Active or passive residency in Andorra?

Active residency suits people running a business from Andorra: 183 days' presence, own the company, EUR 15,000 deposit. Passive residency suits those with outside income: 90 days' presence and a EUR 600,000 investment.

Is Andorra in the EU or Schengen?

Neither, though it uses the euro and has a customs union with the EU. Residents travel visa-free within Schengen.

Does Andorra exchange tax information?

Yes. Andorra has participated in the CRS automatic exchange of information since 2018 and has a network of tax information agreements.

Jurisdiction · Europe

Andorra

10% flat tax in the Pyrenees with an accessible active-residency route.

Scope a structure here Talk to a director

Overview

Andorra offers a 10% headline rate on both corporate and personal income, with a residency programme accessible at a fraction of Monaco or Switzerland's cost. For founders in the EUR 200k to EUR 2m income range who want a European base with real quality of life, it is often the most proportionate answer.

It is a small jurisdiction with real requirements: physical presence of at least 90 or 183 days depending on the permit, a deposit with the Andorran government, and private health cover. Banking is professional but conservative, and residents are genuinely expected to live there.

Typical use-cases

Where Andorra fits

Personal relocation
Digital businesses
Holding companies

Banking

Banking landscape

Andbank, Creand (Crèdit Andorrà) and MoraBanc cover the market and are used to serving international residents. Accounts require residency or a strong local nexus; source of funds review is thorough. Cross-border payments work normally through SEPA.

Tax

Tax & reporting

10% corporate tax with reduced effective rates for qualifying international activity. Personal income tax is progressive to 10%, with the first EUR 24,000 exempt. Capital gains on shareholdings below 25% held for more than ten years are exempt. No wealth, inheritance or gift tax. VAT (IGI) is 4.5%, the lowest in Europe.

Substance

Substance & register visibility

Active residency requires forming a company where you work and hold at least 34% of shares, plus a EUR 15,000 government deposit and 183 days of presence. Passive residency requires 90 days' presence and a EUR 600,000 investment in Andorran assets. Company ownership is filed with the government register.

Decision

When to pick this jurisdiction

Pick Andorra when a founder wants European residency at 10% with genuine presence, when Monaco and Switzerland are disproportionate to the wealth level, and when an active operating business can be based there.

The director's view

Written up as a comparative shortlist.

Every Andorra recommendation is delivered as a comparative memorandum — substance defensibility, banking access, treaty coverage, register visibility, cost to maintain and reputational risk — so the client can see the trade-offs before committing.

Next step

Considering Andorra? Get a written comparison first.

Answer six questions and a director will come back with a shortlist, indicative costs and banking route.

Scope a structure here Compare jurisdictions

Frequently asked

Questions we hear on every Andorra intake.

Active or passive residency in Andorra?: Active residency suits people running a business from Andorra: 183 days' presence, own the company, EUR 15,000 deposit. Passive residency suits those with outside income: 90 days' presence and a EUR 600,000 investment.
Is Andorra in the EU or Schengen?: Neither, though it uses the euro and has a customs union with the EU. Residents travel visa-free within Schengen.
Does Andorra exchange tax information?: Yes. Andorra has participated in the CRS automatic exchange of information since 2018 and has a network of tax information agreements.

Relevant services