Active Residency in Andorra

It might not be everyone’s cup of tea, but if you want to relocate long term and make Andorra your home, active residency is a great option. Just remember, this will require you to spend most of your time in the country. You’ll also be required to pay into the social security program and the healthcare system—benefits that you can enjoy as a permanent resident.

The following apostilled documents (dated within three months) are needed for your application: 

There are two ways to obtain active residency, each with its own set of requirements, benefits and conditions. Which route you opt for will depend on your unique needs. We’ll break each of them down below.

1. Self-Employment

If you’re self-employed or own a company in Andorra, you’re eligible for Andorra’s active residency program—locally known as residència i treball per compte propi or Compte Propi in short.

This form of residency is exclusively reserved for entrepreneurs and proprietors who want to take up full-time residence in the country. The minimal investment requirements and a low tax rate of 10% for annual income exceeding €40,000 are what make this Andorra residency option attractive.

Generally, the country offers around 900 positions per year under this type of residency. In order to qualify you will need to meet a few requirements, including:

If you are seeking active residency under this category, you are required to own more than a 34% share of a local company and you must also be a working director.

Note: you do have the option of owning a 100% stake in an Andorran company.

The main advantage of active residency through self-employment is that you can employ more than 1 person and you can do business in Andorra with no limit, as opposed to the requirements for passive residency.

Paying Into the Social Security Program (CASS)

Before we proceed to the next section, we must mention that one of the most important prerequisites for active residency through self-employment is that you’ll need to pay into the social security program.

Generally, this will require you to pay a fixed rate as opposed to the standard 22% that contractors/employees in the country are expected to pay.

• Fixed-rate payment to CASS: €450-€500* per month

*The fixed rate is calculated at 22% of the average salary in Andorra. While it usually hovers around the €2,000 mark, it does fluctuate from year to year. This in turn means the fixed rate payment to CASS for self-employed people will also vary slightly from one year to the next. 

Many new residents aren’t used to paying this amount of money. However, it is important to understand that this money goes towards the government-run health insurance program and social security funds. This healthcare system covers 95% of your total hospital bill and 75% of all other medical expenses. Workplace injuries are covered 100%, as is childbirth.

With that in mind, this amount can be considered a good investment.

Residency for Dependents

One important thing worth mentioning is that dependent family members are not permitted to become residents until the company shareholder has held residency for at least one year. This does not apply if you are French, Spanish or Portuguese.

2. Via a Work Contract

Acquiring active residency in the country through a work contract requires you to have a job offer from an Andorran company. Keep in mind that the government gives priority to its own citizens, and those of Spain, France and Portugal when issuing work permits.

You’ll also require basic documents, such as proof of accommodation in Andorra and an apostilled police clearance from your birth country as well as your country of residence. You want the latter sent to you as late as possible (right before your arrival date) because they are only valid for three months.

You’ll also need to undergo a basic medical exam and sign a few forms. If you arrive in Andorra without employment, you'll need to scour local job boards and contact local business owners as quickly as possible. That said, if you're looking to secure active residency here we definitely do not recommend arriving without a job already lined up.

Some of the pathways towards acquiring active residency through a work contract include:

Seasonal Work

One of the most commonly used options to obtain a visa is via a seasonal work permit. These permits are ideal for English speakers, especially those who can work at ski resorts or in the tourism/hospitality industry. For the most part, you’ll find these permits are mostly available during peak tourist season (November through May).

The administrative fees for seasonal work permits are paid for by the employer. However, since each work permit is limited to three months (once it expires, you’ll be given one week to leave the country) it's probably not the best route to take if you're seeking active residency, as there's only a very slim chance that it could lead to a permanent job. 

Teaching English to Non-native Speakers

Another way to obtain a work permit is by getting hired to teach English to non-native speakers. Unsurprisingly, this only applies to those who are both fluent in English and good at teaching. (Speaking the language and being able to teach effectively are very different skillsets.) Schools often love to hire English speaking language teachers and are open to granting permits for them to do so. If you are a native English speaker, this is a well-paying path to a work permit that could lead to active residency.

Sponsorship

Active residency seekers can find additional work permits if they are looking to stay in Andorra long term. One of the best means to do this is through sponsorship. A local Andorran employer can choose to sponsor foreign workers if they are unable to fill a position via the local employment pool.