Andorra Residency Rules

Due to the high amount of foreigners applying for permits to live in Andorra in recent years, Andorra’s residency rules have been tightened by the government.

These are rules you must follow to acquire and maintain your residency. They are in place to ensure that Andorra only attracts the most productive and serious candidates.

During your application and stay, Andorra’s residency rules entail proof of income, insurance, background checks, and more. The type of residency you apply for and obtain also changes the requirements you must meet, too.

In this article we’ll cover the headline requirements you need to meet.

How Many Days Must Be Spent in Andorra?

As an active resident of Andorra, it is necessary that you spend most of the year within the country. This means 183 days at minimum. It is for applicants that wish to make Andorra into their primary residence, normally creating a business or securing a work contract.

Now if you have passive residency, you are only required to spend 90 days out of the year in Andorra. It’s more suitable for entrepreneurs, retirees, and those whom aren’t seeking employment and like to travel a lot.

Tourists can visit for up to 90 days in Andorra without a visa, but if they wish to stay, they have to apply for residency. Those with work permits which normally last 3 months, have one week to return home after it expires.

Income and Investment Requirements for Passive Residents

As passive residency attracts investors and entrepreneurs, the rules for income are steeper.

You must be generating 300% of the average Andorran minimum salary, which is approximately €12,209.64. So, this means you need to prove that you make €36,628.92 annually.

Do the Same Residency Rules Apply for Family Members?

Some applicants want to bring family who will also become residents.  Each dependent must see  100% of the average Andorran minimum salary.

A family of 5 for example, would have to generate €61,045 every year.

How Much Do I Need to Invest as a Passive Resident?

It is also necessary for passive residents of any type to invest €50,000 into government bonds.

A passive resident “without lucrative activity” calls for a total of €400,000 to be invested into Andorra. The original €50,000 is deducted from this, and you have 7 months to invest the remaining amount.

Real estate is a common form of investment for passive residents without lucrative activity, especially since many plan to retire there or at least ski here during the winters. If you don’t want to buy a home, you can invest in:

  • financial instruments from Andorran banks
  • bonds from public companies
  • other property market investments
  • Andorran company shares
  • more government bonds

Working and Conducting Business

As a passive resident of Andorra, a majority of your economic activities must occur outside of the country. Category b passive residents specifically can only perform 15% of their business within Andorra. If you plan to create a company, a 3 year business plan will be needed when applying.

Active residents on the other hand, are whit self-employed or on a work contract.

Including other rules, self employed residents must do the following:

  • Officially incorporate their company
  • Deposit €3000 of share capital in an Andorran bank
  • Obtain a trading license
  • Provide a work permit for any shareholders
  • Pay healthcare and social security (CASS) for any shareholders

Lastly, seasonal work permits provide up to 3 months of work with teaching English being a common job.

Andorra Residency Rules Summed Up

To become accepted as a resident and during your stay, there are various rules you must follow. These change based on the exact type of residency that you are interested in.

They are detailed and cover the exact amount of days you need to be in the country. This is 90 days for passive and 183 for active residents.

The rules also cover income and investments, which is most notable for passive residents as it’s for retirees and entrepreneurs.

How you work and conduct business also changes, with things like incorporating and obtains licenses being mandatory. Insurance and criminal background checks are also needed while applying. The rules are strict, but living in Andorra is a dream and well worth the effort.