andorra residency categories

There are 4 types of Residency in Andorra

Passive or Active separated into 4 main Residency Categories.

From breathtaking landscapes, to reliable healthcare, and a tax system that draws thousands of investors every year — Andorra rounds up as a pretty great place to live in. But before you get ready to make the move here, you’ll need to get well acquainted with Andorra’s residency permits.

Just like all regulations in Andorra, the process for obtaining residency is straightforward and streamlined. Depending on what your requirements are, you can either opt for an active or passive residency.

Below, we’ll explore all there is to know about the different residency options in Andorra and how you can fast track your way here.

Can EU Citizens Live in Andorra?

The Andorran immigration system for EU citizens is similar to the Swiss system. All EU Citizens who wish to take up employment in Andorra have to obtain a work permit.

Luckily, thousands of EU citizens are hired in Andorra each year for seasonal work such as ski instructors, restaurant staff, and more. EU citizens from Spain, France, and Portugal are given priority treatment for work permits.

The Andorran work permit has to be paid for the employer on behalf of the employee. EU citizens wishing to take up residency in Andorra on a self-employed basis can apply through one of the residency programs listed below.

Residency Options in Andorra: Active and Passive

To obtain residency in Andorra, you’ll need a work permit approved by the government of Andorra (Govern d’Andorra) or participate in an investor residency program.

There are two types of investor residency programs offered — active and passive residency.

The residency card in Andorra is called a “residencia”. It entitles an individual to reside in the principality for a certain number of years (renewable) and can lead to citizenship. Andorran residents have the same rights as citizens, except the right to vote. The residency can be issued in as little as 2 months.

Documents for Residency Application:

  • Passport copy
  • Certificate of good conduct by the local police where you hold citizenship (issued within the last 3 months)
  • Copy of a rental agreement
  • CV/short biography
  • Marriage certificate

Work Permit (Active Resident)

  • Total Cost: €0 (employers pay the permit).
  • Processing Time: 1-2 months.
  • Income Tax: 0-10%/year.
  • Renewal: 6 months -> 1 year -> 2 years -> 5 years -> 10 years -> Citizenship.

Work permits are issued by the Government of Andorra for temporary and long-term residence. If you snag a job offer by an Andorran company, the government will issue you a temporary work permit for 6 months, after which you can get a full-time resident card.

Work Permit Requirements:

  • Job offer from an Andorran company
  • Proof of accommodation in Andorra
  • Application form (there are quotas on annual permits)
  • Administrative fees (paid by the employer)

The government of Andorra gives priority to it’s own citizens first, then those of Spain, France, and Portugal for work permits. If the employer can’t find employees from these countries, they will hire international labor.

Investment Program A (Passive Resident)

  • Total Cost: €500,000+ (can be invested in property).
  • Processing Time: 2-4 months.
  • Residency Requirement: 90+ days a year.
  • Income Tax: 0%.
  • Renewal: 2 years -> 2 years -> 3 years -> 10 years -> Citizenship.

The A investment program is the most popular passive-residency program for retirees who want to purchase a property in Andorra and reside in the country without working.

The income tax is 0% and the minimum requirement is to spend at least 90 days a year in Andorra. However, residents who spend more than 183 days here will be liable for taxes.

This investment program is the fastest to obtain and subject to the least regulation. Residency A permit holders enjoy 0% income tax in the country.

To qualify for a residency A, you have to meet the following criteria:

  1. Proof of self-sufficiency. The applicant has to provide a copy of a bank account certificate showing a balance exceeding 3 minimal annual salaries in Andorra.
  2. Investment of €400,000 in the Andorran economy. This can be an investment in any Andorran company or it can be an investment in property. It includes the €50,000 which needs to be paid to the Andorran National Institute of Finance (INAF) in order to cover any debts you incur during your residency.

The total cost for an A residency with a property purchase, bond payment, and balance requirement will amount to €500,000+ and the government can approve your residency in as little as 6 weeks — assuming you have a property lined up for purchase.

Investment Program B (Passive Resident)

  • Total Cost: €60,000+
  • Processing Time: 3-6 months
  • Residency Requirement: 90+ days a year
  • Income Tax: 0%.
  • Renewal: 2 years -> 2 years -> 3 years -> 10 years -> Citizenship.

The B resident program is an investment residency for entrepreneurs who wish to conduct international business while residing passively in Andorra. You’ll have to register a business in Andorra and more than 85% of the business activity has to be conducted outside Andorran territory.

The corporate tax rate on such businesses will be 2% because their business doesn’t buy or sell on Andorran territory.

To qualify for residency B, you must meet the following criteria:

  1. Proof of self-sufficiency. Similar to the category A requirement, you must have a balance exceeding 300% of the Andorran annual minimum wage. This amount is currently €38,160+ and the money can be allocated towards meeting the bond requirement for this residency.
  2. Bond payment of €50,000 to the Andorran National Institute of Finance (INAF). This bond will qualify you for the residency and is refundable if you give up your residency.
  3. Business office. The business must have an Andorran office space of at least 20 m2 (200 square feet) to satisfy the minimal office requirement.
  4. Business plan. The business plan has to outline the course of action for the next 3 years and include your own CV and biography.

The total cost for this residency can be only €50,000 + the cost of office rental (20m2 can be rented for €400-500/month). You will need a minimum of €60,000 in the first year with all fees included.

Residents themselves don’t pay any income tax on a B-category residencia, but the company is subject to a 2% corporate tax rate.

4. Investment Program C (Athletes, Scientists, Artists, etc.)

  • Total Cost: €50,000+
  • Processing Time: 3-6 months
  • Residency Requirement: 90+ days a year.
  • Income Tax: 0%.
  • Renewal: 2 years -> 2 years -> 3 years -> 10 years -> Citizenship.

The C residency is one that is available to people who are recognized globally and can prove ability in the scientific, cultural, or athletic fields. The requirements are similar to a B residence visa, but you won’t have to write a business plan to get the residency.

Apart from the government bond of €50,000, there is no requirement for any other investments in this program. Nevertheless, you will have to meet the minimal requirements such as a bank account balance surpassing €38,160.

All revenue-generating activities will have to be conducted outside of Andorra since the applicants also qualify for the 0% tax exemption.

5. Self-Employment Program D (Active Resident)

  • Total Cost: €15,000+
  • Processing Time: 3-6 months
  • Residency Requirements: 183+ days a year.
  • Income Tax: 0-10%/year.
  • Renewal: 1 year -> 2 years -> 2 years -> 5 years -> 10 years -> Citizenship.

The D investment program residency is an active residency for entrepreneurs who want to take up full-time residence in the principality, for more than 6 months in a year.

If you plan to work and live in Andorra, this residency has the minimal investment requirements and you will be subject to the standard Andorran income tax which is 10% on all income exceeding €40,000/year.

We recommend this residency to international entrepreneurs such as digital marketers, traders, programmers, designers, and other self-employed entrepreneurs who will be living in Andorra over the long term.

To qualify for a D residency, the following requirements apply:

  • Form an Andorran company
  • Spend 6 months in the country every year (183+ days).
  • Deposit a €15,000 payment in a government bond. This deposit is refundable if you give up your residency.

This program does not require a business plan, but you will have to own a company in Andorra before applying for this residency.

The process can take longer than 3 months since you’ll have to set up an Andorran company prior. The main advantage is that you can only pay a €15,000 bond compared to the €50,000 bond requirement on passive residency options.

Residents on a D visa are subject to Andorran income taxes because they reside in the country on a full-time basis. The maximum income tax rate for D residency holders is 10%.

Requirements to Get Residency in Andorra

To guarantee a successful application, we can help you obtain the paperwork. The documentation has to be translated in Catalan. The following requirements apply for all the aforementioned residency types:

  • Criminal Background Check. You must prove that you don’t have a criminal record in your country of origin and that there are no ongoing investigations against you. Police certificates are mandatory for all applications
  • Health Insurance. The applicant must purchase a private health insurance in Andorra before they are eligible for public health insurance once they reside in the principality.
  • Bank Certificates. The main residency permit requirement is to prove self-sufficiency. The Andorran government measures this by taking the minimum annual wage and multiplying it by 3. Applicants need to show a €38,000 bank balance for all passive residencies. If you have dependents, you’ll have to show €5,000 more per dependent. The only exception is for D active residencies that will conduct business in Andorra and don’t to prove income.
  • Age Requirements. The main applicant has to be over 18 years old.
  • Address. Each residency requires an address in Andorra, even for work permits. You have to provide proof of accommodation. This can be a property you acquired or a rental contract for temporary accommodation.

Pathway to Citizenship: After 20 Years

Citizenship in Andorra is difficult to obtain, but a resident is eligible for naturalization if they’ve resided in the principality for 20 years. This period is reduced to 10 years if they graduated from an Andorran university or 3 years if they were married to an Andorran national.

The application is conducted in Catalan language and the individuals pass a basic test about Andorran history and geography.

Andorran citizenship can be obtained in the following ways:

  • Origin. If a child is born in Andorra, they can obtain citizenship in Andorra as long as their parents were citizens of the country at the time of birth. If their parents weren’t citizens, the child can naturalize after 10 years residency in the country.
  • Naturalization. Naturalization is possible after 20 years of residence, 10 years for Andorran university graduates, and 3 years for residents married to Andorran nationals. Naturalization is also available for passive residents who only resided 90 days a year in the principality over the course of 20 years.

Acquiring Andorran Residency

The processing time for residency depends on the program in question. It may take 1-2 months to purchase a property that qualifies you for an A visa residency.

Likewise, you may need 5 weeks to form a corporation which would qualify you for B residency. Most residency procedures can be completed in 3-6 months.

Ready to become a resident in Andorra? Consult us for a fast-track to residency and advice on starting a new life to the principality.

4 Residency Categories for Self-Sufficient Individuals

  1. Traditional Passive Residency
  2. Active / Passive international Business Category
  3. Residency via Excellence in Sports, Science or Arts
  4. Active Residency by Company formation or Professional Liberal

Minimum Number of Days spent in Andorra

1/ 90 days
2/ 90 days
3/ 90 days
4/ 183 days