If you have decided to establish your residence in Andorra, it is crucial to understand how to obtain active residence to become a permanent resident. At MCA Assessors, we have all the information and experience necessary to provide you with everything you need to know about active residency in Andorra.
Passive or active residency in Andorra: Which one is right for you?
Residency programs in Andorra are designed for two types of people: those who wish to establish a permanent home and those who are looking for a temporary stay in the country. If your intention is to live and work long-term, active residency in Andorra is the ideal option. Unlike passive residents, active residents must commit to reside and work full-time in the country and are considered active members of the community.
To obtain active residency, you must be willing to make Andorra your primary place of residence. This implies working, living, and actively participating in the community life of the country. It is not necessary to be present 365 days a year, but you are required to spend at least 183 days a year in Andorra to maintain tax resident status.
Beneficios de la residencia activa en Andorra
Active residency offers a number of benefits for those who wish to settle and live full-time in this country. Here’s why choosing active residency can be a beneficial decision:
Access to health and social services
As an active resident in Andorra, you have full access to the country’s health care system, which stands out for its efficiency and quality. In addition, you can benefit from social security and other social services that guarantee a high level of welfare and protection.
Rights and community participation
Active residents in Andorra enjoy similar rights to Andorran citizens, except the right to vote in national elections. This includes full participation in community life, contributing to local development and integration.
Low levels of taxation
Andorra is known for its attractive tax regime, with one of the lowest tax rates in Europe. As an active resident, you can benefit from this favorable tax environment, which is especially beneficial for entrepreneurs and professionals who wish to maximize their income.
High quality of life
Andorra offers an excellent quality of life, supported by a high life expectancy and a safe and clean environment. With its privileged location between France and Spain, you enjoy a spectacular natural environment, clean air, and a wide range of recreational and leisure activities.
International and multilingual education
Obtaining active residence in Andorra is ideal for families. It offers an international and multilingual education system that provides high-quality educational options for children. This aspect is crucial for many expatriate families seeking a diverse and accessible education for their children.
How can you obtain active residency?
There are two main ways to obtain active residency, each with specific requirements and benefits:
Self-employment
If you are an entrepreneur or business owner and wish to establish full-time residency in Andorra, you can opt for the residència i treball per compte propi program. This program requires a minimum investment and offers an attractive tax rate of 10% for annual income over €40,000. To qualify, you must meet requirements such as the purchase or rental of a property in Andorra, an approved foreign investment, a deposit of €50,000 to the Andorran Autoritat Financera Andorrana (AFA), and the incorporation of a local company, among others. Additional benefits include the possibility of employing additional staff, doing business without restrictions, and contributing to the Andorran social security system (CASS), which is essential to maintain active residency in Andorra.
Through an employment contract
If you prefer to work for an Andorran company, you can obtain active residency through an employment contract. It is important to note that the government gives priority to local citizens when granting work permits, as well as those from Spain, France, and Portugal. You will need a valid job offer, accommodation in Andorra, and basic documents such as apostilled police certificates.
What requirements and documentation are needed?
To start the application process for active residency in Andorra, you will need the following apostilled or legalized documents:
- Original and copy of your passport or DNI if you are an EU citizen.
- Apostilled police certificates (from your country of birth and residence).
- Rental contract or property deed.
- Certificate of Civil Status (apostilled only if it is for family reunification).
These documents must be recent, so they have to be issued within the last three months.
In conclusion, active residency in Andorra is a fantastic option for all those who are looking to optimize their taxation. At MCA Assessors, we have a team of expert advisors who will help you process your residency smoothly and quickly.
