Passive Residency
For people considering retiring then coming to live in Andorra, I have one word of advice......."DON'T !!"
What you should consider is obtaining residency in Andorra and THEN retiring, whether you eventually live here in retirement or not.
What does this mean ? When you retire, and I am applying this to the United Kingdom although it may be the case in most countries, you have the opportunity on your retirement date to take a lump sum from your pension pot. The Inland Revenue then relieves a large portion from you as tax. If however you can show you are resident elsewhere such as Andorra, you may be able to avoid, not evade, but legally avoid handing over such a large sum in tax.
Now this is not intended in any way as financial advice, but you might just want to have a word with a financial advisor, each person's situation is unique.
Again if I can be of assistance in answering any questions you may have on this or any other subject in Andorra, please feel free to conatct me.