Being an expat in Andorra is a challenge, but that is why we want to put a team of experts at your disposal to accompany you throughout the process. Come to MCA Assessors and discover our services. You can settle quickly in the Principality and forget about the worries of immigration procedures.
How to become an expat in Andorra?
Expat means expatriate and is an alternative for those who wish to establish residence in another country, in this case, in Andorra. The Principality, which borders France and Spain, has become the preferred destination for many digital nomads and people who want to invest and establish their businesses in the country. However, to do so, it is essential to follow a series of procedures and meet specific requirements.
Once you are fully established, Expatriate life in Andorra is synonymous with quality and well-being. Andorra is one of the countries with the highest quality of life. In addition, it has a first-class health system and a quality education system, perfect for families with children. On the other hand, Andorra offers security to its citizens thanks to its low crime rate. And, if that is not enough, it is also a country with a meager unemployment rate.
For investors, Andorra is an excellent destination due to the low taxation of the country. But if you will establish your residence in the Principality, you must know the procedures to follow before moving. To do this, do not hesitate to contact our experts at MCA Assessors; we provide advice for expatriates! In addition, we accompany you throughout the expatriation process to make it a success.
Process to become an expat in Andorra
Becoming an expat in Andorra varies depending on what you want to do in the Principality. Nowadays, the country has become home to digital nomads and content creators but also to small and medium-sized companies that establish their commercial activity here. On the other hand, it is also the perfect place for Spanish workers who get a job in an Andorran company and even for people who want to live a peaceful retirement and retirement.
That is why the expat process in Andorra is very diverse, having in common that it is necessary to obtain the Andorran residency. To get the residence implies fulfilling different requirements because you have several options depending on your economic activity. For example, if you want to live and work in the Principality, you need an active residence. Through this type of residence, expats in Andorra can live there and carry out professional activities as self-employed or employed.
Active residence in Andorra
As mentioned, the active residence allows you to live in the Principality and develop a professional activity on your account or for an Andorran company. In the first case, opening your own company or society is necessary. We are going to focus on this type of residence since it is the one that requires more bureaucratic procedures and stringent and specific requirements.
To incorporate a company in Andorra, it is necessary:
- Establish residence in the Principality for at least 183 days a year.
- Deposit 50,000 euros to the Andorran Financial Authority (AFA). This deposit is recoverable.
- To be or hold a position as a director of the company.
- Incorporate a company domiciled in the Principality. You must own at least 34% of the share capital.
- Present a certificate attesting to the lease or purchase of a property in Andorra.
- Provide a criminal record certificate from the country of origin.
- For qualified professionals, proof of registration with a professional association.
- To exercise an activity on one’s account.
- Fulfill the mandatory medical examination and that the result is satisfactory. This review is done at the immigration department of Andorra.
- Submit a CV, as well as a certificate of marital status.
This residence permit is valid for an initial period of one year and then renewed three times every two years. After seven years, the permit will be renewed every 10 years.
Passive residence: expat in Andorra
Do you want to be an expat in Andorra with a passive residence? Another type of residence is the passive one. It is granted to those who only want to live in the Andorran territory without carrying out any lucrative labor activity. That is to say, with this permit, it is not possible to work in the Principality.
This type of leave is available to people who, for example, want to live their retirement and retirement in absolute peace of mind. However, it is not exempt from a series of requirements. The first is to prove that they have sufficient income and means to subsist without the need to work in the country. In addition, of course, it is necessary to make the corresponding deposit with the FDA for the permit holder and the people who depend on him (for example, the children).
Passive residence in Andorra can also be granted to those with scientific, cultural, and sporting interests. This permit is specifically designed for researchers, sportsmen, and artists who want to do an activity in the Principality, but not for profit. To be eligible for this type of residence, it is necessary to have a certificate that proves that they have the required knowledge, such as a university degree.
Last but not least, we find the permit for those people who, for medical reasons, need to settle in Andorra for a long recovery.
Join the expat community in Andorra!
Why be an expat in Andorra? We tell you that the Principality is attractive to many investors and self-employed professionals because of its low taxation. The tax rate for personal income is a maximum of 10% and those who do not exceed a minimum income are exempt. Companies also pay low taxes, and of course, we cannot leave out the IGI (Andorran VAT), which has a general rate of 4.5%. Quite low compared to the Spanish 21%!
As we have already mentioned, Andorra has an incredible health and education system. It is a country that encourages physical activity through various hiking trails, green areas and ski resorts. It has an unbeatable climate and, all together, has made life expectancy in Andorra to be 83.5 years.