Active Residency (Self-Employed)
The path for entrepreneurs and business owners.
Active residency is designed for individuals who wish to live and work in Andorra by establishing their own business or participating in an existing one. Under the Omnibus Law 2026, this path requires a significant commitment to the country's economy.
Detailed Requirements
- Physical presence of at least 183 days per year.
- A non-refundable state contribution of €50,000, paid to the AFA when you file.
- Foreign investment authorisation from the Government before the company is incorporated.
- Establishment of a local company, or ownership of more than 34% of an existing one (raised from 20% by Llei 5/2025).
- Serving as a director of the company.
- Registration with CASS as a self-employed worker once the company is trading.
- Proof of housing in Andorra: a title deed, a rental contract, or a certificate from your Comú.
- Registration with your Comú (certificate of residence).
- Legalised criminal record certificate from your country of nationality and every country you have lived in.
- Medical examination in Andorra.
- Valid passport (or national ID for EU/EEA nationals), passport photo, and civil status documents.
- Catalan at A1 level for the first renewal and A2 for the second (Llei de la llengua pròpia i oficial, from 26 April 2026).
- Government fees: €190.96 to process the application, plus €3,000 when the residence card is issued.
- Applications are subject to the annual self-employed immigration quota set by the Government.
Key Benefits
- Full right to work and conduct business in Andorra.
- Access to the local social security system (CASS).
- Family reunification from the start of your residency.
- 10% maximum personal income tax rate, and 0% on dividends from your Andorran company.
- 0% wealth tax and 0% inheritance tax.
- 4.5% IGI — the lowest VAT rate in Europe.
- Renewals of 1+2+2+2+10 years, renewable indefinitely while you meet the conditions.
Government and third-party costs
Non-refundable. Replaced the old refundable bond.
Legal fees, notary and administrative taxes.
Paid to the Government when you file.
Paid when the card is issued.
Not included in the figures above. Covers the route assessment, the company formation, the immigration file, and every submission to immigration, your Comú and the CASS — plus the tax advice around it. Quoted in writing before you commit to anything.
Ongoing costs
22% of a base you choose between 25% and 137.5% of the reference salary (€2,560.99 in 2025) — about €560 at the standard 100% base.
Depends on transaction volume.
How long it takes
- Company incorporation4 – 6 weeks
- Banking setup
- Immigration application4 – 8 weeks
- Total, start to residence card3 – 4 months
Indicative figures for planning, drawn from the current rules. They are not a quote. Government fees and the CASS reference salary are revised periodically, and every figure above except our fee is paid to the government or to a third party, not to us.
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The Residency Process
A clear, 5-step path to your new life in the Pyrenees.
Initial Consultation
We analyze your profile to determine if Active or Passive residency is your optimal path.
Document Preparation
Our legal team handles the collection and legalization of required documents from your home country.
Company & Banking
We incorporate your Andorran company (if active) and facilitate introductions to premier private banks.
Immigration Submission
We submit your file to the Ministry of Interior, ensuring priority processing and handling all queries.
Final Approval
After a simple medical check, you receive your residency card and begin your new life in Andorra.
Expert Insights
Everything you need to know about the active residency process 2026.
How does the €50,000 contribution work?
Under the new regulations, the active residency requires a €50,000 non-refundable contribution to the Andorran government. This replaces the previous refundable bond system and is intended to fund local social initiatives. Projects that qualify as digital economy, entrepreneurship or innovation with high technological added value are exempt from the payment, as are certain qualified professionals — worth confirming before you budget for it.
What are the company formation costs?
Beyond the €50k contribution, you should budget approximately €7,000 for legal fees, notary costs, and administrative taxes related to the SLU (Sociedad Limitada Unipersonal) incorporation.
Can I work for a foreign company?
Yes, but you must be the director of your own Andorran company which can then invoice your foreign clients. This is a common setup for online workers and consultants.
What is the Catalan language requirement?
From 26 April 2026 the Llei de la llengua pròpia i oficial requires level A1 of Catalan at the first renewal and A2 at the second, three years later. It applies to work-permit categories first and is being extended to the remaining permit types within five years. The government provides free courses, and applicants who do not yet hold A1 can qualify by completing 30 hours of tuition.
Can I bring my family with me?
Yes, and there is no twelve-month wait for self-employed residents — reunification can be applied for as soon as your own residency is granted. You will need to prove sufficient financial means (100% of the Andorran minimum wage for yourself, 70% for a spouse and 50% per dependent) and adequate housing.
How is the 183-day presence monitored?
The immigration department monitors residency through various means, including entry/exit records, utility consumption, and social security contributions (CASS).
What happens if my company doesn't make a profit?
Andorran residency is not strictly tied to company profitability in the short term. However, you must maintain the company's activity, pay your social security (CASS) contributions, and fulfill all tax filing obligations to keep your residency valid.
Can I be a digital nomad with active residency?
Absolutely. Many digital nomads choose active residency by forming an Andorran company that invoices their international clients. This allows them to benefit from the 10% tax cap while living in the heart of the Pyrenees.
How long does the whole process take?
Typically, the process takes between 3 to 4 months. This includes company incorporation (approx. 4-6 weeks), banking setup, and the final immigration application (approx. 4-8 weeks).
What are the social security (CASS) costs?
As a self-employed director you contribute 22% of a base you choose between 25% and 137.5% of the reference salary (€2,560.99 in 2025) — roughly €140 to €775 per month, or about €560 at the standard 100% base. This provides you and your family with comprehensive healthcare coverage in Andorra and reciprocal agreements with Spain and France.
Is there a minimum salary I must pay myself?
There is no legal minimum salary you must draw, but your company must generate enough revenue to cover its operating costs and your social security contributions. Most residents choose a salary that optimizes their personal tax situation.
What are the accounting requirements for my SLU?
All Andorran companies must maintain proper accounting records according to local standards and file annual tax returns. We recommend hiring a local accountant, which typically costs between €150 and €300 per month depending on volume.
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