This article has been revised and updated in accordance with the latest amendments to Andorran regulations.
Updated August 2023.
Although Andorra is no longer a tax haven, it is undeniably a very appealing country for sporting, science and cultural personalities.
After the signing of more than 20 exchange of information conventions between our principality and countries such as Spain, France, Portugal, Switzerland, Germany, Austria, Belgium and the Netherlands, among others (you can see the details of all the countries here), Andorra was removed from the OECD (Organization for Economic Cooperation and Development) blacklist. In addition, Double Taxation Agreements (DTAs) have been established with Spain, France, Portugal, Luxembourg, Liechtenstein, Cyprus, Malta and the United Arab Emirates, San Marino, Hungary, the Netherlands, Croatia, Czech Republic, Iceland and South Korea which prevent double taxation between Andorra and these countries.
As a result, obtaining residency in Andorra has become a totally licit and lawful option that enables elite sportspeople, renowned researchers and artists to reduce the tax burden on the income from their professional careers.
Who is eligible for residence permits for reasons of scientific, cultural and sporting interest?
Any foreigner who has received international recognition for their scientific, cultural or sporting skills is eligible. To qualify for residency, foreigners must establish their actual residence in Andorra for a minimum of 90 days per calendar year.
What other requirements must candidates meet?
- Anyone wishing to obtain passive residency in Andorra for reasons of scientific, cultural and sporting interest must prove that the activity which they intend to carry out in the corresponding field is economically viable and provides adequate financial resources to allow them to reside in the country, along with their dependants.
- – A non-interest-bearing deposit of €47,500 must be placed with the Andorran Financial Authority (AFA), plus €9,500 for each dependant. When leaving the country, this deposit is returned in full (except in the case of withholdings due to non-compliance with Administration obligations).
As can be seen, the requirements for becoming a tax resident in Andorra for reasons of scientific, cultural and sporting interest are very achievable for these groups.
This is why many elite athletes already enjoy the tax advantages of residing in Andorra, as well as the benefits that our country offers them for their everyday lives and training. Among them are brothers Aleix and Pol Espargaró, Maverick Viñales, Joan Mir, Jorge Martín, and the Belgian Xavier Simon (all of whom are MotoGP riders), or other famous motorsport names such as Toni Bou and Dakar riders Cyril Despres, Joan Barrera and Adrien van Beveren. Not to mention the cyclists, such as ex-professional Purito Rodríguez and Carlos Verona.
The Advantia Assessors team specialises in obtaining all types of passive residencies in Andorra. If you think that you meet the requirements and you would like to benefit from a lower tax burden on your income, contact us and we will assist you with completing all the formalities.