Moving from Taiwan to Andorra: Residency, Taxation, and Immigration in 2026
Comprehensive Guide for Taiwanese Nationals — Residency Status, Investments, and Procedures
Important Note for 2026: Taiwan has not signed a tax treaty or a bilateral residency agreement with Andorra. Taiwanese nationals are classified as third priority in the annual quota for residence permits without work authorization—behind nationals of countries that have agreements with Andorra, followed by EU/EEA nationals. It is essential to plan ahead to account for processing times.
For several years now, Andorra has been attracting high-net-worth individuals and entrepreneurs from Asia, including a growing number of Taiwanese nationals. The appeal remains consistent: a flat personal income tax rate of 10%, a corporate income tax rate of 10%, no wealth tax, no inheritance tax on direct descendants, and a level of regulatory stability that few European jurisdictions can offer. However, the path from Taipei to legally recognized Andorran tax residency is more complex than general guides suggest. Immigration processing times, annual quotas, the absence of a bilateral Taiwan-Andorra agreement, and investment requirements all necessitate thorough preparation. This guide focuses exclusively on legal, tax, and administrative issues—the only ones that matter for a successful relocation.
Your Taiwanese-Andorran situation warrants a tailored analysis
Immigration quotas, mandatory investment requirements, asset structuring from Asia: every situation is unique. Our experts will guide you through the process, from the initial assessment all the way to obtaining your NIA.
Get a personalized analysis of my situationwith Andorra · 3rd priority
No Wealth Tax (ISF) or Inheritance Tax
passive home + €50,000 AFA deposit
: EU/bilateral agreements
I. Why Taiwanese nationals choose Andorra—and what the law actually says
Andorra is a sovereign tax jurisdiction that complies with OECD, CRS, and FATCA standards, with a stable tax regime that does not rely on a "temporary exception" that could be repealed under political pressure. For a Taiwanese national whose assets are held partly in Asia and partly in international assets, this stability is the primary consideration.
Taiwan’s income tax system is progressive, with rates reaching up to 40% for high earners. Dividends received in Taiwan are subject to a 21% withholding tax for non-residents. By establishing tax residency in Andorra, a Taiwanese national switches to a personal income tax rate capped at 10%—with a zero tax-free allowance on income up to €24,000. Capital gains on securities benefit from progressive deductions based on the length of holding.
What Andorran law says about Taiwanese nationals
Taiwan has not signed any bilateral agreements with Andorra—neither a tax treaty nor a residency agreement. The Immigration Act (Llei 9/2012 and amendments) establishes a strictly chronological order of priority for the granting of permits, but with an explicit order of preference: first, nationals of countries that have signed agreements with Andorra (primarily Spain, France, Portugal, and a few others); second, nationals of the European Union and the European Economic Area; and third and last, nationals of all other countries—including Taiwan.
In practice, Taiwanese nationals can obtain a residence permit without work authorization, but this falls under the overall annual quota of 200 permits (across all categories), 163 of which are for passive residence. This cap is strictly enforced, and processing times may be extended depending on the level of demand in priority categories. Planning ahead is not a recommendation for caution—it is a legal requirement.
| Criterion | Taiwan (tax resident) | ★ Andorra (tax resident) |
|---|---|---|
| Income Tax on Earned Income | Progressive up to 40% | 0% up to €24,000 · 10% above that amount |
| Dividends (non-residents) | 21% withheld at source | Exempt under certain conditions (ownership > 5% for 1 year) |
| Capital gains on securities | 20% to 40%, depending on duration | Progressive tax deductions · 0% after 10 years |
| Corporate tax | 20% (standard) | 10 % |
| Wealth tax | None | None |
| Inheritance tax | Progressive up to 20% | None available |
| Bilateral Tax Treaty | None with Andorra | None with Taiwan — applicable to countries that have signed a CNDI with Andorra |
| Minimum attendance required | — | 90 days per year (passive residence) |
| Regulatory stability | Correct | High — a permanent state, not a temporary exception |
The Andorran tax rates are those in effect as of January 1, 2026. The absence of a bilateral agreement between Taiwan and Andorra means that Andorran residency must be genuine and well-documented in order to be enforceable against any potential tax claims by Taiwan.
II. Types of residency status available to Taiwanese nationals
Andorran law distinguishes between several types of residence permits: those without gainful employment (residence without work) and those with gainful employment. For a Taiwanese national wishing to settle in Andorra for asset management or business purposes, the following categories are relevant.
Passive residency (residency without gainful employment)
This is the status most commonly used by high-net-worth individuals. It allows them to reside in Andorra for at least 90 days a year without engaging in any local economic activity. In return, the law requires a permanent and effective investment of at least €1 million in Andorran assets (real estate, equity interests in resident companies, Andorran financial instruments, life insurance policies with local entities, and deposits with the AFA).
This threshold is reduced to €400,000 if the investment is made directly or indirectly in the Housing Fund, in accordance with Law 5/2025 of March 6, 2025. In addition, a non-refundable deposit of €50,000 must be paid to the Andorran Financial Authority (AFA) for the applicant, plus €12,000 per dependent who also wishes to obtain residency. These amounts are definitively retained by the Andorran government upon issuance of the initial authorization.
The initial permit is valid for two years and is renewable. The first renewal is for two years, and subsequent renewals are for three years. After seven years of passive residency, the holder may obtain a 10-year renewal.
2026 Quota: Decree 74/2026 of March 29, 2026 sets the maximum number of residence permits for non-gainful activities at 163 for the current year. Since Taiwanese nationals are classified as third priority, the process of obtaining a permit may take 12 to 18 months, depending on the level of demand in the priority categories. The application process should begin immediately.
The residence for professionals with international ambitions
This status is intended for individuals whose professional activities are primarily conducted outside Andorra—such as executives of international companies, active investors, and consultants operating from the Principality. The minimum residency requirement is 90 days per year, with at least 85% of income generated outside Andorra. The required investment is the same as that for passive residency (€1 million or €400,000 in the Housing Fund).
This status is included in the overall annual quota for residence permits without employment (200 permits in total), with the same allocation priorities. For Taiwanese nationals, it does not offer any priority over the standard passive residence permit.
Residency for entrepreneurial activities (self-employment)
For Taiwanese nationals wishing to establish or manage an active Andorran company, the residency and self-employment option is the appropriate choice. It requires holding more than 34% of the capital of an Andorran company, actively performing a management role, and providing proof of a €50,000 deposit with the AFA. The required presence is 183 days per year, making this status more restrictive than passive residency for those with a mobile lifestyle.
| Status | Passive house | International screening | Personal account |
|---|---|---|---|
| Minimum attendance | 90 days per year | 90 days per year | 183 days/year |
| Investment | €400,000 – €1 million | €400,000 – €1 million | €50,000 (AFA deposit) |
| Local economic activity | Prohibited | Accessory (main, excluding AND) | Required (management) |
| Ideal Taiwanese Profile | Investor, annuitant, family | International Executive | Local active entrepreneur |
| Annual quota (priority) | 3rd place (163 seats) | 3rd place (10 spots) | Outside the residency quota and unemployed |
III. Andorran Taxation for Taiwanese Residents: What Changes in Practice
Andorran tax residency is not simply claimed—it must be demonstrated. For a Taiwanese national, two risks coexist: reclassification by the Taiwanese authorities (if economic ties with Taiwan remain predominant) and the absence of a double taxation treaty to mitigate this risk. Structuring the wealth transfer before moving is therefore just as important as obtaining a residence permit.
Andorran Personal Income Tax
The tax schedule is straightforward: 0% on annual income up to €24,000, then 5% on income between €24,001 and €40,000, and 10% on amounts above that. There is no top marginal rate. Income from Taiwanese sources received by an Andorran resident is generally taxable in Andorra—but in the absence of a tax treaty, Taiwan may also claim withholding tax. Structuring income flows (particularly through an Andorran SL or an intermediate holding company) can mitigate this risk of double taxation.
Andorran Corporate Income Tax
The general rate is 10%. For an Andorran limited liability company (SL) owned by a Taiwanese resident who has become an Andorran resident, the tax regime is that of an ordinary Andorran company. Dividends distributed between Andorran companies are exempt under certain conditions (a stake of more than 5% held for more than 12 months). Dividends paid to an individual resident shareholder are subject to personal income tax at a rate of 10% after a deduction.
Capital gains and personal property
Capital gains on the sale of securities are subject to personal income tax, but with a system of decreasing allowances: a 100% allowance after 10 years of ownership (total exemption). For assets held for more than 3 years at the time of relocation, the holding period begins even before taking up residence—which creates a planning opportunity for investors with long-standing portfolios.
The IGI — General Indirect Tax (Andorran VAT)
The standard rate is 4.5%. For residents who spend and invest in Andorra, the indirect tax system is structurally more favorable than in Taiwan (5% VAT) or France (20% VAT).
Lack of a tax treaty: the main risk for Taiwanese nationals
Andorra has signed double taxation treaties with some 20 countries, including France (2022), Spain, Portugal, Luxembourg, and the United Arab Emirates. Taiwan is not among them. This absence means that there is no treaty mechanism to automatically allocate the right to tax between the two jurisdictions. An Andorran resident of Taiwanese origin who receives income from Taiwanese sources is subject to effective double taxation—Andorra will tax their worldwide income, while Taiwan may withhold tax at source on income from Taiwanese sources. Optimizing this situation requires restructuring assets and cash flows prior to relocation.
Wei-Lin, a 44-year-old Taiwanese tech entrepreneur: from Taipei to Andorra in 14 months
Wei-Lin runs a SaaS company from Taipei, with a client base consisting mainly of European and North American companies. His effective tax rate in Taiwan exceeds 38%. In 2024, he engages Engage to assess the feasibility of taking up residence in Andorra. First observation: the absence of a Taiwan-Andorra tax treaty requires a prior restructuring of cash flows. Wei-Lin holds stakes in three Taiwanese companies—the dividends they pay would be subject to a 21% withholding tax in Taiwan without any offsetting credit in Andorra.
The chosen strategy: establishing an operational Andorran limited liability company (SL) to receive licensing revenue from its software, while the Taiwanese companies are retained but restructured to limit direct cash flows to the individual. The investment in a residence for tax purposes amounts to €800,000 in Andorran real estate. The €50,000 AFA deposit is paid upon submission of the application. Timeframe for obtaining authorization: 8 months from submission, for a total duration of 14 months from the initial audit.
"I didn't expect the Taiwan tax issue to be such a key part of the planning process. Engage identified it even before I filed anything—which saved me from a double taxation situation I hadn't anticipated."
IV. What status for which Taiwanese profile?
Investor / Wealth Manager
→ Passive houseDividends, real estate income, investment income. The €1 million threshold (or €400,000 for housing funds) is offset by the asset’s return. Income tax ≤ 10%, 90 days/year of presence, permanent status.
Executive at an international company
→ International reachAt least 85% of business activity must be conducted outside Andorra. The same investment requirements apply as for passive residency, but the "international executive" profile must be explicitly recognized in the immigration application.
Entrepreneur looking to establish a company in Andorra
→ Personal accountFormation of an Andorran limited liability company (SL), with effective management, 183 days per year. Corporate income tax at 10% with no maintenance costs. AFA deposit of just €50,000 — a more accessible investment threshold.
Traditional family with children
→ Expanded passive housingEach dependent adds €12,000 to the AFA deposit. The minimum real estate investment per unit purchased is €800,000. Trilingual education is available subject to actual residency.
V. The 7 Steps to Obtaining Andorran Residency from Taiwan
Initial Wealth and Tax Review
Map all assets of Taiwanese origin—equity interests, real estate, financial accounts—and identify the cash flows subject to Taiwanese withholding tax. In the absence of a bilateral tax treaty, this step determines the entire structure of the expatriation plan. It must be completed before any administrative procedures are initiated.
Choosing a residency status and estate planning
Passive residency, international projection, or self-employment: the appropriate status depends on the nature of the business and residency requirements. At the same time, structure assets of Asian origin (through an Andorran intermediary company, a holding company, or a reorganization of Taiwanese holdings) to minimize the risk of residual double taxation.
Preparing the immigration application
A valid passport, criminal records from the country of residence and country of origin (officially certified translation into Catalan or Spanish), proof of accommodation, and a signed investment commitment. For Taiwanese nationals, documents must be apostilled or legalized—check with the Andorran Immigration Service for specific requirements based on the type of document.
Submission of the application and payment of the AFA deposit
The application is filed with the Immigration Service of the Government of Andorra. The payment of €50,000 to the AFA is made at the time of the preliminary review, upon notification. For applicants classified as third priority, the processing time from submission is 4 to 10 months, depending on how full the annual quota is. Applications submitted at the end of the calendar year may be carried over to the next quota.
Completion of the required investment
The law requires that investments in Andorran assets be made within six months of obtaining authorization (which may be extended for an additional six months upon justification). For real estate: each property acquired must be valued at a minimum of €800,000. The investment may be spread across various asset classes (real estate, equity investments, Andorran financial instruments, local life insurance policies). The funds must be traceable to their source—Andorran banks require complete documentation of the origin of funds, particularly for funds originating from Asia.
Opening a Bank Account and KYC/AML Compliance
Creand, Andbank, and MoraBanc are the leading banks in Andorra. For capital originating from Taiwan, the due diligence process (KYC/AML) is rigorous: prepare a documented source-of-funds file, including Taiwanese tax returns for the past 3 to 5 years, asset transfer deeds, company records, and any documents proving the legitimacy of the capital. Opening an Andorran bank account generally precedes the real estate investment.
Obtaining a Tax ID Number and Establishing Tax Residency
The NIA (Administrative Identification Number) is assigned after the complete application has been approved. This number serves as the basis for legally enforceable Andorran tax residency. For a Taiwanese national, it is recommended to formally notify the relevant Taiwanese authorities of their Andorran residence and to formalize the termination of tax residence in Taiwan through the appropriate channels—even in the absence of a treaty, this strengthens the validity of the change in tax residence.
Indicative timeline for an application submitted in 2026
Mistakes to Avoid at All Costs
The annual quota of 200 permits (including 163 passive residence permits) is real and binding. Taiwanese nationals, who are classified as third-priority applicants, may have to wait several months longer than a Spanish or French national who submits the same application on the same day. Submitting the application “when it is ready” without anticipating the processing time amounts to delaying your move by 6 to 12 months.
In the absence of a tax treaty between Andorra and Taiwan, income from Taiwanese sources may be subject to both Taiwanese withholding tax (21% on dividends for non-residents) and Andorran personal income tax. No treaty mechanism automatically offsets this double taxation. Some residency applications were processed without this prior analysis—resulting in effective double taxation that is difficult to correct retroactively.
Andorran law requires a minimum investment of €800,000 per property unit purchased under the passive residence program. Purchasing two apartments priced at €450,000 each does not meet the legal threshold per unit, even if the total exceeds €1 million. This technical detail has led to complications in several cases during compliance audits.
Andorran banks enforce strict CRS and AML rules. For capital originating from Taiwan, the source documentation is scrutinized particularly closely—bank statements alone are not sufficient. The absence of a complete KYC file at the time of account opening may prevent the required investment from being made within the legal 6-month deadline, resulting in the revocation of the residence permit.
An immigration permit (residence permit) and Andorran tax residency are two distinct statuses. An immigration permit grants the right to reside in the country. Tax residency is proven by the tax residency certificate issued by the Departament de Tributs i de Fronteres, based on documented actual presence (minimum 90 days). Administrative residents who failed to maintain their documented presence found themselves unable to obtain the tax certificate—rendering their Andorran residency unenforceable in Taiwan.
For further reading
Taiwanese nationals who move to Andorra face the same issues as other international residents—as well as a few specific challenges stemming from the lack of a bilateral agreement. These articles cover topics directly related to this issue.
Assisting clients from Asia—Taiwan, Singapore, Hong Kong—has become a significant part of our business since 2022. These cases share two key characteristics: a more complex wealth structure than a standard European case, and a timeline for obtaining authorization that is often underestimated. Our team is well-versed in the specificities of Andorran law and in coordinating with tax advisors in the clients’ home countries. The assessment always begins with the same step: gaining a precise understanding of what you own and where.
Ready to start your move from Taiwan to Andorra?
Immigration quotas, mandatory investment, structuring of Taiwanese assets, banking liberalization: our experts guide you through every step of the process. The initial assessment is the first—and most important—step.
Schedule an appointment with an expertFAQ — Andorran Residency for Taiwanese Nationals
Can a Taiwanese national obtain passive residency in Andorra?
Yes. There are no nationality restrictions preventing access to Andorran non-lucrative residence. However, since Taiwan has not signed any bilateral agreement with Andorra, Taiwanese nationals are classified as third priority in the allocation of the annual quota of 163 non-lucrative residence permits. The processing times are therefore longer than for a national of the EU or a country that has an agreement with Andorra—between 8 and 18 months, depending on the volume of applications.
What is the minimum investment required for a passive house in 2026?
Law 9/2012 (consolidated with the amendments of Law 5/2025) sets the threshold at €1 million in Andorran assets, reduced to €400,000 if the investment is made in the Housing Fund. If the investment includes real estate, each unit acquired must be worth at least €800,000. A non-refundable deposit of €50,000 to the Andorran Financial Authority is always required, plus €12,000 per dependent.
Is there a risk of double taxation between Taiwan and Andorra?
Yes, this is the primary risk for this scenario. There is no tax treaty between the two jurisdictions. Income from Taiwan paid to an Andorran resident may be subject to both Taiwanese withholding tax (21% on dividends for non-residents) and Andorran personal income tax (10%). Structuring assets in advance—particularly through an Andorran SL that receives the income streams—can mitigate this risk, but it must be planned before the transfer of tax residence.
How do I formally terminate my tax residency in Taiwan?
Taiwan determines tax residency primarily based on the number of days spent in the territory (183 days or more = tax resident). Reducing the time spent in Taiwan below this threshold, combined with establishing a permanent residence in Andorra and obtaining an Andorran tax residency certificate, forms the basis for changing one’s tax residence. In the absence of a tax treaty, it is recommended to formally notify the Taiwanese tax authorities (National Taxation Bureau) of the termination of residency and to retain documentation of this notification.
Do Andorran banks accept funds from Taiwan?
Yes, but the due diligence process (KYC/AML) is rigorous for funds of Asian origin. Andorran banks (Creand, Andbank, MoraBanc) require complete documentation regarding the origin of funds: Taiwanese tax returns for the past 3 to 5 years, asset transfer deeds, company records, and bank statements from Taiwan and transit countries. An incomplete application may result in a rejection or a delay in opening the account that is incompatible with the legal 6-month deadline for completing the investment.
Does the 90-day presence requirement per year have to be consecutive?
No. The 90 days of annual presence required for passive residency can be spread out freely over the calendar year. There is no requirement for continuous presence. However, your presence must be documented—through transportation tickets, local bank statements, and Andorran utility bills—as this documentation forms the basis for the tax residency certificate issued by the Departament de Tributs i de Fronteres. This certificate is essential for proving Andorran residency to the Taiwanese authorities.
Is Andorra a viable option for a Taiwanese national compared to Singapore or Hong Kong?
Andorra, Singapore, and Hong Kong are tax-friendly jurisdictions, but their suitability depends on the individual’s profile. Andorra offers residency in Europe with a minimum stay of 90 days, permanent tax residency, and recognition by countries that have signed a double taxation treaty with the Principality. Singapore and Hong Kong maintain favorable tax regimes but require a longer stay for effective residency. For a Taiwanese national seeking recognized European residency, a sustainable tax regime, and a location just three hours from major European cities, Andorra is the obvious choice.
