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Living in Andorra: A Resident’s Guide to Moving

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The author is not a finance, legal or tax professional. He is a self taught entrepreneur, sharing lessons learned. Expect this article to contain inaccuracies. Always consult a professional before choosing a course of action. Once upon a time, my wife and I took a chance on a 4 week trip to Andorra. Over 4 weeks, we lived an average every day life and fell in love with the country during potentially the quietest time of year. By the end of our visit to Andorra, we had organised a bank account, signed a lease, our residency application was in progress and for the first in a long time, we were ready to put down roots. We visited many countries in search of a place that could take that status, but this little country has stood the test of time for myself, my wife, and now our son, who was born here. I played down the safety risk when considering the move to Panama, and I feel comfortable in most situations. Previously living in Whistler, Canada , bike theft even while well locked was a huge problem. The locals claim this is the safest country in the world. There are 2 roads out of the country, both with patrolled borders and no airport. However in comparison to many larger countries, the tax system in Andorra is relatively simple. Not to the building. Not to the street. Not to your suburb. Right next to your modem! This is a big deal for an Australian. Obviously there are the Andorran born locals; some families have been here for centuries, others for one or two generations. Historically people have emigrated from France, Spain and Portugal, but many also came from Great Britain. Nowadays, there are more and more from Eastern Europe, America, the Philippines. Some are workers coming for a higher salary than elsewhere in Europe, some are perpetual travelers simply looking to plant a residency flag. Others are looking for a lifestyle change where they can spend their time skiing, hiking, cycling or maybe learn a new language and settle into the simple life. Some have enormous amount of wealth. The good news, is almost everyone has an interesting story to tell. Extremely interesting conversations are a daily occurrence. Outside of getting a job for a local business, you have 4 options, split into 2 categories. Essentially the government is looking for residents to become part of the community and contribute to the positive development of the country. This is only for the shareholders of the company you are setting up who seek residency in Andorra. Dependents, whether they be spouses or children do not need to pay this bond. This has not yet been passed as law, but most likely will be implemented within 6 months. If you want to get in without committing this amount, now is the time. I chose the active residency route, as we had every intention of calling Andorra home, spending the majority our time within the borders, and moving here for good. I later stumbled on this post. Are you only paying government fees? Costs can add up, especially depending on where you are from. Keep in mind though, that in comparison to other first world countries, this is still very affordable. We applied over Christmas and had some delays as a result. In the end, it took around 6 months. If you have questions about living in Andorra or if you want to visit and check it out, leave a comment. Andorra is a beautiful, affordable, safe place to live that is perfect for the location independent , with many, many opportunities to spend outdoors being active. Andorra is not perfect. There are pros and cons to every country! The government has treated us like adults, been transparent, and done the best they can given the situation. The country has changed a lot. Similarly, renting in Andorra has become much more difficult for newcomers, though a ton of new construction work may resolve some of the lack of supply. I genuinely believe Andorra is one of the best countries for entrepreneurs , website investors , share traders and remote consultants to plant their resident flag in a country that gives them a very livable home base. Firstly Jase, thank you for taking to share your story. One question I have re the company route D, which I understand is the option you took. Did you also have to put down a 50, Euro bond? Once you have residency this can be used in the company. Did you got yourself some helps to have all the paperwork for residency and compagny setup done? This is about right. I pay an accountant 80 euros per month on a retainer and everything gets done. Year end I pay an additional euros. The first time we visited was also in November. For many people, their biggest concern about being in Andorra is that it will be too quiet. The best place to look for a rental is Busco Casa, though an even better bet is to find an agent that will do the searching for you. There are plenty of wider, unsealed farm roads, but most descending is fairly technical. Both Vallnord and Granvalira are worth checking out. I noticed a general statement about getting systems to work with you when you live in Andorra. If you have an Andorran company and local bank account, chances are your bank will give you the option to set up an account with RedSys which gets great processing rates. Thank you so much for taking the time to respond. But it sounds like by setting up a company totally do-able I can avoid it. Can you recommend someone I can contact to work through the options for my specific situation? Moving to EU or Andorra now very attractive.. What are the requirements when retiring from Australia for a couple.. Hi Jase, After some research, it seems that passive residency and tax residency are quite different. In any case, if you want your tax residency to be in Andorra you have to stay at least days in a year and not 90 days as you mention on your passive residency tax review. Regards, David. Actually tax residency is even more complicated than that. It depends not only on Andorra but the country that you are from. For many people, they could spend days in Andorra, but still be considered a tax resident in their home country. Thank you for this very informative site! Do you know any South Africans who have emigrated to Andorra? Many thanks, Russo. Do you buy into their heath system? If you are an active resident you must pay into CASS. This is a social security system that covers healthcare. Really interesting article, thank you. My wife and I are considering expatriating in 3 years from the US and Andorra is on our list. Do you know anything about moving into the country with cats and dogs? Is there a quarantine or do they just require the pet passport with vaccination records, etc.? Many thanks in advance. Best, Tony. Who knows with this virus situation at the moment though, it could change. My first question is: What is the arts scene like in Andorra? I am a classical musician and and writer of 72 thinking of retiring to such a place on Social Security. Second question: is a residence permit a hassle as it is in Germany? As to the hassles of a residence permit, if feels quite straightforward to me but perception is everything. Thanks for the article, really helpful. Actually I find your website quite interesting, I have read a few of your posts. I am an EU citizen with my partner and kid. Planning to come to Andorra and be self-employed. I have a couple of questions. To get residency, I need to be renting by the way how does a first time rental as someone coming from outside looks like a place and 15k Euro? Will my partner and kid also need the 15k? Need to open a company as part of the residency procedure? Do they have the concept of sole trader i. How is it in terms of integration, social life are people friendly and willing to help , and the difficulty of dealing with bureaucracy in Catalan? Are official documents also in French I speak French? Yes, everyone gets 3 months entry into Andorra on a tourist visa, so you can come to explore the country and start the process. There is a concept of a sole trader, but there are some more hoops to jump through. It takes some time, but most people in all walks of life are helpful. Thanks for the insightful comments about Andorra. I am thinking of moving to Andorra in the future in 3 to 5 years. I am German Brazilian and I am looking for a place where people are sociable and kind. How difficult is for a woman in her 40s to connect with new people? And at the day by day life how isolated can someone feel living in a small country? When we first arrived in Andorra it did take some time to make friends as we are younger , but things have really changed in this area. Lots of social groups have been opening up and this has changed in a positive way. Jase, Excellent article. Just about to begin the process of moving over from the UK. Debating which residency status to opt for and whether to buy a place to live in straight away or to rent. I will need to set up a company that will invoice my current employer for services moving forward, and perhaps another company to look after our Spanish holiday lets. Current thought process is to get myself out there sooner rather than later. Will being based out in Andorra speed up the residency application and company formation? Any advice welcome. What has your experience been of late with respect to trends, if any, toward congestion whether traffic, tourism, or the general population? As a result, congestion, traffic and tourism are all down. Lack of parking is certainly relative as, coming from Australia even on a quiet day it originally felt like parking is cramped here. Thanks for your concise informative article Jase. Hi Jase, Thank you for such a lovely a great article , I have started to think about relocating to Andorra for a while now. As life in London with all pandemic and NHS horrible service just made our life even more hectic. My questions are the following : 1. Is it easy to find a job in Andorra if yes if you can recommend me some sites or maybe head hunters 2. Which is the most important, i have heard that Andorra has one of the best medical care in the world. Thank you in advance, Xenya. I am not sure Andorra is a lucrative place to work, especially if you are coming from London. Cost of health care is based on the type of residency you have. If you are an active resident this is through CASS, while passive residents require private coverage. Both vary in their cost based on a number of factors. If you are serious about moving to Andorra and having a child here, let me know and I can connect you with a mother who has done exactly that who will likely be able to help. Watching leTour there and wondering about the hill villages which in Spain and Italy have been running down for the last fifty years. It sounds utopian except the need for an income from your own resources. After living in Spain and France I believe the old days are over when you could live ten percent cheaper than the UK, not a lot but property was a fifth of UK average prices and little bureaucracy. Absolutely, the cost of living in Andorra is likely more than other areas of Europe and UK, with the exception of major cities like London, Paris, etc. Good info. That is through the company as a deductible expense or this is private contribution? Do you need to pay yourself a salary from the company or can you just live from dividends? How well is the day rule enforced? Are business trips excluded from the rule? To the best of my knowledge I believe you can live from dividends. An example of this are the pro athletes who need to be in the country for 90 days. These guys travel a lot for work and are often at the limit of their 90 days. Do you actually need to start a real profitable business or do you just set up an entity and drop cash into it? Hello, sorry for bothering you. Love your website and thank you for this article. We are family of three and we are from Baltic states. So from Schengen area. Maybe you can answer my question or point me to the right direction. I wonder what kind of paperwork, visas do we need if we want to rent a house and live in Andorra for a year? Me and my wife both are working remotely and currently for couple months staying in Crete. Just using Airbnb… But now we are looking for a place to stay for a longer period of time. And Andorra looks perfect to us. Thanks for commenting and your kinds words. Staying for a year is difficult. However residential leases are 5 years by default. To make matters more challenging, the property market is very inflated at this time, making it very difficult to find a rental, let alone at a competitive price. First a big thanks for your website. Incredibly useful for us! Allow me to introduce: We are a family of 3 planning to relocate and set up a business there. Belgians, relocated to CH got a baby there and now in Mexico City. Plan is active residency setting up consult business. This government bond 30k issue bugs me. Am I right? Dead money 2. Heating homes seems to be old tech. No heating pumps like we saw in CH. Instead mainly oil. That true? Or burning wood even worse 3. Is that a fact about the standard 5 year rental contracts? We would like to buy property but not as of day 1 or only after 5 years 4. Missing something? Do you know if there are general private legal insurances? In CH that was standard and Mexico impossible to find 6. I found apartments mostly next to main roads. Your thoughts? Hi Tom. On the flip side however, the ongoing expenses after owning one taxes, fees, insurance, etc are quite low. I guess it all comes down to where you see the rental market going, and how long you plan to stay. To answer your questions: 1. Think of this more like securing a credit card. You lock up the cash to derisk the bank. For the most part, yes, houses and apartments are heated by gasoil. Still, there are very few of these. Yes, 5 years. This is an opinion thing. From there it really is a question of language. Hi Bonnie, it all depends on what you want to do. Similarly, getting to more remote restaurants can be more difficult though not impossible. Buses are free for residents at the moment and look to be staying that way , and generally run every minutes depending on where you live. All in all, quite convenient. I am in the midst of applying for residency myself. My sons are 9 and 10 years old and speak no Catalan neither does my wife and I myself have only a rudimentary understanding. How difficult will the school situation be for my boys given that they only speak English? Sure, the first 6 months are a steep learning curve for them, but they all seem to manage. It all depends on your long term plans to stay in the country and where you see your children studying after school if at all. My main issue of considering of moving to Andorra is the language. I would like to know how far can you go speaking only english to start with? Is Catalan enforced anywhere? Would english and spanish be sufficient down the road? Hi Al, it really depends on the type of experience you want to have in the country. Catalan is really something that I use to show respect, and to open doors. Ironically, those of whom I met in Catalan, we now speak English because they want to practise their English. Those on work permits, will either need to take a test to prove proficiency, or show that they have attended a number of hours in free Catalan classes. Jase, any idea what the rental situation is like? What are prices looking like now for a BD apartment? Is it possible to find something decent without paying a fortune? I hear the housing situation is rough. Not all of the landlords here are greedy, some want a reliable tenant who will see the full lease through. The challenge is finding the properties. Hi, very helpful topics and answers. As a tax resident of Andorra, how could I transit through France and Spain? To live in a land-locked country surrounded by Schengen rules seems daunting. When you gain a green card, you gain the same travel rights as a resident of Spain or France. Thanks for the great site. Are you at all familiar with the mortgages over there? Are they avalable for non-residents and to what amount? I am lookimng to buy something overthere and take it as a primary residence. How good are the construction standards if you were to compare them to Australia? Is noise generally a problem as I am looking for quiet place? Is it manageable and you just need to plan your travels? Yes, quite familiar with mortgages. You only need a 50k deposit to buy. In this scenario, you need a k deposit. Residents can usually lend much more, as long as their finances are clear. This is how they will calculate the amount they are willing to lend you. Construction standards are a mixed bag. Some of the older builds do have timber roofing, with slate tiling very typical. Similarly, windows are something to watch for. While almost everything has double glazing at a minimum new standards require triple , not all windows are correctly sealed. Of course, everything is fixable. Noise is relative. I grew up on a quarter-acre block in a fully detached double brick home. The main noise comes from cars. Some people value walking distance to everything, others value a larger home with peace and quiet. I was just in Adelaide hardly bad , and that was real traffic compared to Andorra. Your email address will not be published. Additional menu. It was a massive decision, but it felt so right for so many reasons. As I update this post many years later I can confidently say that Andorra is home to us. Just another day in the mountains. Table of Contents Toggle. Riding bikes with the locals. You can contact me on email if you feel like sharing about it. I hope that helps! Hi Jase Great resource, thanks. Cheers R. Hi Richard, The first time we visited was also in November. Hi Joris, no your residence is independent of your citizenship. Hi David, Actually tax residency is even more complicated than that. Hope that helps! Hi Jase, Really interesting article, thank you. Hope this helps. Hi Jase, Thanks for the article, really helpful. Thanks a lot. Hi David, Thanks for commenting. To answer your questions as best I can! Hope this helps! Hi Karla, When we first arrived in Andorra it did take some time to make friends as we are younger , but things have really changed in this area. Hi John, Thanks! Hoping this helps you! Thanks for the great article, Jase. Hi Xenya, I am not sure Andorra is a lucrative place to work, especially if you are coming from London. All the best. If child is born in Andorra, do you have to top up the bond as extra dependent? The company pays this. Hoping this helps! Thank you. Hi Simon, Thanks for commenting and your kinds words. Sorry to barge in like that by the way. Hoping to meet you one day. Hey there, Love this blog! Hello, Thank you for all your time and assistance. Hi Kay, When you gain a green card, you gain the same travel rights as a resident of Spain or France. Hi Jase, Thanks for the great site. Cheers, Nenad. Hi Nenad, 1. Leave a Reply Cancel reply Your email address will not be published.

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