A tax resident in Andorra is a person who has established their residence in the country and, therefore, is subject to Andorran tax laws. This means that the person pays taxes in Andorra and can benefit from its tax system, which is known to be one of the most favorable in Europe.
Any residence authorization in Andorra must adhere to the country's quota system. Then, for each type of residence, there are specific requirements that must be met.
In Andorra, there are two main types of residence: active residence and passive residence. Each has its own characteristics and requirements.
Active residence in Andorra differs depending on whether it is self-employed or salaried.
This type of residence allows the individual to reside and carry out self-employed activities permanently during the authorization period.
The main requirements to obtain a self-employment residence permit to work and reside in Andorra are, among others:
This type of residence authorizes the individual to reside and work in the country permanently and effectively during the validity of the authorization.
The main requirements to obtain an employee residence permit to work and reside in Andorra are, among others:
An important requirement to note is that all official documents issued by foreign state authorities must be properly authenticated with the Apostille of the Hague Convention or duly legalized.
Additionally, in both types of active residence, the applicant must register with the Comú of the parish where they reside within 3 months from the date of the immigration authorization grant and provide proof of this registration within the same period.
The Government of Andorra recognizes up to 4 different types of passive or non-lucrative residence in Andorra:
Beyond the identity documentation required to obtain any of the above residences, the requirements for these types of residence include:
To be considered a tax resident in Andorra, you must spend at least 90 days a year in the country. This requirement ensures that the person genuinely lives in Andorra and is not simply using the country for tax benefits without significant presence.
Deposit a non-remunerated amount of €47,500 with the Andorran Financial Authority (AFA).
In addition, the main holder must also deposit a non-remunerated amount of €9,500 for each dependent who acquires the status of a non-lucrative resident.
This requirement applies to all types of passive residence, except in cases of residence for admission to private nursing homes or medical care centers.
Justify and maintain valid health, disability, and old-age insurance for the applicant and their dependents, or their spouse or stable partner, for the entire duration of the same coverage, except for minors and persons over sixty, who must justify and maintain valid health insurance for Andorra.
Prove that the main holder has annual income exceeding 300% of the annual minimum wage in effect, adding 100% of this indicator for each dependent. This can be evidenced, among other ways, by a retirement and/or disability pension certificate, a tax return from the previous year in the last country of residence, and the corresponding bank certificates.
Within 3 months after obtaining said authorization, a certificate from the Comú where the holder resides must be provided.
In the case of residence for professionals with international outreach or for reasons of scientific, cultural, and sports interest, it must be proven that the individual has a sufficient level of qualification and professional experience in the sector in which the activity is carried out (Curriculum Vitae, Certified Qualifications).
Also, depending on the type of passive residence requested, the following must be provided additionally:
For residents without lucrative activity, a minimum investment in Andorran assets of at least €600,000 is required, which may include:
In case the corresponding investment has not been made, the applicant must declare, at the time of formalizing the application, their commitment to make the investment within a period of 6 months. Once this period has passed, the resident must provide, under the conditions established by regulations, the documents proving the investment.
Specific requirements for Residence for professionals with international projection
Specific requirements for Residence for reasons of scientific, cultural, and sporting interest