Living in Andorra: Requirements and 5 Ways to Achieve It

Living in Andorra: Requirements and 5 Ways to Achieve It

Many clients and users seek information about the necessary requirements to live in Andorra, especially if they are Spanish citizens. However, it is important to note that Andorra offers several types of residence permits, each with its own requirements, rights, duties, procedures, and necessary documents.

Difference Between Active Residence and Passive Residence

To understand how to live in Andorra, it is essential to understand the distinction between active residence and passive residence according to Andorran legislation:

183/365 Annual days
Living in Andorra 50%
  • Active Residence: This type of permit allows living and working in Andorra, making the holder an active resident. It requires relocation and permanent establishment in Andorra, with an obligation to contribute to the Andorran Social Security (CASS) due to economic activity.
  • Passive Residence: On the other hand, passive residence permits residence in Andorra without engaging in economic activity in the country.

Instead of focusing solely on the requirements, let’s explore the various ways to achieve residence in Andorra. Here, we present five options updated according to the 2023 modifications to the Andorran Immigration Law.

Impresionante paisaje de montaña nevada en Andorra

5 Ways to Live in Andorra

Based on these types of permits, we identify four general approaches to living in Andorra, depending on your goals and economic activities:

  1. Employee or Worker: This is a common way to live and work in Andorra. It involves being hired by an Andorran company and obtaining an active residence and work permit. A labor contract, CV, and other related procedures regarding salary and professional conditions are required.
  2. Self-Employed Professional or Graduate: Another option is to obtain a residence and self-employment work permit as a self-employed professional with a university education and specific economic activities.
  3. Entrepreneur: This approach involves starting a business in Andorra by establishing an Andorran company and obtaining an active residence and self-employment work permit through foreign investment. You must serve as an administrator and partner in the newly created company.
  4. Family Reunification: One way to live in Andorra is to obtain a residence permit through family reunification with a relative holding an Andorran residence. This permit applies to spouses, children, and ascendants over 65 years of age.
  5. Passive or Non-Lucrative Residence: For those who do not wish to work in Andorra, passive residence is an attractive option. It involves a significant investment and effective residence in the country for more than 90 days per year.

Reasons to Choose Andorra as Your Place of Residence

When deciding where to live, it is essential to consider the advantages offered by your chosen location. Andorra is a destination worth considering for several reasons that make living here an appealing choice.

Security and Peace

Security and peace are fundamental aspects when considering your place of residence. Andorra stands out for being a safe and peaceful country, allowing you to enjoy a tranquil and worry-free environment.

Tax Benefits

Andorra is known for its favorable tax system. With low tax rates compared to other countries, you can enjoy significant tax advantages when living and working in Andorra.

Opportunities for Graduates

If you are a graduate, Andorra offers exciting opportunities. You can obtain a residence and self-employment work permit, allowing you to practice your profession independently.

Quality of Life in Nature

Andorra is a paradise for nature lovers. With its stunning mountainous environment and a wide range of outdoor activities available year-round, living in Andorra provides an exceptional quality of life in close contact with nature.

Simplified Residence Process

The process of obtaining residence in Andorra is relatively straightforward and offers various options to suit your needs and personal goals, from active residence to passive residence. Andorra makes the integration process into the country easy.

Quality Education

If you have children, Andorra offers quality education with various school and college options, providing the assurance of a solid and balanced education for your children.

Proximity to Barcelona and Europe

Despite its many advantages, Andorra is a short distance from Barcelona, allowing you to enjoy both mountain life and the urban experience in the vibrant Catalan city whenever you wish.

Taxation When Living in Andorra

One of the most recognized advantages of living in Andorra is its low taxes. While social security is the most expensive aspect, representing 22% of workers’ salaries, all other taxes are much lower than in neighboring countries. For example, the personal income tax (IRPF) ranges from 0% to 10%, and the value-added tax (IVA) from 0% to 4.5%. Additionally, the corporate tax rate is a general 10%.

Exploring Living in Andorra: Key Considerations

Living in Andorra can be an attractive prospect for individuals seeking a change of scenery and new opportunities. Understanding the requirements and options available is essential for a smooth transition. Let’s delve into some critical aspects that encompass living in Andorra:

Residence Permit and Requirements

To make Andorra your new home, you’ll need to obtain a residence permit. The specific requirements may vary based on factors such as your country of origin and the type of residency you’re pursuing. It’s crucial to prepare the necessary documentation, including proof of income, rental contracts, and, in some cases, a clean criminal record certificate.

Active and Passive Residency

Andorra offers both active and passive residency options. Active residencies involve working in Andorra and contributing to its social security system, necessitating an employment contract and a gainful activity. In contrast, passive residency allows you to reside in Andorra without engaging in economic activities within the country.

Real Estate and Cost of Living

Real estate in Andorra is a critical consideration. Understanding the housing market, rental contracts, and property purchase options is essential. Additionally, assessing the cost of living and ensuring sufficient income is vital to budgeting your new life in Andorra.

Official Language and International Projection

While Catalan is the official language, many residents also speak Spanish, French, and English. Andorra’s international projection is growing, offering opportunities for professionals with an international background.

Healthcare and Medical Insurance

Andorra boasts a robust healthcare system with high life expectancies. It’s advisable to secure medical insurance to ensure you have access to quality healthcare services. A medical certificate may be required.

Tax Residence and Benefits

Andorra’s tax system is known for its benefits, including low personal income tax rates, making it a haven for those seeking tax advantages. Understanding your tax residence status and the potential for lucrative activities is crucial. Andorra is considered a fiscal resident, and its low crime rates contribute to its appeal.

Types of Residency and Safe Environment

Andorra provides various types of residency, each catering to specific needs. It’s also one of the safest countries globally, offering a tranquil and secure environment for residents.

Proximity to Europe and Standard of Living

Andorra’s proximity to European countries, such as Spain and France, makes it an ideal location for those who wish to explore Europe easily. The standard of living is high, with a diverse range of outdoor activities and cultural experiences. An international projection is part of Andorra’s appeal.

Nature's Playground

Living in Andorra means being surrounded by breathtaking natural beauty. The country’s stunning mountainous landscapes provide endless opportunities for outdoor activities, from skiing in the winter to hiking and biking in the summer. Andorra’s commitment to preserving its environment ensures that residents can enjoy a high quality of life in close harmony with nature.

A Hub for Adventure and Tranquility

Andorra’s strategic location offers proximity to major European cities like Barcelona while maintaining a serene mountain lifestyle. You can easily hop over to bustling cities for a dose of urban adventure and return to the tranquility of Andorra whenever you desire.

0 %
IRPF
0 %
TAX VAT
0 %
Companies
0 %
Social Security Employees

Discover Your Opportunity in Andorra With Us

Ready to Take the Leap into an Exciting Life in Andorra?