How much money do you need to move to Andorra? The answer depends mainly on whether you apply for active or passive residency, where you live and whether you move alone or with a family. As a practical starting point, a single person renting a home and applying for active residency may need around €8,000–€15,000 for the move itself, excluding long-term savings. A family should usually plan for €15,000–€30,000 or more. Passive residency requires a substantially larger financial commitment because it involves an investment and proof of sufficient income.
The main costs when moving to Andorra
Your initial budget normally includes accommodation, a rental deposit, immigration paperwork, transport, insurance, furniture and several months of living expenses. Rental prices vary considerably between parishes. Andorra la Vella and Escaldes-Engordany are convenient but often more expensive, while La Massana, Ordino, Encamp, Canillo and Sant Julià de Lòria may offer different prices, property types and commuting times.
- Rent and deposit: landlords commonly request a deposit and may ask for additional guarantees, particularly if you have not yet established income or residency in Andorra.
- Temporary accommodation: budget for a hotel, aparthotel or short-term rental while you search for a long-term home and complete administrative steps.
- Professional and administrative fees: immigration, company, legal or tax advice can add to the initial cost, depending on your application.
- Moving and setup: transport from another country, household items, internet installation and basic furniture can make the first month much more expensive than later months.
- Emergency reserve: keeping at least three to six months of expected expenses available is sensible, especially if your income depends on a new business or seasonal work.
Active residency: how much should you budget?
Active residency is generally linked to employment in Andorra, a local business or a company in which you have a qualifying role. You will need to meet the relevant immigration and employment conditions, which can change according to quotas and current regulations from the Govern d’Andorra.
For a single applicant, a realistic financial plan should cover the first rental payments, deposit, travel, document preparation and several months of personal expenses. In addition to rent, allow for food, transport, telephone service, heating and other household bills. FEDA supplies electricity, while Andorra Telecom provides telecom services; contracts and connection costs should be included in your arrival budget.
If you work for an Andorran employer, social security contributions are handled through CASS under the applicable employment arrangement. If you operate a company or work independently, confirm your CASS obligations and business costs before relocating. A company may also involve incorporation, accounting, registered-office and tax-administration expenses.
Passive residency and the larger investment requirement
Passive residency is designed for people who live in Andorra without carrying out a local salaried or professional activity. It normally requires evidence of adequate financial means, private or qualifying health cover, accommodation and an investment in Andorra. The investment requirement has been set at a high six-figure level in recent rules, with the precise amount and eligible assets subject to change.
Do not rely on an old blog post when planning passive residency. Check the current conditions with the Govern d’Andorra or an authorised adviser, including the required investment, any deposit or guarantee, minimum stay, income evidence and documents for dependants. The purchase of a property is not the only possible route, and buying a home does not automatically grant residency.
Taxes and monthly living costs
Andorra’s tax position can be attractive, but residency does not mean that every income is tax-free. Personal income tax, corporate tax, capital gains rules and the IGI indirect tax may apply depending on your circumstances. Before moving, establish where you are tax resident and how Andorra will treat salary, dividends, investments, pensions or property income from abroad.
For day-to-day spending, prepare a separate monthly budget for rent, utilities, groceries, transport, insurance and leisure. Ski-season demand can affect accommodation availability and prices. Living in Ordino, Canillo or La Massana may suit an outdoor lifestyle, while central parishes can reduce commuting for work and services. Compare the total cost, not only the advertised rent.
A sensible financial plan
Before signing a lease or transferring money, confirm your residency route, document requirements and expected timeline. Keep funds available for the deposit, application costs and several months without relying on immediate employment. Contact the Govern d’Andorra, CASS, the relevant comú and qualified tax professionals for current information. Once you know your parish and budget, browse local businesses in the directory to find housing, relocation, legal, accounting and everyday services in Andorra.
