Expatriation in Andorra: The Ultimate Guide to a New Life Between France and Spain

Do you dream of a peaceful life in the heart of the Pyrenees, with advantageous taxation and an exceptional quality of life? Expatriating to Andorra could well be the solution you are looking for. In this article, we’ll explore all aspects of life in Andorra in detail, from tax benefits to procedures for obtaining residency, to the best places to settle. Whether you are an entrepreneur, investor, retiree or digital nomad, discover how Clickand, your trusted partner, can support you in your expatriation project.

Summary

1. Why choose Andorra for expatriation?

Andorra, a small principality nestled between France and Spain, has become a destination of choice for many expats. Here are the main reasons that make Andorra an attractive place to live:

• Advantageous taxation: With a maximum tax rate of 10% on personal income, Andorra offers one of the most competitive tax regimes in Europe.
• Exceptional security: Andorra is renowned for its very low crime rate, offering a serene living environment.
• Quality of life: Between mountains and ski resorts, Andorra offers an exceptional living environment for nature and winter sports enthusiasts.
• Proximity: Located only a 2h30 drive from Toulouse or Barcelona, Andorra remains close to major European cities.
• Administrative simplicity: The reduced bureaucracy facilitates daily and professional procedures.

2. The different types of residency in Andorra

Andorra offers several residency options to suit different expat profiles:

Passive Residency

Ideal for retirees or investors, it requires:

• An investment of at least €600,000 (real estate or bank deposit)
• A deposit of €50,000
• A minimum presence of 90 days a year in Andorra

Active residence

For entrepreneurs wishing to set up a company in Andorra:

• Setting up a local business
• Deposit of €50,000
• Affiliation to the Andorran Social Security (CASS)

Residency for artists and professional athletes

A specific status with no obligation to invest, but requiring proof of international reputation.

Residency for digital nomads

A new status adapted to digital entrepreneurs, with relaxed conditions.

3. Andorra’s advantageous taxation

One of Andorra’s main assets is its attractive tax system:

• Income tax: 10% maximum (IRPF)
• Corporate tax: 10%
• VAT: 4.5%
• No wealth tax
• No inheritance tax
• No gift tax (excluding notary fees)

These tax advantages make Andorra a popular destination for entrepreneurs and investors looking to optimise their tax situation while enjoying an exceptional living environment.

4. Expatriation procedure: the key steps

Expatriation in Andorra requires several steps:

1. Choose the right type of residence for your situation
2. Renting or buying a property in Andorra
3. Make the required investment or set up your company
4. Deposit the necessary deposit
5. Take out a valid health insurance in Andorra
6. Prepare the necessary documents (clean criminal record, etc.)
7. Submit your application to the Andorran authorities

The duration of the procedure varies from 15 days to 2 months depending on the type of residence chosen.

5. Living in Andorra: the best neighborhoods and cities

Andorra offers different living environments according to your preferences:

• Andorra la Vella: The capital, ideal for those who want to do everything on foot
• Escaldes-Engordany: Sunny area with high-end constructions
• La Massana: Quieter, perfect for families
• Ordino and Encamp: For those looking for a more rural environment

Each parish (city) has its own specificities and assets. Clickand can help you choose the ideal location according to your criteria.

6. Setting up a company in Andorra

Setting up a company in Andorra is a simplified process, ideal for entrepreneurs who want to benefit from advantageous taxation. Clickand accompanies you in all the steps:

• Choice of legal form
• Drafting of the articles of association
• Opening a business bank account
• Entry in the commercial register
• Obtaining the VAT number (IGI)

With a corporate tax of only 10%, Andorra offers a favourable framework for the development of your business.

7. Invest in Andorran real estate

There are several advantages to investing in real estate in Andorra:

• Stable market
• Low tax on rents and capital gains
• Possibility of obtaining passive residence via a real estate investment

Whether you want to live in it or to invest, Clickand can guide you in choosing the ideal property and accompany you in all the acquisition steps.

8. Health insurance in Andorra

Health coverage is mandatory to obtain residency in Andorra:

• For passive residence: subscription to private insurance
• For active residence: affiliation to the CASS (Andorran social security)

Clickand helps you choose the best option for your situation and take the necessary steps.

9. How Clickand can help you with your expatriation

Clickand is your trusted partner for a successful expat project in Andorra. Our services include:

• Analysis of your situation and advice on the best type of residence
• Support in all administrative procedures
• Assistance in finding accommodation
• Creation of a company if necessary
• Bank account opening
• Tax and wealth advice
• Assistance for local integration (schools, activities, etc.)

With Clickand, benefit from a tailor-made service to make your expatriation project a reality with complete peace of mind.

10. FAQs about expatriation to Andorra

Q: Can I obtain Andorran nationality?

A: Yes, after 20 years of residence and taking a Catalan language test.

Q: Is Andorra part of the European Union?

A: No, but negotiations are underway for future integration.

Q: Can I travel freely in Europe with an Andorran residency?

A: Yes, you can move freely in France and Spain, and stay for up to 90 days in the other countries of the Schengen area.

Q: What languages are spoken in Andorra?

A: Catalan is the official language, but Spanish and French are also commonly used.

Expatriation to Andorra offers many advantages, from attractive taxation to exceptional quality of life. Whether you are an entrepreneur, an investor or simply looking for a new way to live, Andorra has a lot to offer. With Clickand’s expert support, your expatriation project can become a reality with ease. Feel free to contact us for a personalized consultation and start your new life in Andorra today!

Make an appointment