The Active Residence in Andorra

Discover our support

Our Gestoria la Peguera business centre guarantees tailor-made support for setting up your active tax residence in Andorra. Our experts are at your side for all your day-to-day administrative procedures in the Principality.

Gestoria la peguera - Andorre - Qu'est ce que la résidence active en andorre

What is active residence?

 

Active residency is granted to people wishing to work in the Principality, company founders and takeovers and people with a stake in a local company.

Active residence requires 183 days’ presence in Andorra.

Our Gestoria la Peguera business centre provides you with access to our lawyers, tax advisers and solicitors in Andorra. Each project is unique, and we are committed to providing you with the solution best suited to your needs, in compliance with the legal provisions in force. Please do not hesitate to contact us for any further information you may require.

 

The active residence

All the benefits

  • Z

    Possibility of opening management accounts

  • Z

    Possibility of investing in Andorra and acquiring property with no investment limit

  • Z

    Family reunification possible

  • Z

    The largest ski area in the Pyrenees (over 400 km of pistes)

  • Z

    4 languages spoken: Catalan, French, Spanish and Portuguese

  • Z

    Virtually no crime

  • Z

    Unemployment rate close to 0%.

  • Z

    Social security ranked first out of 185 countries (including France)

  • Z

    Double taxation treaty

  • Z

    No inheritance tax

  • Z

    No wealth tax

  • Z

    Real Estate (IFI)

  • Z

    Little or no income tax

  • Z

    Banking secrecy guaranteed for residents

  • Z

    Company vehicles: no VAT, no carbon tax and no ecological penalty

  • Z

    Vehicle registration (cars, planes, boats, etc.)

  • Z

    Approval of the driving licence for an Andorran driving licence without points

The active residence

Eligibility conditions

You work in the Principality:

If you are employed by an Andorran company, you are eligible for tax residence in Andorra. You must be able to prove that you are an employee and your employer must apply for a work permit from the Andorran Ministry of the Interior.

You are setting up a company:

If you are setting up a company in the Principality with the aim of developing a business :

  • Your company’s registered office must be located in one of the seven parishes;
  • Be present for at least 183 days a year in the Principality of Andorra;
  • Beneficiaries of an authorisation for professional tax residence in Andorra must make a minimum deposit of €50,000 with the Andorran Financial Authority (AFA). This amount will be returned to you if your tax residence in Andorra is not renewed.

You are buying all or part of the shares in an Andorran company:

A non-resident may acquire more than 34% of an existing company. By acquiring these shares, they are eligible to apply for active residence. The applicant must have a decision-making role within the company: he or she must manage it or sit on the Board of Directors.

Active tax residence in Andorra is linked to a contract of employment on Andorran territory, the creation of a company or the acquisition of shares in a company. In all three cases, you must meet certain conditions for your application to be validated by the Ministry of the Interior:

  • R

    Be of legal age (i.e. at least 18 years old);

  • R

    A clean criminal record;

  • R

    A valid passport or identity card;

  • R

    Having a medical check-up in Andorra ;

  • R

    Contribute to the Andorran social security system (CASS).

The other advantages of active residence

In Andorra

Moving to Andorra is synonymous with a whole new life for many expatriates. While this choice allows them to avoid double taxation, it is also a way of enjoying the benefits of Andorran life on a daily basis. The quality of its educational facilities, its health system, which is among the best in the world, and its rich and secure environment make Andorra a tax residence that has everything to seduce you.

Buying a car in Andorra (no carbon tax, no ecological penalty, driving licence without points)
Heritage and inheritance: there is no tax on inheritance fees
An excellent quality of life: a wide range of leisure activities.
An ideal place to retire
The Principality offers you the best social security in the world

FAQ

We use your feedback to answer your questions and expectations.

Why choose an active residence in Andorra?

Active residence is one of the simplest and least expensive ways to come to Andorra. It offers the greatest flexibility.

Do I have to make an investment (property or other) to apply for active residence?

No, this is not compulsory. However, you must provide AFA with a deposit of €50,000 for a single person, and €15,000 for each additional person. This amount will be returned to you if you decide to leave the country. Foreign employees in Andorra are not required to pay this deposit, although employers are subject to the national immigration quotas set by the Andorran government.

You should also be aware that a foreign investment quota is set each year. Places in active residence are therefore not unlimited.

Need more information?

Our advisers will get back to you
within 48 hours