Andorra is the perfect place of residence for those who want to avoid tax burdens and at the same time increase their quality of life with leisure activities and relaxation. Andorra has a very attractive and at the same time unique fiscal system, as the principality does not claim any income, capital or inheritance tax. There are also no restrictions on capital movements and real estate assets remain untouched. Here you can enjoy the assets you have worked for. There is minimum corporation tax as companies only pay an overall trade tax to the municipality, which for most businesses amounts to less than € 1000 per year. Another very important attribute is the strict banking secrecy.

When applying for Andorran residence, you are not obliged to move your assets to Andorra.

Andorra not only offers financial freedom, but at the same time a very pleasant climate. More than 300 days of sun and moderate temperatures all year round, low humidity and the total absence of industry are some of the factors that give Andorrans the world's highest life expectancy of 83.5 years. The Mediterranean Sea is only a two hour drive away. One must also not forget Andorra's very low crime rate. There are a wide range of nationalities who have found in Andorra their place of main residence. Andorra is particularly popular with the Spanish, French, English, Dutch and Scandinavians.

Andorra offers lots of sport and leisure activities for the whole family - in summer and in winter, and has invested heavily during recent years in the upgrading of the country's infrastructure and the expansion of the skiing areas.

Contrary to many other skiing resorts - all the hotels and shops remain open the whole year around.

There are two possibilities for obtaining residence permits in Andorra:

PASSIVE RESIDENCE (residence permit without work permit) and ACTIVE RESIDENCE (residence permit with work permit). The simplest option is the passive residence "Residencia Passiva".

Conditions for being granted a passive residency are as follows:

You must be over 18 years old

  • You must prove that you do not have a criminal record
  • You must reside physically in Andorra for at least 183 days a year
  • You must deposit a security of 30.000 Euros plus 12.000 Euros for each dependant. This security must be deposited with the INAF (National Financial Institute) and will be refunded at the time of departure
  • You must undergo a medical examination in Andorra
  • You must prove that you have sufficient financial means to provide for your needs
  • You must submit evidence of insurance covering health, disability and retirement
The following documents have to be presented with a residence application to the authorities:
  • Photocopy of a document proving that you have deposited the security of 30.000 Euros with the INAF (National Financial Institute) as well as 12.000 Euros for each dependant
  • Certificate of good behavior
  • Passport and certified copy from the Civil Registry Office
  • Originals of the ownership deed or the rental agreement of a property
  • Documents proving that you have disability, health and retirement insurance
  • Evidence as shown by securities or bank statements of a yearly income of at least € 30.201 plus € 10.067 for each dependant
  • Signed document in which you commit yourself to reside at least 183 days a year in Andorra
Applicants from Russia and Ukraine have to present some additional documents.

The passive residency permit is given first for 1 year, afterwards extends twice for 3 years, and then for 10 years.

Active residence permit has its own rules and is much more restrictive than passive residency. We advise and help our clients solely with Passive Residence Permits.