Andorra Active Residency: Build Your Business in Europe's Tax Paradise

Active residency in Andorra is the perfect solution for foreign entrepreneurs, freelancers, and professionals who want to relocate their business operations to Europe’s most tax-efficient jurisdiction. Unlike passive residency, active residency grants you the legal right to work, run your business, and fully integrate into Andorran society while enjoying the same exceptional tax benefits.

If you’re an international business owner tired of paying 30-50% taxes in your home country, a digital entrepreneur seeking a European base with modern infrastructure, or a professional looking to establish an Andorran practice, active residency transforms your tax burden while upgrading your quality of life.

What Is Andorran Active Residency?

Active residency (officially called “residència activa” or “self-employed residence permit”) authorizes foreign nationals to live and work in Andorra by establishing a business presence in the Principality. This residency category is specifically designed for individuals who will be economically active within Andorra—running a company, working as a freelancer, or managing a business with an Andorran base.

Who Qualifies for Andorra Active Residency?

Active residency is available to foreign nationals worldwide who meet specific criteria. You don’t need to be European—we successfully obtain active residency for clients from the Americas, Asia, Middle East, and every corner of the globe.

Entrepreneurs and Business Owners

If you run an online business, consulting firm, e-commerce operation, marketing agency, software company, or any business that can operate from Andorra, you're an ideal candidate. You'll establish an Andorran company (typically an SL—Societat Limitada), transfer your operations, and run your business from the Principality while paying just 10% corporate tax

Freelancers and Independent Professionals

Consultants, designers, developers, writers, marketers, and other independent professionals can establish themselves as self-employed in Andorra. You'll set up an Andorran company, invoice clients through your Andorran entity, and benefit from Europe's lowest income tax rates while living in one of the world's safest, most beautiful locations.

Digital Nomads Seeking Permanent Base

Tired of visa runs and uncertain legal status? Andorra active residency gives digital professionals a legitimate European residence, tax efficiency, and the perfect blend of mountain lifestyle and high-speed internet infrastructure. The country has fiber optic coverage nationwide with speeds rivaling major European cities.

International Executives

Senior professionals employed by Andorran companies or managing Andorran operations for international groups can obtain active residency through their employment. This path requires an Andorran employment contract and employer sponsorship.

Investors Building Business Presence

If you're investing in Andorran businesses or establishing a local presence for your international operations, active residency allows you to be present for management and strategic direction while enjoying tax efficiency.

Complete Requirements & Documentation

Obtaining Andorra active residency requires careful documentation and proper structuring. Here’s exactly what’s needed:

Company Formation in Andorra

Active residency requires establishing a formal business presence:

Company Structure:

Most foreign nationals create an SL (Societat Limitada—Limited Liability Company) with minimum capital of €3,000. You must own at least 20% of company shares and hold a position as administrator or director.

Foreign Investment Authorization:

Since you’re a non-resident creating an Andorran company, you need government approval called “autorització d’inversió estrangera.” We handle this entire process, which typically takes 3-4 weeks and requires a comprehensive business plan demonstrating your activity’s viability.

Business Plan Requirements:

Your business plan must show: your professional background, the nature of your business activity, projected revenues and expenses, how you’ll generate income, why Andorra is suitable for your operations, and your contribution to the Andorran economy.

Financial Requirements (as of 2025)

€50,000 Government Deposit:

You must deposit €50,000 with the Andorran Financial Authority (AFA). This deposit is non-interest-bearing but fully refundable when you cancel your residency or become a permanent resident. Exception: Certain licensed professionals (lawyers, doctors, architects, engineers) with Andorran professional registration may be exempt from this deposit.

Operating Capital:

Beyond the deposit, you need the €3,000 minimum capital for your SL company (deposited in an Andorran bank) and sufficient additional funds to support yourself and dependents.

Proof of Income:

You must demonstrate your business can generate sufficient income to support your lifestyle in Andorra without social assistance.

Required Documentation

We’ll guide you through obtaining every document, but here’s what’s needed:

Personal Documents:

– Valid passport (at least 1 year validity remaining)

– Birth certificate (apostilled or legalized)

– Marriage certificate if applicable (apostilled or legalized)

– Criminal record certificates from:

– Country of citizenship

– Country of current residence (if different)

– Any country where you’ve resided for 1+ years

– All certificates must be recent (issued within past 6 months) and apostilled

Professional Documents:

– Curriculum Vitae detailing education and experience

– University degrees and professional qualifications (apostilled copies)

– Certificates demonstrating relevant professional experience

– Professional licenses if applicable to your field

Housing Documentation:

– Proof of housing in Andorra (rental contract or property deed)

– Properties must meet minimum habitability standards

– Can be arranged after approval but needed before card issuance

Business Documents:

– Comprehensive business plan (we help prepare this)

– Company formation documents

– Foreign investment authorization application

– Bank account opening documentation

Health Coverage:

– Medical certificate from Andorran doctor (arranged after arrival)

– Proof of enrollment in CASS (social security) upon approval

Banking Requirements

Opening an Andorran bank account is essential and must happen early in the process:

Required for:

– Depositing your €50,000 government deposit

– Depositing company capital (€3,000 minimum)

– Demonstrating financial solvency

– Conducting business operations

Banking Process:

Andorran banks conduct thorough due diligence. We prepare your complete banking dossier, schedule appointments, accompany you to the bank, and leverage our banking relationships to ensure smooth account opening. Our clients typically have accounts approved within 2-4 weeks versus 2-3 months if attempting independently.

The Complete Active Residency Process

We manage every step, but here’s the detailed timeline:

01 Preparation

Initial Consultation & Strategy

We assess your eligibility, discuss your business model, explain requirements, provide cost estimates, and create your personalized roadmap.

Document Collection

You begin gathering personal documents (criminal records, apostilled certificates) while we start preparing your business plan and company structure.

Banking Preparation

We prepare your banking dossier with financial documents, business information, and supporting materials.

02 Company Formation

Name Reservation

We submit three name options to the Govern d’Andorra for approval (typically approved within 1 week).

Foreign Investment Authorization

We submit your complete authorization application including business plan, personal documentation, and financial information (3-4 weeks for approval).

Bank Account Opening

Once foreign investment authorization is approved, we open your Andorran bank accounts and deposit the required €3,000 company capital.

Notary and Registry

We coordinate with an Andorran notary to formalize your company formation, then register it in the Registre de Societats Mercantils (Commercial Registry).

Tax Registration

Your company receives its NRT (tax identification number), and we register for VAT if required by your activity.

03 Residency Application

Deposit Processing

You deposit the €50,000 with the AFA (unless professionally exempt).

Application Compilation

We compile your complete residency application with all personal documents, company documentation, housing proof, and financial evidence.

Submission

We submit your application to Immigration Services and schedule any required appointments.

Government Review

Immigration reviews your application (typically 4-8 weeks) and may request additional information, which we handle immediately.

Approval

Once approved, you receive authorization to collect your residency card.

04 Legal Requirements

Medical Examination

You complete a medical examination with an authorized Andorran doctor.

Card Issuance

Immigration issues your physical residency card (tarjeta de residencia).

Parish Registration

We help you register with your local parish (administrative district).

CASS Enrollment

We complete your enrollment in Andorra’s social security system, giving you access to comprehensive healthcare.

Commercial Authorization

If your business requires it, we obtain final authorization to begin commercial operations.

Average Total Timeline: 4-6 months from initial consultation to receiving your residency card.