These are the requirements for a foreigner to live in Andorra

In this case, it's necessary to have a minimum capital of 3,000 euros to start the procedures and pay a deposit of 15,000 euros. The minimum time of residence required in this case is 183 days per year.

In this modality of residence, it's necessary to present a curriculum, although it's a mere formality.

The residence permit granted is valid for one year, after which it is renewed:

• After two years.
• After five years.
• And thereafter, every ten years.

A residence as an employee

This type of residence is obtained by those who obtain a job in local companies or businesses in Andorra. Although, one of the essential requirements to be able to start working is to have a minimum experience of two years in the requested position.

The particularity is that, if one year later it's decided to opt for entrepreneurship, it will no longer be necessary to pay the deposit of 15,000 euros that is required for foreign entrepreneurs.

In order to be able to work legally, it's necessary to have a green card, which is managed by the employer and costs 180 euros. Once the card has been issued, it remains in the possession of the worker, who can use it to look for a new job.

In this case, it's also necessary to attach a curriculum vitae to the documentation and to stay in the country for a minimum of 183 days.

Important: Relocate&Save doesn't provide residency advice on behalf of others.

Passive residency

Main article: Passive residence in Andorra

Passive residents are people who don't want to work (neither self-employed nor employed) and also large estates. Tax residence is obtained with a minimum stay in the country of 90 days.

In the case of passive residences, it's required to present a property title or a bank certification that proves that it's possible to live in the country without the need to work. In addition, it's necessary to prove that an investment has been made.

The requirements vary depending on the type of passive residence:

• Residence for investors: Requires a minimum investment of 400,000 euros in real estate in Andorran territory or in an Andorran bank fund. Interested parties must prove that they have an income of at least three times the minimum wage, and pay a deposit of 50,000 euros and an extra 10,000 euros for each family member who is dependent on the applicant (these deposits are deducted from the 400,000 euros investment amount).
• Residence for professionals with international projection: When the applicant's company is based in Andorra but obtains a minimum of 85% of its income abroad. In this case, it's necessary to pay the same deposit as in the previous case and to present a certified business plan.
• Residence for sportsmen, scientists, or artists: The same bond is paid as in the previous cases, and it's necessary to have an income above 300% of the minimum wage. In addition, it's necessary to provide evidence that proves that one has the condition of a sportsman, scientist, or artist.

In the last case, the residence is obtained for a period of one year and after the first renewal, it's renewed every three years. However, in other cases, the residence has a duration of two years and is extended for two more years.

How to start the process

If you wish to transfer your residence to the Principality, either through an active or a passive residence, at Relocate&Save we have a team of tax experts based in Andorra.

Contact us through the form or by email at secretary@theglobalwealth.com, and we will explain the viability of your case.

And if you're still not sure which is your ideal tax destination, we recommend you to read the report "The top three tax destinations right now", available for free below.

Sources:

• BOPA (Government of Andorra) — Law text, Article 96 — confirms the minimum investment of EUR 400,000 and the deposits of EUR 50,000 + EUR 10,000 per dependent (deducted from the investment amount).