Active Residence
Residence permit
Moving to Andorra
Active
residence
Active residence in Andorra is granted to working professionals, whether in paid employment, setting up or buying a business in Andorra. To obtain this status, you must meet certain criteria, notably proof of an employment contract or a company in Andorra, establish your permanent residence here and pay contributions to the social security system. Business creators or buyers are those who most apply for this status because they can benefit from a work permit for shareholders. Moving to Andorra also offers real tax advantages, with 4.5% IGI (equivalent to VAT) and one of the lowest tax rates in Europe.
Reside 183 days
Bond €50,000
20% of shares
Social Security
Rent or buy
Criminal record
The benefits of passive active residence in Andorra
- Legally enjoy Andorran taxation
- Access to real estate investment in Andorra
- Only 10% tax on Crypto capital gains
- Registration with the CASS for healthcare reimbursements
- Your dividends will be tax-free
- 2.5 hours from Toulouse and Barcelona
Active or passive residence?
Andorra attracts more and more workers, sportspeople, public personalities, retirees and foreign investors looking for an idyllic, secure lifestyle with a low tax burden. New immigration legislation has introduced several significant changes in residence permits.
The Principality of Andorra proposes 2 residence statuses to foreigners: “active” and “passive” residence in Andorra.
Active residence is granted to those who want to work or set up a business in Andorra, while passive residence is designed for those who do not work but wish to invest in the country. Passive residents are classed into three categories: A, B and C.
To obtain class A passive residence, it is necessary to fulfil certain requirements, such as a minimum investment of €600,000 in Andorran assets (including real estate) and proof of income of over 300% of the Andorran minimum wage.
Passive residents must live at least 90 days per year in Andorra. Class B passive residence is for company directors with international business who generate at least 85% of their turnover outside the Principality. Class C passive residence is for public personalities, top sportspeople, researchers or artists.
Your income: France vs Andorra
Tax simulator
45K
Annual income (€3,750/month)
180K
Annual income (€15,000/month)
450K
Annual income (€37,500/month)
How do you get active residence?
Active residence is the best option for founders and shareholders of companies in Andorra. It is granted on the creation or purchase of a company in Andorra, or an interest in a local business. To obtain a work permit, you must create your own business there with a minimum company capital of €3,000, or acquire more than 20% of a local company, and at least have a seat on the Board of Directors.
As a director of your own company, you will obtain active residence after the incorporation and activation of your Andorran company; all these procedures must be managed in person, on site, with the competent authorities and solely in Catalan. Andorran administration is much more complex than the French system, so we assist new future residents every day. Fidencis is a necessary insurance policy because our office has gained credibility with the Andorran authorities.
Registration with the Andorran social security system (CASS) is about €540 and obligatory if you are registered as a company director. This enables you to benefit from valuable insurance cover in Andorra and also in France and Spain (health and retirement).
Active residence is the option for those who plan to establish their tax residence in Andorra and work and spend at least 183 days in the Principality (except holidays and business trips).
The principality supports entrepreneurs
Andorra, a paradise for entrepreneurs
3rd best health system in the world
Based on the Commonwealth Fund official figures,
and top of the list in the scientific report published in The Lancet medical
review in 2017.
✓ Cutting-edge medical technology
✓ Simplified, centralised medical system
✓ Hospital agreements with France and Spain
✓ Covers 75% of medical costs
Immigration cap
Limited entry quota
In order to preserve its natural balance and the comfort of its inhabitants, Andorra has set an entry limit of 100,000 individuals. This policy enables it to guarantee pleasant living conditions for its permanent residents, while conserving its limited natural resources such as electricity, water and what is exceptional air quality in Europe.
Prudent management of its resources is essential to the continued development of Andorra’s economy and tourism, and to preserve the uniqueness of its environment..
Your plan to move to Andorra, from A to Z.
Discover Fidencis, the relocation agency in the Nodum Corporate group, regulated by the AFA, which offers comprehensive expertise in administrative, tax, legal, financial and accounts management. With a team that is qualified in many sectors, Fidencis offers unequalled proximity and human support for each project in Andorra. Join more than 50 expatriate families and discover our personalised method of support, without intermediaries.
Fidencis simplicity
Your active residence in 4 steps
01
First contact
Book a time slot or write to us about your requirements.
02
Private conversation
Talk to us about your plans and we will find the best solutions.
03
Your project, our priority
We take care of all the procedures required to bring your project to fruition.
04
Welcome to Andorra
All you have to do is relax and discover our beautiful country while we take care of all the formalities.
Expatriation in Andorra Most frequent questions
In Andorra, holdings can be set up as joint stock companies (S.A.) or limited companies (S.L.).
A minimum capital of €60,000 will be required to set up a limited liability holding company in Andorra, and must be divided into numbered shares and registered with the Companies Registry. For limited liability companies, the minimum capital is €3,000, divided into non-negotiable shares.
Holdings in Andorra have many advantages, especially in terms of optimising expenses. The companies within the business group can manage their expenses better, thanks to coordination of the holding’s activities. Moreover, accounting is more efficient and the company’s participation in the market is optimised. Companies integrated into the holding company also benefit from greater stability in their activities by reducing economic risk, while guaranteeing compensation to shareholders in the event of economic loss.
When you decide to settle in Andorra, in one of the 7 parishes, the question of accommodation is important.
The first option is to buy a property with a residence permit and a foreign investment authorization issued by the relevant Ministry. Non-residents may also purchase property legally, subject to obtaining a Foreign Investment Authorization.
To rent accommodation, you must open a bank account. The minimum rental contract is for five years. The contract can be terminated within this period and a change of address with a notice period of only 3 months. Rental prices fluctuate greatly, depending on the type of property, its location, the floor area and also the season. The best time to look for a property is from May onwards.
Fidencis forms part of the NODUM CORPORATE group and is a Family Office, authorised, regulated and supervised by the Andorran Financial Authority (registration number ASF-01/17), with total legitimacy to assist you in opening a bank account and managing the legal procedures, as required.
Andorra has become a secure and solvent financial centre thanks to the automatic exchange of CRS information and strict observance of anti-money laundering regulations by the banks.
There are currently 3 banks in Andorra, Andbank, Morabanc and Creand, all solvent and ranked among the most solid in Europe. They do not have access to European Central Bank funds, so their financing strategy is more conservative and this ensures greater stability. Individuals, businesses, residents or non-residents can open an account in Andorra, but must observe the banks’ anti-money laundering regulations and FATCA protocols and provide the source of the funds, as well as document transactions of a significant nominal value.
Andorra has long been considered an uncooperative tax haven before it was removed from the blacklist in 2009.
Since then, the Principality has introduced tax transparency, sharing information on tax nomenclature and conforming to international standards. Although the country no longer meets the OECD criteria of a tax haven, it continues to attract entrepreneurs and investors thanks to its low tax rate. Corporate tax is limited to 10%, IGI (equivalent to VAT) is 4.5% and dividends are tax exempt. The real estate market also benefits from an advantageous tax regime.
Although the quality of life is one of Andorra’s main attractions, some still consider it a tax haven, which is not difficult considering the point of view of its neighboring countries.
Caixa Andorrana de Seguretat Social (CASS) is the centralized social security organization responsible for managing reimbursements for medical and hospital expenses.
Membership in CASS is compulsory for all residents and salaried employees working in the Principality. Social security and health cover in Andorra are divided into 2 branches: the general branch, and the retirement branch for the management of retirement and widowhood pensions. The amount of contributions varies according to professional status, ranging from 6.5% for an employee to around €540.00 for a self-employed person. CASS covers healthcare costs at a rate of between 75% and 100%. It also covers between 90% and 100% of the cost of hospitalization, workplace accidents and occupational illnesses.
CASS is an important institution in the Principality and provides residents with health insurance based on international agreements with its European partners, which allows compatibility with French and Spanish hospitals.
