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ANDORRA - PROPERTIES, RESIDENCE PERMITS AND COMPANY FORMATION

Active Residence

To be granted an active residence permit with permission to work, an applicant needs an employment contract with an Andorran company or has to form an Andorran company himself.

Any shareholder that owns more than 20% of an Andorran company can apply for an active residence permit as self-employed. He or she will need to pay a depository bond of €15.000 to the AFA after presenting all documents for the application.
This type of residence does expect from the applicant to live and work in Andorra for at least 183 days per year.

Active residents are subject to Andorran taxations and regulations, including contribution to the social security, which is 22% of the salary ( 10% for health care and 12% for old age pension plan ).
If one registers as an independent “Compte Propi”, the social security is € 464,62 monthly regardless of how much income has been generated.

Foreigners can form and own 100% of an Andorran company.
The approval and formation process can be completed in approx. 3 months.

After the company has been fully registered with the Government, the application for an office address has been presented to the local authorities (for which one receives a provisional paper with approval to start the activities), and registered with the Andorran social security (CASS), one can apply for the residence and work permit.
This only takes a few days.