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Andorra offers different types of residency to suit each applicant's personal, professional or financial profile. Choosing the right option from the outset is essential to avoid unnecessary paperwork and to ensure proper tax and legal planning.

The most common types are:

• Active self-employed residency, aimed at business owners, self-employed workers and professionals who wish to carry out an economic activity in Andorra by setting up or running a company.
• Passive residency, for people who wish to settle in the Principality without carrying out a main economic activity in the country and who meet the financial requirements established by law.
• Residency for professionals with an international profile, intended for people who carry out international activities and meet the specific requirements set out in Andorran law.
• Digital nomad residency, designed for professionals who work remotely for companies or clients based outside Andorra.

Each type has different requirements, obligations and advantages. At Abansa we analyse each project beforehand to determine which type of residency is most suitable from a legal, tax and wealth perspective.

The requirements depend on the type of residency applied for, although there are a number of common conditions that must be met in most procedures.

You will usually need to prove the applicant's identity, have a home in Andorra, provide a criminal record certificate, pass the official medical examination and submit documents showing that the financial requirements for each type of residency are met.

Depending on the permit applied for, it may also be necessary to set up a company, carry out a professional activity, make an investment or prove certain financial means.

At Abansa we review all the documentation before opening the application to minimise issues and speed up obtaining the residence permit.

Processing times may vary depending on the type of residency, the complexity of the application and how quickly the required documents are provided.

When the procedure is properly planned from the outset, residency is generally obtained within approximately two to four months.

However, certain circumstances, such as the need to process additional permits or provide supplementary documents, can extend the procedure.

At Abansa we coordinate every stage of the process to reduce waiting times, anticipate possible issues and keep the client informed throughout the application.

Not always.

One of the most common questions among those who wish to move to Andorra is whether they must make the €50,000 contribution. Following the reform introduced by Law 2/2026, this contribution is non-refundable and passes permanently to the Andorran State, so it is no longer a recoverable deposit.

The answer depends entirely on the type of residency being applied for. For active residency, this contribution is required for the self-employed residence and work permit, mainly when it is obtained through holding and managing an Andorran company. It is also required for residency without gainful activity, a type that additionally requires an investment in Andorran assets of a considerably higher amount. Other types are not subject to this obligation.

For this reason, before starting any procedure it is advisable to analyse the applicant's personal, professional and wealth situation to determine the most suitable route.

At Abansa we study each case individually to design the most efficient strategy, avoiding procedures that do not truly meet the client's needs and optimising planning from the outset.

One of the aspects most valued by families who decide to settle in the Principality is the quality and diversity of its education system.

Unlike other countries, Andorra has a unique model in which three public education systems coexist: the Andorran, the Spanish and the French systems. This diversity allows each family to choose the educational model that best suits their children's language, education and academic plans.

The Andorran system is committed to multilingual education, with Catalan as the main language of instruction and French, Spanish and English gradually introduced across the different stages of schooling.

The Spanish and French systems, for their part, follow the official curricula of their respective countries, so that pupils can go on to higher education in either Spain or France without any difficulty.

In addition to public education, Andorra has international private schools that teach mainly in English and offer internationally recognised qualifications, making the Principality a particularly attractive option for families from different countries.

This educational diversity, together with the country's safety, quality of life and natural surroundings, makes Andorra an increasingly sought-after destination for families looking to build a stable life with a future.

The Andorran healthcare system is regarded as one of the most efficient and highly rated in Europe. It is based on a mixed model that combines public care with private services, offering high-quality medical care, short waiting times and access to highly specialised professionals.

Healthcare cover is provided through the Caixa Andorrana de Seguretat Social (CASS), the equivalent of Social Security in other countries, which manages healthcare for workers and residents who contribute in the Principality.

Unlike other public systems, Andorran healthcare works on a co-payment basis. As a general rule, patients initially pay for the consultation or treatment and the CASS later reimburses the corresponding percentage depending on the type of healthcare service. In certain cases, such as some hospital stays or specific treatments, the coverage percentage can be considerably higher.

People who obtain passive residency or certain types of residency without CASS contributions must have private health insurance that meets the requirements set by Andorran regulations.

The quality of care, fast access to specialists, modern healthcare infrastructure and the option of supplementing public cover with private insurance make the Andorran healthcare system one of the factors most valued by those who decide to take up residence in the Principality.

At Abansa we advise our clients on the healthcare obligations associated with each type of residency so that their move to Andorra is carried out with every guarantee.

As a general rule, a person is considered tax resident in Andorra when they spend more than 183 days in the country during the calendar year. Sporadic absences may also count towards this period, unless tax residency in another country is proven.

However, length of stay is not the only criterion. A person may also be considered tax resident in Andorra if the main core or base of their activities or economic interests is in the Principality, directly or indirectly.

It is important to distinguish tax residence from the administrative residence permit, as each type may set its own minimum stay requirements. Likewise, where a person could be considered tax resident in both Andorra and another country at the same time, the rules in the applicable double taxation agreement must be analysed.

At Abansa we analyse each situation individually to ensure that the move and the maintenance of tax residence comply with Andorran and international regulations.

Yes. Andorran regulations allow certain family members to join you, provided the requirements set for each type of residency are met.

Family reunification means that the relocation project need not be limited to the main applicant, but can extend to their immediate family, provided that the financial, housing and cohabitation conditions required by current legislation are met.

Before starting the procedure, it is advisable to plan the residency of the whole family together, as good organisation helps simplify the paperwork, coordinate the required documents and avoid delays during the process.

At Abansa we support families who wish to settle in Andorra, coordinating both the residence permits and all the tax, wealth and administrative aspects of the move.

The cost of living in Andorra will depend on your lifestyle, the parish where you take up residence and the needs of each person or family.

Housing is usually the main expense, especially in certain areas with higher residential demand. Other items must be added to this, such as education, health insurance where it is compulsory, utilities and everyday expenses.

However, the cost of living should not be analysed solely in terms of monthly spending. Many residents also value other factors that improve their quality of life, such as a high level of public safety, institutional stability, the quality of public services, the natural surroundings, an excellent range of sports and a more competitive tax system than in many European countries.

Before moving, it is advisable to draw up a personalised financial plan that weighs the cost of settling in against the benefits of changing residency.

Yes, although this situation requires particularly careful planning.

It is entirely possible to keep investments, shareholdings, property or business activities outside Andorra. However, it will be necessary to analyse how these circumstances affect tax residence and what obligations may remain in the country of origin.

Tax authorities consider various criteria to determine where a person is tax resident, such as the place from which business decisions are made, the centre of economic interests, the family's habitual residence or the time spent in each territory.

Insufficient planning can lead to tax residence conflicts, double taxation or audits by the tax authorities.

At Abansa we carry out a prior analysis of each client's wealth, business and tax situation to design a secure relocation strategy, coordinating the change of residence with compliance with international regulations and double taxation agreements.

One of Andorra's main attractions is its tax system, characterised by competitive taxation that is fully aligned with international transparency standards.

Personal Income Tax (IRPF) has a top rate of 10 %, far lower than in many European countries. In addition, the rules set out different bands and tax-free allowances, so that much income is taxed at a lower effective rate.

However, each taxpayer's tax position will depend on factors such as their tax residence, the source of their income, income earned in other countries or the application of double taxation agreements.

At Abansa we analyse each situation individually to design efficient tax planning, ensuring compliance with Andorran regulations and with any international obligations that may apply.

Corporate Income Tax generally has a nominal rate of 10 %, which places Andorra among the most competitive jurisdictions in Europe for business taxation. In addition, certain tax incentives and deductions can result in a lower effective rate, depending on each company's circumstances.

The competitiveness of the Andorran tax system lies not only in the tax rate, but also in the possibility of structuring the business project correctly from the outset. The activity carried out, the residence of the shareholders and international transactions can all influence the company's final tax bill.

That is why, before setting up a company, it is advisable to carry out corporate and tax planning so that the business can operate with legal certainty and tax efficiency.

At Abansa we support business owners, entrepreneurs and investors throughout the process of setting up and growing their company in Andorra.

Andorra has no Value Added Tax (VAT) as applied in Spain or in other European Union countries.

Instead, the Principality has the Impost General Indirecte (IGI), a tax on consumption whose standard rate is 4.5 %, one of the lowest in Europe.

In addition to the standard rate, the legislation provides for other specific rates for certain transactions and economic activities.

Although IGI differs significantly from European VAT, companies must still meet their invoicing, filing and tax management obligations.

At Abansa we advise on the correct application and management of IGI in domestic and international transactions.

There is no inheritance or gift tax, nor is there a wealth tax.

These circumstances make the Principality a particularly attractive jurisdiction for business families, investors and people who wish to plan the transfer and protection of their wealth properly.

However, before moving your residence or reorganising your wealth, it is essential to analyse the rules of your country of origin, the possible application of international agreements and the tax implications of each transaction.

At Abansa we design wealth planning strategies tailored to each client, coordinating tax, corporate and succession aspects from an international perspective.

Moving your residence to Andorra involves much more than completing an administrative procedure. In most cases, immigration, tax, corporate, wealth and even family matters need to be coordinated, which calls for comprehensive planning.

Choosing the right type of residency, analysing the tax implications in your home country, structuring a company properly, planning investments or preparing the documentation are decisions that can determine the long-term success of the project.

At Abansa we offer a comprehensive service that brings together lawyers, tax advisers, corporate law specialists and international mobility experts in a single team, allowing our clients to centralise the entire process through a single point of contact.

Our aim is not just to obtain a residence permit, but to design a solid strategy that allows you to develop a personal, family or business project in Andorra with full legal certainty, tax efficiency and a long-term vision.