Is there a Retirement Visa in Andorra?

Looking for a tranquil, safe, and tax-friendly place to enjoy your golden years? Andorra has become a popular choice for retirees seeking a high standard of living close to both Spain and France.

And, although there is no official “Andorra retirement visa,” the Principality’s passive residency permit works just like one, giving retirees a comfortable gateway to life in Andorra.

Below, we explain how it all works, from requirements and tax benefits to the ease of enjoying the Pyrenees while receiving your pension.

Andorra retirement visa?

Technically, Andorra does not issue any permit named a “retirement visa”. What retirees use instead is the passive residency permit, commonly called “residència passiva” in Catalan. This type of residency is perfect for those who do not plan to work within the Principality. Whether you have pension income from abroad or investment proceeds that support your retirement, passive residency is the go-to solution.

Compared to active residency, which is meant for people who work in Andorra, passive residency is easier in terms of day-count requirements. You only need to stay in Andorra for 90 days per year to keep the permit (although for tax residency benefits, you may want to spend more time here).

The permit also comes with the possibility of traveling freely within Spain, France, and Portugal if you are not already an EU citizen.

Requirements for retirement in Andorra

For most retirees, the path to living in Andorra involves meeting specific financial and administrative conditions. These requirements ensure you have sufficient resources to sustain yourself and that you fit within Andorra’s regulatory framework.

Investment requirement: non-Andorran retirees must invest around €550,000 in Andorra. This can be real estate, company shares, or a personal bank account in the country.
AFA deposit: a non-interest-bearing deposit of €50,000 is required by the Andorran Financial Authority. This deposit is refunded when you change your residency or leave the country.
Private health coverage: retirees must secure private health insurance in Andorra to ensure medical expenses are covered.
Criminal record check: applicants should have no criminal history.
Valid passport: you need a current and valid passport to prove your identity and nationality.
Marital status documentation: authorities require confirmation of your marital status.
Medical examination: acheckup through the Immigration Medical Service is mandatory once you are in the country.
Income requirement: you must show at least 300% of the Andorran minimum wage in yearly income, ensuring a stable financial standing.
Minimum stay: spend at least 90 days per year in Andorra to maintain your administrative residency.
Additional paperwork: depending on your specific situation, you may need certificates proving pension details, insurance coverage, or other relevant documentation.

These measures are designed to guarantee that retirees can support themselves comfortably and to maintain Andorra’s high living standards.

You can read our in-depth guide on Andorra’s passive residency.

Tax benefits

One of the standout reasons retirees choose Andorra is its exceptional tax system. Although your passive residency permit is primarily an administrative status, it often pairs well with establishing tax residency if you spend enough time in the Principality.

The key tax benefits for retirees include:

Wealth tax exemption: Andorra does not levy any wealth tax, so your assets remain intact.
Inheritance and gift tax exemption: passing on property or wealth to heirs is significantly less burdensome.
Low or no capital gains tax: the maximum rate is only 10%, and in certain cases, it drops to 0% depending on the type of asset and how long you have held it.
Low or no dividends tax: also here the maximum rate is 10%, with many cases being 0%.

For those with substantial assets, these policies are highly appealing: whether your primary income comes from pensions, investments, or a combination of sources, Andorra’s tax framework can make your retirement years more prosperous.

Other advantages of retiring in Andorra

Beyond the tax perks, Andorra provides a range of qualities that enhance the retirement experience:

World-class healthcare: known as one of the best in the world, Andorra’s healthcare system is both efficient and comprehensive.
Excellent security: crime rates are nearly nonexistent, giving retirees peace of mind.
Pleasant climate: the climate combines the mildness of the Mediterranean with fresh mountain air.
Easy transportation: well-maintained roads connect you to nearby cities like Barcelona or Toulouse within a few hours.
Political neutrality: Andorra historically stays out of major political conflicts, adding stability to life here.
Serene environment: nestled in the Pyrenees, the Principality offers stunning scenery for nature lovers.

All these aspects work together to create a peaceful and high-quality lifestyle for retirees who wish to enjoy their golden years in a uniquely beautiful location.

Retire having worked in Andorra

If you have contributed to Andorra’s Social Security system (CASS) during your career, the retirement transition is straightforward. You can claim your pension starting at age 65 if you have at least 180 months of contributions. Early retirement at age 61 is possible with a minimum of 40 years of contributions and if you are no longer registered as employed or self-employed.

Andorra also allows individuals to keep working even after 65. Salaried employees contribute 6.5% to the system (the employer covers the remaining share of the 22%), while self-employed workers pay the full amount themselves.

Reforms are ongoing to maintain and improve the sustainability of Andorra’s pension system, ensuring retirees can rely on stable benefits in the years to come.

Passive residency vs. family reunification

For retirees who do not have an immediate family member in the country to sponsor their relocation, passive residency is the simplest route. Family reunification is an option for those with close relatives already settled in Andorra, but not everyone has that possibility.

Whether you choose passive residency or family reunification, Andorra makes the process relatively straightforward for legitimate retirees with sufficient means and a desire to integrate into the local lifestyle.

Planning your financial future

Thoughtful planning is key to a successful retirement. Before you start the application, make sure you have a clear strategy in place. Here are some considerations:

Investment strategy: decide if you will purchase a property, invest in a local business, or place funds in an Andorran bank. Each option can fulfill the residency requirements differently.
AFA deposit: remember that the €50,000 deposit, or more depending on your family members, is refundable once you end your residency.
Income verification: proving you can meet the 300% minimum wage threshold (plus additional amounts for dependents) is vital.
Healthcare coverage: you must have private health insurance recognized by Andorran authorities.

Ahead-of-time preparation ensures you meet all criteria and enjoy a smooth transition into Andorran life.

Steps to apply for Andorra’s passive residency

While the process is not overly complex, following an organized checklist will streamline your application:

Initial consultation: contact us to see which investment route best suits your finances.
Document preparation: gather your passport, proof of income, health insurance details, criminal record certificate, and any other paperwork.
Health insurance: obtain a policy that meets local requirements before submitting your residency application.
Investment and deposit: arrange your chosen investment (property, bank account, etc.) and place the required deposit with the Andorran Financial Authority.
Submit your application: hand in all documents to Andorran immigration. Approval usually takes a couple of months.
Maintain residency: once approved, you must comply with the 90-day minimum stay requirement, plus any other obligations to keep your permit valid.

By following these steps, you can enjoy the relaxed pace of life, natural beauty, and tax benefits that Andorra offers to its retired residents.

Ready to retire in Andorra?

If you are looking for a peaceful, secure, and tax-friendly place to enjoy your pension, Andorra is a top contender. The passive residency permit serves precisely that purpose, allowing retirees to settle here without employment obligations.

Take your next step by downloading our in-depth report “The definitive guide to living in Andorra” to learn more about taxation, residence requirements, and day-to-day life in the Principality. If you need personalized assistance, do not hesitate to contact us.

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