Living in Andorra

Where is it and how do you live in ANDORRA

Andorra is a small country located in the Pyrenees mountain range, geographically between Spain, with whom it borders to the south, and France, to the north. Its official language is Catalan, although Spanish has the same presence, and also French, on a smaller scale. This country has an extension of 468 km2, its capital is Andorra la Vieja (officially Andorra la Vella) and it is organized into seven parishes or zones.

Andorra la Valla, Escaldes-Engordany and SantJulià de Lòria border with Spain. Canillo and Ordino border France, and Encamp and La Massana border both countries. Therefore, you can travel to Andorra from Spain and from France in a simple way.

Role of Andorra in the European Union

Although Andorra is not an official member of the European Union since 1990, for economic activities, such as trade in manufactured goods, it is considered part of it. And, therefore, these activities are exempt from taxes. Regarding the control of people, Andorra is not part of the Schengen area, so it maintains its controls at the country’s border. On the other hand, it does not issue any type of visa, having entry requirements similar to the rest of the territories of the Union. This is because to access the country you must do so through a territory annexed to the Schengen treaty. For this reason, those visitors (from outside the EU) who wish to move to Andorra must apply for a multiple entry visa, since visiting the country means leaving the European Union.

As soon as the use of the common European currency in Andorra is allowed thanks to an agreement signed in 2013.

The Andorran economy

If you want to go live in Andorra, knowing about its economy is one of the most important points. The Andorran economy is currently supported by tourism , despite the fact that the principality has traditionally been known for being an agricultural and livestock country. Millions of tourists visit Andorra annually attracted by the region’s climate and commerce. Among these millions of tourists who visit the country, many eventually go on to move to Andorra and make their new life there.

Necessary requirements to relocate to Andorra

Settling down to work and live in Andorra is one of the goals of many. From salaried workers or seniors looking for a calmer pace. The truth is that there is great interest in moving to Andorra and residing in this country. Whether for work, change of environment or tax benefits. This is why you have to be clear about the procedures and requirements to relocation to Andorra. So in this way finally achieve residence in the principality.

Now, there are several ways to obtain residency in order to move to Andorra. It can be nonprofit or jobless. There is also the option of going to live in Andorra in order to work. However, they have some points in common between them.

Among these are those of being of legal age. As well as establishing a minimum length of stay of at least 90 to 183 days. This period will depend on the type of residence required. A medical report is also essential. On the other hand, you must have a floor; either owned or leased. In addition, a deposit of between €15,000-50,000 must be provided. This amount varies according to the type of residence requested. The criminal record certificate and the valid passport are two more requirements to be able to relocate to Andorra.

These are just some of the requirements that must be met in order to apply for residency in Andorra. They may vary and have to present others more. Which we will talk about later. Since there are different ways to obtain it.

What type of residence to apply for in Andorra?

To move to Andorra, the first thing you must do is apply for residence, and for this you must know that there are different types. These depend on your reasons and motives for going to live there. From work, being a shareholder or founding owner of a company. Whether you want to invest there, practice a sport at a professional level, or are a researcher or artist. We are going to define each of them well so that you can be sure which one is the most similar to your situation.

Therefore, when looking for the residence with which you can work and live in Andorra, your current situation is useful, as well as the activities that you are going to carry out in the territory.

The main attribute is your employment status. The type of residence to which you must apply to work or live in Andorra will depend on this. Since you can choose between two types:

active residence. Which is aimed at people whose main objective is to work in the territory. Whether working for a local business or creating one from scratch. These are the simplest and least expensive ways to get a job in Andorra. In turn, you must stay at least 6 months in the country.
passive residence. This is for those who do not have as their main objective to work in Andorra. It basically works to live there. Whether you are an investor, athlete, scientist or a professional with international projection.

Active residence

In the event that your objective is to work and live in Andorra, the best option is active residence. Which is divided into two:

How to move to Andorra with a residence on your own: if you want to opt for this option, you must found, acquire or have a stake of at least 20% in a local company. In turn, you must assume a position in its administration.
The requirements of this residency in Andorra are:
Relocation to Andorra and stay in the territory for at least 183 days.
Have a position in the administration of the company.
Home purchase or rental contract.
Criminal record.
Satisfactory medical report.
Civil status certificate and curriculum vitae.

In addition to the payment of €15,000 deposit. With this, you can go live in Andorra for one year and then renew every two.

How to move to Andorra with a residence for someone else: this type of residence is achieved by working in Andorra for a local company. This option should be taken with caution. Since a minimum of 2 years of experience is required in the requested position. Also needed:
The resume.
Marital status certificate.
Criminal record.
Home purchase or rental contract.
A satisfactory medical review.

Among the requirements must also be added the permanence of at least 183 days in the territory. It is one of the easiest ways to obtain residency in Andorra. The hard part is getting the job. Because it is a small country and vacancies can be somewhat limited for foreigners.

Passive residence

If your intention is not to work, but rather just go to live in Andorra, the passive or non-profit residency is for you. It can be divided into three types:

How to relocate to Andorra with a residence for investors: €350,000 must be invested in real estate or an Andorran bank fund. Have a home purchase or rental contract. As well as with a satisfactory medical report and private insurance. A certificate of good conduct is also required. In addition, financial security with income of 300% of the minimum wage is required. Finally, a deposit of €50,000 and an extra €10,000 for each member in charge.
Going to live in Andorra with a residence for professionals with international projection: some of the requirements are a deposit of €50,000 plus an extra €10,000 per dependent member. To this is added a housing purchase or rental contract. In addition, the company must have its headquarters in the country. But 85% of the income must be generated outside of it. A proof of funds and a certified business plan.
How to move to Andorra with a residence for scientists, athletes or artists: to go and live in Andorra with this option, evidence must be presented. Which must demonstrate the veracity of the activities to be carried out. You must have a passport, a civil status certificate and an impeccable conduct certificate. Also with a satisfactory medical report. In addition to the housing purchase or rental contract. This plus a deposit of €50,000 and an extra €10,000 per dependent member. Likewise, proof of sufficient funds with income greater than 300% of the minimum wage. It must be renewed after the first year, then every three.

This type of residence is a great option since only a 90-day stay in the territory is required.

Moving to Andorra: ADVANTAGES

Thanks to its economic model, the establishment of companies in the small country has been favored, since Andorra’s tax advantages do not go unnoticed. This has also favored the exodus of foreigners to the country to settle permanently.

The advantages of working and living in Andorra are countless. In addition to its tax benefits, we can find beautiful natural environments. As well as one of the longest life expectancies in the world. Another factor to take into account is the Andorran educational system, which has three different options. For all this and for what we will develop below, many are looking for how to get to Andorra.

Tax advantages when residing in Andorra

Working and living in Andorra brings with it certain tax advantages. Which are not available in any other country. But to be a beneficiary of them you have to meet some requirements.

It is true that if you live or have residence in this country, you have certain advantages. But you will not be able to enjoy them until you change your fiscal domicile to Andorran territory. Which happens when working and living in Andorra for more than 183 days. As well as the corporate name of the company must be in the country. These are all fundamental factors.

Going to live in Andorra, either as a businessman or worker, translates into varied and positive tax advantages.

Some of them are:

The benefits obtained from the return on real estate capital when moving to Andorra, the first €3,000, are exempt. From €3001 only 10% is paid.
VAT is located at 4.5%. Recognized for being the lowest in the entire region. In addition, you can get to deduct the tax on purchases made in Spain.
Company taxes with a maximum value of 10%.
Moving to Andorra is equal to tax exemptions of up to 100% in personal income tax on the first €24,000 per year. Only 5% of the next €16,000 is paid. From €40,000 onwards 10%. In comparison to Spain where amounts above €60,000 are taxed at 47%.
The expenses of municipal taxes and government when moving to Andorra have an average of €800 per year.
The social contribution to companies is on average 15.5%.

Relocate to Andorra

People who relocate to Andorra and do not carry out any work activity will initially have a residence of two years thanks to the passive residence permit. This period can be extended for up to 2 more years, but a series of requirements must be met. On the other hand, people who work in Andorra on their own can obtain active residence in the country.

Whether you are an investor, or if you have a business, or are self-employed, Andorra Advisors by Augé Grup puts all its legal services and accounting and tax advice at your disposal so that you can enjoy all the advantages that the country offers.

A person who does not have Andorran nationality but who decides to live in Andorra, can carry out the necessary activities to manage their own assets.

What is it like to work in Andorra?

Working and living in Andorra has multiple advantages and points of view. One option to relocate to Andorra is as an employee. You can go with a seasonal or full-time job offer according to your needs or options.

Working in Andorra in winter seasons is a good option. Mainly because it lasts for six months. This added to the number of tourists who arrive in the country and generate many job options. So there is more demand. It is relatively easy to get a place in hotels, ski resorts and restaurants.

However, if you are an entrepreneur or want to start your business, you should know that you need a minimum capital of €3,000 with which to start operating. Pay a deposit of €15,000. A fundamental fact is that the maximum time it will take to create it is 2 months.

Is it expensive to live in Andorra?

This country offers an unrivaled accommodation offer, with a wide range of houses for rent and purchase and sale of real estate at perfectly competitive prices. Prices vary according to the chosen area, Andorra la Vella, which brings together most of the infrastructures and services, has higher prices than the smaller parishes. In the case of the rental price, the chosen area will be more noticeable, this is due to the holiday tourist profile of Andorra.

In the case of supplies, it has a lower price than neighboring countries. For example, the price of electricity is one of the lowest in the territory of Europe; and water supply is free in the country. In the case of the shopping basket, we can talk about savings if we compare it with neighboring countries; the country’s low rates lead to savings when it comes to filling the shopping basket, which makes moving to Andorra very attractive.

The minimum interprofessional salary or SMI in Andorra is set at €1,376.27, higher than the average for European countries.

The real estate business in Andorra

Many of the people looking to work and live in Andorra have a unique opportunity. This is the real estate business. Whether you are looking for an active or passive residence. Since, in the short term, when moving to Andorra renting can be a good option. Although if your possibilities allow it, the best thing is to acquire a good property.

The purchase of real estate for people who want to live in Andorra has very favorable conditions. Due to the low costs in the transaction. Such as: notary, agency fees, local taxes, etc. Which are lower compared to regions of Spain or France.

For people interested in residing in Andorra, investing in this real estate sector is one of the most popular options. This mainly to opt for passive residence. Where they ask you to invest at least €350,000. In addition, with prices that will be on the rise in the coming years, it is a good time to invest. Each investment in property moves around €500,000-1,500,000.

In addition, a bank guarantee would be needed to demonstrate the existence of the necessary funds. Likewise, to work in Andorra and acquire a property, some procedures must be completed. From the signing of the reservation contract between buyer and seller. Activation of the process, payment of the balance and deposit of the certificate of sale.

Andorran nationality. How to obtain it?

Andorran nationality has different ways of acquiring it. It is one of the privileges that many want to access when moving to Andorra. The only negative factor is that dual citizenship is not accepted.

So if you are looking for Andorran nationality, you must bear in mind that you need to renounce the current one. The easiest way to acquire it, if you want to work in Andorra, is to spend 20 years of residence. With that requirement met, you can apply, but you must pass an exam. Which will reflect the knowledge in Catalan language, history and geography of the country.

After 20 years of residence are proven, they will have five years to pass the exams. At the same time present the papers of resignation of the current citizenship. After that you will be able to obtain Andorran nationality.

It can also be achieved through marriage to a citizen of this country. Although this will only be valid under certain conditions. Having at least three years of residence in the country.

Other advantages of residing in Andorra

Moving to Andorra not only has tax advantages or benefits for all those who reside in the principality. Among other benefits we enter:

Privileged environment

The mountainous and ski areas, such as Grandvalira and Vallnord, which offer their inhabitants a relaxation area and multiple sports entertainment options with more than 250 skiable km.
Thanks to its unique enclave with 90% of the territory in natural areas, sports related to the mountains, such as hiking and skiing, are some of the best leisure options you can find if you decide to go and live in Andorra.

Another advantage of the environment that Andorra offers is its altitude. With its capital located at 1,023 meters above sea level, it offers optimal conditions for high-performance athletes. That is why many cyclists, among other athletes, carry out their training sessions prior to the championships in Andorra.

Transport and communication

Do you want to know how to get to Andorra? Andorra communicates with the territories of Spain and France by road, these are the only entry points to the territory of Andorra. Its location between these territories allows residents of Andorra to have at their disposal two airports with important international flights, in Spain the El Prat airport and in France the Blagnac airport in Toulouse. You will also find other options such as getting to Andorra from Barcelona, how to get to Andorra by car from Paris and buses to Andorra.

Sanitary system

The Andorran health system is the CASS. Located at the head of the world ranking of health systems, it works with a co-payment system.

75% of the cost of medical visits are covered by the government.
When it comes to income or surgical interventions, these are covered by 90%.

In the case of not having the means to pay for these services and other cases of vulnerability, the medical costs are covered 100%, that is, they are totally free. An excellent advantage of moving to Andorra.

Climate

Andorra has a Mediterranean climate with typical characteristics of mountainous areas. Winter temperatures are low, with an average of -2oC and significant snowfall. Summer brings mild temperatures and a dry climate to Andorra, with an average of 24oC, also depending on the altitude where we are.

Education system

For those who decide to move to Andorra as a family, comment on the magnificent educational system that it has. Andorra offers three options educational systems, Spanish, Andorran and French. Similarly, in the classes the three languages coexist together: Catalan, Spanish and French. All of them free and compulsory from 6 to 16 years old.

Quality of life

Andorra has a quality of life that makes it the ideal place to live. Its natural environment provides Andorra with excellent air quality 90% of the time, thanks to its enclave between mountains. Thanks to this, and to other factors, Andorra is at the head of life expectancy worldwide. The average lifespan in Andorra stands at 84.5 years.

Citizen security

In terms of citizen security, Andorra has extremely low crime rates, almost non-existent, which makes it one of the safest countries in the world. Its low crime rate places Andorra in the top 5 of the safest countries in the world to live and for its visitors. To get an idea, if we compare Andorra with its neighboring countries, we see Spain in 32nd place and France in 60th place in the Global Peace Index. For this and for all the benefits that we could see above, moving to Andorra is an excellent option.