Frequently asked questions

It means that a single firm looks at your case from every area it touches — tax, legal, employment, accounting and corporate — and coordinates them with one another. When each area works on its own, decisions are made without seeing the consequences for the others: a corporate restructuring that is well designed from a company law perspective can turn out to be costly from a tax perspective. At Abansa the analysis is joined up and you have a single point of contact.

Both. We advise SMEs, family businesses, corporate groups and investors, as well as self-employed professionals, professionals, families and individuals with assets or structures that require planning.

You tell us about your situation by phone, by email or using the form on the website. From there, we tell you how we would approach it, which areas are involved and in what order.

The first 30-minute consultation is free and without obligation: you can book it directly in the calendar on the website.

We reply within 24 to 48 working hours.

No. We ask your current adviser for the documentation and access credentials — books, returns filed, payroll and social security records, annual accounts — and we take care of the handover and check that nothing is left outstanding. The best time is usually at the end of a quarter or a financial year, although it can be done at any other time.

Not both for the same company: audit regulations require independence, and whoever prepares the financial information cannot be the one who audits it. What we can do is coordinate the work with the external auditor, or carry out the audit if someone else keeps the accounts.

Yes. The team routinely works in Spanish, Catalan and English, and the website is available in all three languages.

Yes, and it is one of the reasons we have both offices. A change of residence, a company in one country with activity in the other, or assets spread across both require looking at the two jurisdictions at once and, above all, at the order in which things are done.

It depends on your situation, not on the headline of an article. Andorra offers competitive taxation and legal certainty, but making the most of it requires planning from day one: the type of residency, the corporate structure, where your current assets will sit and which obligations remain in force in your country of origin. The tax savings calculator on the website gives an initial estimate; the decision is made with the actual figures in front of you.

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

The most common types are:

• Active residency as a self-employed person, aimed at business owners, self-employed people and professionals who wish to carry on an economic activity in Andorra by setting up or managing a company.
• Passive residency, intended for people who wish to make the Principality their home without carrying on a main economic activity in the country and who meet the financial requirements laid down by law.
• Residency for professionals with an international profile, designed for people whose activities are international in nature and who meet the specific requirements set out in Andorran legislation.
• Residency for digital nomads, aimed at 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 in advance 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 requirements 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 documentation showing that the financial requirements for the relevant type of residency are met.

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

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

Processing times can vary depending on the type of residency, the complexity of the application and how quickly the required documentation is provided.

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

However, certain circumstances, such as the need to process additional authorisations or provide supplementary documentation, 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.

Not always.

One of the most common questions among those wishing to move to Andorra is whether they need to 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 solely on the type of residency being applied for. Within active residency, this contribution is required for the self-employed residence and work permit, mainly when it is obtained through holding shares in and managing an Andorran company. It is also required to obtain residency without gainful activity, a type of residency that additionally requires an investment in Andorran assets of a considerably higher amount. Other types of residency are not subject to this obligation.

For this reason, before starting any procedure it is advisable to analyse the applicant’s personal, professional and financial 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 genuinely meet the client’s needs and optimising planning from the very beginning.

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 system, the Spanish system and the French system. This diversity allows each family to choose the educational model that best suits their children’s language, background and academic plans.

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

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

In addition to state 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, combined 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 long-term prospects.

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 provision 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 operates on a co-payment basis. As a general rule, the patient initially pays the cost of the consultation or treatment and the CASS subsequently reimburses the corresponding percentage depending on the type of healthcare service. In certain cases, such as some hospital stays or specific treatments, the percentage covered may 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 laid down by Andorran law.

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 made with every safeguard in place.

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 be counted towards this period, unless tax residency in another country is proven.

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

It is important to distinguish tax residency from the administrative residence permit, as each type of residency may set its own presence requirements. Likewise, where a person could be considered tax resident in both Andorra and another country at the same time, the rules laid down 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 residency comply with Andorran and international regulations.

Yes. Andorran law provides for the reunification of certain family members when the requirements for each type of residency are met.

Family reunification means that the relocation project does not only concern 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 unit together, as good organisation simplifies procedures, coordinates the necessary documentation and avoids 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 lifestyle, the parish in which you take up residence and the needs of each person or family.

Housing is usually the main expense, particularly in certain areas with higher residential demand. To this must be added other items such as education, health insurance where 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 allows you to weigh the cost of settling in against the advantages of the change of residence.

Yes, although this situation requires particularly careful planning.

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

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

Insufficient planning can lead to tax residency conflicts, double taxation or reviews 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 maximum rate of 10 %, far lower than in many European countries. In addition, the legislation sets out different brackets and tax-free allowances, which means that a great deal of income is taxed at a lower effective rate.

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

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

Corporate Income Tax generally has a nominal rate of 10 %, placing Andorra among the jurisdictions with the most competitive business taxation in Europe. In addition, certain tax incentives and deductions may 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 ability to structure the business project correctly from the outset. The activity carried on, the residence of the shareholders and international transactions can all influence the company’s final tax bill.

For this reason, before setting up a company it is advisable to carry out corporate and tax planning so that the activity can be carried on with legal certainty and tax efficiency.

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

Andorra does not have Value Added Tax (VAT/IVA) as applied in Spain or other European Union countries.

Instead, the Principality has the Impost General Indirecte (IGI), a consumption tax with a standard rate of 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 the IGI differs significantly from European VAT, businesses must still comply with 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 residence or reorganising assets, it is essential to analyse the legislation of the 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 matters 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, and this requires comprehensive planning.

Choosing the right type of residency, analysing the tax implications in the country of origin, 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 whole process with a single point of contact.

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