Living in Andorra: the ultimate expat guide

Though small in area, Andorra offers several residential options, each with distinct characteristics. Your choice depends on desired lifestyle, budget, and proximity preferences to services or nature.

Andorra la Vella and Escaldes-Engordany

The economic and administrative heart of the country, these neighboring towns concentrate a large portion of the expat population. They offer shops, healthcare services, schools, and government offices. Rental prices are higher, but daily life is convenient and dynamic.

La Massana

Located minutes from the capital, this parish is highly popular with families and winter sports enthusiasts. It provides direct access to Vallnord ski slopes. Residential atmosphere with modern, spacious accommodation options.

Ordino

Charming village renowned for tranquility and natural setting. Ideal for those prioritizing peace and an authentic mountain environment. Real estate prices are more affordable than in the capital.

Canillo

Gateway to the Grandvalira ski domain. Appreciated by athletes and families wanting to live close to the slopes. Housing options vary between recent apartments and chalets.

⚠️ Each parish has its own characteristics. Before settling, visiting several areas is recommended to compare atmosphere, housing availability, and proximity to services.

Relocating to Andorra requires following specific procedures. The country is neither part of the European Union nor the Schengen Area, which means there are distinct regulations regarding visas, residence, and work permits.

Entry and Short-term Stays

Citizens of the EU, European Economic Area, and Switzerland can enter Andorra with a valid passport or national identity card. For other nationalities, a Schengen visa (French or Spanish) is required to cross the border. Tourist stays are generally limited to 90 days.

Active Residence

Active residence applies to individuals who wish to live and work in Andorra. Requirements include:

1. An employment contract with an Andorran company,
2. A clean criminal record,
3. A medical certificate issued locally,
4. Proof of accommodation in Andorra,
5. Registration with CASS (Andorran social security system).

A residence card is issued, which can be renewed and eventually converted to permanent residence after several years.

Passive Residence

Passive residence is designed for expats who do not work within the territory. It targets retirees, investors, or entrepreneurs who wish to live in Andorra while conducting their activities abroad. Conditions include:

1. Residing in Andorra for a minimum of 90 days per year,
2. Demonstrating sufficient income to cover living expenses,
3. Depositing a financial guarantee (bank guarantee with the Andorran state, approximately EUR 50,000 for the main applicant),
4. Renting or purchasing accommodation.

Authorizations for Entrepreneurs and Self-employed

Individuals wishing to establish a company in Andorra must obtain specific authorization. Foreign capital investment has been facilitated but requires government approval and a minimum share capital deposit.

It is advisable to work with a lawyer or specialized consultant in Andorran immigration to secure your situation.

Official Resources

The Andorran government centralizes information and procedures. There is no single downloadable form, but rather a dossier to compile. For the most current information and procedure details, always consult the official website.

Official portal of the Andorran Government Immigration Service:

www.immigracio.ad

On this site, you will find legal texts, precise conditions, and contact details for scheduling appointments and submitting your application. The procedure is finalized with a mandatory medical examination at the immigration medical service.

Andorra's economy primarily relies on commerce, tourism, construction, and financial services. The country attracts numerous expats seeking professional opportunities in a stable and dynamic environment.

Employment Market Overview

1. The sectors with highest demand include tourism, hospitality and food services, retail, construction, and personal services.
2. Languages are a crucial asset: speaking Catalan, Spanish, French, and English significantly increases employment prospects.
3. Salaries are generally lower than in neighboring countries, but the lighter tax burden often compensates for this difference.
4. Employment contracts must include registration with CASS (Andorran social security).

Employment Statistics for Andorra

Starting Your Own Business

1. Andorra has relaxed its regulations to encourage foreign investment.
2. Foreign nationals can now hold 100% of a company's capital, subject to government authorization.
3. The minimum share capital to establish a company is approximately EUR 3,000 (limited liability company).
4. Corporate taxes are competitive, capped at 10%.
5. Administrative procedures, though simpler than before, require local legal support.

Andorra's real estate market attracts numerous expats. Options range from modern city-center apartments to traditional mountain chalets. Prices vary significantly depending on the parish, proximity to ski resorts, or the capital.

Renting Property in Andorra

1. Most expats begin by renting accommodation.
2. All property types are available: studios, family apartments, houses, and chalets.
3. Higher prices in Andorra la Vella, Escaldes-Engordany, and La Massana. More affordable in parishes like Sant Julià de Lòria or Ordino.
4. Documents required for rental applications: identification, employment contract or proof of income, security deposit (generally 2 to 3 months' rent).
5. Lease terms are often annual and renewable.

Buying Property in Andorra

1. Foreign nationals can purchase property in Andorra. Note: government authorization is required.
2. Taxation: a 4% tax applies to property transfers.
3. Market: strong demand for high-end properties, particularly chalets and apartments with views.
4. Advantage: property ownership facilitates obtaining a residence permit, especially for passive residence.

Andorran Real Estate Market Characteristics

1. Limited supply: the territory's small size restricts the number of available properties.
2. High seasonality: prices can increase during winter, especially near ski resorts.
3. Numerous local agencies assist expats, some specializing in international relocations.

Practical Advice

1. Visit several parishes before signing a lease or purchasing.
2. Compare utility costs (heating, building fees), which vary by location and altitude.
3. Plan ahead! Housing demand is high and properties move quickly in certain areas.

Monthly Expenses for a Single Person

Monthly Expenses for a Family of Four

Andorra's healthcare system is recognized for its quality. Expats must be affiliated with CASS (Caixa Andorrana de Seguretat Social) to access healthcare services.

Affiliation is mandatory: all employees and self-employed workers contribute to CASS.

Steps to Enroll

1. Obtain a residence permit (active or passive) as a prerequisite.
2. Download form SE 130-09 from the official CASS website (forms section).
3. Complete and submit this form to CASS, then follow their instructions to finalize registration.
4. Obtain a CASS identification number (PIN) or digital certificate, required to access the online portal "CASS Online".
5. Schedule an appointment if necessary, or complete procedures directly online.

Coverage:

1. 75% of routine medical expenses,
2. 90% for hospital care,
3. up to 100% for certain intensive treatments.

Access to Healthcare:

1. Main hospital in Escaldes-Engordany,
2. Network of general practitioners and specialists,
3. Possibility of receiving care in Spain or France if necessary, covered by CASS.

Important Notes:

1. Most practitioners speak Catalan, Spanish, and French.
2. Supplementary private insurance is recommended to cover remaining costs and expand access to private clinics.
3. The clean air and mountain environment promote excellent quality of life, but it's important to prepare for altitude and harsh winters.

Andorra is renowned for its advantageous tax regime. The system is straightforward and competitive compared to neighboring countries, attracting both individuals and businesses.

Income Tax

1. The tax scale is progressive, with a maximum rate of 10%.
2. Income below EUR 24,000 per year is not taxed.
3. Between EUR 24,000 and EUR 40,000, the rate is 5%.
4. Above EUR 40,000, the rate is 10%.
5. Married couples can opt for joint filing.

Corporate Tax

1. The standard rate is 10%, among the lowest in Europe.
2. Certain strategic activities (innovation, international trade, specific investments) benefit from tax reductions.

VAT (General Indirect Tax)

1. The standard rate is 4.5%.
2. Reduced rates: 1% (essential products, healthcare, education) and 0% (certain financial services).
3. This low VAT level significantly reduces the cost of goods and services for residents.

Other Taxes and Contributions

1. No inheritance tax or gift tax.
2. No wealth tax.
3. Social security contributions (CASS) amount to approximately 22% of gross salary, shared between employer and employee.
4. Property owners pay municipal taxes (low, varying by parish).

Tax Residency

To be considered a tax resident in Andorra, you must spend more than 183 days per year in the country, or demonstrate that the principal center of your activities and economic interests is located in Andorra.

Andorra's education system is unique: it offers three public school systems, all free of charge, as well as private institutions. Expat families have several options depending on their language preferences and plans.

1. Andorran system: instruction in Catalan, with progressive introduction of French and Spanish.
2. Spanish system: primarily Spanish-language instruction, with Catalan and French language learning.
3. French system: managed by the French Ministry of Education, with programs and diplomas identical to those in France.
4. Private schools: often offer English-medium or multilingual instruction, suited to international profiles.

Key Information

1. Schooling is compulsory from ages 6 to 16.
2. Preschools accept children from age 3.
3. Most schools are accessible free of charge, except private institutions.
4. Languages play a central role: children often become trilingual (Catalan, Spanish, French) and also learn English.

Before Departure

1. Verify the validity of your identity documents and prepare original documents (birth certificate, criminal record check),
2. Secure temporary (recommended) or permanent accommodation,
3. Prepare supporting documents for your residence permit (employment contract, proof of income, insurance, etc.).
4. Research health insurance options and arrange coverage before CASS affiliation.
5. Choose an international moving company familiar with Andorran procedures.

Transportation and Customs

1. Create an inventory of belongings to be moved.
2. Declare personal effects to Andorran customs (borders with France and Spain).
3. Anticipate possible taxes for items not classified as personal effects.
4. If bringing a pet, prepare vaccination records and veterinary certificates.

Upon Arrival

1. Submit your residence application (active or passive) to Andorran authorities.
2. Complete the mandatory medical examination for obtaining your residence permit.
3. Open a local bank account (often required for certain procedures).
4. Finalize CASS affiliation.
5. Enroll children in school (Andorran, Spanish, French, or private system).
6. Update your address with banks, insurance companies, and home country administrations.

Settlement

1. Subscribe to essential services: electricity, water, gas, internet.
2. Register a vehicle if importing one (or purchase locally).
3. Connect with the expat community to facilitate integration (join the Andorra forum on Expat.com).

Despite its small size, Andorra offers a wide variety of activities. The country appeals equally to mountain enthusiasts and those seeking relaxation and culture.

Outdoor Activities

1. Skiing and snowboarding: two major domains, Grandvalira and Vallnord, totaling over 300 km of slopes.
2. Hiking: numerous marked trails, mountain lakes, natural parks (such as the Madriu-Perafita-Claror valley, UNESCO World Heritage site).
3. Cycling: mountain roads highly popular with professional and amateur cyclists.

Wellness and Relaxation

1. Thermal facilities: Caldea center in Escaldes-Engordany, one of Europe's largest thermal spas.
2. Spa and wellness centers: numerous hotels offer quality facilities.

Culture and Heritage

1. Museums: Romanesque art, local traditions, tobacco history.
2. Events: music festivals, sports competitions, artisan fairs.
3. Heritage: Romanesque churches, preserved mountain villages.

Duty-Free Shopping

Electronics, fashion, and perfumes are often sold at attractive prices.

Relocating to Andorra means choosing a human-scale country nestled in the heart of the Pyrenees. Favorable taxation, safety, omnipresent nature, modern infrastructure, and proximity to both France and Spain make it an attractive destination. Whether for work, entrepreneurship, mountain lifestyle, or providing your family with pleasant living conditions, Andorra increasingly appeals to expats worldwide.

To learn more, ask questions, or share your experience, we invite you to join Expat.com's international community. You can connect directly with other expats already settled in Andorra and obtain practical advice for preparing your relocation project.