Immigration
May 28, 2026
Moving from Taiwan to Andorra: A Comprehensive Guide for 2026
What you need to know before you start:
- Andorran income tax is capped at 10% for annual income exceeding €40,000, and at 0% for income below €24,000.
- Active residency requires a minimum stay of 183 days per year and a non-refundable AFA deposit of €50,000.
- The passive residency program requires an investment of at least €1,000,000 in Andorran assets, 90 days of presence per year, and an AFA deposit of €50,000.
- Taiwanese documents follow a specific legalization procedure that differs from the standard European process—please allow 6 to 10 weeks.
- All official procedures are conducted in Catalan. It is essential to work with a local administrative agency.
Moving from Taiwan to Andorra is attracting a growing number of entrepreneurs and high-net-worth individuals with international mobility. This guide details every step of the process—from completing the administrative formalities to leave Taiwan to obtaining an Andorran residence permit—for those who wish to make this plan a reality.
If you’d like to secure, optimize, or simply organize your assets with professional guidance, schedule a strategic consultation with an Engage advisor —we’ll get back to you within 24 hours, with no obligation.
I. Why leave Taiwan to settle in Andorra?
This relocation plan is rarely a spur-of-the-moment decision. It stems from careful consideration of one’s financial situation, combining the pursuit of lower taxes, legal stability within Europe, and a small-town Alpine lifestyle. The proximity to Spain and France is a decisive advantage for those who maintain professional or family ties on the continent.
Four groups are particularly affected by this trend:
- The Taipei-based tech entrepreneur is looking to reduce his tax burden on dividends while strengthening ties with the European tech ecosystem.
- The French-speaking digital nomad — he wants a stable, recognized tax address without giving up his international mobility.
- The wealth investor — they want to structure their assets within a secure legal framework, with income tax capped at 10%.
- The early retiree —he seeks security, quality of life, and peace of mind in managing his assets as his ties to Europe grow stronger.
Andorra is not a tax haven —it is a sovereign principality with a transparent tax system, a stable regulatory framework, and a tax treaty with France (signed in 2022) that provides certainty for Andorran residents. It is precisely this legal legitimacy that sets it apart from opaque jurisdictions.
For those who have already taken the plunge and moved to Asia, the transition to the principality is becoming an increasingly well-organized process. Check out our comprehensive guide to moving to Andorra for an overview.
II. Andorran Taxation in Detail
Andorra's tax system is among the most competitive in Europe, featuring a simple structure and structurally low tax rates.
Personal Income Tax
| Annual income bracket | Andorran tax rate (IRPF) | Spanish marginal rate | French marginal rate |
|---|---|---|---|
| Up to €24,000 | 0 % | 19 % | 11 % |
| From €24,000 to €40,000 | 5 % | 30 % | 30 % |
| Over €40,000 | 10 % | 37–47% | 41–45% |
Overview of the Main Taxes
| Tax | Andorra | France | Spain |
|---|---|---|---|
| Corporate Income Tax (CIT) | 10 % | 25 % | 25 % |
| VAT / GST | 4,5 % | 20 % | 21 % |
| Wealth tax | None | Progressive IFI | Progressive IP |
| Inheritance tax (direct line) | None | Up to 45% | Variable |
| Gift tax | None | Up to 45% | Variable |
Real-world example: An entrepreneur earning €180,000 in annual income would pay approximately €15,600 in income tax in Andorra (effective rate ~8.7%), compared to potentially €70,000 to €80,000 under standard European tax rules. The annual savings exceed €55,000.
Beyond tax rates, Andorra’s tax system provides for no withholding tax on dividends paid from abroad, an exemption from capital gains tax on real estate for long-term residents, and a particularly favorable framework for holding companies. For a personalized estimate, consult our guide to Andorran taxation and our article on tax residency in Andorra.
III. Obtaining Residency in Andorra from Taiwan
Active or passive residence: choosing the right status
Andorra recognizes several categories of residency available to foreign nationals. The choice of status determines the entire application process.
| Status | Minimum attendance | AFA Filing | Required investment | Who is it for? |
|---|---|---|---|---|
| Active balance (own account) | 183 days a year | €50,000 (non-refundable) | None | Entrepreneurs, self-employed individuals |
| Passive residence (without gainful employment) | 90 days a year | €50,000 (non-refundable) | €1,000,000 in Andorran assets* | Investors, retirees, annuitants |
| Professionals with an international reach | 90 days a year | €47,500 (tenured) | None | ≥ 85% of business outside Andorra |
| Digital nomad | Variable | Variable | None | Remote workers |
* The investment requirement is reduced to €400,000 if the entire amount is made through the Andorran Housing Fund. In the case of a real estate investment, each property must be valued at more than €800,000. Source: Art. 96 of the Consolidated Law 9/2012 and Decree 407/2025.
⚠️ Beware of outdated information. Some online sources still mention a minimum investment of €400,000 to €600,000 or a refundable AFA deposit. This information is no longer valid following the reform of Law 9/2012 and Decree 407/2025. The €50,000 deposit is now final and non-refundable, and the minimum investment is €1,000,000.
Cumulative requirements for passive residency
- Actual residence in Andorra for at least 90 days per year (in rented or owned housing)
- No paid employment or professional activity in Andorra (asset management is permitted)
- Health, disability, and retirement insurance for the policyholder and dependents
- Proof of income: ≥ €54,911.88 per year for the primary applicant + €18,303.96 per year per dependent
- AFA deposit: €50,000 non-refundable (policyholder) + €12,000 per dependent
- An investment of €1,000,000 in eligible Andorran assets within six months of the approval decision
- Immigration processing fee: €3,000 (applicant) + €1,000 per dependent
Andorran assets eligible for investment (passive residency)
- Real estate located in Andorra (each unit > €800,000)
- Equity interests in companies resident in Andorra
- Debt or financial instruments issued by resident entities (max. 36 months)
- Debt instruments issued by an Andorran public administration
- Life insurance products purchased from entities resident in Andorra
- Non-interest-bearing deposits with the AFA
Key milestones in the case from Taiwan
Step 1 — Choose your status (M-12 to M-18)
Before proceeding, identify the status that best fits your profile. This choice determines the entire application process and cannot be easily changed after submission.
Step 2 — Legalize Taiwanese documents (M-10 to M-8)
Criminal record, proof of income, medical certificate, civil status documents. Taiwanese documents must be processed through the TECO (Taipei Economic and Cultural Office)—a procedure separate from the European Apostille process. Allow 6 to 10 weeks and provide certified translations into Catalan.
Step 3 — Open an Andorran bank account (M-8 to M-6)
This step is often difficult to complete from abroad due to the strict KYC requirements of Andorran banks (Creand, Andbank, MoraBanc). A locally based firm can make this process much easier.
Step 4 — Submit the application to the Department of Immigration (M-4 to J)
The processing time is generally between 2 and 4 months. All procedures are conducted in Catalan.
Step 5 — Make the Andorran investment (within 6 months of the decision)
For passive residency: make the €1,000,000 investment in eligible assets within the legal timeframe.
Step 6 — Register with the CASS
Registration with the Andorran Social Security Fund is mandatory once you obtain your driver’s license. It entitles you to health and pension coverage that meets European standards.
The preparatory phase from Taiwan can take anywhere from 6 to 18 months for complex cases. Contacting an Engage expert is the first practical step to take.
→ This is a two-part article. Continue reading in the next section.
IV. Settling In: Housing and Daily Life
Monthly budget to plan for
| Expense item | Monthly estimate | Comment |
|---|---|---|
| Rent | €900–€2,000 | High demand for rentals, limited supply |
| Food | €300–€600 | IGI at 4.5%: prices lower than in neighboring countries |
| Transportation | €150–€400 | A car is essential (no trains or airports) |
| CASS Contributions | Variable | Required upon obtaining a driver's license |
| Leisure and Dining | €400–€800 | A diverse and competitive selection |
The 7 parishes of Andorra: which one should you choose?
| Parish | Recommended profile | Key strength |
|---|---|---|
| Andorra la Vella | Entrepreneurs, business leaders | Administrative center, banks, notaries, legal offices |
| Escaldes-Engordany | Urban Profiles | An upscale residential neighborhood on the outskirts of the capital |
| La Massana | Families | Peaceful, green spaces, schools, high-quality residential areas |
| Ordino | Mountain lovers | An authentic valley, tranquility, unspoiled nature |
| Canillo | Athletes, skiing | Ski resort, modern architecture |
| Sant Julià de Lòria | Frequent travelers | Located near the border, with quick access to Barcelona Airport |
| Encamp | Good value for money | Access to the slopes, preserved local character |
Andorra is a landlocked country with no airport or train station. All travel is by road (3 hours from Barcelona, 2.5 hours from Toulouse). The French-speaking community numbers about 1,200 people. Catalan is the official language—French and Spanish are widely spoken in everyday life. Education in French is available through the French School of Andorra.
All residents must enroll in the CASS as soon as they obtain their license. For expatriates accustomed to Taiwan’s National Health Insurance (NHI)—one of the best universal healthcare systems in the world—the transition remains smooth.
V. Arrange your departure from Taiwan in accordance with the proper procedures
A successful move abroad isn't just about arriving in Andorra. Officially wrapping up your stay in Taiwan is a crucial step in itself—neglecting it can lead to complications that may arise months after your departure.
The 6 mandatory steps to take before leaving Taiwan
- Cancel your ARC (Alien Resident Certificate) with the Taiwanese Immigration Bureau, or do not renew it if it is about to expire.
- Notify the Workforce Development Agency if a work permit is currently valid.
- File your final Taiwanese tax return and obtain a tax clearance certificate—this document may be required for the Andorran application.
- Opt out of the NHI (National Health Insurance) to avoid paying premiums without receiving any benefits.
- Close or transfer your Taiwanese bank accounts, taking into account the KYC processing times and fund traceability requirements for the Andorran application.
- Unregister from the Registry of French Citizens Abroad if you were registered with the French Office in Taipei.
Be sure to keep a copy of every Taiwanese document: ARC, contracts, tax statements, proof of residence. These documents may be required when applying for Andorran residency.
VI. Case Study — Thomas, a tech entrepreneur returning from Taipei
Thomas, 41, has been running a SaaS company out of Taipei for the past six years, with annual revenue of €2.4 million, most of which is generated in Europe. He has accumulated a financial portfolio of €1.8 million since he first started doing business in Asia.
Initial situation: increasingly complex international tax regulations, a need to structure one’s assets before the age of 45, and a desire to align with European standards without sacrificing tax competitiveness.
Strategy implemented with Engage: Andorran passive residency + establishment of an Andorran holding company + restructuring of the financial portfolio into eligible Andorran assets.
Results: effective tax rate reduced to 8.2% — assets secured within a transparent Andorran framework. Thomas contacted Engage 14 months before he actually left Taipei. The €1,000,000 investment was made through the purchase of real estate and an equity stake in an Andorran resident company.
"I thought the challenge would be the distance between Taipei and Andorra. In reality, the real challenge was preparing the banking documentation from Asia. Engage handled the entire process—I only had to travel to Andorra once."
— Thomas, a resident of Andorra since 2025
VII. 5 Mistakes to Avoid
Mistake #1 — Underestimating the time required for Taiwanese legalization
Taiwanese documents do not go through the standard apostille process. The procedure involves TECO, followed by a certified translation into Catalan. Many people discover this requirement too late.
Solution: Allow 6 to 10 weeks, starting 10 months before departure.
Mistake #2 — Believing that the AFA deposit for a passive house is refundable
Since the reform of Law 9/2012 and Decree 407/2025, the €50,000 deposit is final and non-refundable (unless the permit is initially denied). Many online sources are outdated.
Solution: Always verify the conditions through an up-to-date law firm.
Mistake #3 — Neglecting administrative formalities in Taiwan
Failing to cancel your ARC, deregister from the NHI, or file your final tax return can lead to long-term complications.
Solution: Follow the checklist of 6 mandatory steps before departure.
Mistake #4 — Waiting until you’re in Andorra to open a bank account
Without an Andorran bank account in place, the AFA deposit and the required investment cannot be made, which halts the entire application process.
Solution: Begin the bank account setup process at least 4 months before submitting your residency application.
Mistake #5 — Confusing administrative residence with tax residence
Obtaining an Andorran residence permit is not enough to automatically establish tax residence. Strict criteria regarding physical presence, household, and economic interests apply.
Solution: Consult a Franco-Andorran tax lawyer as early as the planning stage.
Conclusion — Choosing Andorra means choosing transparency
Relocating from Taiwan to Andorra involves two layers of complexity: leaving a non-European territory with its own specific procedures, and entering a microstate with its own precise rules. The most costly mistakes—improperly legalized documents, poorly planned passive investments, or unresolved tax residency issues—are difficult to correct after departure.
But for the right candidates—entrepreneurs, investors, individuals living off investment income, and early retirees— Andorra offers one of the most competitive environments in Europe: a stable and transparent tax system, an exceptional quality of life, and strong legal certainty.
For more information, see our guide on setting up an Andorran holding company and our comparison of Andorra vs. Dubai, Portugal, and Monaco.
Our experts will guide you every step of the way, from the financial review to obtaining your residence permit. Click here to schedule a strategic consultation with an Andorran tax advisor.
