Tax Residence

At IS21, you will find the right advice to answer all your questions and a personalized guide to apply for and obtain the residence permit you need to live in Andorra. Contact us and explain your case, and we will assist you effectively without obligation.

Below, you will find useful information to understand the specifics of obtaining fiscal residency in Andorra.

Table of Contents:

1. Fiscal Residents in Andorra
2. Active Residency
3. Active Residency for Self-Employed Individuals
4. Passive Residency
5. Other Special Cases of Residency in Andorra

Fiscal Residents in Andorra

The fiscal resident in Andorra is the person or entity that, according to the Principality's legislation, is obliged to pay taxes on their global income, meaning all income obtained both inside and outside the country. This status allows you to benefit from the country's attractive tax advantages, which are far more appealing than those of surrounding countries.

Fiscal residency is determined by the criteria established by Andorra’s tax laws. For individuals, there are 3 types of residencies:

• Active residency, which authorizes you to reside in the country for work purposes.
• Active residency for self-employed individuals, allowing you to reside in the country and run your own business.
• Passive residency , which authorizes you to reside in the country without working.

 

Each of these has specific criteria and requirements for obtaining fiscal residency in Andorra.

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Active Residency

This is offered either temporarily or permanently, depending on the country's quota system. It can be requested, according to current legislation, by any new arrival in the country who:

• SComplies with the established quota. Not all applications are accepted. The first step is to ensure there is an open quota for the incorporation of foreigners in the sector or workplace for which the application is made, and that all requirements are met.
• Holds a work contract with a legally constituted company in the country.
• Establishes permanent and effective residency in the Principality of Andorra.

 

To submit the application, you will need to provide the following legalized documents at a minimum:

• Application form for active residency.
• Original and photocopy of a valid passport.
• Criminal record certificate with a sworn declaration document.
• Passport-sized photograph.
• Proof of accommodation in Andorra or a certificate of residence.
• Civil status certificate.
• Curriculum Vitae with supporting professional documents.
• With a favorable medical review.
• Work contract.

 

Additionally, once accepted, you must register at the "Comú" (municipal office) of the parish where you reside within a maximum of 3 months.

Furthermore, it is recommended to carry out certain procedures and strategies to facilitate your stay in the country. Don’t hesitate to contact us to ensure your peace of mind and a smooth start to your new residency.

Active Residency for Self-Employed Individuals

This allows you to reside and carry out self-employment activities on a permanent basis during the validity of the authorization. It can be requested, according to current legislation, by any new arrival who:

• Complies with the established quota.
• Engages in self-employment.
• Establishes permanent residency in the Principality of Andorra.

 

In addition to the required documentation for the application, the following is also necessary:

• Obtaining the corresponding foreign investment authorization to establish an Andorran company in which you own more than 34% of the shares, and the company must be legally constituted.
• Holding a position on the board of directors of the same company.
• Providing proof, within a maximum of 3 months from the submission date of the immigration authorization request, that the legally constituted company referenced above is the owner of a duly registered and operational business in the Principality of Andorra.
• Depositing an amount of fifty thousand (50,000 euros) with the Andorran Financial Authority (AFA) at the time of submitting the immigration authorization request. This deposit is non-interest-bearing.

 

Passive Residency

This allows you to reside and have fiscal residency in Andorra without working or, in specific cases, to carry out professional activities, provided that the main clients are individuals or entities not residing in the Principality.

Since the entry into force of the foreign investment law, the profiles eligible for obtaining passive fiscal residency in Andorra have been expanded to stimulate the country's economic growth..

Thus, passive residency is divided into 4 categories of individuals or permits, each with its respective procedures and requirements:

1. Residency without lucrative activity.
2. Residency for professionals with international projection.
3. Residency for reasons of scientific, cultural, or sports interest.
4. Residency for admission to a geriatric center or medical or therapeutic care center, provided they are private.

 

You can find all the information regarding the procedures and requirements for each case on Andorra's official immigration website (in Catalan) or contact us directly for personalized, fast, and effective advice.

Other Special Cases of Residency in Andorra include:

• Family reunification residency.
• Cross-border work permits.
• Residency for digital nomads.
• Residency for participants in entrepreneurial programs.
• Residency and work permits for educational center staff.

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