Key Takeaways
- Form an Andorran company, or hold more than 34% of an existing one, and act as a director.
- Non-refundable €50,000 to the AFA, ~€7,000 incorporation, ~€500/month CASS.
- All-in first-year cost is usually €60,000–80,000.
- Timeline: 3–4 months (6–10 weeks company + 4–8 weeks immigration).
- 183 days a year presence, active company, and Catalan A1 before the first renewal (A2 before the second).
Active residency in Andorra means forming an Andorran company, holding more than 34% of it and acting as a director, then applying for residency on that basis. Budget the non-refundable €50,000 payment to the Andorran Financial Authority, around €7,000 in incorporation costs, roughly €500 a month in social security, and 3–4 months from start to a residency card. You must then spend at least 183 days a year in the country.
Who this route is for
Active residency (residència activa) is for people who will earn their living through activity based in Andorra: founders, consultants, agency owners, online businesses and freelancers who invoice international clients through an Andorran entity. If you do not intend to work and can support yourself from capital, passive residency is the alternative.
Step 1: Form the company
The usual vehicle is an SLU (Societat Limitada Unipersonal), a single-shareholder limited company, or an SL with more than one shareholder. To support your residency you must hold more than 34% of a company you form, or at least 20% of an existing one, and be a director.
- Reserve the company name with the Government (denomination request).
- If any shareholder is non-resident, obtain foreign investment authorisation.
- Deposit the share capital (minimum €3,000 for an SL/SLU) in an Andorran bank.
- Sign the incorporation deed before a notary and register the company.
- Obtain the business licence (comú / parish authorisation) for your activity.
Realistic timeline for this stage: 6–10 weeks, much of it driven by bank compliance and the foreign-investment authorisation.
Step 2: Apply for residency
With the company documents in hand you file the immigration application. You will need:
- The non-refundable €50,000 contribution to the AFA.
- A €3,000 deposit for the immigration card (this one is returnable).
- A criminal-record certificate from your country of residence, apostilled and translated.
- A medical examination in Andorra.
- Proof of a place to live — owned or rented.
- Private health insurance until CASS registration is active.
- Registration with CASS (social security) as a self-employed worker.
Immigration processing is typically 4–8 weeks, with an undertaking to complete any outstanding company and licensing steps within three months of approval.
The real all-in cost
| Item | Amount |
|---|---|
| AFA contribution | €50,000 (non-refundable) |
| Immigration card deposit | €3,000 (returnable) |
| Company incorporation (notary, legal, taxes) | ~€7,000 |
| Share capital | From €3,000 (stays in the business) |
| CASS (self-employed) | ~€500 / month |
| Accounting | €150–300 / month |
| Office / registered address | Varies; a real premises is expected |
All-in first-year setup is commonly cited at €60,000–80,000 once the AFA payment, professional fees and first months of operating costs are included.
Ongoing obligations
- Physical presence of at least 183 days per year — monitored via entry/exit records, utility use and CASS contributions.
- Keep the company genuinely active: real activity, filed annual accounts, corporate tax returns.
- Pay CASS every month.
- Reach Catalan A1 before your first renewal and A2 before the second, three years later — the phased requirement of the Llei de la llengua pròpia i oficial, in force since 26 April 2026. Courses are free.
Tax outcome
Your company pays 10% corporate tax (3% minimum effective). Dividends it pays you as an Andorran resident are tax-free. Salary you draw is taxed on the personal scale, capping at 10%. The combined ceiling on business profit taken out as dividends is 10% — the core reason this route exists.
Frequently asked questions
How much does it cost to set up active residency in Andorra?
The non-refundable €50,000 AFA contribution, around €7,000 in incorporation costs, a €3,000 returnable card deposit, and roughly €500 a month in social security. All-in first-year cost is usually €60,000–80,000.
How long does the process take?
Typically 3–4 months: 6–10 weeks to form the company and 4–8 weeks for immigration to process the residency application.
What shareholding do I need?
More than 34% of a company you form, or at least 20% of an existing one, plus a director role.
Can I run my foreign business through the Andorran company?
Yes. The standard model is an Andorran company that invoices your international clients, with you as director and majority owner.
Does the company have to make a profit?
Not immediately, but it must be genuinely active and meet its social-security and tax-filing obligations to keep your residency valid.
Last reviewed: 3 September 2026. General information, not legal or tax advice; figures and procedures change and this page may become out of date. Confirm your situation with a licensed Andorran advisor. Speak to our team.
