Active residency in Andorra: conditions for employees and entrepreneurs

"Active residency" is commonly used to distinguish people who work in Andorra from those who live there without carrying out an ordinary local professional activity. Administratively, though, it's necessary to identify the exact permit that matches the applicant's situation.

Residency and employment — this permit allows you to live in the Principality and work for an Andorran company. It mainly relies on a permanent employment contract, a legally incorporated company, an available place in the relevant quota, and permanent, genuine residency.

Residency and self-employment — this permit covers, among others, the director of an Andorran company they genuinely control and manage, as well as qualified professionals authorised to practise their profession in the Principality. The procedure and supporting documents differ depending on the category involved.

The choice shouldn't be guided by whichever option seems administratively simplest, but should match the actual working relationship: a shareholder who controls their own company can't artificially use an employment contract to sidestep the conditions of self-employed residency.

A newly arrived person can apply for the residence and employment permit where they fall within an open immigration quota, hold a permanent employment contract, are hired by a legally incorporated Andorran company, establish permanent, genuine residency in the country, and meet the required personal, professional and medical conditions. The permit is tied to genuine employment: the contract, pay, actual duties and qualifications must all be consistent.

Can you be an employee of your own company? This is heavily restricted: someone applying for the employee permit cannot hold a shareholding of more than 5% of the capital of the company employing them. Someone holding 30%, 50% or 100% of their company should therefore normally look at the self-employment route rather than ordinary employment.

The employee file generally includes the immigration form, a passport, the required criminal record certificates, a declaration regarding background, a compliant photograph, proof of accommodation, civil status documents, a CV, qualifications or evidence of qualifications, medical examination documents, professional and salary terms, and the employment contract. Foreign documents must be apostilled or legalised as required. Once the permit is granted, the resident must register with their parish's Comú within three months.

Work permits are granted within the limits of quotas set by the Government. In 2026, a general quota of 800 permits for residency and work or cross-border work was introduced, supplemented in June by an extension of 250 permits covering various professions and activity categories. These figures don't mean a place is still available at the time of application: quotas can be exhausted, limited to certain trades, or replaced by new rules. It's necessary to check the trade, sector, nationality, professional experience, qualifications, and the actual availability of the quota — for certain non-EU applicants who have never worked in Andorra, demonstrable experience in the relevant trade may be required.

For renewal, the permit holder must show they have lived and worked in Andorra on a permanent, genuine basis. The file may include the current permit, passport, Comú residency certificate, CASS points statement, payslips, and evidence of professional activity. For employee permits subject to the relevant quotas, Catalan level A1 must be demonstrated at the first renewal and level A2 at the second; the official timetable provides for this requirement to be extended to other categories, including self-employment, from 2029 — a deadline that should be re-checked before each renewal.

The entrepreneurial route is aimed at someone who wants to run their own business from Andorra. It's not just about owning shares in a company: the applicant must show they genuinely take part in managing and controlling the business. In particular, they must:

1. reserve a place in the self-employment residency and work quota; 2. obtain the necessary foreign investment authorisation; 3. legally set up an Andorran company; 4. hold a shareholding strictly greater than 34% — holding exactly 34% doesn't meet the legal condition; 5. hold a position within the management body; 6. provide effective management and control over the business; 7. make the €50,000 deposit required by law; 8. have accommodation in Andorra; 9. show that the company has a registered, actively trading business; 10. register with CASS according to their status.

Reserving the permit — for the route involving foreign investment and a company, the applicant has a maximum of six months to provide evidence of the foreign investment, the company's incorporation, their shareholding, their appointment as director, their management role, and the applicable deposit. If these conditions aren't demonstrated within that period, the reservation lapses. After the immigration application, the company must also demonstrate, within the statutory deadline, that it has a properly registered, actively trading business — and at renewal, this activity must be confirmed through documents relating to trade and to income actually generated.

This is the key change to be aware of. For new applications under the 2026 regime, the €50,000 amount is paid to the Andorran Financial Authority (AFA) at the time of filing, is final, is non-refundable once the permit is granted, is transferred to the State once the permit is approved, and is only returned if the initial immigration application is refused. This amount should therefore no longer be presented as a temporary deposit the resident recovers when leaving the country.

This amount is separate from the share capital: it doesn't replace the company's capital, registration fees, notary fees, start-up costs, social security contributions, or immigration fees — the entrepreneurial budget needs to account separately for the permit-related deposit and the funds needed for the business to actually operate.

An exemption is available for certain projects selected by an entity officially recognised for this purpose by the Government, or falling within the digital economy, entrepreneurship or innovation, where they constitute a high-value technology activity meeting the regulatory criteria — simply carrying out a digital activity or setting up a start-up isn't enough; eligibility must be officially recognised. Transitional rules may also apply to certain applications filed before the reform was approved: the exact filing date needs to be checked before determining which regime applies.

The quota opened in 2026 for self-employed workers was set at 200 permits, split into 150 permits linked to foreign investment and a company, 30 permits for liberal professionals other than doctors, and 20 permits for doctors meeting the required conditions. These categories aren't automatically interchangeable: when one category is exhausted, places still available in another can't necessarily be transferred. Actual availability needs to be confirmed before starting the company's incorporation or committing to the project's main expenses.

The qualified professional, whose activity requires a recognised qualification, follows a specific procedure within the self-employment route: the reservation is made before the permit is granted, and the applicant generally has three months to demonstrate government authorisation to practise their profession, registration with the relevant professional body where required, and the other immigration conditions. This route shouldn't be confused with the path of a director holding more than 34% of their company — the €50,000 deposit required for the company route doesn't automatically extend to this category.

The answer depends on the type of permit and the specific issue being considered — the same 183-day reference doesn't apply uniformly to every status:

In every case, the permit holder must genuinely live and work in the Principality: occasional presence, combined with a company managed from abroad, can jeopardise renewal or raise tax issues. Obtaining a residence card also doesn't automatically settle the question of tax residency: an individual is generally considered an Andorran tax resident when they spend more than 183 days there in the calendar year, or have the main centre of their economic activities or interests there. Before relocating, it's worth checking accommodation retained in the country of departure, where the family lives, the management of any companies, remuneration, real estate, and any exit tax rules — see our taxation in Andorra guide.

The employee file mainly relies on the permanent contract, professional and salary terms, employer information, the qualifications required for the role, quota-related documents, and the medical examination. The entrepreneur file relies on the foreign investment authorisation, the company's articles of association and registration, evidence of a shareholding above 34%, appointment to the management body, proof of effective management, evidence of the €50,000 deposit where applicable, an actively registered trading business, and future evidence of income and activity. This list remains indicative: the Immigration Service may request further documents.

Immigration fees only cover part of the budget. For an entrepreneur, you also need to plan for the share capital, foreign investment authorisation, incorporation fees, notary fees, legal fees, accommodation, business premises, accounting, CASS, translations and apostilles, and the resources needed to launch the business. Official rates published in August 2026, to be confirmed at the time of application.

There's no officially guaranteed overall timeframe. For an employee, the duration depends on quota availability, the contract offered, nationality, qualifications, how quickly documents are prepared, the medical examination, and administrative processing. For an entrepreneur, the process can take longer since it includes reserving the quota, foreign investment, incorporating the company, opening a bank account, setting up premises, making the applicable deposit, the immigration application, the commercial opening, and evidence of activity — the reservation linked to the company route allows a maximum of six months to present the main conditions. It's best to assume the project could take several months.

Under the general regime, the first permit is issued for one year, and can then be renewed three times for two-year periods; after seven years, renewals can be granted for ten years. Specific rules may apply under agreements between Andorra and certain states. Renewal is not automatic: the holder must continue to meet the conditions relating to their activity, residency, permit, CASS, and any language requirements.

CASS is Andorra's social security body. For an employee, the employer must complete registration within the required deadline — no later than the day employment begins. For an entrepreneur, the self-employed person must register according to their status; for the director of a newly incorporated company, the obligation to contribute begins, under the regime published by CASS, thirty calendar days after the company is registered with the Companies Register.

For family members, a spouse or child doesn't automatically become an indirect insured person simply because the main permit holder has been granted their permit: a specific application must be submitted to CASS with evidence of the family relationship, immigration status, and, where applicable, cohabitation. A distinction needs to be drawn between the family member's immigration permit, their CASS registration, their potential right to work, and the conditions for accessing benefits.

A holder of a residence and work permit can generally apply for family reunification after having lived legally, genuinely and continuously in Andorra for the previous three months. This can potentially cover a spouse, registered partner, minor children, certain dependent adult children, dependent ascendants aged at least 65 or retired, and certain people under legal guardianship.

The applicant must demonstrate suitable accommodation and sufficient financial means: the currently published rules require household income to represent at least 100% of the Andorran minimum wage for each adult in the household, and 70% for each minor child — thresholds to check as of the application date, since the minimum wage can change. Family reunification doesn't automatically grant the beneficiary the right to work: a separate work-authorising permit must be applied for if they wish to take up employment.

Someone who genuinely wants to run an Andorran business shouldn't choose passive residency purely to avoid the conditions of self-employment. Conversely, someone living off their assets with no local activity doesn't necessarily benefit from artificially setting up an operating company.

Yes. An Andorran company can offer its services to clients based in other countries. However, active residency doesn't prevent foreign rules from applying: it's necessary to consider, in particular, where services are actually carried out, the director's travel, offices or teams located abroad, the risk of a permanent establishment, VAT or IGI, withholding taxes, tax treaties, and obligations in the country of departure. A company whose management, employees, clients and delivery all remain entirely in another country might not be considered genuinely operated from Andorra.

• choosing employee status while controlling the company — a shareholding above 5% in the employer is incompatible with the ordinary employee route;
• holding exactly 34% of the company, when the law requires a strictly higher shareholding;
• treating the €50,000 as recoverable, when it's final once granted for applications under the 2026 regime;
• confusing the €50,000 with share capital — two separate amounts;
• setting up the company before checking whether a self-employment quota place is available;
• presenting a company with no genuine activity, when renewal requires evidence of trading and income;
• underestimating the presence in Andorra required for renewal (183 days for the company route);
• assuming family members are automatically covered by CASS;
• promising a fixed timeframe, when quotas, the bank and the authorities make any universal guarantee impossible;
• confusing administrative residency with tax residency.