Andorra, a small but dynamic principality nestled between France and Spain, offers a range of residence permit options catering to professionals, entrepreneurs, investors, and creatives alike. Whether you're looking to start a business, invest, or simply enjoy a peaceful lifestyle in a low-tax environment, Andorra provides flexible pathways to residency. Here’s an overview of the main residence permit categories available in the country:

1. Work Permit (Active Residency)

Ideal for individuals planning to live and work full-time in Andorra, the active residency through employment is available to those who have secured a job offer from an Andorran employer. Applicants must submit essential documents such as a valid passport, rental contract, and proof of employment.

• Cost: No direct fees—costs are typically covered by the employer

• Income Tax: 0% to 10%, depending on income level

• Processing Time: Approximately 1–2 months

• Renewal: Initially granted for 6 months, then renewable for 1, 2, and 5 years

• Citizenship Eligibility: After 10 years of residence

2. Self-Employment Program (Active Residency)

Designed for entrepreneurs looking to establish a business in Andorra and reside there for more than half the year, this program requires a refundable government deposit of €15,000. It is a cost-effective route for individuals ready to be actively involved in business operations.

• Cost: €15,000 deposit (refundable upon meeting conditions)

• Income Tax: 0% up to €40,000; 10% above that

• Processing Time: 3–6 months

• Renewal: 1 year, 2 years, 5 years, and 10 years

• Citizenship Eligibility: After 10 years of residence

3. Passive Residency for Investors

Targeted at individuals who wish to reside in Andorra without working locally, this option is perfect for those investing in the Andorran economy. Applicants must invest at least €400,000, which can include real estate, shares, or other assets, and deposit €48,500 with the Andorran Central Bank.

• Cost: Minimum €400,000 investment + €48,500 deposit

• Income Tax: 10% on income exceeding €24,000

• Processing Time: 1–2 months

• Stay Requirement: Minimum 90 days/year in Andorra

• Renewal: Every 2 years initially, then 3 years, leading to permanent residence

• Citizenship Eligibility: After 10 years

4. Passive Residency for International Entrepreneurs

This category is tailored for business owners whose operations are primarily based outside Andorra. It requires a local business setup with minimal physical presence, making it ideal for location-independent professionals and digital entrepreneurs.

• Cost: Starting from €60,000 (including deposit and office rental)

• Income Tax: 0% for individuals; 2% corporate tax on local profits

• Processing Time: 3–6 months

• Renewal: Every 2 years, then 3 years

• Citizenship Eligibility: After 10 years of residence

5. Passive Residency for Athletes, Scientists, and Artists

A special residency route exists for individuals recognized in fields like sports, science, and the arts. This program requires a €50,000 deposit but does not necessitate a business plan. Applicants must prove financial independence and typically work internationally.

• Cost: €50,000 deposit

• Income Tax: 0%, provided income is generated outside Andorra

• Processing Time: 3–6 months

• Renewal: Initially for 2 years, followed by a 2-year renewal, then 3 years

• Citizenship Eligibility: After 10 years

Andorra's residency options are as diverse as they are appealing, offering low taxes, high quality of life, and flexible pathways for individuals across various professions and lifestyles. Whether you're seeking a base for international business, a tax-efficient home, or a peaceful retreat in the mountains, Andorra's residency programs make it an increasingly attractive destination in Europe.