Self-employment residence in Andorra: requirements, advantages and real taxation

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Context and historical evolution

The self-employment residence — also known as active residence for self-employed professionals — is one of the most common options chosen by entrepreneurs and professionals who wish to settle in Andorra and manage their own business activity.

This scheme has become an accessible and secure alternative within Andorra’s immigration policy, offering a stable and fiscally attractive legal framework.

Historically, this residence type did not require any deposit. Later, an amount of €15,000 was introduced, and since the reform of Decree 163/2022 of 21 December, the mandatory deposit with the AFA has been increased to €50,000 for the main holder, refundable in case of renunciation of the residence.

In practice, the process is not as fast as one might hope, but with good planning and professional support, residence can be obtained in less than five months.

In any case, we recommend reviewing our publications section, as although the general requirements outlined in this article may remain valid, recent regulatory changes or the lack of available quotas — which depend exclusively on Government decisions — may limit or even prevent their granting in the short or medium term.

It is also worth noting that Andorra has followed an increasingly restrictive approach to residence permits and foreign investment. As a result, obtaining residence has become progressively more complex, while at the same time the number of new residents authorised each year has steadily decreased.

Legal framework and definition

The Qualified Immigration Law 9/2012, amended by the Law 5/2025 (Omnibus Law), regulates the authorisations for residence and work as a self-employed person, while the Immigration Service Regulation (Decree 256/2025) specifies the applicable requirements.

➤ To better understand how these categories are structured and which profile each applies to, you can read Types of residence in Andorra: active, passive and fiscal.

This authorisation allows the holder to legally reside and work in Andorra as a partner and administrator of an Andorran company, carrying out an economic activity independently.

➤ For more information about living and working in Andorra, we recommend reading our dedicated article.

Main requirements

To obtain self-employment residence, the following conditions must be met:

• Hold at least 35% of the share capital of an Andorran company.
• Actively perform management or executive functions within the company.
• Deposit €50,000 with the AFA (Andorran Financial Authority), non-remunerated and refundable upon termination of residence. Learn more about the deposit in the article The residency deposit in Andorra: origin, evolution and applicable regimes
• Have an Effective domicile in Andorra and continuous residence in the country (previously, the requirement was 183 days; the law now provides a more general definition). Learn more in Where to live in Andorra: a complete guide to areas, towns and real differences between parishes
• Register with the CASS as a self-employed worker, with specific regimes and contributions explained in CASS in Andorra: regimes, contributions and social coverage.

If family members (spouse, children or parents) are to be reunited, the general family reunification regime applies, as explained in Family reunification in Andorra: requirements, time frames and applicable percentages.

Taxation and advantages

One of the main reasons for choosing Andorra as a place of residence is its competitive and stable tax environment.

• Corporate tax: 10% (with possible reductions during the first years). You can consult the article Corporate tax in Andorra: rates, special regimes and tax deductions if you wish to go deeper.
• Andorran personal income tax (IRPF): maximum rate of 10%, with broad exemptions. ➤ For more information, we recommend reading the article Personal income tax (IRPF) in Andorra.
• IGI (Andorran VAT): 4.5%. Learn more in the article VAT in Andorra: how the general indirect tax (IGI) works.

In practice, this residence allows individuals to benefit from a tax burden well below the European average, combined with legal certainty, an advanced digital infrastructure and low business operating costs.

Holders of this residence can fully control their income, work independently, and invoice internationally without territorial limitations.

To gain a more detailed understanding of how the Principality’s tax system is structured, you can read Taxation in Andorra: a practical guide to understanding taxes, obligations and real risks.

If you are only looking for an overview of the tax system, you can consult Taxation in Andorra: structure, tax rates and real advantages .

🔹 Main advantages and key features

Beyond the tax aspect, it is important to clarify the following:

• This type of residence is generally the most suitable for individuals who intend to carry out economic activities in the country. Although this may also be possible under other residence schemes, this option allows it without the need for additional mechanisms.
• Individuals who carry out a self-employed activity, and not necessarily as regulated or licensed professionals, may find in this residence permit the equivalent of the “freelancer” or “self-employed” status in other countries.
• Unlike passive residence permits, the ability to carry out economic activities helps consolidate the centre of economic interests in Andorra, a key factor in ensuring that tax residency is not challenged.

You can explore the concept of tax residency in more depth in the article Tax residency in Andorra: requirements and real advantages.

In addition, if you still have questions and would like to better understand the differences between active and passive residence permits, we recommend our dedicated article Active vs passive residence in Andorra: key differences and how to choose the right option.

Comparison with other types of residence

Andorra distinguishes three main residence categories:

• Residence and work for others, intended for employees under a labour contract.
• Residence and work for self-employment, designed for professionals who manage their own company or project.
• Passive residence, aimed at investors, retirees or individuals without economic activity in the country.

These modalities are explained in more detail in Types of residence in Andorra: active, passive and tax residency, and also in Passive residence in Andorra: evolution, requirements and legal framework.

If you wish to understand all residency types available in the Principality—not only the main ones—you can explore the article Types of residency in Andorra: all administrative modalities.

Procedure and time frames

The process of obtaining self-employment residence involves several administrative steps, but it is perfectly manageable with proper guidance. The main phases are as follows:

• Obtaining the NIA (Andorran Identification Number).
• Foreign investment authorisation, if the partner is not yet a resident — the most common case.

➤ This step is explained in detail in Foreign investment authorisation in Andorra: when it is required and how to apply.

• Incorporation of the Andorran company, usually as a limited company with a minimum share capital of €3,000.

➤ To learn more about the real steps and timelines to incorporate a company, as well as the available legal forms and current requirements, you can read Incorporating a company in Andorra: steps, requirements and advantages. If you are looking for a broader and more comprehensive overview, you can review the article The definitive guide to setting up a company in Andorra.

• Registration with the Commercial Registry and obtaining the NRT (tax registration number).
• Deposit of €50,000 with the AFA.
• Formal application for self-employment residence and work submitted to the Immigration Service.
• Obtaining the commercial authorisation. Learn more in Opening a business and obtaining commercial authorisation in Andorra: key requirements and essential regulation.
• Registration with the CASS (see more details about contributions in the specific article).
• Registrations with other public institutions.
• Formal deregistration in the country of origin.

Under normal conditions, the entire process — from company incorporation to the granting of the permit — can be completed within five to six months.

What to consider before choosing self-employment residence in Andorra

Self-employment residence in Andorra is currently one of the most appealing options for entrepreneurs, liberal professionals and investors seeking legal certainty, low taxation and high quality of life.

With a moderate initial investment, a stable economic environment and a clear, competitive tax regime, Andorra provides an ideal setting to develop international projects from a safe, prosperous and well-connected country.

It is, however, highly advisable to stay updated on all developments regarding immigration and residency. We recommend visiting our Publications section — especially the news articles — since changes or clarifications by the Government are frequent. A good example is the article we published summarising the new immigration guidelines, available on our website.

If you need a broader perspective on establishing yourself in Andorra, beyond this specific type of residency, you can consult the article Living in Andorra: the essential guide to obtaining residency and settling with confidence.

📞 Do you need help or professional advice?

If you wish to analyse your situation and verify whether you meet the requirements to obtain self-employment residence — or simply want up-to-date information on the latest conditions — you can request your personalised meeting below or fill in the contact form.

Last review date: January 2026