Residency in Andorra
Are you planning to move to Andorra for your tax residency along with the set up of your company ? Or maybe you consider one of the many advantages of settling as passive resident in Andorra. Whatever brings you to Andorra you will need to get assistance with immigration matters, looking for a place to live or the relocation of your family and belongings.
Andorra offers several different types of residency depending on your profile. If you plan to set up a business and form a company in Andorra the active residency might be the right choice for you. Being the director and shareholder of an active business automatically gives you the right to ask for the active residence for shareholders and entrepreneurs that entitles you to work for your own company.
However if your intention is to relocate to Andorra as part of your retirement plan or you are living from passive income you may consider the passive residency in Andorra.
We and our local partners assist you in the following processes:
- requesting your residency with local authorities (active or passive)
- assisting you with your local real estate search
- preparing your and your family’s relocation to Andorra (move, schooling, vehicles, banking etc.)
Why consider residency in Andorra?
Andorra has much to offer apart from low taxation. While many searching for low tax jurisdictions in Europe consider Andorra for its low income taxes they end up moving to the country for its quality of life.
- 0 – 10% income tax
- 2 – 10% corporate tax
- No wealth tax
- No inheritance / donation tax
- Ranked one of the safest countries in Europe together with Iceland and Liechtenstein
- Healthcare system among the best in Southern Europe
- 2h from Barcelona (Spain) or Toulouse (France)
- Living costs in line with Spain, substantially lower than UK, France or Germany
How to become a resident in Andorra?
The different types of residency and the requirements of each have to be very carefully analyzed and depend very much on your personal needs and plans for your future life as professional active or passive resident. Both residency types may lead to tax residency if properly advised and planned.
The fiscal residence in Andorra brings unique advantages such as income taxes of maximum 10%, capital gains excempted income, but also the high living standard that Andorra has to offer its residents. High per capita income, nearly no crime, excellent public school and health systems as well as a relatively low cost of living compared to other similar low income tax jurisdictions in Europe.
No, you need to spend at least 90 days in Andorra if you consider passive residency. For other residency types permanent stay apart from business travel and vacation are recommended. You need to have a permanent domicile at all times either rented or property.
Technically you can be resident in more than one country having a legal residency status in all of them. However be aware that tax residency is typically declared only in one country where all of your worldwide income is to be declared.
In 2023, Andorra requires a refundable deposit, non-interest bearing payment of 50.000 EUR for active residents that are shareholders or entrepreneuers. 47,500 EUR, modified in 2022, is the required amount for passive residents. Other residency types such as a work permission or through family reunification do not require a deposit. Our fees charged are between 500 – 2500 EUR depending on the residency type.
The duration of the residency process depends on the type of residency. It may take from 1 to 4 weeks for active residents and up to 2 months for passive residents from the time of submission of the application. Typically active residencies are quicker to apply for once the company or employment is set up.
Tax residency is not depending only on your type of residence permit but rather on many aspects of your personal life and economic income. Please visit our criterias of tax residency.
Yes, you can reunite your family after becoming a resident in Andorra. Typically, you can start the process to reunify your first-degree family within 3 months of becoming a resident, regardless of your nationality. Due to a modification in the immigration law, in force in 2023, the waiting time was set at 3 months for everyone. Previously, only Spanish, French and Portuguese citizens had the privilege to start this process after 3 months and the rest of the nationalities after 1 year.