Residency in Andorra: requirements, procedures, and advice for moving there

Moving to Andorra can be appealing for many reasons: living in the heart of the Pyrenees, enjoying a country on a human scale, developing a professional activity, or simply changing your lifestyle. Andorra’s tax system is also one of the factors that attracts new residents, but it should not obscure an important reality: obtaining the right to reside in Andorra requires meeting specific conditions. There is, in fact, no single type of Andorran residency.

The procedures and obligations differ depending on whether you are moving to Andorra as an employee, setting up a business, working as a self-employed person, or simply wishing to live in the country without carrying out a professional activity there. Before incurring expenses, renting a property, or organizing your move, it is essential to identify the authorization that actually corresponds to your situation.

Why move to Andorra?

The first reason for choosing Andorra is often the quality of life. The country is located in the heart of the Pyrenees, between France and Spain, with relatively short distances between its different parishes. For someone accustomed to living in a large metropolitan area, the change can be significant. Mountains, skiing, hiking, and outdoor activities are genuinely part of everyday life.

This particular geography also comes with its own constraints. The country is mountainous, and international travel necessarily involves traveling by road before reaching a train station or airport located in France or Spain. Moving to Andorra should therefore be viewed as a genuine lifestyle choice rather than simply a tax decision.

The official language is Catalan. Spanish and French are nevertheless frequently used, particularly in shops and services. For a long-term move, learning at least the basics of Catalan is particularly useful for facilitating integration and administrative interactions. In fact, this is required as part of the procedures for renewing a residence permit.

Taxation is obviously another point of interest. Andorra’s personal income tax (IRPF) operates with a general maximum rate of 10%. According to tax information published by the Government of Andorra, net income within the general tax base below €24,000 benefits from a tax-free allowance, while the taxation mechanism then increases up to a rate of 10% above €40,000.

However, these rates do not mean that simply obtaining a residence permit automatically makes someone an Andorran tax resident or exempts them from taxation in their former country. Administrative residency and tax residency are two different concepts. The situation must be assessed based on the time spent in Andorra, the household, professional activity, income, and the individual’s center of economic interests.

Distinguishing active residency from residency without gainful employment

The most important distinction is between people moving to Andorra to carry out a professional activity and those who wish to reside there without working locally.

Active residency

Work-based residency applies to people who actually settle in the Principality while carrying out a professional activity there. The Government of Andorra provides, in particular, residence and work authorization for employees, as well as a specific authorization for self-employed work. In the latter case, the authorization allows the holder to reside in Andorra and carry out a self-employed activity there on a long-term basis during the period of validity.

Passive residency

Residency without gainful employment follows a different approach. It may suit someone with sufficient financial resources who wishes to live in Andorra without carrying out a local professional activity covered by the work-and-residence regime.

This category also requires a minimum level of actual presence in the country. For residency without gainful employment, Andorran administrative information provides for a commitment to actually reside in Andorra for at least 90 days per year.

Other types of residency

There are also other permits corresponding to specific situations. The official immigration portal distinguishes, among others, permits related to studies, family reunification, certain entrepreneur programs, and digital nomads. It is therefore preferable to start with your personal situation rather than trying to artificially fit yourself into the passive residency category.

How much investment is required for residency without gainful employment?

As of now, the main holder of residency without gainful employment must make and maintain an investment of at least €600,000 under the conditions set out by Andorran regulations. The Government also provides a procedure allowing applicants to commit to making the investment and subsequently provide evidence of it within the applicable period after obtaining authorization.

Particular caution is warranted on this subject, as the rules governing foreign investment and immigration have undergone several changes in recent years. The Andorran Government has continued to announce and adopt various measures in 2025 and 2026 concerning immigration and investment.

Before transferring funds or signing a property purchase agreement in the belief that it will satisfy a residency requirement, it is advisable to have the proposed arrangement reviewed by a professional familiar with current Andorran regulations.

Documents to prepare

Preparing the application file is a step that should not be underestimated. Depending on the permit being requested, the authorities may require proof of identity, civil status, accommodation, professional activity, financial resources, or documents used to verify the applicant’s criminal record. A valid passport or identity document is naturally one of the essential documents. Proof of actual accommodation in Andorra is equally important for permits requiring effective residence in the country.

Civil-status documents and certificates issued abroad must meet the administrative requirements applicable to the application. Depending on the country of issue, legalization, an apostille, or a translation may be required. Simply having a document that is valid in your country of origin does not guarantee that it will be immediately accepted by the Andorran authorities.

This is precisely the kind of detail that can cause an application to be delayed. Before submitting your application, it is best to check each document individually against the official requirements for the specific authorization you are applying for.

How does moving to Andorra actually work?

A successful move usually begins well before the residence application is submitted. The first step is to determine which immigration status is appropriate for the project. An employee hired by an Andorran company, an entrepreneur setting up a business, someone living off their assets, and a digital nomad will not necessarily follow the same procedure.

The next step is to prepare the supporting documents. At this stage, it is useful to check the validity period of each document, translation and legalization requirements, and any conditions relating to the applicant’s country of origin.

Accommodation should also be planned in advance. The Andorran property market has become tighter in recent years, and it would be unwise to assume that an apartment matching your exact budget will be available when you arrive. The Government itself continues to introduce measures concerning the rental market, which shows that housing is an important issue in the Principality.

Depending on the situation, you may also need to arrange the opening of a bank account, provide proof of the origin of funds, set up a company, or formalize an employment contract. Banks apply their own compliance procedures and may request detailed documentation regarding income, assets, or the origin of capital.

Once all the requirements have been met, the application can be submitted to the immigration service according to the procedure corresponding to the type of permit requested. You must then respond promptly to any request for additional documents.

The mistake to avoid is making definitive arrangements for your move, tax situation, and investments on the assumption that residency will automatically be granted. It is safer to coordinate the legal, banking, property, and tax aspects of the process.

Setting up a business and becoming a resident in Andorra

For an entrepreneur, setting up a company in Andorra and obtaining a residence permit are related matters, but they should not be confused.

Setting up an Andorran company does not, by itself, automatically grant a right of residence. A business owner who wishes to live and work in the Principality must meet the conditions applicable to a self-employed residence and work permit.

The Government of Andorra specifically provides an initial authorization procedure for individuals carrying out an activity on their own account. Once granted and for the duration of its validity, this authorization allows the holder to reside and carry out that activity in the country.

The process can be more complex than simply registering a company. Depending on the structure chosen and the entrepreneur’s circumstances, various procedures relating to foreign investment, the company, the economic activity, and immigration may overlap.

For a foreign entrepreneur, it is therefore advisable to structure the project in the right order. First, determine the structure that is genuinely suited to the activity, verify the investment and immigration requirements, and then assess the tax and social-security implications of the arrangement.

Setting up a company solely to obtain a tax advantage, without a coherent economic activity or genuine establishment in the country, can create difficulties. Long-term residency in Andorra should correspond to a real and documentable situation.

What is the tax system like for an Andorran resident?

Andorra’s tax system is often summarized with a simple phrase: “10% tax.” It is easy to remember, but insufficient to understand an expatriate’s actual situation.

Andorra’s IRPF does indeed provide for a general rate of 10%, with exemption and reduction mechanisms applying to certain income brackets. Official information notably provides for a €24,000 tax-free allowance for net income within the general tax base and a reduced effective rate on the following bracket before the 10% rate applies. However, your tax situation does not depend solely on the Andorran rate.

Someone leaving France, Spain, Belgium, or another country may retain real-estate income, a company, investments, family ties, or other interests in their country of origin. These factors can have significant tax implications.

The tax treaties applicable between Andorra and the other countries concerned must also be taken into account. Their purpose includes determining which country has the right to tax certain categories of income and limiting situations involving double taxation. This is why anyone considering a move partly for tax reasons should ideally begin with a tax-residency assessment before relocating.

Healthcare and social security in Andorra

People working in Andorra are, depending on their situation, covered by the social-security system managed by the Caixa Andorrana de Seguretat Social, better known as CASS. People who are not covered by this system through their professional activity may be subject to different healthcare coverage requirements depending on their residency category. Appropriate health insurance may therefore be necessary.

The country has its own healthcare professionals and facilities while maintaining links with the healthcare systems of neighboring countries. Certain specialized treatments may therefore require residents to travel to Spain or France.

For a family, someone with a chronic illness, or a retiree, this issue deserves careful consideration before moving. It is not enough to compare the cost of insurance; you should also examine the coverage, exclusions, reimbursement procedures, and access to the healthcare services you may need.

Living in Andorra with children

Andorra has an interesting feature for families: several education systems coexist within the country. This diversity provides options for families coming from France, Spain, or other countries and contributes to the Principality’s multilingual environment. However, choosing a school should not be based solely on the language the child already speaks.

The location of the home, the family’s long-term plans, any higher-education plans abroad, and the child’s ability to adapt to a multilingual environment should also be taken into account.

For a family preparing to move, it is preferable to contact the relevant schools directly before committing to a property. This makes it possible to understand admission requirements, the school calendar, and the options actually available.

Housing: an aspect to consider before moving

Housing is probably one of the most concrete aspects of an expatriation project in Andorra.

The differences between Andorra la Vella, Escaldes-Engordany, La Massana, Ordino, Encamp, Canillo, and Sant Julià de Lòria are not limited to the price of an apartment. Travel times, altitude, exposure, proximity to schools, shops, and the type of lifestyle you are looking for can significantly affect your day-to-day experience.

Rather than relying on a theoretical average rent, it is more useful to look at the properties available when you are planning your move and visit several parishes. Spending a few days in the country often helps you understand differences that are impossible to perceive from a distance.

Andorran residency and tax residency: beware of confusing the two

Obtaining a residence card or residence permit in Andorra is not necessarily enough to determine your tax residency with respect to another country. An individual’s tax status depends on specific legal criteria and, when at least two countries may consider the person a tax resident, tax treaties may apply to determine which country has priority.

Keeping your main home, spouse, children, business, or most of your economic interests in your former country while spending part of the year in Andorra can therefore raise questions that obtaining a residence permit alone does not resolve.

If your move has significant tax implications, a personalized assessment carried out by a professional familiar with both Andorran law and the law of your country of departure is much safer than relying on a generic online simulation.