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​​​​​​​Types of Residence Permits in Andorra

​​​​​​​Types of Residence Permits in Andorra

By: Jordan Hayes, Author
21 Apr 2025  ·  Views 879243  ·  3 min read
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Andorra, a small yet prosperous principality nestled in the Pyrenees, offers various residence permit options tailored to the diverse needs of professionals, entrepreneurs, investors, and creatives. Whether you're planning to work, invest, or simply enjoy a peaceful lifestyle in the heart of Europe, Andorra provides a flexible residency framework to accommodate different lifestyles and career paths. Below is a comprehensive overview of the primary residence permit types available in Andorra:

1. Work Permit (Active Residency)

This residence permit is designed for individuals who plan to live and work in Andorra full-time. It is most suitable for applicants who have received a job offer from an Andorran employer. The employer handles the permit application and covers all associated costs.

  • Cost: Covered by the employer

  • Income Tax: 0% to 10%, depending on earnings

  • Processing Time: 1 to 2 months

  • Renewal: Initial 6-month permit, renewable for 1, 2, and 5 years. Citizenship eligibility after 10 years of continuous residence

2. Self-Employment Program (Active Residency)

Entrepreneurs wishing to launch their own business in Andorra can apply under the self-employment program. Applicants must reside in Andorra for more than 183 days annually and deposit €15,000 with the Andorran government, refundable upon meeting residency conditions.

  • Cost: €15,000 (refundable deposit)

  • Income Tax: 0–10% on income over €40,000

  • Processing Time: 3 to 6 months

  • Renewal: Same as work permit—1, 2, 5, and 10 years, with citizenship eligibility

3. Passive Residency for Investors

This option is ideal for individuals who want to reside in Andorra without engaging in local employment. Applicants are required to invest a minimum of €400,000 in the Andorran economy, including a €48,500 deposit with the Central Bank. They must spend at least 90 days per year in the country.

  • Cost: €400,000 investment + €48,500 deposit

  • Income Tax: 10% on income above €24,000

  • Processing Time: 1 to 2 months

  • Renewal: Every 2 years initially, then every 3 years; citizenship possible after 10 years

4. Passive Residency for International Entrepreneurs

This program caters to entrepreneurs who operate primarily outside of Andorra but want to register and maintain a business base within the country. Applicants must maintain a physical office in Andorra and demonstrate financial self-sufficiency.

  • Cost: Starting from €60,000 (includes office rent and required deposits)

  • Income Tax: 0% for residents; 2% corporate tax for businesses

  • Processing Time: 3 to 6 months

  • Renewal: Every 2 years initially, followed by 3-year terms; citizenship possible after 10 years

5. Passive Residency for Athletes, Scientists, and Artists

This specialized program is available for notable individuals in sports, science, or the arts. It requires a deposit of €50,000 with Andorran financial authorities. No business activity or plan is necessary, but applicants must prove they are financially self-sufficient.

  • Cost: €50,000 deposit

  • Income Tax: 0%, assuming the professional activity is conducted outside Andorra

  • Processing Time: 3 to 6 months

  • Renewal: Initially granted for 2 years, then for another 2, and then for 3 years; eligible for citizenship after 10 years

6. Residency for EU Citizens

Citizens of the European Union can enter and remain in Andorra for up to 90 days without a visa or residence permit. After that, they must either apply for one of the available residency programs or leave the country. Due to agreements with neighboring countries, the application process is generally streamlined for EU nationals. This grace period allows them to explore the lifestyle and residency options before making a long-term commitment.

Andorra offers a wide array of residency options, each catering to specific lifestyles and professional goals—whether you're seeking full-time employment, building a business, investing, or simply enjoying a quiet life in a tax-friendly environment. With low crime, high healthcare standards, and a strong expat community, Andorra is increasingly becoming a top choice for global citizens looking to relocate to a secure and prosperous European destination.

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