Introduction
Residency without work in Andorra is one of the most sought-after options for foreigners seeking tax advantages, quality of life, and security. In this practical guide, I will clearly update the requirements, the administrative process, and the economic and health implications involved in applying for and maintaining residency without work in Andorra, based on the content of Decree 485/2022 and current regulations.
What is residency without work in Andorra and who is it for?
Residence authorization without work in Andorra allows individuals who do not carry out a work activity in the country to legally reside in the Principality. It is intended for retirees, income earners, passive income recipients, or professionals working remotely without needing a local work permit.
Applying for residency without work in Andorra requires demonstrating sufficient financial resources, ensuring health coverage, and providing proof of accommodation, among other requirements. Below are the key points you need to know before starting the process.
Main requirements
To opt for residency without work in Andorra, you must meet strict administrative and economic criteria. The most relevant include:
- Demonstrate sufficient financial means: regulations require that annual resources exceed 300% of the minimum wage for the main holder, plus an additional 100% for each dependent.
- Having an insurance policy covering 100% of medical expenses and incapacity or old-age benefits during the authorization period.
- Proof of accommodation: rental contract, property deed, or purchase commitment (with a deadline to submit final documentation).
- No criminal record for intentional crimes in Andorra or previous countries of residence.
- Passing medical examinations from the Immigration Medical Service and not suffering from diseases that pose a public health risk.
Remember that residency without work in Andorra may also require a deposit with the Andorran Financial Authority (AFA) as appropriate, and that the government reserves the right to verify and request additional documentation.
Procedure: step-by-step
The process to obtain residency without work in Andorra involves several phases. Here is an outline of the most common stages:
- Initial submission of the application and basic documentation to the Service d’Immigration.
- Assessment of requirements: economic means, insurance, criminal record, and residency conditions.
- Notification of the deposit amount to be made (if applicable) and submission of the bank receipt to the AFA.
- Obtaining the authorization: after verification, the residence authorization without work in Andorra is issued.
- Registration with the local commune within the specified period (three months from approval), and other subsequent formalities.
If you plan to invest in Andorran assets to meet residency requirements, consider legal timelines: investment usually needs to be demonstrated within the first year of application or within specific deadlines set by the regulation.
Typical documentation
Commonly requested documents include:
- Official form and recent photograph.
- Valid passport and criminal record certificates.
- Proof of financial resources (bank certificates, pensions, tax returns).
- Health insurance certificate covering 100%.
- Lease agreement or property deed.
Financial aspects: deposits, investments, and taxation
Residency without work in Andorra may involve additional financial requirements such as deposits with the AFA or the obligation to make an investment in local assets, depending on the modality. Understanding these aspects will help you plan your move and optimize your tax situation.
Andorra offers a competitive tax environment, but it is crucial to plan with specialized advice to fulfill obligations both locally and in your home country. For more information on the tax regime and its impact on residency applicants, visit our page on taxes in Andorra:
Healthcare and insurance
The regulations require private insurance covering 100% of medical expenses. Access to the Andorran public healthcare system requires specific procedures once residency is formalized. Review how the healthcare system functions and what coverages are appropriate before contracting a policy:
Renewal and obligations during residency
Renewing residency without work in Andorra involves submitting documentation proving the maintenance of requirements: validity of insurance, sufficient economic resources, registration with the commune, and proof that dependents still rely financially if applicable.
The government may request verifications and additional documentation at renewal time. Keep track of deadlines and receipts to avoid cancellations or penalties.
Advantages and practical considerations
Opting for residency without work in Andorra offers clear advantages: favorable tax regime, security, natural environments, and quality of life. However, there are practical considerations to assess:
- Cost of living and housing: although there are tax benefits, the real estate market and some services have high costs. Review expenses and financial planning.
- Integration and administrative procedures: you will need to comply with deadlines, registrations, and notary tasks; engaging a local gestoría simplifies the process.
- Education and family: if moving with family, research educational options and procedures for minors in Andorra.
At Andorraway, we have practical guides on living in Andorra, cost of living, and common procedures that can assist your planning:
Final checklist before starting the application
Before submitting your application for residency without work in Andorra, ensure you have:
- Identity documents and criminal record certificates.
- Proof of sufficient financial resources (accounts, pensions, tax declarations).
- Insurance policy covering 100% of medical expenses and contingencies.
- Proof of accommodation: rental, purchase, or purchase commitment.
- Budget for potential deposits with the AFA and notary or gestoría fees.
Conclusion and professional assistance
Residency without work in Andorra is an attractive option for those seeking a competitive tax regime and a higher quality of life, but it requires document and financial planning. If you want personalized advice for your move, taxes, healthcare, or administrative procedures, contact our team through:
Additionally, if you need support with moving management or homologations, review these useful resources on our site:
If you decide to start the process, consider seeking local legal and fiscal advice to adapt your case to current regulations and avoid setbacks. Residency without work in Andorra requires strict compliance, but with proper planning, you can achieve a safe and profitable transition.