunification.

Passive Residence in Andorra:

Passive residence is for people who They do not need to work in Andorra but wish to reside in the country.. It is a popular choice among retirees, artists, athletes and people with passive income (e.g. investment income).

Investment requirements: The general method for obtaining passive residence in Andorra requires demonstrating a strong commitment to the country through a minimum investment of 600,000 euros in Andorran assets, including:
- - Real estate located in Andorra
  - Shares of Andorran Companies
  - Participations in Andorran Funds
  - Debt Instruments of Andorran Entities
  - Andorran Public Debt Instruments
  - Life Insurance with Andorran Entities
  - Unpaid Deposits in the AFA
Financial Requirements: To obtain this residence permit you must pay a deposit of €47,500 to the Andorran Financial Authority. In addition, you must demonstrate annual income greater than 300% of the current annual minimum wage or a certificate of residence from the Común. It is also necessary to acquire a private health insurance of old age and disability.
Passive Residence Modalities: There are others subcategories within passive residence, such as residence for professionals with international projection o for scientific, cultural or sporting interest, which have their specific requirements and are usually quite restrictive.
family reunification: passive residents can bring their relatives to Andorra with them (spouse, direct children and dependent ascendants over 65 years of age) in your care. They must be deposited 9,500 euros more for each one and prove the economic viability of everyone in the country.

Additional Investment Considerations:

If you decide to invest in real estate, at least one of the properties must have a value greater than 400,000 euros.
The minimum amount required is reduced to 400,000 euros. If the investment is made in the Andorran Government Housing Fund. This fund It has been created to finance projects for the construction of protected housing, thus supporting housing access policies in the country.
More information in the Law 9/2012, of May 31, amending the Qualified Immigration Law and in the Regulation of November 23, 2022, on immigration authorizations for residence without work.

4. Residency in Andorra, how to obtain it?

Step 1: Gather Documentation:

Before starting the application process, make sure all your documents are up to date, legalized and translated into Catalan if necessary. This includes not only your passport and criminal record certificates, but also any financial documents that demonstrate your financial solvency.

Prior Preparation: make sure that all your documents meet the specific requirements the type of residency in Andorra you are applying for. This may include the copy type of the document, depending on your country of origin.
Deadlines: find out about the deadlines for each procedure what you should do and plan your visits to the administrations correctly.

Step 2: Submit the Application

The application for residence is usually submitted in the Andorran Immigration ServiceYou will need to complete an application form and pay the corresponding fees. At this point, you will also need to demonstrate that you meet all the requirements, and make the financial deposit if applicable.

Where and How to Submit the Application: You must make an appointment at the Immigration Service, using the following contact information:
- Address: l'Obac Services Building, Calle de les Boïgues, 2, ground floor, AD700, Escaldes-Engordany
- Phone: +376 872 072. Telephone service hours are usually from 8 a.m. to 3:30 p.m.
- Email address: [email protected]
- Opening hours: Monday to Friday from 8 a.m. to 1 p.m.

Step 3: Wait for Approval

After submitting your application, you will need to wait for official approval, which may take several weeks. During this time, you may be asked for additional information or documentation.

Waiting Times: Waiting times may vary depending on the type of residency requested and the workload of the Immigration Service.
Possible Obstacles: Missing a specific document, confusion about the type of document required, errors in forms, failure to meet requirements, or the requirement for additional documentation.

Seek professional advice

The ideal is have a professional office specializing in immigration and do the process accompanied. Consider seeking professional help for submit the application correctly, for the following reasons:

Legal advice to make better decisions
Make sure you meet the requirements
Confirm that you have all the necessary documentation
Avoid errors in procedures and forms
Optimize deadlines to the maximum and avoid unforeseen events

Do you want to obtain residency in Andorra?

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Frequent questions

❓ What types of residence permits exist in Andorra?

Broadly speaking, there are residence and work permits (self-employed or employed), passive or non-profit residence without work, and residence for family reunification.

❓ How long do you have to be in Andorra for tax residence?

If you are exercising activity (residence and work) you must spend at least 183 days in the Principality. In the case of passive residence (without activity) it is enough to reside more than 90 days. More information here.

❓ Why do you have to make deposits to the AFA in foreign investments?

This bond was imposed to avoid debts with the Andorran public administrations, although it can be abusive. Self-employed residents pay €50,000, and passive residents €47,500 for the owner and €9,500 per dependent.

❓ Can I bring my family to reside in Andorra as a resident?

The residence permit for family reunification was made for this purpose. Under certain requirements, the entire family of a resident of Andorra can legally reside in the country.