Andorra is a small but prosperous country that offers favorable tax conditions and a high standard of living, making it an attractive destination for those looking for new opportunities to live and invest in Europe. Find out how to get a residence permit, what documents are required and the benefits of moving to the country

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Andorra is a country located between France and Spain in the Pyrenees Mountains. It is a small but prosperous country that offers a high quality of life, stunning landscapes and a favorable tax environment. Thanks to its reputation as a tax haven, it attracts people from all over the world, including citizens of Ukraine, Chile and Colombia, who want to live, work or invest here. If you are planning to make Andorra your home, the first step will be to obtain a residence permit. Here is a guide to understanding the process of obtaining a residence permit in Andorra.

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5 reasons to move to Andorra

If you are looking for financial advantages or want to enjoy a quiet life in a picturesque corner of Europe, here are five good reasons to consider Andorra as a new place to live.

1. Low tax rate

Andorra offers one of the most favorable tax regimes in Europe. Personal income tax is capped at a maximum of 10%, making the country attractive to those looking for effective tax planning. In addition, corporate tax in Andorra ranges from 2% to 10%, which is also significantly lower than in other European countries. An important advantage is the absence of capital gains tax on assets not related to business, as well as the absence of gift and inheritance taxes. It is thanks to such conditions that Andorra has become a popular destination for wealthy individuals and companies looking to optimize tax costs.

2. High quality of life

Andorra is one of the safest countries in the world, with a crime rate of only 5.8 cases per 100,000 people. This makes the country an ideal place for those looking for a calm and secure environment to live. In addition, the health system in Andorra is one of the best in the world: there are 3.6 doctors for every 1,000 people, ensuring a high level of medical services and accessibility of treatment.

3. Strategic location in Europe

Andorra has an ideal strategic location in the heart of Europe. It is located between two major European countries - Spain and France, and only a few hours' drive from major cities such as Barcelona and Toulouse. This provides easy access to all the cultural, economic and social opportunities that these cities offer, while guaranteeing peace and quiet in the heart of the Pyrenees.

4. Residence options and flexibility

Andorra offers a variety of options for obtaining a residence permit, making the country attractive to a wide range of people. Passive residence is one of the popular options, requiring investment in real estate or other local assets. It is ideal for retirees, people with a stable passive income, as well as for those who want to maintain independence from traditional employment.

For those who want to work or do business, Andorra also offers an active residency, which allows you to work legally and set up businesses on its territory.

Another attractive feature is that about 40% of the population of Andorra is made up of foreigners. This underlines the openness and hospitality of the country, which creates favorable conditions for foreigners who want to settle or invest.

5. Thriving business environment

Andorra is actively working to diversify its economy, focusing on technology, innovation and tourism. With a high GDP per capita of around 43,048 euros, the country provides a stable economic situation and an attractive environment for investors and entrepreneurs. More than 10,000 companies are registered here, which indicates a dynamic business climate and high entrepreneurial activity.

Types of Residence Permits in Andorra

Work Permit (Active Resident)

To obtain a residence permit in Andorra, those who plan to work in the country on a permanent basis must obtain a work permit from the Government of Andorra (Govern d’Andorra). This type of residency is ideal for those who have a job offer from an Andorran employer and want to work in the country full-time. The process of obtaining the permit involves submitting the necessary documents, such as a passport, a rental agreement and proof of employment.

- Total cost: There are no direct costs, as the employer covers the cost of the permit.

- Income tax: from 0% to 10% depending on income.

- Processing time: 1-2 months.

- Renewal conditions: The permit is initially granted for 6 months, after which it can be renewed for 1 year, then for 2 and 5 years, with the possibility of obtaining citizenship after 10 years of residence.

Self-Employment Program (Active Resident)

This program is designed for entrepreneurs who wish to set up their own business in Andorra and reside in the country for more than 183 days per year. A government deposit of €15,000 is required to participate in the program. This is a less expensive option compared to the passive residency program, but it does require active entrepreneurial activity.

- Total cost: €15,000 - refundable upon fulfillment of conditions.

- Income tax: 0-10% on income exceeding €40,000.

- Processing time: 3-6 months.

- Renewal periods: 1 year, 2 years, 5 years, 10 years, with the possibility of obtaining citizenship.

Passive residence for investors

Available to individuals who do not plan to work actively in Andorra, but want to live in the country for a certain amount of time per year, while simultaneously investing or conducting business abroad. There are several passive residence programs that are suitable for different categories of individuals, such as investors, entrepreneurs, or prominent figures in the arts and sciences.

The investor program is aimed at individuals who make significant investments in the Andorran economy. The minimum investment amount is over 400,000 euros, including a deposit with the Central Bank of Andorra in the amount of 48,500 euros. Applicants for this program must spend at least 90 days per year in Andorra.

- Total cost: 400,000 euros + investment.

- Income tax: 10% on income over 24,000 euros.

- Processing time: 1-2 months.

- Renewal conditions: renewable every 2 years, then 3 years, ultimately giving 10 years of residence and the possibility of obtaining citizenship.

Passive Residency Program for Entrepreneurs

This program is designed for entrepreneurs who conduct international business, mostly outside Andorra. It involves registering a business in Andorra with minimal investment and requirements. Applicants must maintain a business office in the country and have sufficient financial resources to support their activities.

- Total cost: from 60,000 euros (including office rent and deposit).

- Income tax: 0% for residents; 2% corporate tax for businesses.

- Processing time: 3-6 months.

- Renewal periods: every 2 years, then for 3 years, and after 10 years you become eligible for citizenship.

Passive Residence Program – Athletes, Scientists and Artists

This program is available to individuals who are recognized in areas such as sports, science or the arts. Applicants must make a deposit of €50,000 to the Andorran financial authorities and maintain their financial self-sufficiency. No business plan is required for this program.

- Total cost: €50,000 deposit.

- Income tax: 0% (provided that the activity is carried out outside Andorra).

- Processing time: 3-6 months.

- Renewal conditions: initially for 2 years, then for another 2 years, then for 3 years, with the possibility of obtaining citizenship after 10 years.

Andorran Residence Permit for EU Citizens

EU citizens can enter Andorra without a visa or stamp in their passport and stay in the country for up to 90 days without the need to obtain a special residence permit. After this period, they must either apply for a residence permit or leave the country. This gives EU citizens the opportunity to first assess their options for long-term residence in Andorra. The process of applying for a residence permit is relatively simple thanks to the agreements that Andorra has with its neighboring countries. In addition, Andorra offers several residence options that may be attractive to EU citizens.

How to get a residence permit in Andorra?

The general requirements for obtaining a residence permit in Andorra vary depending on the type of residency:

- Active residents (self-employed or employed)

Active residents must reside in the country for a minimum of 183 days per year, making Andorra their main place of residence.

- Passive residents

Passive residents have more flexible requirements and must be in Andorra for at least 90 days per year. This allows them to maintain their main residence outside the country while still benefiting from Andorra’s tax and lifestyle benefits.

Requirements for obtaining a residence permit in Andorra

To obtain a residence permit in Andorra, applicants must meet several basic criteria:

- Criminal background check

Applicants must provide a police certificate from their country of origin confirming that they have no criminal record (the document must be issued within the last three months).

- Proof of financial security

Applicants must demonstrate their financial independence, in particular by showing a minimum bank balance of €38,000 per person (with additional funds for dependents). This ensures that the applicant is able to support themselves and their family without the need for charitable assistance from local authorities.

- Health insurance

Private health insurance is mandatory for all applicants until they can register with the Andorran public health system.

- Duration of stay

Depending on the type of residency, applicants must be in Andorra for between 90 and 183 days per year.

- Investment or employment

For passive residents, an investment of at least €400,000 (in real estate, financial assets or government bonds) is required. For active residents who want to work or set up a business in Andorra, proof of employment or business is required.

Documents required to apply for a residence permit in Andorra

To apply for a residence permit, applicants must submit the following documents:

- Copy of passport: a valid copy of the applicant's passport.

- Criminal record certificate: a document issued within the last three months, certifying the absence of a criminal record.

- Proof of residence: a rental agreement or other document confirming the availability of accommodation in Andorra.

- Certificate of good conduct: an official document confirming the absence of legal obstacles.

- CV or short biography: a description of the applicant's professional or personal experience.

- Marriage certificate (if available): a copy of the marriage certificate for applicants applying together with their spouse.

- Health insurance policy: confirmation of the availability of valid health insurance.

- Bank certificates: documents confirming the availability of the necessary financial resources (minimum 38,000 euros in the account for passive residents).

- Address in Andorra: Proof of residence in the country (this can be either a property or a rental property).

These requirements are designed to ensure that individuals residing in Andorra are financially stable, support the local economy, and actively participate in the life of the country. Andorra seeks to attract people who are not only able to financially support themselves and their families, but also contribute to the development of the economy, making the country attractive to investors, entrepreneurs, and professionals.

Step-by-step guide to applying for a residence permit in Andorra in 2025

Step 1: Choose the type of residence permit

First of all, you need to determine what type of residence you want to obtain:

- Passive residence: for those who do not plan to work in Andorra but want to live in the country, for example, for investors or retirees.

- Active residence: for those who intend to work in Andorra, be employed or set up a business.

Step 2: Check the requirements

- Passive residence: you must make a minimum investment in the country (for example, buy real estate or invest in other local assets). You must also reside in Andorra for a minimum of 90 days a year and have health insurance.

- Active residence: you must have a job offer from an Andorran company or set up a business in the country (own at least 10% of the company). You must also register with the social security system, meet salary requirements and have health insurance.

Step 3: Prepare the application

Prepare all the necessary documents, which must be legalized and translated into Catalan.

Step 4: Submit the application to the Immigration Department

Once you have prepared the application, you must submit it to the Andorran Immigration Department (Servei d'Immigració d'Andorra). Applications must be submitted in person at the Immigration Service in Andorra la Vella. When you submit it, you will be given a tracking number to track the status of your application.

Note: Please make an appointment in advance, as visits without prior registration will not be accepted.

Step 5: Pay the application fee

When submitting your application, you must pay the applicable fee:

For passive residence, the application processing fee is approximately €1,200 (may vary depending on the case).

For active residence - about 600 euros (depending on the type of application: work permit or business registration).

Additional costs may be added to this (notary fees, health insurance).

Step 6: Undergo a medical examination

As part of the process of obtaining a residence permit in Andorra, you must undergo a medical examination. After passing the examination, the results must be submitted to the immigration authorities.

Step 7: Wait for the result

The application process takes between 4 and 6 weeks. During this period, the Andorran immigration authorities will check your application for completeness, accuracy and compliance with the requirements. If necessary, you may be asked to provide additional information.

Step 8: Receive a residence card

After your application is approved, you will receive a notification from the immigration authorities. To obtain a residence card, you will need to go to the immigration office in person, presenting all the necessary documents and an identity card.

Residency in Andorra as a Path to Citizenship

Residency programs in Andorra can be a path to citizenship, but it is a long process. To obtain citizenship, you need to live in the country:

- 20 years (unless you are married to an Andorran citizen or have studied in the country).

- This period can be reduced to 10 years if you complete your education in Andorra.

- For those married to an Andorran citizen, the period can be reduced to 3 years.

Residency programs in Andorra require you to stay in the country for at least 90 days per year, while for active residents (who work or run a business) - a minimum of 183 days per year.

After the appropriate period, you can apply for citizenship. This will give you significant benefits, including visa-free access to 171 countries and special privileges within the EU. However, it is important to remember that Andorra prohibits dual citizenship, so to obtain Andorran citizenship, you must renounce your previous one.

Get advice from a migration lawyer to choose the best program and successfully move to Andorra.

Qualified specialists from Visit World are your reliable support during migration abroad!

Recall! Andorra is a small state in the South-Western part of Europe, which is a promising destination for international workers. We have already told you what positions foreigners work in Andorra in 2025, what are the working conditions and the procedure for obtaining a work visa.

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