Moving from Taiwan to Andorra: The Complete Guide to a Successful Relocation
For expats based in Taipei who are considering relocating to the Principality—residency, taxation, Andorran holding companies, leaving Taiwan, and practical aspects of daily life.
Key Point for 2026: The preparatory phase in Taiwan can take anywhere from 6 to 18 months for complex cases. Taiwanese documents follow a legalization procedure that differs from the standard European process. Planning ahead is essential.
Between 3,000 and 6,000 expatriates have chosen Andorra as their new home—representing up to 8% of the Principality’s total population. Among them, a growing number are returning from Asia, particularly Taiwan. For an expat based in Taipei, the move to the Principality offers several strategic advantages: proximity to Europe, legal stability, a structurally favorable tax regime, and an alpine quality of life on a human scale.
This project involves two simultaneous changes. Moving to a different continent disrupts your daily routine: time zone, professional network, and cultural environment. The administrative and tax-related changes require thorough preparation well in advance. This guide details all the steps needed to make this transition a success.
Your situation in Taiwan warrants a tailored analysis
Wealth accumulated in Asia, a Taiwanese entity, exit tax, an Andorran holding company: every case is unique. Our experts work with you to develop the optimal strategy.
Get a personalized analysis of my situationReduced tax burden on dividends
, 90 days/year · Passive residence
Personal income tax rate ≤ 10% · Permanent
0% inheritance tax
Why leave Taiwan to settle in Andorra?
The decision to move to Andorra from Taiwan is rarely a spur-of-the-moment choice. It stems from careful financial planning, combining the search for lower taxes, European legal stability, and a small-scale Alpine lifestyle. Andorra is not a tax haven in the legal sense of the term—it has a legal, transparent tax system that complies with OECD standards. But its tax rates are structurally among the lowest in Europe.
Tax Comparison — Andorra vs. Taiwan
| Tax | ★ Andorra | Taiwan | Western Europe (avg.) |
|---|---|---|---|
| Income tax (max.) | 10 % | 40 % | 42–47% |
| Corporate Income Tax (CIT) | 10 % | 20 % | 25–30% |
| Local sales tax | 4.5% (IGI) | 5 % | 19–25% |
| Wealth Tax (IFI) | None | None | Variable |
| Inheritance tax (direct line) | None | Variables | Up to 45% |
| Gift tax | None | Variables | Up to 45% |
| Minimum presence (passive residency) | 90 days a year | — | 183 days/year (avg.) |
For an entrepreneur who has accumulated significant wealth during his time in Taiwan, this arrangement offers an environment that is fundamentally different from anything available under the mainland’s tax system. For high-income earners, the annual tax savings far exceed the difference in the cost of living between the two regions.
The administrative procedures for obtaining residency in Andorra from Taiwan
Active or passive residence — choosing the right status
Before beginning the application process, the choice of residency status will determine the entire application. This choice determines both the supporting documents that must be submitted and the requirement to be physically present in the country.
| Criterion | Passive house | Active balance (own account) |
|---|---|---|
| Minimum attendance | 90 days a year | 183 days a year |
| Investment in Andorran assets | €1,000,000 (or €400,000 through the Housing Fund) | Not required |
| AFA Deposit (Security Deposit) | €50,000 (primary beneficiary) + €12,000 per dependent | 50 000 € |
| Gainful employment in Andorra | Prohibited (authorized asset management) | Required |
| Proof of income | ≥ €54,911.88/year (primary beneficiary) + €18,303.96/year per dependent | Economic viability of the business |
| Administrative fee | €3,000 + €1,000 per dependent | Variable |
| Initial validity period of the license | 2 years → 3 years → 10 years | 1 year → 2 years (×3) → 10 years |
There is a third, often overlooked residency status: residency for professionals with international scope. It is intended for self-employed individuals who conduct at least 85% of their business outside of Andorra. It requires only 90 days of presence per year and an AFA deposit of €47,500. This is an attractive option for consultants and freelancers based in Taipei.
Key steps in the residency application process from Taiwan
Preliminary audit and selection of legal status
Analysis of your financial, professional, and family situation. Assessment of potential exit taxes and planning the timing of your departure. Initial consultation with Engage and a specialized tax attorney.
Preparation and Apostille of Documents
Criminal record extract, proof of income, proof of investment, medical certificate. Apostille under the Hague Convention and certified translation into Catalan. Taiwanese documents follow a legalization procedure that differs from the standard European process —please allow for additional processing time.
Opening an Andorran bank account
Opening an account from abroad is often a major hurdle due to strict KYC requirements. Andorran banks (Creand, Andbank, MoraBanc) require extensive documentation regarding the source of funds. If you’re opening an account from Taiwan, expect the process to take several months and require the assistance of a local intermediary.
Submission of the application to the Department of Immigration
All official procedures are conducted in Catalan. The process generally takes between two and four months. An Andorran administrative agency is essential to ensure the application is handled properly.
Obtaining a work permit and health insurance
Registration with the CASS (Andorran Social Security Fund) takes place as soon as the active residence permit is obtained. Passive residents must take out private health, disability, and retirement insurance.
Andorran Taxation — How Your Relocation from Taiwan Will Affect You
Andorran Income Tax in Detail
Law 5/2014 of April 24 sets forth the tax regime applicable to Andorran residents. The system is progressive but capped at 10% for annual income exceeding €40,000 (Article 43):
| Annual income bracket | Andorran income tax rates | Average marginal rate in Western Europe |
|---|---|---|
| Up to €24,000 | 0 % | 20–30% |
| From €24,000 to €40,000 | 5 % | 30–41% |
| Over €40,000 | 10 % | 41–47% |
In addition to tax brackets, the Andorran tax system provides for the exemption of dividends paid by Andorran companies to their resident shareholders (Article 5.j of Law 5/2014), the complete absence of wealth tax, inheritance tax, and gift tax, as well as a particularly favorable framework for holding companies and international wealth management structures.
The Andorran holding company — the cornerstone of the structure
For an entrepreneur returning from Taiwan with accumulated assets, the key strategy is to establish an Andorran holding company into which the shares of their companies are transferred. This is the means of legally anchoring their assets and income in Andorra.
| Impact of the Andorran holding company | What this means in practice |
|---|---|
| Relocation of Cultural Heritage | As an individual, you no longer hold any assets in your country of origin. Your center of economic interests is automatically transferred to Andorra—a key criterion for tax residency. |
| Return on the €1 million investment | The contribution simultaneously fulfills the requirement to invest in Andorran assets necessary for passive residency. One stone, many birds. |
| Dividends with minimal friction | Foreign subsidiaries pay dividends to the holding company with a reduced withholding tax in accordance with applicable tax treaties. The internal double taxation avoidance mechanism prevents any re-taxation at the holding company level. |
| 0% distribution to the resident partner | When an Andorran holding company pays dividends to its shareholder who is a tax resident of Andorra, the applicable personal income tax rate is 0% (exemption under Article 5.j of Law 5/2014). |
Exit tax — key considerations
The exit tax applies as soon as financial assets exceed €800,000 or unrealized capital gains reach that same threshold —including for expatriates who have transited through Taiwan. Three situations consistently weaken a residency application:
- Maintain a residence in one’s country of origin (either an owner-occupied home or a rent-free rental).
- Maintaining significant economic interests outside Andorra without having them anchored in an Andorran structure.
- Failure to meet the required attendance thresholds based on the selected residency status.
It is essential to consult with a specialized tax attorney before making any official move. Our articles on tax residency in Andorra and the double taxation treaty outline the requirements that must be met.
Clément, 41 — CEO of a Taipei-based SaaS startup
Clément founded his tech company in Taipei seven years ago. His client base is European, his team is distributed, and his revenue is growing rapidly. In 2025, his consolidated effective tax rate exceeded 52%. He contacted Engage to structure his return to Europe via Andorra.
Strategy implemented: Andorran passive residence, establishment of an SLU holding company in Andorra la Vella, contribution of shares in his entities to the holding company (meeting the €1 million investment requirement), early exit tax with deferred payment granted. Closure of the Taiwanese ARC and final tax return coordinated with Andorran deadlines.
“After seven years in Taipei, I thought I’d stay there for a long time to come. But when I ran through the numbers for my tax situation over the next ten years, the figures spoke for themselves. Andorra also surprised me with its quality of life. It’s nothing like I imagined.”
This is a fictional case study provided for illustrative purposes. Results may vary depending on individual circumstances.
Cost of living and practical aspects of settling in Taiwan
Monthly Budget — Andorra vs. Taipei
| Expense item | Andorra | Taipei |
|---|---|---|
| Rent (2-bedroom apartment, downtown) | €900–€1,800 per month | €700–1,200 per month |
| Grocery shopping | Cheaper (IGI 4.5%) | Comparable |
| Fuel | Very competitive (reduced tax rate) | Comparable |
| Health (non-working residents) | Private insurance: €400–€800 per month | Taiwanese National Health Insurance: ~€30/month |
| Transportation | A car is a must | High-quality and affordable MRI |
The 7 parishes — choosing your neighborhood
The general recommendation is to rent for 6 to 12 months before buying. The area is highly diverse, with valleys that vary greatly depending on whether you want to be near the city center, the slopes, in the sun, or in a quiet setting.
🏙️ Andorra la Vella & Escaldes
→ ContractorsBusiness district: banks, notaries, administrative service providers. Close proximity to Andorran professional services.
🌲 La Massana
→ FamiliesPeaceful, green spaces, international schools. Recommended for families looking for a quiet residential area.
⛷️ Ordino & Canillo
→ NatureMountains, hiking, tranquility. Perfect for those who value the alpine lifestyle.
🚗 Sant Julià de Lòria
→ MobilityLocated on the border with Spain. Easy access to Barcelona (~3 hours) and its international airport.
How to properly arrange your departure from Taiwan
Successfully relocating from Taiwan to Andorra involves more than just entering the Principality. Finalizing the administrative aspects of your stay in Taiwan is a crucial step in itself: neglecting it can lead to complications that may arise months or even years after your departure.
The 6 mandatory steps to take before leaving Taiwan
- Whether to cancel or not to renewthe ARC (Alien Resident Certificate) with the Taiwanese Immigration Bureau.
- Notify the Workforce Development Agency if a work permit is currently valid.
- File your final Taiwanese tax return and obtain a tax clearance certificate if necessary.
- Opt out of the NHI (National Health Insurance) to avoid paying premiums without receiving benefits.
- Close or transfer your Taiwanese bank accounts in anticipation of KYC processing times at Andorran banks.
- Remove yourself from any consular or EU registry if you were registered there.
Reverse scheduling from Taiwan
Comprehensive wealth and tax audit. Determination of residency status. Initial consultation with Engage and a specialized tax attorney. Assessment of exit tax.
Incorporation of the Andorran holding company. Collection and legalization of Taiwanese documents. Certified translation into Catalan. Contribution of securities to the holding company.
Opening an Andorran bank account (expect significant KYC processing times). Finding and signing an Andorran lease—a prerequisite for the residency application.
Official submission of the application to the Department of Immigration. Processing of the application (2 to 4 months). Completion of Taiwanese exit procedures (ARC, NHI, tax).
Departure from Taiwan. Permanent relocation to Andorra. Obtaining a residence permit. Purchasing private insurance if residing in Andorra on a non-working basis.
Documentation of social life in Andorra (doctor, associations, sports club). First income tax return, if applicable.
Mistakes to Avoid — Common Pitfalls on the Taiwan → Andorra Route
Mistake #1 — Treating relocation as just a matter of paperwork
Registering for administrative purposes in Andorra without actually living there. A residence permit does not establish tax residency. Government agencies look at the economic and personal reality, not the legal form.
✓ The solution: Engage works with each client to build a strong case—documented presence, established social life, and settled family.Mistake #2 — Neglecting to legalize Taiwanese documents
Taiwanese documents follow a legalization procedure that differs from the standard European process; it is longer and more complex. Applications with improperly apostilled documents are systematically returned and lose their priority in immigration quotas.
✓ The solution: Work with an Andorran Gestoria that has experience handling non-European cases from the very beginning, in coordination with Engage.Mistake #3 — Underestimating the time it takes to open an Andorran bank account
Opening a bank account from abroad is often a major hurdle. Andorran banks enforce very strict KYC requirements regarding the source of funds, particularly for assets accumulated in Asia.
✓ The solution: Start the banking process 9 to 12 months before departure, with the help of a local intermediary who knows the right people to contact.Mistake #4 — Leaving without planning for the exit tax
The exit tax applies to financial assets or unrealized capital gains totaling €800,000 or more—including for expatriates who have transited through Taiwan. Clients often discover after leaving that they face a bill of several hundred thousand euros with very short payment deadlines.
✓ The solution: Preliminary analysis with a specialized tax attorney, filing for a payment deferral, and contributing securities before they appreciate in value, if applicable.Mistake #5 — Forgetting to complete the procedures for leaving Taiwan
Leaving an active ARC, outstanding NHI contributions, or a Taiwanese bank account that hasn’t been properly closed can cause complications long after you leave.
✓ The solution: Carefully follow the checklist of the 6 required steps and keep all supporting documents.Mistake #6 — Setting up an Andorran holding company with no real substance
A holding company with no physical office, no actual presence of its manager, and no strategic decisions made from Andorra will be reclassified as a taxable permanent establishment in its country of origin.
✓ The solution: A physical office, documented presence of the executive, and locally maintained accounting records—substance is not optional.Mistake #7 — Assigning the project to a single person without a comprehensive overview
A Taiwan-to-Andorra relocation involves two layers of complexity. The most costly mistakes—unmanaged dual residency, documents without an apostille, and an exit tax that wasn’t properly anticipated—are difficult to correct after departure.
✓ The solution: Three-way collaboration—a specialized tax attorney + an Andorran accounting firm + Engage for the overall strategic vision.We assist professionals from Taiwan, Dubai, and across Asia who are seeking a long-term opportunity in Europe. In every case, the process begins with the same initial assessment: understanding the reality of your situation before committing to anything. Our team is well-versed in the unique aspects of non-European applications and works with you to develop the strategy best suited to your profile.
Ready to start planning your move to Andorra?
Our experts guide you every step of the way—from the initial wealth assessment to obtaining your residence permit. Holding company strategies, exit taxes, relocating from Taiwan, and practical relocation assistance.
Schedule an appointment with an expertFAQ — Moving from Taiwan to Andorra in 2026
How long does it take to obtain Andorran residency from Taiwan?
Between 6 and 18 months for complex cases. The time required for legalizing Taiwanese documents, opening an Andorran bank account (strict KYC requirements), and processing the residency application (2 to 4 months) all add up. It is strongly recommended to plan 12 to 18 months in advance.
Should I close my Taiwanese bank accounts before leaving?
Not necessarily, but they must be reported and managed properly. Andorran banks will require full traceability of the funds’ origin, including those from Taiwan. It is recommended to close the account properly with complete supporting documentation to simplify the Andorran KYC process.
Can the €1,000,000 investment for the passive house be fulfilled by contributing securities to an Andorran holding company?
Yes. Contributing the shares of your companies to an Andorran holding company can satisfy the requirement to invest in Andorran assets, subject to approval by the relevant authorities. This is one of the most commonly used strategies—killing several birds with one stone: the contribution transfers the assets, satisfies the investment requirement, and establishes the center of economic interests in Andorra.
What happens to Taiwan's National Health Insurance after the transition?
You must deregister from the NHI (National Health Insurance) before departure to avoid paying premiums without receiving benefits. This process is handled through the Taiwanese Health Insurance Bureau. Non-working Andorran residents must purchase private health insurance in Andorra.
Is Andorran residency recognized by Asian tax authorities?
Andorra has signed double taxation treaties with a growing number of countries. The situation depends on your country of origin and your nationality. A personalized review by a specialized tax attorney is essential to determine your remaining obligations before any official departure.
