Settling in Andorra with confidence: essential resources for expatriates

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🌄 Understanding Andorra beyond paperwork

Moving to Andorra is about much more than choosing a type of residence or calculating your taxes. To live in the country with stability and foresight, it’s essential to understand how day-to-day life actually works: healthcare, education, housing, the international community, and the financial system.

This guide brings together the most useful and reliable resources for anyone considering relocating to Andorra. It is not a superficial checklist, but a structured perspective designed to help you avoid common mistakes, anticipate your needs and make decisions calmly and confidently.

🛂 Residency and immigration: the legal pathways and what they imply

Before starting any immigration process, it is essential to understand which options exist and how well they fit your personal or professional situation. Andorra offers several types of residency permits, each with its own requirements and limitations.

1️⃣ The most common residency categories

Before going deeper, it is very important to distinguish administrative residency from tax residency. For this reason, we recommend the article Types of residency in Andorra: active, passive and fiscal, which outlines the main differences and implications.

Regarding administrative residency, two major groups stand out: active residencies and passive residencies.

🔋 Active residencies

Active residencies allow you to live and work in Andorra or carry out economic activity. Although there are several sub-categories, this is the most common group—both for employees and for those who intend to create their own company.

If you want to learn more about setting up a business in the country, we recommend Setting up a company in Andorra.

For those who do not intend to work as employees—but rather as entrepreneurs, freelancers or independent professionals—self-employment residency is usually the most suitable option.

You can explore this in Self-employment residency in Andorra: requirements, advantages and real taxation.

🪫 Passive residencies

Passive residencies allow you to live in Andorra without carrying out direct economic activity. They are designed for investors, retirees, or individuals with international income streams. They involve investment, a financial deposit and a minimum stay requirement.

More information is available in Passive residency in Andorra.

⚠️ Special residencies

There are also special residencies, aimed at elite athletes, artistic profiles or individuals of international interest. However, they are not always the most advisable route, and even the profiles they are designed for often choose other categories.

2️⃣ Key considerations before starting the process

Making the right decision means understanding:

• The compatibility between Andorran rules and your home country’s regulations.
• The real—not theoretical—processing times.
• Frequent mistakes: missing documentation, tax residency issues, misunderstandings of local requirements.

If your goal is also to obtain tax residency, we recommend reading Tax residency in Andorra, which covers all relevant elements.

💼 Taxation and finance: low taxes, clear rules and solid legal certainty

Andorra is known for its competitive taxation, but it is neither opaque nor a tax haven. The country follows European standards and requires rigorous compliance. For expatriates, understanding the tax structure is essential.

⚖️ Core elements of Andorra’s tax system

As in most developed countries, the tax framework includes several categories. The main ones are outlined below; for a full overview, you can read Taxation in Andorra.

🔸 Main taxes

1. Personal income tax (IRPF) has a maximum rate of 10%, though the effective rate is often lower thanks to exemptions and deductions.
   ➤ See Personal Income Tax (IRPF) in Andorra for more details.
2. Corporate tax is also 10%, with specific regimes and deductions for strategic activities.
   ➤ More information in Corporate tax in Andorra.
3. Financial income—domestic dividends, most capital gains and other investment income—benefits from an extremely favourable treatment, often resulting in almost no taxation, which is why we consider it relevant to address it separately.
   ➤ Explained in How financial income is taxed in Andorra.

🔸 Double taxation treaties

No international tax system is complete without Double Tax Treaties (DTTs), which prevent double taxation, limit withholding taxes and clarify the treatment of cross-border income.

➤ Full list in Double tax treaty agreements in Andorra.

🔸 The financial sector: Andorran banking

Andorra’s banking system—integrated into SEPA—has solid international capabilities.
More details can be found in Andorra’s banking system.

You can also explore topics such as SEPA, banking privacy, or sending money from Andorra in our specialised articles.

🏘️ Housing and real estate: navigating a small and competitive market

The Andorran property market behaves very differently from Spain or France. Supply is limited, prices vary across parishes, and foreign investment is subject to specific requirements.

🟡 What you need to know before looking for a home

To relocate to Andorra—or carry out economic activities—you must either rent or acquire a property or premises.

🔸 Buying property

Andorra requires prior foreign investment approval for purchasing real estate, an essential step many newcomers are unaware of. This applies to non-residents and may also apply in certain cases to residents.

➤ More information in The Foreign Real Estate Investment Tax in Andorra.

To understand current pricing trends and new developments, we recommend the article The Andorran real estate market.

🔸 Renting housing or premises

If you intend to rent, it is useful to be familiar with local regulations and the differences between parishes. You can learn more in The parishes of Andorra.

For nationwide rules and common aspects, you can read Renting property in Andorra.

⚠️ Frequent mistakes to avoid

Because the real estate market moves quickly (high demand and growing supply), it is essential to avoid hasty decisions. Common examples include:

• Paying deposits without authorisation or without understanding the contract.
• Overlooking urban planning information.
• Misinterpreting notarial timelines or assuming foreign standards apply.
  ➤ For a complementary overview, see Foreign investment authorisation in Andorra.
• Failing to thoroughly review property characteristics: annexes, community costs, obligations, etc.

If you need advice in any of these areas, we are at your full disposal.

🌍 International community and daily life: integrating naturally

Andorra combines safety, a small scale and a surprisingly diverse international community. Understanding how life works in practice makes settling in far smoother.

The country offers ongoing cultural activities, a secure environment even for young families, and a very natural coexistence between residents from Spain, France, Portugal, the UK, Latin America and many other regions.

Understanding local customs, shop opening hours, how services operate and the rhythm of each parish helps enormously during the first months.

🎿 Sport, mountains and an active lifestyle: one of the country’s strongest attractions

Andorra is a country designed for those who enjoy an active lifestyle. The climate, terrain and tourist infrastructure make it easy to live healthily and stay outdoors.

➤ Learn more about Andorra’s climate in our dedicated article.

Skiing in Grandvalira or Vallnord, mountain biking, hiking routes, via ferratas and endurance sports are part of everyday life for many residents. For families with children, constant contact with nature is one of the strongest reasons to settle in the Principality.

➤ Read more about skiing in Andorra in our specialised article.

🍽️ Gastronomy: a small country with a wide culinary offering

Andorra’s cultural diversity is also reflected in its cuisine. While the country maintains its own culinary identity, the offer is broad and of high quality:

• Recommended restaurants (including Michelin selections).
• Catalan, French, Japanese, Latin American and fusion cuisine.
• Vegetarian and vegan options — limited, but available.
• Gluten-free menus and allergen information in most restaurants.
• Local food festivals and gastronomic events.

The country’s size makes it easy to explore new restaurants or revisit your favourites without long distances.

🎓 Education: three public systems and gradual adaptation

One of the strongest points for families is Andorra’s trilingual public education system, unique in Europe. The country has three public models:

• Andorran system
• Spanish system
• French system

Two international private schools complete the offer. Enrolment, school calendars and linguistic adaptation are generally smooth thanks to the natural presence of Catalan, Spanish and French in everyday life.

➤ Full explanation in The educational models of Andorra.

🏥 Healthcare: efficiency, copayments and complementary insurance

Andorra’s healthcare system is mixed, predictable and highly valued by residents. It operates with a standard 25% copayment, although most people take out private insurance to cover this portion.

Key elements include:

• How the CASS works
• What is covered and what is excluded
• The Nostra Senyora de Meritxell Hospital and the national care network
  ➤ Explained in Healthcare in Andorra.

Compared to other countries, the speed of consultations and referrals is one of the aspects expatriates appreciate most.

🏛️ Government and official documentation: where to find reliable information

To confirm regulations, procedures or legal requirements, official sources are essential:

• Government of Andorra website
• Ministry portals (Immigration, Education, Health, Economy…)
• Press releases
• BOPA (Official Gazette of the Principality of Andorra)

Although most content is in Catalan, these are the most accurate and up-to-date references.

Our publication section complements these resources with extensive and updated information on tax, commercial, immigration, personal and lifestyle topics.

Conclusion

Andorra can be one of the best places to live, work or invest—provided the process is approached with clarity and a complete understanding of the country. Knowing how taxation, procedures, housing, education and day-to-day life work helps prevent surprises and supports strong decision-making.

At ELYSIUM, we summarise it this way:

“Knowledge drives sound decisions.
Our commitment ensures they endure.”

If you still have questions or want a personalised assessment, you can schedule a meeting or contact us through our form. We will be pleased to assist you in any matter.

Last updated: November 2025