Andorra: How to Move There? (Residence Permit, Citizenship, Taxes, Cost of Living)
Andorra: Everything you Need to Know About Living in Andorra
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00:00 Intro
00:51 What and Where is Andorra
There are no doubts that Andorra is one of the most unique countries in Europe. The country is located on the Pyrenees mountains, nested between France and Spain, which are EU members, part of the Schengen area. Andorra however is not part of the European Union, nor is it in the Schengen area. But, since it has a free movement agreement with both Spain and France, in normal circumstances no border controls to get in and out of the country.
Andorra is a principality, headed by the bishop of Urgell in Spain and the president of France.
As you can see right from the start, Andorra is quite unique, and the amount of uniqueness will just grow as you will watch this video.
Andorra is also unique in its excellence. It has some of the highest life expectancies in the world, which is easily understandable considering the high quality of life in the country. This fact, coupled with some of the lowest income tax rates in Western Europe, make Andorra one of the best countries in the world if your income comes from remote sources.
02:12 Residence Permit in Andorra (EU and non-EU citizens)
Usually we discuss residence permits in Europe separately for EU and non-EU citizens, as most countries in Europe are either in the European Union, or the European Economic Area. Andorra is one of the few exceptions to this. In other words, it doesn’t matter whether you are an EU citizen or not, you will need a residence permit to live in Andorra unless you are a citizen of the country
02:41 Residence Permit in Andorra
The first thing we need to know is that there are basically two very different categories of residence permits in Andorra, one is the active residence in Andorra, and the other guess what… is the passive residence in Andorra.
03:27 Active Residence Permit in Andorra
The active residence in Andorra can be obtained in two ways. The first way is if someone offers you a job in Andorra.
The second option is if you want to be self-employed or run a business in Andorra.
Among the requirements, you need to live more than 6 months a year in Andorra, pay the minimum social security contributions (465 euros a month) and make a deposit of 15000 to the Andorran Financial Authority
04:18 Passive Residence Permit in Andorra
If you want to live in Andorra and obtain passive residence in the country the requirements are a bit different.
The first option is if you want to live in Andorra as an investor. In this category you will need to invest 400k euros in Andorra.
The second option is ideal for businessmen with international relevance
At least 85% of your income must derive from sources outside Andorra.
The last option is for international artists, athletes or scientists. In this option you will also have to make a 50k euro deposit to the Andorran financial authority.
05:23 Andorra Permanent Residency
There is actually no real permanent residence permit in Andorra, and you will actually need to keep renewing your residence as long as you live in the country. As the years of residence go by and you are still in Andorra, the longer the residence permits are issued for. The longest you can go with a residence permit in Andorra is needing to renew it every 10 years.
06:00 Andorra Citizenship
If you want to get Andorran Citizenship by naturalization, you will actually be in for one of the longest time requirements to live in a country before you can apply for it. In normal circumstances, you will need to live 20 years in Andorra before you can apply for citizenship.
06:35 Advantages of living in Andorra:
-Quality of life (safety, air quality, nature, educated population, low poverty).
-The second important advantage of Andorra is its tax system. Taxation at a personal level ranges from 0 to 10%. Similar rates apply to corporations, with the general corporate income tax being at 10% but with some exceptions that pay less than that.
-Cost of living: The third advantage of Andorra is its cost of living. The cost of living in Andorra is actually quite comparable to the cost of living in Spain or France, but, considering that taxes are much lower in the principality, you will definitely have an edge if you live in Andorra.
08:16 Disadvantages
-Transport infrastructure
There are no airports or railways in Andorra, even though there is one airport called La Seu d’Urgell-Andorra Airport, which is actually in Spain, close to the Andorran border.
-Low population: the second disadvantage of Andorra is that it has a very low population. Currently Andorra has just 77 thousands inhabitants.
-Difficult to acquire citizenship: the last disadvantage of Andorra is that it is quite difficult to acquire citizenship.
