Passive Residence
Asset allocation
Investors
All ages
Retired
Sportspeople & artists
Personalities
Moving to Andorra
Passive Residence
Passive residence in Andorra is the ideal option for those who do not want to work in Andorra. This scheme is aimed at retirees and also professionals who can demonstrate sufficient income, investors who wish to acquire a property or grow their financial assets in Andorra, and also recognized personalities in the fields of science, culture or sports. The conditions vary according to each category, but all types require a rental or purchase contract for a property in Andorra, a certificate of good character and health insurance. Passive residence enables the holder to legally benefit from the tax advantages: 4.5% IGI (equivalent to VAT) and one of the lowest rates of taxation in Europe.
Reside for 90 days
€ 600,000
300 %
Health insurance
Rent or buy
Criminal record
The benefits
of passive
residence in Andorra
- No requirement to work
- Retain geographic freedom
- Grow your wealth thanks to Andorran taxation
- No inheritance or donation taxes
- Your dividends will be tax-free
- Access to real estate investment in Andorra
- Stock market capital gains are tax-free
- 2.5 hours from Toulouse and Barcelona
The 3 types of passive residence
Fidencis guides you through the particularities of each type of passive residence, so you can choose the best one for your situation:
Passive residence without gainful activity
Enjoy a peaceful retirement in an idyllic, secure environment, while preserving your family wealth
Passive residence International
Set up your headquarters and benefit from Andorran taxation via a company with international business
Passive residence for personalities
Obtain residence thanks to your international recognition in the field of science, culture or sport
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)
Passive residence without gainful activity
Passive residence without gainful activity in Andorra is a solution that is ever more prized by retirees and individuals with sufficient wealth who wish to relocate, seeking to enjoy a peaceful retirement in a secure, healthy, peaceful, natural environment.
The health system in the Principality has cutting-edge medical technology which, together with the pure mountain air, the impact on red blood cell numbers of altitude and its many associated activities, make it the ideal place for a wonderful retirement in full health.
The Principality enjoys one of the lowest crime rates in Europe, offering great peace of mind to more vulnerable residents. The tax advantages for retirees in Andorra are clearly numerous, with 5-10% tax on qualified income or investment declarations. No inheritance or donation taxes, no wealth tax, the possibility of receiving a private or public pension with tax advantages, and qualified capital gains from listed companies on the stock market taxed at 0%.
Fidencis forms part of the Nodum Corporate group, comprising a Family Office that is authorised, regulated and supervised by the Andorran Financial Authority (AFA, no. ASF-01/17), capable of carrying out all the procedures for establishing passive residence.
The main pillars of foreign investment
Andorra, prioritising quality of life
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
Passive residence with international
Passive residence in Andorra is highly coveted among traders, consultants and entrepreneurs who carry out international business. Holders of this type of tax residence must usually generate at least 85% of their turnover outside the country and establish their headquarters in the Principality, with no obligation to live here all year round.
To obtain this status for relocation, candidates must meet the conditions for passive residence, i.e. a clean criminal record, a valid passport and civil status certificate, a certificate of health insurance, disability and old age issued by the CASS and the Andorran Immigration Authority.
International passive residence in Andorra is an interesting option for entrepreneurs wishing to grow their business abroad while enjoying an advantageous tax framework.
Here, you will be required to prove sufficient income and a rental or purchase contract for a property in Andorra, and obtain accreditation of your business plan. A bank certificate will be required, proving that you have deposited a bond of €47,500 and €2,500 tax with the AFA, plus €9,500 and €4,500 tax for each dependent, until the residence is terminated.
We are proud to offer a tailored service that complies with current legal and tax regulations, and to support entrepreneurs in their growth through our unparalleled quality of service.
Any questions about passive residence in Andorra?
Lawyers, accountants, experts in tax law and financial advisers, our office, which is part of the Nodum Corporate group, benefits from the Andorran Financial Authority regulation of our Family Office to advise you and supervise your relocation.
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..
Passive residence for personalities
Passive residence for personalities in the fields of science, culture and sports is a status that was created to allow foreign individuals who are internationally recognised for their talent to settle in Andorra and benefit from the many advantages of life in the heart of the Pyrenees, with no obligation to live here all year round.
Each individual must provide proof of their activities and their awards, and also proof of income of more than 300% of the Andorran minimum wage. They must deposit a bond of €47,500 and €2,500 tax with the AFA, plus €9,500 and €500 for each dependent, which are returned when the residence ends. Also required are a certificate of good conduct, a retirement pension, and a medical certificate obtained in Andorra, as well as a lease or purchase of a property in the Principality, and they must spend at least 90 days per year in Andorra.
Beneficiaries of this mode of residence in Andorra can continue to practise their profession, as long as at least 85% of their activities are for clients outside Andorra.
Residence in Andorra for personalities who are recognised in their field is an excellent opportunity to enjoy an attractive tax system, cutting-edge healthcare and an exceptional quality of life in Europe.
Fidencis simplicity
Your passive 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.
Retirement in Andorra offers many advantages to retirees looking for peace and non-confiscatory tax.
Foreign retirees can obtain a residence permit in Andorra through the system of residence without gainful activity. This permit allows for tax residence in the country without needing to make contributions to the Andorran social security, but requires an appropriate private health cover. Furthermore, it is compatible with the retirement pension from the country of origin.
Retirees can benefit from the tax advantages, such as the absence of wealth tax or inheritance or donation tax, and low income tax.
Inheritance planning should be prepared carefully and based on the structure of the assets, type of assets held, and legal category of the income to be received.
