Retiring in Andorra: Residence Without Work, Taxation of the Pension and Access to Care

Andorra offers no specific visa for retirees: long-term stay goes through a residence without work immigration authorisation, sometimes called passive residency. According to the Govern d’Andorra page, the applicant must show an annual income above 300% of the annual minimum wage in force, increased by 100% of this indicator for each dependant, have housing meeting habitability conditions (owned, rented or being purchased), commit to fixing their actual residence in Andorra at least 90 days per calendar year and commit to investing in Andorran assets.

The amount of this investment has been the subject of a reform project led by the Govern: the value in force at the date of the application should be confirmed with the Departament d’Immigració, which remains the competent authority. After the grant, the holder registers with the Comú of the parish of residence within a month. The initial authorisation is granted for two years, the first extension for two years, the second for three years and subsequent ones for ten years, with exceptions for nationals of states linked to Andorra by an agreement (Govern d’Andorra). Renewal requires proof that the investment is maintained and of cover for sickness, incapacity and old age.

A pensioner who settles abroad continues to receive their French pension. If they are no longer tax-resident in France, they pay neither CSG, nor CRDS, nor Casa. On the other hand, a health insurance contribution may be levied on their pension if a French scheme still covers them, for example on the basis of their stays in France: the usual rates are 3.2% on the basic pension, 4.2% on the supplementary pension and 7.1% on a self-employed scheme pension (CLEISS). For civil and military pensions, the retiree informs their management centre before departure; for the general scheme, the Assurance retraite questionnaire is the entry point.

The guide retirement abroad and the page retiree insurance abroad complete these benchmarks. The departure procedures for Andorra come on top of informing the French bodies (CPAM, pension funds, tax office).

The tax agreement signed in Paris on 2 April 2013 and published by Decree no. 2015-878 of 17 July 2015 allocates the taxation of pensions. Private pensions paid in respect of a previous job, including those of the basic social security scheme and the compulsory supplementary schemes, are taxable only in the beneficiary’s state of residence; they therefore cannot be subject in France to the withholding tax provided for by article 182 A of the general tax code. Public pensions, paid for services rendered to the State, are in principle taxable in the state that pays them, unless the beneficiary is a resident and national of the other state without holding the nationality of the first (impots.gouv.fr, BOFiP).

Andorran tax residence requires a stay of more than 183 days in the calendar year, or the centre of economic interests in Andorra; a mere Andorran residence permit is not enough to establish it. In Andorra, IRPF is at a rate of 10%, with a tax-free personal minimum of €24,000 (Govern d’Andorra). The treatment of a foreign pension in the IRPF base should be confirmed with the Departament de Tributs i de Fronteres, and that of a French public pension with the French tax authorities before departure.

Under the agreement of 12 December 2000, a pension holder of a French scheme in mainland France or the overseas territories, of any nationality, who has worked as an employee, self-employed person or civil servant and who has no entitlement open under the Andorran scheme can benefit from health cover in Andorra. Their pension fund completes part A of form SE 130-09 and gives them two copies, or sends it directly to CASS: this registration also applies to resident dependants. For the general scheme, the request goes through the Assurance retraite health entitlement questionnaire; for a civil or military pension, through the pension management centre (CLEISS).

During a temporary stay in France, the SE 130-09 certificate is presented to the local fund with the pension certificate. Only the pensioner and their minor children are covered; an accompanying spouse must arrange insurance. Beyond one month of hospitalisation, the prior agreement of the CPAM is necessary, and a CFE member (Caisse des Français de l’étranger, the voluntary social protection body for French expatriates) sends their requests for reimbursement of care in France to the Seine-et-Marne CPAM. For general-scheme retirees living outside the European Union, the European Economic Area and Switzerland, the CNAREFE manages registration and reimbursements. Reimbursement details are in the page healthcare reimbursement in Andorra.

A retiree who has worked in Andorra also comes under the CASS old-age scheme: the normal pension is open at 65 with at least 180 months (15 years) of contributions, including at least 12 months in Andorra (counting periods in countries with agreements). Early retirement is possible from age 61 with 480 months (40 years) of contributions, with a reduction of 7% per year of anticipation. The calculation is based on points; the point value is revised each year (CLEISS). If the pension is less than or equal to 15% of the minimum wage, the insured person can choose a lump sum; between 60 and 179 months of contributions, a flat-rate refund is possible from age 65.

A pensioner may continue to work as an employee or self-employed person; in that case, the employee contributes only to the general branch, i.e. 10% of gross salary (3% employee, 7% employer, CASS). Survivor’s pensions exist for the surviving spouse subject to age and length-of-marriage conditions. These figures are those of CLEISS’s country sheet; CASS publishes the values in force.

The country’s economic indicators are displayed in the “Economic indicators” block above. To gauge the cost of living, the minimum wage, revised each year, serves as a local benchmark, and rents can be read in the publications of the Govern’s Departament d’Estadística. Housing is both the main expense and the precondition of residence: it must meet the minimum habitability conditions. Current health spending represents about 8% of GDP, with a little over 11% borne directly by households (World Bank).

Among the seven parishes, Andorra la Vella and Escaldes-Engordany concentrate services, administrations, the French embassy and the Nostra Senyora de Meritxell hospital, the country’s only hospital, which shortens medical journeys. Sant Julià de Lòria, near the Spanish border, and the mountain parishes (Encamp, Canillo, Ordino, La Massana) involve high-altitude roads, with difficult traffic conditions in winter (France Diplomatie). In Pas de la Case, French is the most widely spoken language. See the page living in Andorra.

• Inform your pension fund, the CPAM, the CAF and the tax office of your departure, and keep the addresses of your bodies.
• Ask your pension fund for form SE 130-09 before departure or on arrival.
• File the residence-without-work application with the Departament d’Immigració and confirm the amount of the required investment.
• Register with the parish Comú within a month of the grant, then on the register of French nationals established outside France.
• Arrange health or assistance insurance for the spouse, for stays in France and for medical transport outside Andorra.

These steps are complemented by the guide health insurance for retirees abroad. The French embassy in Andorra (38 Carrer les Canals, by appointment) handles registration on the register.