Long-term Expat Guide in Andorra

Andorra, while not part of the Schengen Area, is accessed via Spain or France, meaning visitors typically need to comply with Schengen entry rules to reach its borders. For long-term stays, specific residency permits are required.

• Visa-free entry and tourist stay limits: Citizens of the EU/EEA/Switzerland can enter Andorra freely and reside without a visa, though they must register for residency if staying longer than 90 days. For other major passport holders (e.g., USA, UK, Canada, Australia), entry into the Schengen Area (via Spain or France) is typically visa-free for up to 90 days within any 180-day period. This allows transit to Andorra for tourist purposes. For stays exceeding 90 days, a residency permit is mandatory.

• Temporary residency tracks: Andorra offers several pathways to temporary residency, primarily managed by the Servei d'Immigració (Immigration Department):

  • Active Residency (Residencia i Treball): For individuals employed by an Andorran company or self-employed individuals establishing a business in Andorra. Requires a job offer or a viable business plan, and the applicant must spend at least 183 days per year in Andorra.
  • Passive Residency (Residencia sense Activitat Lucrativa): For individuals who do not work in Andorra but wish to reside there. This typically requires a significant investment in Andorran assets (e.g., government bonds, real estate, or capital in an Andorran company). As of April 2026, the minimum investment is generally €600,000, with a €50,000 non-interest-bearing deposit to the Andorran Financial Authority (AFA) and an additional €10,000 per dependent. Applicants must reside in Andorra for at least 90 days per year and prove sufficient income (typically 300% of the average Andorran salary for the main applicant, plus 100% for each dependent).
  • Residency for Professionals with International Projection (Digital Nomads): Introduced to attract talent, this category falls under a specialized active residency. It targets individuals whose professional activity is conducted primarily outside Andorra. Requirements include establishing a company in Andorra, providing a business plan, and demonstrating sufficient income. While not a standalone 'digital nomad visa' in the traditional sense, it caters to remote workers and entrepreneurs. Specific income thresholds and investment requirements apply, often aligning with active residency but with a focus on international business.
  • Student Visas: For those enrolled in accredited educational institutions in Andorra. Requires proof of enrollment, financial means, and accommodation.
  • Family Reunion and Dependent Visas: Spouses, minor children, and dependent parents of an existing Andorran resident can apply for residency under family reunification. The main resident must demonstrate sufficient financial means and adequate accommodation.

• Permanent residency: Andorra does not have a direct "permanent residency" status in the way some countries do. Residency permits are typically renewed. After a period of continuous residency (e.g., 5-10 years, depending on the type of residency), individuals can apply for long-term residency permits, which offer greater stability and longer validity periods (e.g., 10 years).

• Citizenship: Andorran citizenship is notoriously difficult to obtain. Requirements include:

  • Long-term residency: Generally 10 years of continuous active residency or 20 years of continuous passive residency.
  • Renunciation of previous citizenship: Andorra generally does not permit dual citizenship.
  • Knowledge of Catalan: A high level of proficiency in the official language is required.
  • Knowledge of Andorran history and culture.
  • Integration into Andorran society.

• Work permits and employment authorisation for foreigners: A work permit is intrinsically linked to active residency. Foreigners must secure a job offer from an Andorran employer who then initiates the application process on their behalf. The employer must demonstrate that the position could not be filled by an Andorran or EU/EEA citizen. Self-employed individuals obtain a work permit as part of their active residency application.

• Application process: Applications are submitted to the Servei d'Immigració in Andorra la Vella. Key documentation typically includes:

  • Valid passport.
  • Criminal record certificate from country of origin and any country of previous residence.
  • Marriage certificate (if applicable).
  • Birth certificates (for dependents).
  • Proof of accommodation in Andorra.
  • Proof of financial means (bank statements, employment contract, business plan).
  • Health insurance.
  • Medical certificate from an Andorran doctor.
  • Application fees (variable, typically a few hundred EUR per application, subject to change).
  • Timelines: Processing can take several weeks to a few months, depending on the complexity and type of residency.

• Renewal procedures: Temporary residency permits are typically issued for an initial period (e.g., 1 year), then renewed for subsequent periods (e.g., 2 years, then 3 years, then 10 years for passive residency). Active residency renewals follow a similar pattern. Renewals require updated documentation, proof of continued compliance with the original residency conditions (e.g., minimum stay, employment, investment), and payment of renewal fees.

• Common pitfalls and refusal reasons:

  • Incomplete or incorrect documentation.
  • Failure to meet financial requirements or investment thresholds.
  • Criminal record.
  • Failure to comply with minimum stay requirements for passive residency.
  • Lack of a genuine job offer or viable business plan for active residency.
  • Providing false or misleading information.

Andorra is known for its favorable tax regime, but foreigners becoming residents are subject to its tax laws. It's crucial to understand these obligations, and professional advice from a local tax advisor is highly recommended.

• Tax residency rules: A foreigner becomes a tax resident in Andorra if they spend more than 183 days in the country during a calendar year. Alternatively, if Andorra is the center of their economic interests (e.g., primary source of income, business activities), they may also be considered a tax resident, even if they spend less than 183 days.

• Income tax rates and brackets for residents vs non-residents (IRPF - Impost sobre la Renda de les Persones Físiques):

  • Residents: Andorra operates a progressive income tax system. As of April 2026, the rates are generally:
    • 0% for annual income up to €24,000.
    • 5% for annual income between €24,001 and €40,000.
    • 10% for annual income exceeding €40,000.
  • Non-residents: Non-residents are generally taxed only on income sourced within Andorra, typically at a flat rate of 10% on gross income, with some exceptions.

• Double taxation treaties (DTTs): Andorra has signed DTTs with several countries to prevent individuals from being taxed twice on the same income. Key countries with active treaties include:

  • Spain
  • France
  • Portugal
  • Luxembourg
  • Liechtenstein
  • Malta
  • Cyprus
  • United Arab Emirates (UAE)
  • San Marino
  • Belgium
  • Netherlands
  • Croatia
  • Hungary
  • Monaco
  • Czech Republic

• Social security and pension contributions for foreigners: All employed and self-employed residents in Andorra are required to contribute to the Caixa Andorrana de Seguretat Social (CASS). This covers healthcare, sickness, maternity, disability, and retirement pensions. Contributions are mandatory and are deducted from salaries for employees (typically around 6.5% of gross salary, with employers contributing around 15.5%). Self-employed individuals pay a fixed monthly contribution, which is generally higher, covering both employer and employee portions (e.g., approximately €450-€500 per month as of early 2026, subject to income adjustments).

• Tax filing requirements, deadlines, and how to file:

  • Tax residents must file an annual income tax return (IRPF) for the previous calendar year. The filing deadline is typically around March 31st to April 30th of the following year.
  • Returns are filed electronically through the Govern d'Andorra's Tax Department (Departament de Tributs i Fronteres) online portal or with the assistance of a local tax advisor.

• Tax deductions and allowances available to expats: Residents can benefit from various deductions and allowances, including:

  • Personal allowance (e.g., €24,000 for single individuals).
  • Family allowances for dependents.
  • Deductions for mortgage interest on a primary residence.
  • Contributions to private pension plans.
  • Donations to approved charities.

• Property ownership tax for foreigners:

  • Property Transfer Tax (ITP): When purchasing property, a transfer tax is levied, typically around 4% (split between the local commune and the government).
  • Local Property Tax (Impost sobre la Propietat Immobiliària): An annual municipal tax based on the cadastral value of the property, varying by parish.
  • Rental Income Tax: Rental income is subject to income tax (IRPF) for residents, or non-resident income tax for non-residents.

• Capital gains tax: Capital gains from the sale of real estate are generally taxed at a rate of 10%. However, exemptions or reductions may apply, for example, if the property has been held for a long period (e.g., more than 10 years) or if it is the primary residence and the proceeds are reinvested in another primary residence in Andorra.

• VAT and other indirect taxes affecting daily life: Andorra has a low indirect tax called Impost General Indirecte (IGI), similar to VAT. The general rate is 4.5%. Reduced rates apply to certain goods and services (e.g., 0% for education, 1% for food and water, 2.5% for cultural services, 9.5% for banking and financial services).

• Wealth or net worth taxes: Andorra does not levy a wealth or net worth tax.

• When to engage a local tax advisor: It is highly recommended to engage a local tax advisor upon relocating to Andorra. They can provide tailored advice on tax residency, optimize your tax structure, assist with filing obligations, and ensure compliance with Andorran and international tax laws, especially considering DTTs and potential implications for assets held outside Andorra.

• Penalties for non-compliance: Penalties for late filing, underpayment, or non-compliance with tax obligations can include fines and surcharges. Serious tax evasion can lead to more severe legal consequences.