If you are researching how to get residency in Andorra: active vs passive residency explained, the first decision is whether you will work in the Principality or live there mainly from foreign income and investments. Andorra offers different immigration routes, and the correct option affects your work rights, tax position, healthcare access, housing and paperwork.
What is active residency in Andorra?
Active residency is designed for people who will carry out professional or business activity in Andorra. You may qualify through an employment contract with an Andorran employer, by setting up or joining an Andorran company, or through another approved self-employed arrangement. The application is generally connected to a work authorisation and to the immigration quota in force at the time.
Employees normally need a valid job offer or contract, while entrepreneurs must demonstrate a genuine business project and meet the conditions for their chosen company structure. In some company-based applications, the applicant must hold a qualifying shareholding and perform an administrative or management role. The exact requirements depend on the activity and should be confirmed with the Govern d’Andorra before committing funds.
Typical active-residency requirements
- A valid passport and civil-status documents, usually legalised or apostilled and translated where required.
- An employment contract, work authorisation or evidence of an approved professional activity.
- Proof of accommodation in Andorra, such as a registered rental agreement or property documents.
- A clean criminal-record certificate from relevant countries of residence.
- Medical checks and the immigration forms requested by the Govern d’Andorra.
- Registration with the relevant local comú and, once working, affiliation with CASS, Andorra’s social-security system.
Active residents are normally expected to make Andorra their real home, commonly demonstrated by spending at least 183 days per calendar year in the country. This is also important when considering tax residence. Immigration residence and tax residence are related but are not identical tests, so obtain advice if you have international income, a company abroad or family members in another country.
What is passive residency in Andorra?
Passive residency, also known as residence without lucrative activity, is intended for people who do not plan to work locally. It can suit retirees, investors, financially independent applicants and some international families. The applicant must show sufficient financial means, suitable private health arrangements where applicable, accommodation and a qualifying investment or other route accepted under Andorran rules.
Passive residents generally need to spend a minimum period in Andorra each year, traditionally 90 days, while maintaining the required economic and personal connection. They cannot simply use this status as a substitute for an Andorran work permit. If you later want to work, you may need to change your immigration category and satisfy active-residency conditions.
Investment and financial conditions
Passive-residency rules can change through annual legislation. Depending on the route and current law, applicants may need to demonstrate income above a specified multiple of the Andorran minimum wage, provide a non-refundable deposit or guarantee to the AFA, and make a qualifying investment in Andorra. Recent rules have included a minimum investment threshold, with additional amounts potentially applying for dependants. Do not rely on an old blog or property agent summary: confirm the current figures directly with the Govern d’Andorra or an authorised adviser.
Qualifying investments may involve Andorran real estate, companies, financial assets or other permitted categories. Buying a property does not automatically grant residency. Check whether the asset qualifies, whether a minimum holding period applies and whether taxes and transaction costs are included in the required amount.
Active or passive residency: which is right for you?
- Choose active residency if you have an Andorran employer, will operate a real business or need to earn income from work carried out in Andorra.
- Choose passive residency if your living costs are covered by investments, pensions or overseas assets and you do not need local employment rights.
- Consider your family because dependants require their own documents and can affect financial, insurance and investment requirements.
- Plan taxation separately because becoming resident may make you subject to Andorran personal income tax rules. The general personal income-tax system includes exemptions and progressive rates, while IGI is the consumption tax applied to many goods and services.
Practical application steps
Start by selecting your parish and securing accommodation. Contact the relevant comú about local registration, then prepare apostilled documents, translations, financial evidence and a clear explanation of your work or investment plans. If employed, coordinate with the employer and immigration authorities. If creating a company, review incorporation, accounting and corporate-tax obligations before making the investment.
After approval, arrange CASS registration where applicable, banking, utilities and communications. FEDA manages electricity services, while Andorra Telecom provides telecommunications. Keep records of time spent in Andorra and renew your authorisation on schedule. Because quotas, fees and investment rules can change, verify every requirement with the Govern d’Andorra before submitting an application.
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