Residence permits in Andorra

In Andorra there are two types of residency depending on the activity that is conducted

Passive Residence – without lucrative activities or tax residency

These authorizations are for those non-native persons of the country who establish their principal residence in the Principat d’Andorra, without lucrative activity.

The types of passive residence (categories):

  • Category A: reserved for people living in Andorra without exercising a professional activity
  • Category B: attributed to people in charge of international activities and who do not obtain returns at the local level.
  • Category C: dedicated to personalities (high-level athletes, scientific researchers) and artists

Passive residence in Andorra is addressed to natural persons who establish their principal and effective residence in Andorra for at least 90 days per calendar year (against 183 days for active residence).
On the other hand, the passive residence authorization in Andorra is granted for a period of two years, renewable successively for two, three, and ten years.

The cathegory A statute
A

Specific legislation has been put in place regarding people who want to settle and live in Andorra without developing a lucrative activity but have decided to invest in the country.

The conditions:

The conditions that you have to respect and the necessary documents to live in Andorra under the status of passive resident of category A are the following:

  • the evidence that has no criminal record
  • a passport in order and a certificate of marital status
  • a certificate of health insurance delivered by the CASS and the Andorran Immigration Authority
  • the satisfaction of a medical examination performed by the immigration medical service
  • a bank certificate specifying a deposit of € 50,000 deposited with the INAF (National Andorran Institute of Finance) and the deposit of € 10,000 for each family member in charge
  • justification of an income greater than 300 times the Andorran minimum wage
  • the obligation to invest at least € 400,000 (minus the deposit of € 50,000) in the Principality of Andorra.

The financial investment can be made in different ways: real estate, participation or the taking of assets (shares, own funds of resident companies, etc.).

Business professionals with an international activity (statute B)

This type of passive residence authorization in Andorra is granted to people who own a company or a service activity internationally and 85% of the turnover is generated outside the Andorran borders.

The company’s headquarters must be located in the Principality.

The conditions::

  • a test that has no criminal record
  • a passport in order and a certificate of marital status
    a certificate of health insurance delivered by the CASS and the Andorran Immigration Authority
  • a bank certificate that requires the sum of a deposit of € 50,000 deposited with the INAF (Andorran National Institute of Finance) and a deposit of € 10,000 for each family member in charge

Scientists, researchers, well-known artists and high-level athletes (statute C)

The category C passive residence statute in Andorra has been created for emeritus athletes, artists and scientists who enjoy international recognition or justify various rewards or prices in their domains of activity.

The conditions:

  • a clear proof of the person’s activity and their distinctions
  • a test that has no criminal record
  • a passport in order and a certificate of marital status
  • a certificate of health insurance delivered by the CASS and the Andorran Immigration Authority
  • a bank certificate that requires the sum of € 50,000 deposited with the INAF (Andorran National Institute of Finance) as well as the deposit of € 10,000 for each family member in charge
  • the rationale for an income exceeding 300 times the Andorran minimum wage

Active Residence – With work permission

The Andorran legislation establishes that every foreign person working in the country must obtain a work permit.
Residence and work permits in Andorra are subject to quotas, so there is a limitation by areas and professions.
The authorizations for Spanish, French and Portuguese establish a first authorization of one year with two consecutive renewal periods of two years. Completed both periods, the following renewals are for 10 years.


Rights

  • Access to the country’s health coverage
  • Family reunification
  • Access to Servei d’Ocupació
  • Access to information on labor issues at the Servei d’Inspecció de Treball
  • Obligations

    • Always carry immigration authorization
    • Register in the CASS (Caixa Andorrana de Seguretat Social)
    • Notify changes of companies marital status and address
    • Register to the Comú de la Parròquia where the residence is established
    • Enroll in the Consulate of the country of origin
    • Approve the driving license before the Servei de Tràmits de Govern
    • Make the change of vehicle registration in the maximum period of one year

Advantages of obtaining residency

The requirements for obtaining residency are demanding, but if they are met, they are of all kinds, from taxes much lower than their surroundings – between 2% and 10% of the Corporation Tax, a general VAT of 4.5% and between 5% and 10% of personal income tax only in the case of exceeding 24,000 euros of income per year. An average salary of 2,000 euros, a really low unemployment rate.