Moving your residence to Andorra is much more than paperwork. The important decisions are made before the move: which type of residency fits, how the change affects your taxes in your home country, and what happens to the company or assets you leave behind. This guide covers the questions worth asking before you take the step.
Types of residency in Andorra: which one fits your case?
Andorra offers several types of residency, suited to each applicant’s personal, professional or wealth profile. The most common are:
- Active self-employed residency, for those who will carry on a business in Andorra, usually through their own company.
- Passive residency, for those who settle in the Principality without a main economic activity there.
- Residency for professionals with an international reach, for people who work with clients outside Andorra.
- Digital nomad residency, for those who work remotely for companies or clients based abroad.
Each type has different requirements, obligations and advantages. Choosing well from the start avoids unnecessary procedures. See the details on our residency in Andorra page.
Administrative residency and tax residency are not the same
Obtaining a residence permit does not, on its own, make anyone tax resident in Andorra. As a general rule, you are tax resident if you spend more than 183 days in the calendar year in the country, or if the main centre of your activities or economic interests is in the Principality.
If two countries can consider you resident at the same time — Andorra and Spain, for example — the double taxation treaty needs to be analysed. It is one of the points most worth planning before the move, and we cover it in detail in tax in Andorra.
The planning matters more than the move itself: whatever isn’t decided beforehand ends up being sorted out afterwards, with less room to manoeuvre.
The questions worth asking before you move
- What will happen to my tax residency in my home country, and when will I stop paying tax there?
- Do I keep my current company, move it, or set up a new one in Andorra?
- How does the move affect my investments, property and assets?
- Are my partner and children coming with me? How are their residency, schooling and healthcare arranged?
- How much would I really save in tax, and how long until the move pays off?
For the last question you can get a first estimate with our tax savings calculator. For the rest, it is best to look at your specific case.
Your company and assets back home
It is perfectly possible to keep investments, shareholdings or property outside Andorra after the move. But you need to check how they affect your tax residency, where the company’s decisions are taken and which obligations remain in your home country. If you will be working in the Principality, you may want to set up a company in Andorra.
Frequently asked questions
How long do you have to live in Andorra to be tax resident?
As a general rule, more than 183 days in the calendar year, or having the main centre of your activities or economic interests in Andorra. Each case has to be analysed individually.
Can I move to Andorra with my family?
Yes. Andorran law provides for certain family members to join you if the requirements of each type of residency are met. It is best to plan the residency of the whole family at the same time.
Do I need a firm to obtain residency in Andorra?
It is not compulsory, but the move combines immigration, tax, corporate and wealth matters. Coordinating them with one team avoids mistakes that are hard to fix later.
At Abansa we coordinate the whole move from our offices in Andorra la Vella, Sabadell and Dubai. Tell us about your case and we will help you decide before you move.