Requirements for Residency in Andorra: The Complete Breakdown

Andorra splits residency into passive (non-working) and active (working) tracks, then subdivides each further. Passive residency for investors requires a 600,000 euro deposit with the Andorran Financial Authority (AFA) plus proof of economic ties to the country. Active residency requires either employment with an Andorran company or registration as a self-employed professional, which means clearing a licensing process with the relevant ministry. Most international entrepreneurs target passive residency via the investor or professional activity routes, since those allow income to originate outside Andorra.

The 600,000 euro AFA deposit is not a fee, it is a refundable interest-free deposit held for the duration of your residency. On top of that, applicants must demonstrate sufficient economic means, generally taken as proof of annual income of at least 300% of the Andorran minimum wage (roughly 40,000 to 50,000 euros per year as of recent benchmarks, though this figure is updated periodically). A property lease or purchase in Andorra is required as part of the application, and applicants must spend a minimum of 90 days per year physically in the principality. Private health insurance with Andorran coverage is mandatory since non-residents and new residents are not automatically enrolled in CASS, the national health system.

Self-employed (compte propi) residency lets you register a business in Andorra and take residency through that entity, with a significantly lower AFA deposit of 50,000 euros. The trade-off is that your company must have genuine economic substance in Andorra, meaning a registered office, local banking, and some demonstration of actual commercial activity. At least one managing director must be resident. The licensing step with the Ministry of Economy takes two to four months and requires a detailed business plan, proof of professional qualifications, and a criminal background check from your home country. For digital entrepreneurs and consultants, this route is increasingly popular because the total capital commitment is far lower than the passive investor track.

The process starts with obtaining a pre-authorization from the Andorran government before you can even apply for the residency permit itself. You submit the pre-authorization dossier (business plan or proof of income, background checks, health insurance, housing contract) to the Ministry of Interior, and approval typically takes six to twelve weeks. Once pre-authorized, you open your AFA deposit account, register with CASS or obtain private coverage, and then appear in person at the immigration office in Andorra la Vella to finalize the permit. The initial permit is valid for two years and is renewable, with permanent residency available after 20 years of legal residence. This page covers what qualifying documentation looks like in practice if you want a closer look at the paperwork stack.

Holding an Andorran residency permit does not automatically make you an Andorran tax resident in the eyes of your home country. If you are leaving a high-tax jurisdiction such as France, Spain, or Germany, those countries apply exit tax rules and scrutinize the 183-day threshold carefully. To establish Andorran tax residency cleanly, you generally need to break tax residency in the prior country first, spend more than 183 days per year in Andorra, and document ties such as a bank account, a lease, and utility bills. Andorra has a limited network of double tax treaties, so the mechanics of exiting your home country's tax system matter as much as entering Andorra's.

Budget roughly 15,000 to 25,000 euros in first-year professional and administrative costs for a passive residency application, not counting the AFA deposit itself. That covers legal fees from an Andorran immigration lawyer (typically 3,000 to 8,000 euros), property rental for at least 12 months (budget 1,200 to 2,500 euros per month for a modest apartment depending on parish), private health insurance (1,500 to 3,000 euros annually), and government filing fees (a few hundred euros). The self-employed route adds company formation costs of roughly 2,000 to 5,000 euros but removes the 600,000 euro deposit requirement, making it the clear cost-winner for those who qualify.