Andorra’s active residency programs are set up for those willing to live and work in the country. Unlike passive residency, active residents are expected to spend the majority of their time in Andorra, work here, and participate in the local community.
While passive residency allows visa holders to spend as little as 90 days in the country, this is not possible for active residents. Active residents for all intents and purposes must use Andorra as their home base, or “primary place of residence” if you will.
As active residents spend more than 183 days per year in the country, they are automatically fiscal residents and must pay tax in Andorra. But let’s be honest, with a maximum rate of 10%, this is more a positive than a negative.
Residence and Self-Employment.
For those with their own company, Andorra’s active residency program is known locally as “residència i treball per compte propi” or “compte propi” for short. That is, residence and self-employment.At time of writing, there are 900 available positions per year for this type of residency.
Active residence via compte propi requires:
- either renting or purchasing a property in Andorra of at least 20m²; you will need to provide a rental contract or property title upon application
- apostilled documents, dated within 3 months; depending on the current requirements (seems to change often) and your personal circumstances, however expect to provide the following:
- police certificate from your country of birth
- police certificate from your current country of residence
- birth certificate or copy of passport
- marriage certificate
- apostilled birth certficiate or passport
- foreign investment approval from the government
- a meeting in person at a notary
- company incorporation
- deposit of €3,000 share capital in an Andorra Bank, this amount then belongs to your company
- a local trading license
- a work permit for the shareholder/s
- medical examination and interview
- registration with CASS, Andorra’s healthcare system
- a €50,000 deposit with AFA
Those seeking residence under compte propi must own at least 11% of a local company and be a working director of that company. The good news here is it is now possible for a foreigner to own 100% of an Andorran company.
Payments to CASS
Active residency through self-employment in Andorra requires you to pay into the social security program, CASS, as a self-employed worker or “autònom”. This is not optional.While for typical workers in the country the amount paid to CASS is a percentage of salary (22% at time of writing), self-employed residents must pay a fixed rate, however there are concessions.
The full fixed-rate payment to CASS is : €457.88/month
New companies may apply for a 50% concession within the first 12 months: €228.94/month
Companies with less than €12,000 in profit and €150,000 in turnover in the last financial year may apply for a 50% concession: €228.94/month
While this amount may seem high to some, consider it in conjunction with your overall tax bill. Also keep in mind the healthcare system in Andorra covers up to 90% of your hospital bill, and 75% of your other medical expenses for you and any of your dependants. Any work-related injuries or child-birth is 100% covered.