Andorra's Active Residency Permit: a local job or your own company, and a quota to beat
Founders now pay about $57,300 (€50,000) that they won't get back, and Americans sit last in line for the 2026 self-employed quota. Here's how both routes work and what they cost.
This is Andorra's permit for people who earn their living inside the country, either on an Andorran payroll or through an Andorran company they help run. The government fee is small. The quota, the founder payment and the time you have to spend there are what decide it.
Active Residency Permit
For individuals who intend to work in Andorra, either as employees or as self-employed entrepreneurs. Requires a commitment to the local economy and significant physical presence.
- Processing time
- ~90 days
- Timeline
- 3 months
- Difficulty
- Moderate
About that data card
Our requirements list reads "Invest in the local economy (e.g., set up or be employed by an Andorran company)." That blends two routes. Employees invest nothing; they need an open-ended contract with an Andorran company. Only founders invest, by owning more than 34% of an Andorran company and paying €50,000 to the financial regulator.
Two routes, one permit family
Employee or founder: pick the door that matches your paycheck
On an Andorran payroll
You file yourself, in person, with an open-ended employment contract from a legally established Andorran company. Advisers say the employer also has to show no suitable local candidate was available. The fee is about $219 (€190.96), and new employee permits come out of a general quota of 900.
Running your own company
You need foreign-investment approval, a stake of more than 34% in the Andorran company, and a board seat. When you file, you pay about $57,300 (€50,000) to the Andorran Financial Authority. It's final and non-refundable unless your first application is denied. Projects the government recognizes as digital economy, entrepreneurship or innovation are exempt.
If your paycheck comes from the U.S.
This permit isn't built around a U.S. employer. Andorra's digital nomad permit is the one to compare.
The numbers that decide it
$219
First-permit fee
€190.96, either route
$57,300
Founder payment to the AFA
€50,000, not refundable
$674/mo
Self-employed CASS
€587.95; $169 reduced to start
Over 34%
Founder's company stake
plus a board seat
183 days
Yearly presence advisers cite
law says permanent residence
60 days
Legal decision deadline
business days, filed in person
200
Self-employed permits, 2026
Americans in the last group
$26
Renewal fee
€22.61, apply in the last 60 days
The founder route, step by step
Reserve a slot first, then build the company
Since the 2025 reform, founders start by reserving a place in the self-employed quota. You then have six months to get foreign-investment approval and form the company, or three months if you're applying as a recognized professional. After that, you file for residence and pay the €50,000.
The 2026 quota under Decree 75/2026 is 200 permits: 150 general, 30 for liberal professionals and 20 for doctors, and unused places can't move between groups. Files go in date order, with priority to countries that have agreements with Andorra, then EU and EEA citizens, then everyone else. Americans are in that last group.
Here's the catch: the door has closed before. In 2025 the self-employed quota filled and new approvals stopped with no waiting list, and at least one Andorran adviser listed active residency as temporarily closed in 2026. Confirm a place is open before you spend on lawyers or incorporation.
Advisers also say the company needs at least $11,500 (€10,000) in yearly revenue after two years.
Start Catalan before you land
Residence-and-work permit holders must show Catalan at level A1 at their first renewal and A2 at their second. A 30-hour course counted instead only until April 26, 2026, so you'll need the diploma. With a one-year first permit, that first renewal comes fast.
Once you're approved
Family, health coverage, taxes and the long game
The first months
Register with your parish within three months of approval. The first permit lasts a year, renews three times for two years each, then every ten years after year seven. Apply to renew no earlier than 60 days before it expires, with your CASS records and a residence certificate.
Family
Your spouse or partner, minor children, adult children under guardianship, and dependents 65 or older or retired can join you. Their fee is about $26 (€22.61), on the same one-year, then two-year schedule.
Health coverage
Working puts you in the CASS, Andorra's public insurer. It reimburses 75% of doctor visits and 90% of hospital stays. Employees pay 6.5% of salary and employers 15.5%.
Taxes on both sides
Andorra doesn't tax net income under about $27,500 (€24,000), then an effective 5% up to about $45,900 (€40,000) and 10% above that. There's no wealth or inheritance tax. The U.S. still taxes your worldwide income, and there's no U.S.-Andorra tax treaty. The Foreign Earned Income Exclusion can help if you pass the IRS residence test or spend 330 full days abroad in 12 months.
Citizenship
It takes 20 years of residence, the last five in a row, plus B1 Catalan. You must give up U.S. citizenship, so most Americans treat this permit as a long stay, not a second passport.
Plan-B Outbound Migration
Multi-Country Visa Support
Visa and relocation support across several countries, useful for checking whether Andorra's work routes beat your other options.
Legalize That Doc
Document Preparation
Helps you assemble and prepare the U.S. paperwork a residence application asks for.
Bianca Lynch
Career Coach: Self-employment
A career coach focused on self-employment, for testing whether a business idea can carry a move abroad.
MyExpatTaxes
U.S. Expat Tax Service
Files U.S. tax returns for Americans living abroad, including the foreign earned income exclusion.
Beacon Global Advisors
Financial Planning
Financial planning for Americans overseas, from retirement accounts to investment strategy.
Moneycorp
Currency Exchange
Currency exchange and international transfers for moving dollars into euros.
Flamingo Compliance | Tax Residency and Visa Tracker Platform
Tax Residency and Visa Tracker Platform
Software that logs where you spend each day, for tax residency and visa presence rules.
ExpatInsure
Global Health Insurance
International health insurance plans for expats.
Hunter Schultz
Healthcare Coach
A healthcare coach who helps Americans understand care and coverage in a new country.
Andorra active residency: straight answers
Can I use this permit if I work remotely for a U.S. company?
It isn't designed for that. The active residency routes are built around an Andorran employer or an Andorran company you own more than 34% of. Andorra has a separate digital nomad permit for people whose work isn't tied to a location.
Do I need to speak Catalan to keep Andorra's residence and work permit?
Yes. Holders must show Catalan at level A1 at their first renewal and A2 at their second. A 30-hour course was accepted instead only until April 26, 2026.
Is the €50,000 payment to the Andorran Financial Authority refundable?
No. Under Llei 2/2026 the €50,000 is final and non-refundable unless your first application is denied. Projects the government recognizes as digital economy, entrepreneurship or innovation don't have to pay it.
How much does Andorra's active residency cost?
The first-permit fee is €190.96 (about $219) and each renewal is €22.61 (about $26). Founders also pay €50,000 (about $57,300) to the Andorran Financial Authority when they apply, and self-employed people pay a monthly CASS contribution of €587.95 (about $674), or €146.99 (about $169) at the reduced rate for a new activity.
Can my spouse and children move with me?
Yes. Spouses or stable partners, minor children, adult children under guardianship, and dependents 65 or older or retired can apply for family reunification. The fee is €22.61 (about $26), and their permit follows the same one-year, then two-year schedule.
Can Americans get Andorra's active residency permit?
Yes, but it's competitive. Employees need an open-ended contract with an Andorran company. Founders need a place in the self-employed quota, which was 200 permits for 2026, and applicants from countries with agreements with Andorra and from the EU and EEA are handled first. Americans come after those groups.
How many days a year do I have to live in Andorra on this permit?
The official requirement is permanent and effective residence in Andorra, and Andorran advisers put that at 183 days a year. Spending more than 183 days there in a calendar year also makes you an Andorran tax resident.
Does Andorra's active residency lead to citizenship for Americans?
Only after 20 years of residence, with the last five in a row, plus B1 Catalan. Andorra requires new citizens to give up their original nationality, so an American would have to renounce U.S. citizenship.
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