Attorney, Family Office

Concept

The Principality of Andorra is one of the most attractive European jurisdictions for high-net-worth individuals and business owners seeking tax optimisation and convenient mobility within Europe.

Andorra attracts residents through its investment-based residence program, offering a legal framework for tax planning with minimal physical presence requirements — only 90 days per year. The investment program guarantees residence status for an investment of at least €600,000.

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Andorra’s Tax System:

– Personal income tax up to 10%

– Corporate tax at 10%

– No inheritance tax, capital gains tax, or dividend tax

Andorra’s Tax System

Andorra’s tax system combines international transparency with low tax rates. It is the only jurisdiction meeting both EU and OECD standards where maximum direct tax rates do not exceed 10%. This structure resulted from a 2015 tax reform when Andorra was removed from the list of tax havens.

Personal Income Tax

Andorra applies a progressive three-tier income tax system, with a maximum rate of 10% — substantially lower than in most European countries (47–50%).

Income	Tax Rate
€0–24,000	0%
€24,001–40,000	5%
Over €40,000	10%

There is a tax privilege for couples: for filing a joint tax return the first €40,000€ is exempt from taxation.

Corporate Tax

The standard corporate tax rate in Andorra is 10% of net profits, significantly lower than the European average of 24% (France: 25–32%, Spain: 25%).

Andorran companies may benefit from two special regimes to reduce their tax burden:

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Patent Box Regime (2% Tax)

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Holding Companies (0% Tax)

Investment Requirements

To obtain residence in Andorra, a minimum total investment of €600,000 is required, split into two components:

Security deposit of €47,500–50,000
Core investments of €550,000–552,500, which may be allocated across various investment vehicles of the applicant’s choice.

Security Deposit

A mandatory deposit of €47,500–50,000 is placed with the Andorran Financial Authority (AFA – Autoritat Financera Andorrana). This deposit is refundable and bears no interest — it is returned when the residence permit expires. An additional €9,500–12,000 is required per dependent (spouse or minor children).

The deposit serves as proof of the applicant’s financial solvency and ability to support their stay in Andorra. If the residence permit holder incurs debts or financial obligations, the funds may be deducted from this deposit.

Investment Instruments

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Real Estate in Andorra

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Equity in Andorran Companies

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Government Securities

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Bank Deposits

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Investment Funds

Including Family Members in the Application

The main applicant may include close family members in the residency application:

Spouse – Both traditional and same-sex marriages are recognised – Unregistered partnerships accepted with proof of stability	Children under 18 – Automatically included without additional conditions – Includes both biological and stepchildren (with legal guardianship)
Children aged 18–25 – Financial dependence on the applicant – Unmarried – Enrolled in full-time university study – Living with the applicant	Parents – Age 65+ or retired status – Financial dependence on the applicant – Documented proof of relationship

Financial Requirements Based on Family Size

Financial requirements depend on the number of family members:

Applicants	Minimum Annual Income	Security Deposit	Investments
1 person (main applicant)	€52,100	€47,500	€552,500
2 persons	€69,470	€57,000–59,500	€540,500–543,000
3 persons	€86,840	€66,500–71,500	€528,500–533,500
4 persons	€104,210	€76,000–83,500	€516,500–524,000

All family members must be covered by comprehensive medical insurance.

Application Timeline

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With timely collection of documents, the residence permit card can be issued within 4 to 4.5 months

Visit 1: Submission of Documents

Document collection, legalisation, and translation takes 1–2 months. Once it is completed, the security deposit is placed and investments are formalised. On the day of the visit, an entry stamp or declaration is registered, and the full application is submitted to the Immigration Department.

Visit 2: Biometrics (after 30 days)

Within 30 days of submission, authorities review documents, investment compliance, criminal record, and insurance coverage.

Upon receiving approval (typically one month after submission), the applicant travels to Andorra to submit biometric data (fingerprints and photo).

Visit 3: Permit Issuance (after 30 days)

Within 30 days after the second visit, the residence card is produced and registered.

The final visit is for collection of the physical card and activation of residency status — approximately 2–3 months from the process start.

Required Documents

All documents must be translated into Catalan and certified by a licensed Andorran translator.

Document	Requirements
Passport	Full copy of all pages. Must be valid for at least 1 year.
National ID	Full copy of all pages.
Photographs	Colour, 35×45 mm.
Marriage Certificate	Recently issued duplicate.
Birth Certificates	For all dependent children.
Police Clearance Certificates	Issued within the last 3 months. Required from the country of birth, citizenship, and all countries of residence in the last 5 years.
Bank Documents	Statements confirming income (€52,100 for the main applicant + €17,370 per family member) and a reference letter from the bank.
Proof of Source of Funds	Payslips, documents confirming sale of assets.
Proof of Employment	Last 5 years: employment certificates, contracts, business records.
Tax Returns	For the past 5 years.
Proof of Address in Andorra	Rental agreement or property ownership documents.
Proof of Previous Residences	Past 5 years: registration certificates, utility bills, contracts.
Health Insurance	Full coverage including medical, pension, and disability insurance. Approximate cost: €1,200.