Andorra
0-10% tax & mountain living
Andorra offers one of Europe's lowest tax burdens, a stunning Pyrenees location, and residence pathways for entrepreneurs and passive-income earners. Progressive income tax tops out at 10%.
Our framework evaluates Andorra across 6 strategic pillars. Each pillar answers a key question that matters when planning your relocation strategy.
Digital Nomad puts 25% on ACCESS and 20% on ECONOMIC because easy entry, workable economics, and a strong daily life matter more than a passport track. Andorra's LIFESTYLE score of 6.4 helps; OPTIONALITY at 4.4 keeps the overall result to 56/100.
How we score: Six strategic pillars with weighted sub-factors. Confidence indicators show data quality (●●● = verified, ●●○ = researched, ●○○ = editorial). Read our full methodology
Profile weighting: The small rings beside each pillar show how much this profile counts it. Change your profile above to see a different balance.
Something off? These scores improve with feedback. Help us get it right
Immigration Overview
Andorra is a low-tax principality in the Pyrenees between Spain and France. Income tax is progressive from 0% (first €24,000) to a 10% ceiling; corporate tax is 10% and IGI/VAT is 4.5%. There is no wealth, inheritance or gift tax. It is popular with entrepreneurs and remote workers, but note that Andorra is not in the EU or Schengen, and border controls with Spain and France remain.
Andorra ended banking secrecy years ago — it has operated FATCA and CRS automatic exchange of information since 2018 — so residence here is a genuine relocation play, not a privacy one. Passive residence now requires a €1,000,000 investment (or €400,000 into the Housing Fund) plus a non-refundable payment to the Andorran Financial Authority; active residence runs an Andorran company you own and direct.
Andorra: The Next Decade
A binding EU referendum, a housing crisis its own unions say could break social peace, a warming Pyrenees, all inside the best-run surplus microstate in Europe. Our strategic 5–10 year outlook weighs the 0–10% tax world against the tightening social contract, and tells you who should plant roots and who should stay flexible.
Read the full outlook →Visa & Residency Pathways
Passive Residence Permit
For individuals living on foreign passive income
- €1M investment (or €400k Housing Fund)
- + €50k non-refundable AFA payment (+€12k/dependent)
- 90 days/year presence; no local work
- Initial 2 years; renewals 2→3→10 years
Active Residence (Self-Employed)
For entrepreneurs running an Andorran business
- €50k non-refundable AFA (waived only for qualifying selected/innovative projects)
- Own ≥34% of an Andorran company and direct it
- 183 days/year presence; CASS social security
- Can hire and employ in Andorra
Digital Nomad Residence
Remote work for foreign-only clients (Law 42/2022)
- Ministry of Economy approval required
- Income ≥3× Andorran minimum wage
- Quota-controlled; verify current availability
- Private health insurance required
Andorran Nationality
After 20 years of legal residence
- 20 years required (among the longest in Europe)
- B1 Catalan language proficiency
- Dual citizenship prohibited — you must renounce
- Most residents stay permanent residents instead
Why Andorra?
Low Tax Burden
0–10% progressive income tax. 10% corporate tax. 4.5% IGI/VAT. No wealth or inheritance tax.
Mountain Lifestyle
Pyrenees location. World-class skiing, hiking, outdoor activities.
Safe & Stable
Extremely low crime, stable government, budget surplus. AFA-supervised, CRS-compliant banking.
Central Europe Access
3 hours to Barcelona, 2.5 hours to Toulouse. Easy access to Spain and France.
Expat Community
Roughly half the population is foreign-born. International schools, multilingual environment.
Quality Healthcare
Modern healthcare system. Access to both Spanish and French medical facilities.
General Requirements
Passive residence requirements:
- €1,000,000 invested in eligible Andorran assets (or €400,000 into the Housing Fund)
- €50,000 non-refundable payment to the AFA, plus €12,000 per dependent
- Proof of income at 300% of annual SMI (~€54,900), plus 100% of annual SMI (~€18,300) per dependent
- Private health insurance covering Andorra (public CASS is not available to passive residents)
- Clean criminal record (apostilled) and medical certificate
- Andorran address (rental or purchase)
Presence note: the permit requires 90 days/year in Andorra, but Andorran tax residency requires 183 days. Spend fewer than 183 days and you keep the card while remaining tax-resident elsewhere — which removes the tax rationale for moving.
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