Discover the differences between Andorra's banks and how to choose the institution that best suits your profile, whether you're a resident, non-resident, entrepreneur or investor.
At IS21, we support individuals, professionals, entrepreneurs and investors throughout the relocation process, helping them understand the available options and the procedures required according to their personal circumstances.
Why live in Andorra?
Andorra combines the advantages of a small European country with a mountain environment, an open economy and a high standard of living. Safety, institutional stability and access to quality services are some of the factors behind the growing interest in settling in the Principality.
Quality of life
A peaceful environment, compact urban areas and easy access to nature, sport and outdoor activities.
Safety
Andorra is known for its high levels of safety and offers a particularly peaceful environment for residents and families.
Competitive taxation
The Principality has a tax structure that differs from neighbouring countries, with comparatively moderate tax rates.
International environment
The presence of residents from many different countries and its proximity to Spain and France contribute to an international and dynamic environment.
You may also be interested in: News about the economy, residency and business in Andorra
What are the requirements for living in Andorra?
To settle legally in Andorra, you need a residence permit suited to your individual circumstances.
The requirements vary depending on the type of residency requested, your professional or economic ties to the country and your personal situation.
Before starting any procedure, it is therefore important to identify which type of residence permit best fits your relocation plans.
Related guide: Residence in Andorra: permits and requirements
Types of residency for living in Andorra
Broadly speaking, residency options can be divided between those linked to professional activity carried out in Andorra and those that allow a person to live in the Principality under other conditions established by law.
| Type of residency | Typical profile | Activity in Andorra |
|---|---|---|
| Active residency | People employed in Andorra or carrying out a professional or business activity in the country. | Yes |
| Residency without ordinary employment | People who meet the requirements to live in Andorra without carrying out ordinary employment in the country. | Depends on the type of permit |
Legislation and residency requirements may change, so it is advisable to review your specific situation before starting the application process.
More information: Moving to Andorra: requirements to obtain residency
How much does it cost to live in Andorra?
The cost of living depends largely on the parish in which you live, the type of property, the number of people in your household and your lifestyle.
Some of the main expenses to consider before relocating include:
- Renting or buying a property
- Utilities and telecommunications
- Food
- Transport and vehicle costs
- Insurance
- Education, where applicable
- Leisure and sports activities
Housing is usually one of the factors with the greatest impact on monthly expenditure, so we recommend assessing this carefully before organising a permanent move.
Taxation when living in Andorra
One of the reasons Andorra attracts international interest is its tax system. However, obtaining administrative residency in Andorra does not automatically mean that you cease to be a tax resident of another country.
Tax residency depends on several criteria and should be analysed carefully, particularly when economic, business, family or asset-related ties are maintained with Spain, France or other countries.
Andorra has taxes such as Personal Income Tax and the IGI, its General Indirect Tax, as well as international agreements designed to avoid double taxation.
Visit our Taxes in Andorra section for more information about taxation and the Andorran tax system.
Working or setting up a business in Andorra
Many people who decide to move to the Principality do so to develop a professional activity, start a business project or manage investments from Andorra.
In these cases, the relocation process should be planned together with the intended professional or business structure, as it may involve procedures related to residency, company incorporation, foreign investment, taxation and social security.
Before making a decision, it is advisable to assess the viability of the project and clearly define how the activity will be carried out.
Follow the country's business developments in our Economy and Business in Andorra section.
What is everyday life like in Andorra?
Adapting to life in Andorra is generally relatively straightforward, although there are a number of local characteristics worth understanding before relocating.
Healthcare
Andorra has its own healthcare system, combining public and private care with reimbursement mechanisms linked to the social security system.
Education
One of the Principality's particular features is the coexistence of different education systems, giving families several options when choosing schooling for their children.
Languages
Catalan is the official language of Andorra, although Spanish and French are also widely used in everyday life.
Mobility
The country's small size makes it possible to travel between parishes relatively quickly, although traffic can increase at certain times of day, during tourist seasons and on particularly busy dates.
Nature and sport
The mountains are an important part of the Andorran lifestyle. Skiing, hiking, cycling and other outdoor activities are easily accessible from practically anywhere in the country.
Up-to-date information about living in Andorra
Administrative, tax and economic requirements may evolve over time. If you are considering moving to the Principality, it is therefore important to consult up-to-date information before making decisions.
In our Andorra news section, we regularly publish content related to residency, taxation, the economy, business and other topics relevant to people who already live in Andorra or are considering moving there.
You can also visit our sections dedicated to residency in Andorra, taxes in Andorra and economy and business in Andorra.
Are you thinking about moving to Andorra?
At IS21, we can help you analyse your situation and organise the different steps required to settle in the Principality, including residency, taxation, company formation, investment and administrative procedures.
Tell us about your plans and our team will guide you towards the options that best fit your situation.
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