There are plenty of reasons for expats to look into gaining a residency visa in Andorra. The country has one of the lowest tax rates in the world, a high quality of life, and is a very safe place to live.
Anyone can apply for a residency visa. The only catch is that you will need to meet the requirements and provide the necessary documents – all information you can get from our site.
Andorran residency falls into two different categories, which have further sub-categories:
- Passive residency: For individuals that will perform most of their economic activity outside of Andorra during their stay
- Active residency: For individuals that wish to make Andorra their home and to work full time within the country
Table of Contents
Andorra Passive Residency
After completing a criminal background check and showing proof of private health insurance, your income must be 300% of the minimum Andorran salary. At time of writing, it is €13,457.64, which means you must be earning a minimum of €40,372.92.
Passive residency holders only need to stay in Andorra for 90 days out of the year. If you stay 183 days or more, you will be liable for taxes as a fiscal resident.
The permit for passive residency is initially good or 2 years. It can be renewed again for another 2 years, followed by 3 years, and then 10 years.
After twenty years, a resident can apply for Andorran citizenship.
Residence Without Lucrative Activity
This type of residency requires you to make a €400,000 investment in Andorra. All passive residency permits have a mandatory €50,000 government bond investment which is subtracted from this.
There is a 7 month time frame to prove you’ve invested the remaining €350,000 into:
- real estate,
- investment accounts,
- private or public bonds, or
- Andorran company shares.
Professionals in International Business
For entrepreneurs, this category mandates that you must form an Andorra company within a 90 day period. 85% of business must be performed outside of the country, though.
While you may not be subjected to income tax, you will still need to pay corporate taxes. As well, applicants need to present a 3 years business plan when they apply for this residency.
Internationally Accredited Athletes, Scientists & Artists
Professional athletes, celebrities, actors and individuals of similar stature can apply for this passive residency permit. 85% of the resident’s given profession must be done outside of Andorra.
The €50,000 government bond is still required but they do not need to make a €400,000 investment like the other categories.
Qualifications, proof of income, and supporting documents must be able to prove the applicants status in their home country.
Active Residency in Andorra
If you want to work full time or permanently live in Andorra, active residency is for you. You will be required to spend a majority of the calendar year within the country working or doing business.
As residents spend more than 183 days per year in Andorra, they are fiscal residents and must pay taxes. You are either considered a self employed active resident or contract worker.
Self-Employed Active Residency
There are 900 spots available every year for this permit and you must own at least 11% of a local company. You must also be a working director of said business. But, foreigners can now own 100% of a company which makes it more achievable.
Some things this permit requires include:
- Renting or purchasing property in Andorra
- Company incorporation
- A local trading license
- An in-person meeting at a notary office
Work Contract with Active Residency
Some expats aren’t interested in starting a business, but rather looking for a job in Andorra. Are you one of them? Then this type of residency is a great choice.
When applying, you will need to provide an apostilled police certificate, which can take several months to obtain. It is best to request it long before you apply to make the process easier.
Your employer in Andorra will handle getting you the work permit and organizing paperwork to fill out. Some work permits only last for a season, such as teaching English.
Choosing the Best Type of Residency
If you wish to live in Andorra, you have the choice between passive or active residency. Passive permits are best suited for entrepreneurs, investors, and those that wish to take extended trips to Andorra.
Active residency are for those wishing to find contract work or live permanently in Andorra. From the low capital gains tax to quality of life, living in Andorra is a wonderful choice no matter which permit you use to get here.