Living in Andorra: the essential guide to obtaining residency and settling with confidence

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🪪 The first thing you must understand about residency in Andorra

Before diving into this comprehensive guide on residency in Andorra, you may wish to read the general overview Living and working in Andorra: what you need to know before relocating, which offers a clear introduction to the key elements involved in moving to the country.

However, if you already understand the basics—or if you simply want all your questions answered—this article will be far more suitable for you.

Taking the step: is it right for me?

Before considering a decision of this magnitude, many questions naturally arise. If you want to explore the main concerns in an accessible and straightforward way, you can read the article Is Andorra the right move for you or your company?, which addresses the most common doubts clearly and effectively.

Exploring the most relevant concepts in depth

Living in Andorra begins with understanding a crucial point: there is no tax residency without administrative residency.
They are two different concepts, even though they are closely connected.

Administrative residency is the legal permit that allows you to live in the Principality.
Tax residency determines where you are genuinely taxed.

To explore this distinction in detail, you can consult: Administrative and tax residence in Andorra: key differences

If you want to understand the general framework of residence permits, you can consult Types of residence in Andorra: all administrative categories.

🔍 Active, passive and tax residency: the categories you must know

Although there are multiple sub-types, in practice residency options fall into two major groups:

• Active residencies: for individuals who work in Andorra (either employed or self-employed) or who carry out economic activities in the country.
• Passive residencies: designed for those who live in Andorra without performing local professional activity, but who meet economic, patrimonial or investment requirements.

To compare both¡, you can review Active vs passive residency in Andorra: key differences and how to choose the right option

If you want to analyse the differences from a broader perspective, you can consult Types of residency in Andorra: active, passive and tax residency (2025).

What matters most if you are retired

For retirees, or for individuals whose professional activity is no longer as intense, concerns, priorities and interests are different. That is why we have prepared the article Residency in Andorra for retirees: real requirements, limitations and alternatives, which will likely suit your situation much better.

🏡 Housing in Andorra: renting or buying to settle in the country

Regardless of the residency route chosen, you will need a place to live. This may be a rental property or a home you purchase, but it must comply with the legal requirements that demonstrate your effective presence in the country.

If you want to learn more about renting, you can consult Property rental in Andorra: from rigidity to flexibility

If your intention is to buy, we recommend reading Buying property in Andorra: real risks and how to protect your investment.

The market offers:

• central apartments in Andorra la Vella and Escaldes
• houses and chalets in quieter parishes
• elevated, sunny residential areas highly valued by expatriates
• family-oriented developments surrounded by nature

To understand the market in depth, you can consult The Andorran real-estate market (2019–2025): prices, new developments and access to housing.

📝 Buying property and foreign investment

If you decide to purchase a property, be aware that most acquisitions by non-residents require foreign investment authorisation.

Even for residents, authorisation may be required depending on the type of acquisition and the duration of residency.

To understand the process, you can consult Foreign investment authorisation in Andorra: when it is required and how the process works.

🧑‍💼 Professional activity, business or self-employment

One of the most common reasons for applying for residency is the intention to carry out professional activity within the country.

🏢 Incorporating a company in Andorra

Many applicants choose to create an Andorran company, especially if they seek active residency as self-employed or if they manage business or asset-based projects.

You can review the full incorporation process in Incorporating a company in Andorra: steps, requirements and advantages.

If you are not familiar with the system or are evaluating which aspects to clarify before beginning, you can read Key aspects to consider before incorporating a company.

For individuals with significant corporate or financial assets, a popular option is to set up a holding or asset-management company. Discover more in Holding companies in Andorra.

💡 Everything you may need to know

Finally, if you want to know absolutely everything about incorporating companies in Andorra, we recommend consulting The complete and definitive guide to incorporating a company in Andorra.

💼 Working as a “particular professional” (independent professional)

It is possible to work as a particular professional, the Andorran equivalent of a self-employed independent, although this option is not always available from the outset. In all cases, it requires obtaining a commercial authorisation.

You can learn more in Opening a business and obtaining commercial authorisation in Andorra: requirements and essential regulations.

However, once activity, complexity or risk increases, operating through a company tends to be the most advisable legal structure.

🌄 Lifestyle: why living in Andorra is different

Andorra offers nature, safety, stability and a truly distinctive lifestyle within Europe.

❄️ Climate and natural environment

With more than 300 days of sunshine per year, mild summers and mountain winters, the country is ideal for those seeking a healthy environment.
Clean air, altitude and direct access to nature are intrinsic parts of daily life.

To deepen your understanding, consult Climate in Andorra: pure air, four seasons and quality of life.

🍽️ Gastronomy, leisure and urban life

Despite its small size, Andorra offers:

• local and international restaurants
• wine bars and gourmet spaces
• thermal centres such as Caldea and Inúu
• shops open seven days a week
• a growing calendar of events and exhibitions

Coming soon:
➤ Leisure and lifestyle in Andorra

🎿 Nature and sport

Andorra is a true outdoor country:

• alpine, mountain and cross-country skiing. Discover more in Skiing in Andorra: Grandvalira Resorts, Pal Arinsal and Ordino Arcalís
• trekking and mountain routes
• via ferratas
• road cycling and MTB
• trail running and climbing

Many professional athletes choose to settle here due to the altitude, safety and quality of life.

🎒 Education: a unique system in Europe

Andorra offers four educational models:

• the Andorran system
• the Spanish system
• the French system
• private and international schools

All within a trilingual and multicultural environment.

To explore them in detail, you can consult Andorra’s educational models: a unique system of trilingual coexistence.

🌍 International community and social life

The country is home to an increasingly international community, with residents from Spain, France, Portugal, the United Kingdom, Belgium, Russia, Italy and many others.

Multilingualism is part of daily life: Catalan, Spanish, French and English coexist naturally.

Some useful associations for integration include:

• International Club of Andorra
• Communauté Francophone d’Andorre
• British Andorra Society
• local sports and cultural clubs in each parish

🏥 Healthcare in Andorra: how it works and what it covers

The Andorran healthcare system is modern, efficient and provides extensive coverage.

It operates through a reasonable co-payment model and ensures fast, effective access to medical services.

Andorra maintains healthcare agreements with Spain and France, allowing referrals, emergency care and specific treatments. Learn more in Healthcare in Andorra: how it works and what it really covers.

If you want to understand contributions and social-security benefits, you can consult The CASS in Andorra: contributions, coverage and key points for 2025.

💶 Taxation in Andorra: one of the main reasons to relocate

Andorra offers quality of life, safety and an extraordinary natural environment, but also a highly competitive tax system. It is a modern, internationally recognised and exceptionally advantageous framework:

• Personal income tax capped at 10 %, with effective rates between 2 % and 9 %. Personal Income Tax (IRPF) in Andorra
• Corporate tax capped at 10 %. Corporate tax in Andorra: rates, special regimes and deductions
• IGI (Andorran VAT) with a general rate of 4.5 %. VAT in Andorra: how the General Indirect Tax (IGI) works
• no wealth tax, inheritance tax or gift tax. Wealth tax in Europe: where it exists and why Andorra is an exception

You can review the full system in Taxation in Andorra: structure, tax rates and real advantages.

If your main focus is tax residency, you can read our specialised article Tax residency in Andorra: requirements and real advantages (2025).

🚗 Mobility, connections and access to the country

Andorra is well connected by road:

• 2 hours from Barcelona
• 2 hours from Toulouse
• 2 hours from the Costa Brava
• 2 hours from the Costa Daurada

Additionally, Andorra–La Seu Airport now operates regular and private flights. Learn more in Andorra–La Seu d’Urgell Airport: history, developments and the future of the Principality’s air gateway.

Public transport (bus services) connects the country regularly with Barcelona, Toulouse and La Seu d’Urgell.

🛡️ Safety and quality of life

Crime rates in Andorra are almost nonexistent.
The country is one of the safest environments in the world — a decisive factor for families, entrepreneurs and athletes.

This is complemented by:

• privacy
• accessible nature
• modern services
• fibre-optic coverage throughout the country
• a multicultural environment
• a healthy climate
• the services of a major city (6 to 12 million annual visitors) combined with the advantages of a small, controlled environment (90,000 inhabitants)

For a practical, structured overview with all the essential resources to settle in Andorra with confidence and sound judgement, you may also consult Settling in Andorra with good judgement: essential resources for expatriates.

🧾 Conclusion: why living in Andorra is a sound decision

Andorra combines safety, stability, competitive taxation, natural surroundings and genuine quality of life.

It is a country designed for people who value peace of mind, good judgement and a sustainable life project, with international projection and all essential services within reach.

If you are considering relocating, we can guide you through the entire process with clarity, integrity and sound professional criteria. Feel free to share your case through our contact form.

However, if you prefer a confidential meeting, wish to discuss your questions in depth and want highly personalised guidance from the outset, you may book a meeting using the link placed just below this article—or here.

We have extensive experience assisting entrepreneurs, elite athletes, professionals in personal or digital entertainment, high-net-worth individuals, investors, expatriates and families.

We are driven by the passion for doing things properly, and above all, for building long-term relationships. Because doing things right from the start ensures peace of mind for tomorrow.

Last updated: November 2025