The benefits of living in Andorra


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Passive residency in Andorra

This article has been revised and updated in accordance with the latest amendments to Andorran regulations.Updated August 2023. Andorra offers two different types of residence permits: active residency (linked to…

If you’re considering a new start and you’re looking for a country where you can live comfortably, moving to Andorra, either alone or with your family, is a great option.
The principality is a peaceful and cosmopolitan country nestled between Spain and France with a population who speak Catalan, Spanish and French fluently thanks to the proximity to these countries. Residents are surrounded by outstanding natural beauty and enjoy a high quality of life thanks to one of the world’s best healthcare systems and safe streets. Furthermore, if you move to Andorra with your children, you will have the opportunity to choose from more than one public education system.

Table of contents:

  1. Benefits of living in Andorra
    Economic advantages of living in Andorra

Benefits of living in Andorra

These are just some of the advantages that people who have chosen to settle in the principality most appreciate. But there are also many more, which we will discuss below.

• The unbeatable location

Andorra covers an area of 468 km² set in the Pyrenees between Spain and France. Administratively, it is divided into seven parishes: Canillo, Encamp, Ordino, La Massana, Andorra la Vella, Sant Julià de Lòria and Escaldes-Engordany.
There are some fantastic cities nearby for weekend breaks or holidays, such as Barcelona and Toulouse. Both are well connected by road, and the journey is only around three hours by car. Andorra-la Seu airport, located 10 km from the principality, currently completes the links with the country and has regular flights to Madrid every week. In addition, a pilot project to link the Pyrenees with Palma de Mallorca will run from December 2023 to 31 March 2024.

• Population

The population currently stands at 84,723 (November 2023). The most densely populated towns are the most central, Andorra la Vella and Escaldes, while the least populated are Canillo and Ordino, which are the furthest from the centre but also quieter and closer to the ski resorts and nature. The country also boasts a good public transport network and regular public buses are free for residents.

• Families with children

As we mentioned at the beginning, if you’re moving with your family, this is an ideal place for school-age children. When it’s time to send your children to school, you can choose from three different education systems: Andorran, French and Spanish. The schools are state-run and free, and you can find them all over the principality. Like most countries, education is compulsory until the age of 16. You can also choose between two private schools that offer the International Baccalaureate in English. Finally, Andorra has a university where you can study for a number of degrees.

• A peaceful and safe country

If there’s one thing that makes Andorra stand out, it’s safety, thanks to the low crime and delinquency rates compared to other cities.
As far as road safety is concerned, the roads are in good condition and well signposted. However, precautions must be taken during the winter months due to the weather conditions.

• A natural paradise

Living in Andorra means being surrounded by nature and having the mountains on your doorstep. An interesting fact is that 90% of the territory is covered by mountains, nature, meadows, forests, rivers and lakes. There are three natural parks, one of which has been designated as a UNESCO World Heritage Site. In winter, sports and snow activities take centre stage; while in summer, cycling, hiking and everything to do with the mountains become the focus.

• Health

Life expectancy is 83.5 years: 81.1 for men and 85.7 for women, putting the principality on a par with countries like Japan and Switzerland.
The Andorran health system is also highly regarded.

• Applying for residency in Andorra

There are several types of residencies in Andorra. Firstly, there are the active ones, which are intended for employees or investors. Then there are passive (or tax) residencies, which can be broken down into different categories: non-profit residencies, international professional residencies and residencies of scientific, sporting or cultural interest. Finally, there are temporary residencies for companies that conduct seasonal work in Andorra.

Economic advantages of living in Andorra

• Economic sectors

The main sectors on which the Andorran economy is based are tourism, trade and financial services. If you’re planning to start a business in Andorra, these are some of the best sectors to consider.
In terms of tourism, Andorra welcomes around 8.4 million visitors per year. This figure is for 2022, which means that the sector has recovered to the pre-pandemic levels in 2019.
The country has made efforts to modernise and diversify its economy, and also excels when it comes to the digital realm, with significant progress being made by the adoption of the law governing the digital economy, entrepreneurship and innovation, entrepreneurship and innovation. This law establishes a solid and reliable regulatory framework that is designed to provide essential tools and encourage the active creation of business opportunities in the digital sector. It also includes regulation for startups. In terms of connectivity, the country boasts a good network as the whole country has access to a fibre-optic connection.

• Foreign investment

Andorra has encouraged foreign investment and made it easier for non-residents to set up companies by allowing foreigners to own 100% of a company based in the principality.

• Economic growth

According to the latest IMF report (Andorra joined the International Monetary Fund in 2020), GDP growth is expected to reach 2.1% by the end of 2023, in line with countries such as Spain and Portugal and surpassing the European average of 1.2%. Unemployment in Andorra is much lower than in neighbouring countries. In fact, the aforementioned IMF report predicts that the principality will end the year with an unemployment rate of 1.9%.

• Lower taxes

Whether you decide to live in Andorra as a passive resident or to start a company, taxation is much more favourable than in other countries of the European Union.
• You will pay no more than 10% income tax.
• The maximum rate for corporation tax is 10%.
• Andorran VAT (known as IGI) is 4.5%.
For these reasons, Andorra is considered to have a low tax burden. In this article, which was updated in 2023, we explain the taxes paid in Andorra in more detail.


In conclusion, this is what you’ll discover when you choose to make Andorra your new home:
• Great quality of life with an excellent health system
• An excellent geographical location between France and Spain
• Impressive natural surroundings and a wide array of outdoor activities
• First class education, with various public and private education systems
• A pleasant climate
• Low taxes and a stable economy

Residence in Andorra will let you enjoy all these benefits and many more. Our team of experts will assist you throughout the process of establishing your residence, providing you with all the necessary information and advising you every step of the way. Don’t wait any longer to enjoy the advantages of living in Andorra. Contact us now!