Retirement in Andorra: pensions and retirement benefits

The retirement in Andorra has many advantages compared to other countries. And it is that in addition to the profiles on digital businesses, also those of individuals or groups of individuals with great wealth who want to retire and not do business are among the most common profiles of new residents in the Principality. One of them is that of retirees or retirees, people who, after having completed their professional stage, seek peace, tranquility and non-confiscatory taxation to spend the rest of your days.

A retired senior citizen profile can obtain the residence permit in Andorra through the authorization of non-profit residence. This residence permit does not grant the right to work in Andorra, but it does grant the right to fiscally reside in the country. Therefore, unlike active residences, it does not require a contribution to the Andorran Social Security Fund (CASS), although it requires that people who come to reside have the appropriate private health coverage. Further, is compatible with the perception of the retirement pension of the country of origin.

The problem, yes, is that Since the last modification of the immigration legislation, to obtain passive residence in its general form, €600,000 must be invested in Andorran assets to be able to obtain it, which is a very high amount and therefore not accessible to everyone. On the other hand, to obtain non-profit residence in other ways, evidence of relevance (sports, artistic, scientific or international) must be provided to demonstrate that the person in question is of interest to the Principality of Andorra.

Retirement in Andorra from Spain

Thanks to social security agreement between Andorra and Spain, a person who obtains a residence permit in Andorra can retire in the country, even if they receive their pension from Spain. This, along with double taxation agreement which we already talked about here allows anyone to spend their retirement in the Principality maintaining the pensions received from another country and being a tax resident with all the associated rights.

A) Yes, You can receive pensions from Spain as a non-resident and pay taxes on all worldwide income in the Principality (both capital and others) and continue to be entitled to the benefit even if you live in Andorra. This is also the case with France and Portugal, since there are numerous agreements that allow it to be done with guarantees, although We always recommend professional advice about it for a particular case to avoid unpleasant surprises.

Tax advantages of retirement in Andorra

The main tax advantages due to the low taxes in Andorra that retirees enjoy when residing in the country are:

  • (i) The non-requirement of wealth tax.
  • (ii) The non-existence of inheritance and gift tax.
  • (iii) The low taxation of the income that you can obtain from your assets (maximum rate of 10%, in some cases total exemption, depending on the type of income) and on the income received.

In other words, the main tax advantages of retirement are built on the pillars of tax planning and the option economy. Thus, each profile presents a different heritage, and therefore, tax advice with international tax experts is essential prior to transfer. Sometimes it may not be interesting to reside in Andorra, at other times it can be extremely lucrative with significant tax savings. Always depending on the patrimonial structure, the type of assets held and the legal category of the income to be received.  

Also the estate succession must be planned seriously and with a good advisory and consultancy service. Again, the type of assets will mark the tax savings, as well as the participation in the planning scheme of the heirs and legatees. In addition to the type of assets and their location, tax residence is, in retirement cases, a determining factor.

The fact that capital returns are taxed at a maximum of 10% has also implied the arrival of many traders to Andorra, and also investors long-term "value investing" since doing it from Andorra is a advantage enormous. For example, capital gains derived from the purchase and sale of shares and funds are exempt to pay Therefore, to manage your own personal capital even if it is not professionally (as is the case with retirees) this is also very attractive.

The best healthcare system in the world

For a smooth and easy retirement, one of the essential points is health. Upon reaching the third age, health problems become more frequent and severe and it is very important to take proper care of them in order to maintain a happy and active lifestyle. Have the guarantee of being able to access quality, safe and unsaturated healthcare is a relief for a retiree.

Just like we explain in the article dedicated to it that you can read here, Andorra can boast of having a tremendously competent and solid health system, declared as the best in the world according to many rankings and important scientific journals. In addition, and as we will explain later, the fact that retired people establish themselves in Andorra through passive residence means that they do not have to contribute to social security.

This is due to the fact that, as its name suggests, people already in retirement and with this permit are passive people in terms of exercising economic activity and their career in the labor market, and since the obligation to contribute to social security is only for people of active age and who are working (self-employed or employed) this does not apply to them. This implies that with a private insurance for passive residents of disability and old age can be maintained with the best possible medical care.

Specifically, there are many insurances for passive residents that They include care in the best centers, clinics and health professionals, and also in many different countries. so that wherever you go you have the certainty that you will be attended to with guarantees. This makes retirement in Andorra even more peaceful than, as we will explain in the next section, it already is.

Physical and legal security: guaranteed peace of mind

Retirees in Andorra, how to spend retirement in Andorra a retiree

The null crime has always been a very remarkable and envied feature of Andorra. With a almost null crime and criminality, the few cases of crimes are usually easy news. Its location and orography, embedded in the middle of the Pyrenees, also contribute to this issue. And what more tranquility than living in a mountainous area where more than 90% of the extension is forest territory. we already told it in this article on crime.

Not only that: anyone who has lived in the country or has ever visited it knows first-hand that it is a very quiet country, where nothing ever happens. when we explained in our article about moving to Andorra who is interested in living in Andorra and who is not and the benefits, we mentioned that it is not a country for those people who like to party and night, since the Principality at night is a fairly quiet country. In the case of retirement, it is a great advantage.

Furthermore, in Andorra there are not many young people or much university environment, since due to the few options of tertiary education (and especially university) available to the andorran educational system young people go to study in Barcelona or Toulouse after finishing high school in the country. Thus, peace of mind in this regard for retirees is guaranteed.

The clubs and pubs in the country are quite hidden and there is never a scandal: They are very discreet. The large bottles are prohibited and persecuted and are never made. Where there is more movement in this sense is in Pas de la Casa and especially in the winter season, since tourists and young foreign seasonal workers, skiers, etc. accumulate. and events are held for this purpose. Beyond that, the capital is a daytime city.

On the other hand, what about legal certainty? Have the savings in a country that before it was a tax haven also has its advantages. Specifically, in Andorra there is strict respect for private property, foreign capital and the privacy of property owners. Of course it is impossible for there to be occupations of other people's homes and people behavea, which is perfect for retirement.

But aside from that, if they have something good Andorran banks is that, despite being outdated and not very technological due to the recent international opening of the country, they once again have a long history caring for the capital of foreign persons and maintaining their privacy and integrity, something that, together with the current strict requirements against money laundering and prevention of terrorism, ensures that your capital and assets from your entire working life are well protected.

Nature and mountains at their best

Earlier we have already named 98% of the territory of 469 square meters that make up Andorra are forest lands that are not part of civilization: they are pure mountains. But it is also that there are areas of the Principality that are authentic idyllic paradises where spending retirement must be the best approximation to happiness in old age. For example, they can look for photographs on the internet about the Incles valley, the Madriu-Perafita-Claror valley or the Sorteny natural park, three of the most remarkable places for their beauty in the country.

In spring, which is when the vegetation is greener and all the meadows are in flower, these are landscapes that are not only natural but also paradisiacal.. Finally, Ordino, which is considered the most beautiful town in Andorra, also stands out for its enormous beauty as a traditional mountain town, with mountain tourism and great respect for the environment and nature that surrounds it. Perfect for a retiree. Also, Andorra cares a lot about its nature and environment, because it is a very touristy country and the landscapes must be maintained over time.

Example of peace and neutrality

In addition to the null crime, the leafy history of political neutrality in Andorra it is also a more than relevant factor for a retiree when deciding on this country for retirement. And is that the Principality has been in political neutrality for more than seven centuries, in spite of the numerous world-wide, European and particular warlike conflicts of the neighboring countries, especially France and Spain. This was stated by Xavier Espot, the current Prime Minister, at last year's Peace Forum.

Neither the succession wars, nor the Napoleonic wars, nor the various coups d'état, not even the Second World War was able to shake the balance of Andorran pacifism. A clear example of flight from full-blown war and political conflict.

In Abast we have professional advisers from the Principality of Andorra, experts in tax planning and with extensive experience in the field. If the Principality is considered as an option for your retirement, doalo with professional assistance and carry out safe and lasting planning, both for his retirement and for his subsequent succession. In addition, we assist you from the first moment until your effective transfer, guiding and advising you on the services and activities that the country offers.

38 thoughts on “Jubilación en Andorra: pensiones y ventajas del retiro”

    • Hello José Luis, the legal requirements depend specifically on the type of residence permit you are applying for and the way to do it. If you are retired, write us to the mail [email protected] Telling us a little about your case and we will respond with the best option for you. Thank you very much for your comment and greetings!

    • Hello Alfonso, because the main requirement is to have € 400,000 available to invest in Andorran assets (real estate, shares of Andorran companies, public debt of the Government of Andorra, etc). If you meet it, you can contact us at [email protected] and we can analyze your case to obtain passive residence in Andorra and settle in that way. In any case, thank you very much for your comment.

  1. Hello, in the passive residence, you can have properties in Barcelona, or you have to get rid of everything in your name due to the problem of the Spanish property, that they do not accuse you that you do not live in Andorra and therefore they apply taxation even if you are residing 186 days in Andorra.
    As it is not a tax haven, it is not necessary to pay taxes in both countries for 4 + 1 years ... I guess?

    • Hi Juan, thanks for commenting.

      As for the possibility of owning properties in Barcelona, of course you can. But you have to be strict about complying with the requirements to be residents and tax residents in Andorra if you do not want to have problems with the Spanish Treasury, which, by owning properties in Spain, has an anchor to rely on.

      Regarding whether you have to pay taxes for 4 + 1 years in Spain or not, since Andorra is not a tax haven, it is not necessary. Simply the year that one moves one can be a tax resident in the country.

      Receive a cordial greeting.

  2. Hi. I understand from the answer that Alfonso has given that if my husband and I do not have € 400,000, we have no possibility of retiring in Andorra? So show that we have the resources.

  3. I request information: we are two Argentine retirees who would like to emigrate to that blessed place in Spain. My husband has dual Argentine-Spanish nationality since his parents were born in Pontevedra Galicia, and we each have properties in Argentina, at this time it is difficult for us sell them, between the two of us we charge in euros around 3,000 +30.00 dollars in cash. Your family lives there. There would be the possibility of emigrating and what would be the procedures to complete .. Greetings to you. Very atte.

    • Hello Alicia, thank you very much for commenting.

      Unfortunately it is impossible, for retirees and retirees (and, in general, people over 65 years of age), the € 400,000 investment is essential since the only way they have to live in Andorra is through passive residence (they cannot exercise activity economic).

      Greetings and everything goes well!

  4. Buenas tardes
    I have contributed 14 years in Andorra. Can I opt for a monthly retirement pension? I currently reside in Spain and have never contributed here

    • Hi Faty, thank you very much for commenting.

      Well, without seeing your case in greater depth and in principle, given that the minimum contribution time to receive a retirement pension in Andorra is 15 years, you would not be able to access the pension. However, as I said, you should hire a more in-depth consultancy to analyze whether, according to your circumstances and based on the social security agreement between Spain and Andorra, you can receive it.

  5. Bonjour, mon épouse et moi sommes citoyens français et nous commençons a réfléchir ou il serait le mieux pour nous prendre notre retraite, et also pour sauver the most possible of notre capital pour nos enfants, et nous souhaiterions, peut-être, et si cela It is possible to rapport us to become a fiscal resident to the retreat in Andorra by the end of 2022.
    mon épouse prendra sa retraite au lendemain de ces 62 ans et moi j'aurais 68 ans a ce moment la.
    pouvez-vous nous dire nos obligations to become resident to the retreat.
    Nous aurons juste a peu plus of 3000 euro for mois, est-ce assez?, Et nous avons a peu of capital in plus, est-ce obliger d'y vivre 183 jours?, Est-ce that l'investissement of 400000 euros rapporte quelque chose annuellement? ou est-ce juste joins a lot of caution for the Andorran authorities who are rapport rien annuellement.
    Combien couterai une complementaire maladie annuellement pour nous?
    A notre retraite nous ne garderons que des parts dans des SCI en France que passera t'il pour cela, pour nous ceci is a complement to notre retraite ou serons nous obliger de nous en separer, comment sera t'elle impose?, Est -What nous pourrons les garder?, mon épouse possesses a maison dans l'ile de la Gran Canaris in Spain or nous voulons and passer au moins 180 days of the moments froid d'Andorre. nous sommes venus découvrir Andorre il ya quelques années. Merci pour toutes vos réponses

    • Bonjour, merci beaucoup pour vos commentaires. At the time of your return, I will say that you will be able to reply to all the questions in a comment, and encore the questions that are specific to you, that you are familiar with.

      If you souhaitez, you pouvez nous contacter à [email protected] et nous pouvons étudier votre cas et votre budget pour les services dont vous avez besoin pour vous implanter dans le pays.

  6. Je suis française more je reçois des grosses pensions de retraite allemande s. If you are a resident of Andorra, will you be taxed at 10 pour cent sur ces pensions?
    Dois je acheter an immobilier asset of 400,000 euros?
    Pour cette somme quel est la grandeur d an appartement?
    Merci from me I will reply

    • Bonjour, merci beaucoup pour vos commentaires. Answer your questions:

      1) The tax treaty of votre prestation of German portrait in Andorre doit être approfondi, car il will be donned for the bilateral relations and the accords between the Allemagne and Andorre sur la double imposition.
      2) Oui, you must once acquire the Andorran assets of a value of money € 350,000 and deposit € 50,000 from the Andorran financial authority, qui fait office de garantie.
      3) Cela depends on beaucoup de choses, mais pour ce prix, you can obtain des maisons from 100 to 200 meters carrés assez intéressantes comme des penthouses, des rez-de-chaussée, etc.

  7. Buenas tardes.
    A slightly specific question regarding the collection of dividends. UCITS ETFs that are traded in Europe, some of them pay dividends. Among the countries of the European Union, these dividends, unlike the dividends of listed shares, do not have withholding tax and are taxed only in the country of residence. My question is whether with tax residence in Andorra I would be withheld according to the country of domiciliation of the ETF or not. And if I choose an ETF domiciled in Luxembourg, with whom does Andorra have double taxation agreements, would in this case have withholding tax?
    Thank you very much for your attention.

    • Hi Luis, thank you very much for commenting.

      I am afraid we cannot specify the tax treatment of all financial products around the world. Your case would require an office consultation. You can contact us and we will detail how to proceed.

  8. Bonjour. Je suis en résidence active in Andorra after 2016 et j'ai 52 ans. Is it that at the age of retirement (currently 65 years old) in Andorra you pass automatically in passive residence? Ou est ce que je devrais dans le pays investir où avoir la résidence passive? J'ai travaillé également en France de 1990 a 2016 (au moment où je suis venu en Andorre par le biais d'une mutation). thank you

  9. Buenas tardes,
    Thank you for the detailed explanations with the very useful information and my question is: this investment of €400,000.- must come from the euro zone or it can be anywhere in the world and of course with the correct justification of the legal origin of the fund. And depositing this fund in an Andorran bank, is it used to process the non-lucrative-passive residence permit?

    • Good afternoon Julio, thank you very much for commenting. I answer your questions in order:

      1) No, the investment of €400,000 can come from anywhere in the world as long as, as you say, they are legal funds, traceable and with documentation that supports their legal and correct obtaining.

      2) No, depositing money in cash in banks is not enough. Yes, it is, however, to invest in collective investment organizations such as funds or insurance that Andorran banks themselves also offer.

  10. Hello, I would like to know, 1st married couple, retired, I live in Catalonia and I own a flat, I want to live in Andorra for 90 days a year, I think I should continue filing the income tax return for what I have in Spain?????
    2nd I can continue with the SS, in Spain since I only plan to spend a few months in Andorra.
    Thank you
    Sincerely R. Roca

    • Hello Ramon, thank you very much for commenting.

      Obviously, if you are a tax resident in Andorra, the personal income tax return will be declared in Andorra. But this is not the case with any other declaration or procedure that used to apply to another legal entity, such as your property in Spain.

  11. From what I have read here, and elsewhere, it is not allowed for a retiree to rent and live long-term in Andorra. This seems odd compared to neighboring Spain. My passive income is much higher than needed to live in either country and much higher than Spain requires for a visa. But I do not have four hundred thousand euros.

    • Hi Wesley, thank you for your comment.

      If you can't invest €400,000 in Andorran assets unfortunately it is so complicated to settle up in Andorra as a Passive / non-lucrative resident.

  12. Hello there
    I want to settle in Andorra to retire. I have the necessary capital to do it. I currently reside in Spain. In Spain I have several homes that I do not want to part with. They are rented. Can I have problems justifying my residence in Andorra by having these properties in Spain?

  13. Hi good morning,

    I have been working in Andorra for 7 years, contributing for 8 months at 1,275 net and accumulated 454 CASS points. How many more years do I need to work to retire in the principality? What happens if after completing the minimum years, I change my residence to another country? Thank you very much

  14. Bonjour, j'ai travaillé in Principauté d'Andorre seulement 10 mois in 1976, payée au salaire minimum de l'époque. Je suis française et ma caisse de retraite française demanded after 12/15/2021 I relieved him of the month droits à la retraite auprès de votre caisse Andorrane. Ils n'ont pas pu obtain de réponse et cela mon dossier ici block. Can you tell me about my addresser for avoir ce document? savez vous si j'ai pu obtain des droits sur une durée aussi courte ? even if it is a refusal document, it suits me tout autant et permettrait de unblocker mon dossier. Je vous remercie vivement pour votre réponse. good to you

  15. Buenas tardes,
    Once the passive residence in Andorra has been obtained, is the Spanish pension taxable in Spain as a non-resident or taxable only in Andorra? In the latter case, it is understood that the INSS would deposit the gross amount of the pension in the Andorran bank account. Is it so?
    Thank you

    • Hello Jose Manuel, thank you very much for commenting.

      Taxation is determined not only by the Social Security agreement between Andorra and Spain but also by the double taxation agreement about. In principle and with few exceptions, retirement benefits are required to be taxed only in the jurisdiction where the beneficiary resides for tax purposes, in this case Andorra. Regarding the bank account, it is a separate and independent matter of taxation: regardless of where the income is received, the tax obligation is the same.

  16. Hello,
    What happens if you have paid 25 years to Spain, then 15 more years to Andorra and you reach retirement age?
    Is the sum of the quoted years added up and you get only one of the two pensions, the two or a mitja between the two?
    If one time he retired around Spain with the assumption of the present case, who thought he would rebrand?

    • Hello, thanks for commenting.

      I recommend consulting a professional adviser in this regard, but without knowing much about your case, since it exceeds the minimum in both countries, you can apply for retirement in both. Thus, each country will pay its corresponding part.

  17. Good Morning,
    I am an economist, I am 62 years old and I have been listed in Spain for 25 years. I would like to know if I could practice as a self-employed person in Andorra and how many years I would need to be able to apply for retirement in Andorra and continue residing there afterwards.
    Thanks a lot.

    • Hello Domingo, thank you very much for commenting. Well, in principle you could, although you would not receive any pension from the Andorran state. Only from the Spanish state and if he stops practicing.


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Retirement in Andorra: pensions and retirement benefits for a retiree
Jose Sanchis, Abast Technology and Systems Specialist, Andorra Insiders
Jose Sanchis

ABAST Technology and Systems Specialist


Andorra Insiders is an information platform about Andorra managed by ABAST, an Andorran professional consultancy firm for legal, tax and accounting services specialized in establishing people and businesses in the Principality of Andorra. More information here.

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