Residency Andorra + Active residence

The best residency option for company owners in Andorra is the work permit for shareholders.

This work permit is granted by either founding a company in Andorra, the acquisition of a company or participating in a local company. From 2023, a foreigner can start his or her own business or acquire more than 34% of an existing company, which will then enable him/her to apply for this shareholder work permit. The applicant must furthermore take up a position as managing director or member of the board of directors.

As managing director of your own company, you will get the active residency immediately after the foundation of your company. The company must have a proper commercial activity (services, trade, etc.) and you must hold at least 35% of the shares of the company. In addition, payments to the Andorran social insurance have to be made as a self-employed manager. This will allow you to have a valid insurance cover in Andorra (health and pension insurance).

The active residency is an option for those, who plan to work actively in Andorra as self-employed individuals and spend at least 183 days within Andorra (excluding holidays and business trips). Also, from 2026, you must make a definitive and non-refundable deposit of 50.000 EUR to the government / the financial authority regulating body of AFA.

• A permanent residence in Andorra (more than 183 days a year, can be interrupted by business trips and holidays)
• Contribution to the Andorran social insurance system with EUR 587.95 per month, updated fee for 2026 (right to access to the Andorran, French and Spanish health system)
• Establishment or acquisition of a local company (with a stake of more than 34%)
• Deposit the amount of 50,000 EUR on a final and non-refundable basis to the government / the financial authority regulating body of AFA
• Exercising a position in the administration of the company

One of the most significant changes in the new regulations is the requirement to reserve immigration authorisation in advance before initiating certain procedures.

This reservation allows the applicant to begin the process of:

• recognition of a qualified profession
• foreign investment
• setting up a business in Andorra

Once the reservation has been granted, the applicant has a set period to complete the procedures:

• 3 months for qualified professions
• 6 months for foreign investment or company formation

This system aims to ensure that authorisations are actually used for viable business projects.

There are two main categories:

1. Qualified professionals
   • They must apply for authorisation in advance.
   • They have three months to provide proof of:
     • Authorisation to practise their profession in Andorra.
     • Membership of the relevant professional association (where applicable).
     • Compliance with all other legal requirements.
   • If they fail to provide proof within this period, the reservation is cancelled.
2. Other entrepreneurs or businesspeople
   • They must also reserve authorisation.
   • They have 6 months to demonstrate that:
     • They have obtained foreign investment authorisation.
     • They have incorporated an Andorran company in which they hold more than a 34% stake.
     • They perform actual administrative and management functions.
     • They have made a deposit of €50,000 to the State, which is non-refundable unless authorisation is refused.
   • The deposit of €50,000 is not required if the company undertakes projects in the digital economy, innovation or high value-added technological entrepreneurship, according to the Government’s criteria.

Once the requirements have been met, the applicant must demonstrate that the company has a registered business and is actively operating in Andorra; this will also be verified when the authorisation is renewed.

• If your renewal application is refused twice in a row due to a lack of activity or residence, you will not be able to apply for a new permit for 12 months.
• The same applies if you voluntarily give up your residence: you must wait 12 months before reapplying.

Yes, it is possible to apply for family reunification in Andorra. The Government has standardised the waiting period to three months, regardless of nationality, so that residents with a work permit in Andorra can apply for family reunification. Previously, only Spanish, French and Portuguese citizens had this three-month advantage, whereas other nationalities had to wait a year to begin the family reunification process in Andorra.