How to Settle in Andorra? Complete Procedure Guide
The Principality of Andorra is attracting more and more expatriates in search of an exceptional living environment and attractive tax benefits. This small mountainous country offers not only breathtaking landscapes but also a stable and secure environment to live and work.
Why Choose the Principality of Andorra as a Place of Residence?
To settle in Andorra, two main options are available: passive residency and active residency. Each has its own conditions and advantages depending on your personal and professional situation.
The Two Types of Residency in Andorra
Active Residency: For Professionals and Entrepreneurs
Active residency is intended for people who wish to work or start a business in Andorra. It allows you to carry out economic activity as an employee or self-employed person on Andorran territory.
To be eligible for active residency, you must:
- Justify a professional activity or the creation of a company in Andorra
- Reside in the principality for at least 183 days per year
- Have accommodation in Andorra
- Deposit a bond of 60,000 euros with the Financial Regulatory Authority (AFA)
- Present a clean criminal record
If you are an employee, you will need to obtain a work permit by providing a permanent contract. This permit is initially valid for one year, then must be renewed every two years, before moving to a renewal every 10 years.
Passive Residency: Three Distinct Categories
Passive residency is ideal for those who do not wish to engage in direct professional activity in Andorra. It is divided into three categories:
- Passive Resident Without Lucrative Activity: Mainly intended for retirees and income recipients, this status allows you to live in Andorra without working there.
- Passive Resident as a Self-Employed Worker: This status is suitable for international consultants, investors, and traders whose income is 85% generated outside of Andorra.
- Passive Resident for Internationally Renowned Professionals: Intended for high-level athletes, researchers, artists, and other personalities with international recognition.
Conditions for Obtaining Passive Residency
To obtain passive residency in Andorra, several conditions must be met:
- Present a clean criminal record
- Have a valid passport and civil status documents
- Subscribe to health insurance with CASS
- Pass a medical examination
- Deposit a bond of 50,000 euros (plus 15,000 euros per dependent)
- Make a minimum investment of 600,000 euros in Andorra (real estate or participation in local companies)
The Advantages of Living in Andorra
Whether you opt for active or passive residency, living in Andorra offers numerous advantages:
Tax Advantages
- Income tax rate capped at 10%
- Corporate tax rate of 10%
- No wealth tax
- Network of international tax treaties
- No taxation on dividends
- No taxation on inheritances and successions
Exceptional Quality of Life
- Preserved natural environment with mountains and lakes
- Modern and quality infrastructure
- Low crime rate
- Efficient education and health system
- Numerous leisure activities (skiing, hiking, wellness)
Professional Opportunities
- Strategic position between France and Spain
- Stable and growing economy
- Favorable environment for entrepreneurs
- Ideal framework for internationally mobile professionals
How Clickand Can Assist You
At Clickand, an accounting and legal advisory firm based in Andorra, we offer personalized support for all your procedures:
- Analysis of your personal and professional situation
- Advice on the type of residency most suited to your profile
- Assistance with administrative procedures
- Tax optimization and accounting management
- Connections with Andorran banks
- Support for business creation if necessary
Our experts guide you through each step of your settlement in Andorra, allowing you to focus peacefully on your new life in the principality.
Conclusion
Settling in Andorra, whether through active or passive residency, represents a unique opportunity to combine exceptional quality of life with attractive tax advantages. With its magnificent landscapes, political and economic stability, and favorable tax framework, the Principality of Andorra continues to attract expatriates from around the world.
To realize your project of settling in Andorra under the best conditions, do not hesitate to contact our team of professionals. Clickand accompanies you from your country of origin and manages the entire administrative and fiscal procedure to ensure a smooth transition.
Clickand – Your Trusted Partner in Accounting and Legal Advice in Andorra
