Active residency in Andorra: The guide to living and working in the Principality
Attracting more and more workers thanks to its exceptional living environment and attractive tax advantages, Andorra is positioned as a privileged destination for those looking for professional and personal fulfilment.
There are two types of residency that allow you to settle in Andorra: passive residency and active residency. The latter, which is particularly popular, offers many advantages and meets the aspirations of many professionals.
In this article, we decipher everything you need to know about active residency in Andorra: the conditions for obtaining it, the administrative procedures and the advantages that make this status a real key to living and working in the Principality.
What is active residency in Andorra?
Active residency in Andorra is an option that allows you to reside in the Principality and carry out an economic activity on your own account or as an employee in an Andorran company. It is aimed at talented international professionals who want to grow their careers while taking advantage of the tax advantages that the country has to offer. The quality of life in Andorra is particularly interesting and the residents are happy about it.
What are the requirements for active residency?
To obtain active residency in Andorra, it is necessary to meet certain conditions. First of all, you must prove that you have a professional activity or that you have set up a company in the Principality. You must also live in Andorra for at least 183 real days per year and have a place of residence.
In addition to these conditions, you must deposit in an Andorran bank a share capital of 3000 euros (in the case of the creation of an SL) and a certificate of criminal record free of any financial or money laundering offences. To complete the procedure, you must deposit the sum of 60,000 euros with the Financial Regulatory Authority (AFA), which is a mandatory deposit.
Read the article on the different types of companies in Andorra
How do I get the Andorran work permit?
To move to Andorra as an employee, you must provide proof of an employment contract of indefinite duration. This is what will allow you to apply for a visa. Various other documents will then be requested as part of the procedure, such as an extract from your criminal record, a civil status card with your family record book, the original and copy of the passport or identity document, proof of address and passport photos.
A foreigner who opens a business or simply a business in Andorra can also apply for a work permit, as can investors who own more than 10% of an already existing company. Self-employed individuals who administer and manage their own businesses will be able to apply for a work permit once the company becomes active. Thanks to the work permit, you will be able to access the Principality’s social security.
Permanent Employee Permit
The permanent employee permit is the most well-known work permit in Andorra. In fact, it is this authorisation that is most often granted by the Andorran authorities. In fact, it’s the first one you receive after completing all the paperwork. The permanent employee permit is valid for one year and must be renewed three times every two years. After these periods, renewal occurs less and less frequently, simply once every 10 years.
In short
Active residency in Andorra is an attractive option for talented international professionals who want to advance their careers while taking advantage of the tax advantages that the country has to offer. To obtain active residency, it is necessary to meet certain conditions, such as proving a professional activity or the creation of a company in the Principality, living in Andorra for at least 183 real days per year, having a place of residence and depositing a mandatory deposit of 60,000 euros with the AFA. To work legally in Andorra, it is also necessary to obtain a work permit by providing various documents, such as proof of an employment contract of indefinite duration and a clean criminal record extract. The permanent employee permit is the best known and most often granted by the Andorran authorities.
