Being a little principality between Spain and France, Andorra has become one of the most requested places in Europe for permanent residency. Thanks to its incredible landscapes, colorful culture, political and economic stability, and low tax rates, this principality has seen an increase in the number of people who want to become permanent residents in its territory. The country currently offers various alternatives for such people, so we will summarize all the options that individuals have in order to enjoy all the benefits of being a resident in Andorra.

Before mentioning the alternatives to get residency in the country, it is important to discuss why so many people are interested in becoming permanent residents in this peculiar little principality. These are some of the reasons why more people are looking to become permanent residents in Andorra year after year:

A pleasant climate: for most of the year, Andorra has sunny weather, which will let you enjoy warm days. In winter, you can enjoy the snow and all the activities that the country has to offer at this time of the year (such as various winter sports).

Optimal quality of life: Andorra is amongst the countries with the highest life expectancy and overall quality of life in the entire world. It is currently ranked number 5 in this regard thanks to its top-notch healthcare system, high-level education, and optimal air quality.

Cultural heritage: given its shared history with France and Spain, visitors can find in Andorra a unique blend between these two cultures.

Its Romanic architecture, its colorful traditions, its tasty gastronomy, and its language, are aspects that make Andorra an attractive place for foreign tourists.

Geographical location: Andorra is located between two of the most attractive countries in Europe: France and Spain. Residents from the principality are just hours away from each country, so they might be interested in visiting these countries from time to time. In fact, the country has established travel agreements with the governments of Spain, France, and Portugal, which allows Andorran residents to enter these territories without a visa and stay for 90 days.

Marvelous landscapes: this tiny principality consists mostly of breathtaking landscapes: 90% of the country’s territory is raw nature. This is ideal for people looking to disconnect from the big European metropolis and want to enjoy contact with Mother Nature. It is also perfect for people who enjoy trekking, as they can go through all the country in less than a day. They may be tempted to explore all the rivers, mountains, and forests that make Andorra such a beautiful place.

Andorran economy: the economy of the principality has seen exponential growth in the past decades. Thanks to its thriving touristic industry, its agricultural products, as well as the incentives promoted by the government to attract foreign investors, Andorra’s economy has been growing ever since the ’90s.

Tax system: this is, perhaps Andorra’s most known attribute. The country has some of the lowest tax rates in all of Europe. Its general VAT is just about 4.5% (the lowest in Europe) and, for some goods and services, VAT can be reduced to only 1%. Plus, it has a 10% income and corporate tax rate.

This is just a taste of all the benefits that Andorran residents can enjoy in the principality, which attracts investors from every part of the world to run their businesses in the country. People from more than 100 countries are coming to Andorra looking for a new place to establish their economic activities or just settle in the principality and enjoy the country’s quietness.

If you are looking to obtain your permanent residency here, Andorra’s government offers two different possibilities to do so: as a passive or active resident. We will summarize the benefits and characteristics of each option. However, it should be noted that both alternatives allow its beneficiaries to enjoy these rights:

- Own properties. 

- Open bank accounts.

- Operate financially without limits.

- Visa-free access for 90 days to Portugal, France, and Spain.

- Own and run your business in the country, and others.

Now, let’s take a look at each alternative, considering its characteristics, benefits, and requirements in order to obtain your permanent resident status in Andorra.

Ask for more information

Passive Residency in Andorra

This kind of residence is the ideal alternative for people that just want to stay in the country while earning income abroad. It is the perfect option for individuals who want to enjoy all the benefits of being an Andorran citizen while making a profit from their business in a foreign country. 

Furthermore, this alternative requires its holders to stay in the country at least 90 days a year, which is less than most countries demand to individuals that want to become residents in any given territory. Moreover, if you have a business or personal interest in Spain, France, or Portugal, you can go there as many times as you want per year as long as you don’t stay more than 90 days per visit and stay at least 90 days in Andorra to keep your residency.

This type of residency does not allow its holders to work in Andorra; however, people can open a company with this permission. People that want to apply for this kind of permanent residency must meet some requirements to gain this status:

1. Individuals must own or rent a property in Andorra.

2. Applicants must invest in a property or company in the country, whose value is at least 400.000 Euros.

3. Medical certificate granted by Andorra’s migration authority.

4. Deposit 50.000 Euros to the Andorran Financial Authority (plus 10.000 Euros for each family member included in the application). This is deducted from the money invested in the company or property mentioned above. 

5. Your income outside Andorra must be three times more than the minimum wage in the country. For each family member or dependant, it is required to add 100% more.

Active Residency in Andorra

This alternative allows people to work in Andorra while enjoying all the benefits of living in this little country. This option has two variants that individuals can apply to:

1) First, there is the option to obtain an active residency as an employer hired by a national company.

2) On the other hand, people can become active residents as owners of their own company.

Regardless of the option you may apply for, each of these alternatives will allow you to enjoy your life as an Andorran resident while making a profit in the principality. This status requires that its holders remain in Andorra for at least 183 days a year. If you are applying for this kind of residency as an employee of a national company, most probably, that entity will take care of all the procedures to help you obtain permanent resident status. However, if you are looking to establish your own company to obtain your residency, Andorra’s government requires that individuals own at least 10% of the company shares and have a managerial position within the business.

If you are looking to obtain permanent residency in the country, you must present certain information to Andorra’s Migratory Authority to comply with the government’s process. These documents are required for people that apply for active or passive residency:

- a clear criminal record;

- establishing your tax domicile in Andorra;

- a certificate of the rental or purchase of a property in the country;

- a contribution to Andorran Social Security;

- a photocopy of your passport;

- a marriage certificate if necessary.

- a certificate of your income.

- an insurance policy for incapacity or medical expenses.

Each of these documents must be certified and translated into Spanish, French, or Catalan. It should be noted that the country’s migratory authorities can ask for other documents if they consider it necessary for a specific individual. The country’s government grants this residency permit for a year the first time the individual applies for it; after that, each renewal extends the permit for three years; finally, each renewal grants a ten-year extension of each renewal in the seventh year of the residency.

Contact our experts

What can we do for you?

If you are looking to become a resident in Andorra, we can help you through all the processes, making it easy for you to enjoy the benefits that come with living in this colorful and peaceful country.

Our partners have over 25 years of experience helping HNWI become residents in first-level jurisdictions where they can enjoy excellent life quality and optimize their taxes. Andorra checks both boxes, and it will give you almost unrestricted access to Portugal, France, and Spain.

Furthermore, we work with top-level immigration experts in Andorra who have helped individuals from all over the world receive passive or active residency. They can help you choose an adequate property for your investment and guide you in every step of the journey. Thus, the process can be conducted swiftly so that you can live and thrive in this gorgeous principality. Contact us right now and we will give you all the information.