Andorra Residency by Investment: Requirements, Options and Key Considerations

What is Andorra residency by investment?

Andorra residence by investment is the common name for a residence route based on investment. In Andorra immigration rules, this status is called residence without lucrative activity. It allows a foreign national to live in the Principality. It does not give the right to work for an Andorran employer.

Quick overview

The minimum investment is €400,000 ^[1] Source: Investment rules, BOPA . This threshold applies when the applicant invests in the Housing Fund. For other Andorran assets, the minimum investment is €1,000,000. If real estate is used as all or part of the investment, each property must cost more than €800,000.

The initial Andorra residence permit is issued for 2 years ^[2] Source: Residence duration, Government of Andorra . The first renewal is granted for another 2 years. The second renewal is granted for 3 years. Later renewals are granted for 10 years.

The applicant commits to effective residence in Andorra for at least 90 days per calendar year. They must also maintain health insurance during the validity of the residence permit.

Who Andorra residency is best suited for

Applicants usually consider this route when Andorra residence fits one of the following goals:

1. Long-term residency in Andorra without local employment.
2. Low-tax European base for an international investor or business owner.
3. Family plan B in a stable country between France and Spain.

This route may suit those who plan to move to Andorra for part of the year. It may also work for families who want a stable European base. However, applicants should first check whether the residence rules match their tax, travel and business plans.

Andorra is not part of the European Union or the Schengen Area. Travel to the country usually goes through France or Spain. Entry rules depend on the applicant’s nationality and travel documents.

Legal basis for Andorran investment residence

Andorra residency by investment is regulated by Andorra’s immigration and sustainable growth rules. The route falls under residence without lucrative activity. It is not a separate Andorra citizenship by investment programme.

The current legal framework includes the following laws:

1. Law 5/2025 of March 6th, 2025, on sustainable growth and the right to housing. The law introduced measures related to housing, foreign investment and sustainable growth in Andorra ^[3] Source: Housing law, Portal Jurídic del Principat d’Andorra .
2. Law 2/2026 of January 22nd, 2026. The law amended parts of Law 5/2025 and adjusted rules linked to foreign investment and residence without lucrative activity.

Passportivity operates strictly within this legal framework and its amendments. The company assesses each case under the current rules. Approval depends on the applicant’s documents, compliance checks and the decision of the Andorran authorities.

Main requirements for Andorra residency by investment

Andorra residency by investment is available to applicants who meet the rules for residence without lucrative activity.

Applicants need to prepare evidence for the following requirements:

• investment in Andorran assets or the Housing Fund;
• non-refundable payment to the Andorran Financial Authority;
• sufficient financial means for the main applicant and dependants;
• health insurance that covers medical costs in Andorra;
• owned or rented accommodation in Andorra;
• clean criminal record and medical clearance;
• legal entry and stay conditions, especially for non-EU and non-EEA nationals;
• minimum physical presence.

The applicant must keep effective residence in Andorra for at least 90 days per calendar year. This commitment applies to residence without lucrative activity. It is signed when the applicant files for the Andorra residence permit.

This rule is important for investors who do not plan to move to Andorra full-time. The permit gives a residence base in the country, but it still requires a real annual link with Andorra.

Non-refundable deposit

The main applicant make a €50,000 payment to the Andorran Financial Authority. For each dependant included in the application, another €12,000 is added.

These amounts are generally non-refundable. They are returned only if the initial immigration authorisation is refused.

The payment may affect the final investment calculation, depending on the selected asset. If the investor chooses real estate, each property must cost more than €800,000.

Proof of sufficient income and financial means

Applicants prove they have enough financial means to live in Andorra during the whole validity period of the permit. The main applicant shows more than 300% of the annual minimum wage. Each dependant adds 100% of the annual minimum wage.

In 2026, the monthly minimum wage in Andorra is €1,525.33 ^[4] Source: Minimum wage, Government of Andorra . The applicant for Andorra residence permit proves sufficient financial means in the following amounts:

• €54,912 a year for the main applicant;
• €18,304 a year for each dependant included in the application.

The applicant may prove financial means with bank certificates, a tax return from the last country of residence, pension certificates or other documents. The Government may ask for additional evidence if needed.

Health insurance and accommodation

The applicant provides health insurance for themselves and the people included in the application. The policy covers 100% of medical and healthcare expenses in Andorra. It must also cover incapacity and old age during the validity of the residence permit.

The applicant also proves accommodation in Andorra. This may be a rental contract, a title deed, a private purchase agreement or a purchase commitment. If the property purchase is still in progress, the applicant has 1 year from the application date to submit the final ownership documents.

After the permit is granted, the resident registers with the comú, or parish authority, where they live. This must be done within 3 months after obtaining the residence without a lucrative activity permit.

Including a spouse and dependent children

A spouse may be included if the family relationship is properly documented. Andorra immigration law also recognises minor children and adult unmarried children under 24 who are financially dependent on the applicant.

Dependants meet the same compliance standards as the main applicant.

Criminal record and compliance checks

The main applicant and dependants prove the absence of criminal records for intentional offences. The certificates must cover Andorra and previous countries of residence.

The official application form also requires a criminal record certificate from the country of origin, the country of nationality and countries of residence. The applicant also submits a sworn statement on criminal records and consent to a medical examination.

The Immigration Service may ask for extra documents. It may also carry out checks and investigations to verify the information submitted with the application.

Restricted countries and applicants

Andorra does not publish a public list of countries whose nationals are automatically excluded from Andorra residency by investment. The restriction is usually assessed through immigration status, Schengen entry rules, sanctions and compliance checks.

Applicants connected to sanctioned jurisdictions, sanctioned persons or high-risk sources of funds may face enhanced checks. Andorra has a law on the application of international sanctions ^[5] Source: Sanctions rules, Portal Jurídic del Principat d’Andorra . The Government may adopt restrictive measures based on sanctions issued by the UN, the EU and other international bodies.

Investment options to apply for Andorran residence permit

The minimum investment for Andorra residency by investment is €400,000. This amount applies if the applicant invests in the Housing Fund. Other investment options require at least €1,000,000 in Andorran assets.

The applicant may combine several qualifying assets. If real estate is part of the investment, each property must cost more than €800,000.

The law lists the following investment options for applicants who apply for an Andorra residence permit without the right to work locally:

• real estate in Andorra;
• shares or equity in companies resident in Andorra;
• debt or financial instruments issued by companies resident in Andorra;
• Andorran collective investment funds;
• debt instruments issued by Andorran public authorities;
• life insurance products issued by companies resident in Andorra;
• non-interest-bearing deposits with the Andorran Financial Authority;
• direct or indirect investment in the Housing Fund.

The investor must commit to completing the investment within 6 months after filing the application. This period may be extended for another 6 months if the delay is caused by force majeure or a third party.

Real estate

If the applicant uses the real estate option, the amount allocated to property must exceed €800,000. The applicant may invest exclusively in real estate, or combine it with other Andorran assets. For example, an investor may buy a property and add another financial asset to reach the required total.

Foreign real estate investment may fall under Andorra’s foreign investment rules. The law treats purchases by non-residents and certain recent residents as foreign investment. This may affect the authorisation process and tax treatment.

Investment property in Andorra

Financial assets and eligible instruments

Financial assets may also qualify for Andorra residency. The law allows investment in shares or equity of Andorran resident companies. It also allows debt instruments issued by Andorran public authorities.

Law 2/2026 added another category ^[6] Source: Financial instruments, Portal Jurídic del Principat d’Andorra . Applicants may invest in debt or financial instruments issued by Andorran resident entities. They may also invest in Andorran collective investment funds. This option is limited to 36 months. After that, the investor transfers the amount to another qualifying Andorran asset.

Life insurance products may also qualify. The product must be issued by an entity resident in Andorra. Non-interest-bearing deposits with the Andorran Financial Authority are another eligible format.

Other qualifying investment formats

The Housing Fund route has the lowest threshold. The minimum investment is €400,000 if the investment is made directly or indirectly in the Housing Fund.

Applicants should separate the investment from the mandatory state payment. The main applicant pays €50,000 to the Andorran Financial Authority. Each dependant adds €12,000. These amounts are generally non-refundable, unless the initial immigration authorisation is refused.

This payment is not a separate investment option. It is an additional condition for residence without lucrative activity. The total cost of residency in Andorra therefore depends on the selected asset, family composition and related expenses.

The total cost of Andorra residency by investment

Investment option	Minimum investment	Mandatory AFA payment	Additional costs
Real estate	€1,000,000+ The property cost €800,000+	€50,000 for the main applicant + €12,000 per dependant	Foreign real estate investment tax of 6% or 10%, notary and registration fees, agency fees, valuation and property maintenance
Purchase of financial assets	€1,000,000+	€50,000 for the main applicant + €12,000 per dependant	Bank, custody, brokerage, management or policy fees, depending on the asset
Housing Fund	€400,000+	€50,000 for the main applicant + €12,000 per dependant	Health insurance, accommodation, document preparation, translations and professional fees

Andorra residence vs tax residence

Andorra residence is an immigration status. It gives the holder the right to live in the country under the terms of their residence permit.

Tax residence defines where a person may be taxed as a resident. In Andorra, personal income tax applies to individuals who are considered tax residents in Andorran territory. It covers taxable income regardless of where the income is generated or where the payer is located.

Minimum stay for residence status

The Andorra residence permit by investment requires effective residence in the country. The applicant must commit to living in Andorra for at least 90 days per calendar year.

This rule is enough to keep the residence status. It does not automatically make the holder a tax resident. The tax residency test is separate and usually requires a stronger link with Andorra.

When tax residency may apply

A person may become an Andorra tax resident if one of the official tax residence criteria applies ^[7] Source: Tax residence, e-Tràmits Govern d’Andorra :

1. The person lives in Andorra for more than 183 days during a calendar year;
2. The main centre of their economic activities or economic interests is in Andorra;
3. Their spouse and minor children are tax residents in Andorra, unless the person proves otherwise.

This distinction matters for investors who plan to move to Andorra only for part of the year. A person may keep Andorra residency by meeting the 90-day rule. Tax residency may arise only when the person meets Andorra’s tax criteria.

Tax system in Andorra

Andorra is often considered by internationally mobile investors because of its relatively low tax rates. The tax benefits apply only when the person becomes an Andorra tax resident and meets the country’s tax rules.

The main tax for individuals is personal income tax, or IRPF. It applies to tax residents in Andorra and covers worldwide income. The standard IRPF rate is 10% ^[8] Source: Personal tax, e-Tràmits Govern d’Andorra . An effective 5% rate may apply to income between €24,000 and €40,000 through a tax credit.

The main taxes that may matter for investors and business owners are:

• personal income tax, or IRPF, at a standard rate of 10%;
• corporate income tax at a general rate of 10%;
• general indirect tax, or IGI, at a general rate of 4.5%;
• capital gains tax, which may apply to certain gains, including gains from real estate transactions;
• non-resident income tax, which may apply to Andorran-source income received by non-tax residents.

Andorra does not tax every type of income in the same way. For example, inheritances and donations are outside the scope of IRPF. Gains from Andorran real estate may fall under a separate real estate capital gains tax instead of standard IRPF rules.

Renewal, permanent residence and citizenship

The initial Andorra residence permit by investment is valid for 2 years. It may be renewed if the resident keeps meeting the immigration rules. The main condition is effective residence in Andorra during the permit validity period.

Initial validity and renewals

Andorra residency by investment follows the renewal logic for residence without lucrative activity. The resident must apply for renewal before the current permit expires. 

The renewal schedule is usually as follows:

1. Initial permit — 2 years.
2. First renewal — 2 years.
3. Second renewal — 3 years.
4. Further renewals — 10 years.

A renewal may be refused if the resident no longer meets the rules. The law also mentions public order, security risks, false information and interruption of residence as possible grounds for refusal.

Permanent residence options

Andorra does not present Andorra residency by investment as a direct permanent residence programme. The practical long-term route is a 10-year renewal after at least 7 years of residence ^[9] Source: Long-term renewal, Portal Jurídic del Principat d’Andorra .

A holder of residence without lucrative activity may obtain a 10-year renewal after 7 years. The resident must have lived in Andorra on a permanent and effective basis during the last renewal period. Further renewals are also granted for 10 years. They may be refused for public order reasons or if the authorities find that residence was interrupted.

Can Andorra residency lead to citizenship?

Andorra residency may lead to Andorra citizenship by naturalisation. The standard residence period is 20 years. The applicant proves main and permanent residence in Andorra and integration into the country.

Some European countries have shorter statutory naturalisation periods. For example, Greek official guidance refers to naturalisation after 7 years of permanent and legal residence. 

Applicants who compare residence by investment programmes should assess not only the investment amount, but also the residence period, language rules, physical presence and dual citizenship policy.

Dual citizenship considerations

Andorra has strict rules on dual citizenship. If the application is granted, the applicant proves the loss of their previous nationality or nationalities within 5 years.

If the applicant does not provide this proof in time, the favourable decision becomes void. The Government form for a nationality application also requires the applicant to declare that they will provide proof of loss of their current nationality or nationalities within the 5-year period.

Other ways to get residency in Andorra

Andorra immigration rules also provide residence options for professionals, employees, entrepreneurs, students, researchers and people with recognised international talent.

The main alternatives depend on the applicant’s purpose in Andorra:

• recognised scientific, cultural or sports profile;
• studies, training, high-level sports training or research;
• employment, self-employment or business activity in Andorra.

Scientific, cultural and sports routes

A separate residence route is available for applicants with recognised international talent in science, culture or sports ^[10] Source: Talent residence, Portal Jurídic del Principat d’Andorra . The applicant proves international recognition with documents such as: 

• awards and titles, 
• academic, cultural or artistic recognition, 
• sports achievements.

This route also requires a real link with Andorra. The applicant must establish their main and effective residence in the country for at least 90 days per calendar year. They may continue their professional activity if at least 85% of the services are used outside Andorra.

Study-based residence

Study-based residence is for foreigners who come to Andorra for education, training, high-level sports training or scientific research. The permit allows the holder to live in Andorra only while the approved studies, training or research continue ^[11] Source: Study permits, Government of Andorra .

The applicant must study at an educational institution based in Andorra and recognised by the Government. The same authorisation may also cover formative internships, high-level sports training and scientific or similar research.

The duration depends on the purpose:

• study permit follows the academic year;
• for internships, high-level sports training and research, the duration follows the approved activity.

Work and business-based residence

A residence and work permit allows a foreign national to live and work in Andorra. The applicant falls within the relevant quota, has an indefinite employment contract with a legally established Andorran company, and establishes permanent and effective residence in the country. 

The first permit is valid for 1 year. It may then be renewed three times for 2-year periods, followed by 10-year renewals after 7 years.

Business owners may also apply through self-employed residence and work linked to foreign investment. In this case, the applicant must: 

• have authorisation for foreign investment;
• set up an Andorran company;
• hold more than 34% of its capital;
• act as a member of its governing body. 

The applicant also deposits €50,000 with the Andorran Financial Authority.

Self-employed residence and work is another route. It allows the holder to live in Andorra and carry out an independent professional activity. The applicant must fall within the relevant quota, carry out self-employed activity, and establish permanent residence in Andorra.

5 advantages of an Andorra residence permit by investment

An Andorra residence permit may suit investors who need a long-term European base. The main advantages of Andorra residency by investment relate to residence flexibility, tax planning, family relocation and long-term renewals.

1. Moderate physical presence

The resident must live in Andorra for at least 90 days per calendar year. This requirement may be convenient for investors who do not plan to move to Andorra full-time. It allows them to keep a legal residence base in the country and continue managing business, assets or family matters in other jurisdictions. 

The 90-day rule is lower than the 183-day threshold that matters for tax residency planning.

2. Low personal income tax

Andorra may be attractive for investors who plan their tax residency in advance. The standard personal income tax rate is 10%. An effective 5% rate may apply to income between €24,000 and €40,000 through a tax credit. 

This tax treatment may be relevant for investors, business owners and financially independent people who are ready to move their centre of life and tax residence to Andorra.

3. Long renewal periods

The initial Andorra residence permit is granted for 2 years. The second renewal is granted for 3 years, and further renewals, for 10 years. This schedule may suit applicants who want a long-term residence solution rather than a short temporary status.

4. Family relocation option

The investor may include dependants in the application if the family meets the financial, insurance and compliance requirements. The applicant proves sufficient income for themselves and each dependant. The family also needs valid health insurance for Andorra. 

5. Stable residence base between France and Spain

Andorra is located between France and Spain. The country is not part of the EU or the Schengen Area, but access to Andorra is organised through neighbouring states. Non-EU nationals may need a double-entry or multiple-entry Schengen visa, depending on their travel plans. 

Limitations and Due Diligence risks of Andorra residency by investment

Andorra residency by investment also has important limitations. Applicants should assess them before they start the process. The main disadvantages are:

1. High investment threshold. The standard minimum investment is €1,000,000 in Andorran assets. The threshold is reduced to €400,000 only for direct or indirect investment in the Housing Fund. If real estate is used, each property must cost more than €800,000.
2. Non-refundable AFA payment. The main applicant pays €50,000 to the Andorran Financial Authority. Each dependant adds €12,000. These amounts are non-refundable, unless the initial immigration authorisation is refused.
3. No right to work locally. The status falls under residence without lucrative activity. It is not suitable for applicants who want to work for an Andorran employer.
4. Strict dual citizenship rules. Andorra residency may lead to citizenship only after 20 years of residence. A person who acquires Andorra citizenship also renounces all their previous passports. 
5. Enhanced Due Diligence for high-risk jurisdictions. Applicants connected to sanctioned persons, sanctioned entities or high-risk sources of funds may face additional checks. Andorra applies international sanctions issued by the UN, the EU and other international bodies.

Applicants from high-risk jurisdictions are not always automatically excluded. The assessment depends on nationality, residence history, source of funds, sanctions exposure and banking compliance. 

Final thoughts on Andorra residency by investment

1. Andorra residency by investment suits investors who need a long-term residence base in a low-tax European country. It does not give the right to work for an Andorran employer.
2. The minimum investment starts at €400,000 if the applicant invests in the Housing Fund. Other investment options require at least €1,000,000, and real estate must cost more than €800,000 per property.
3. The main applicant also makes a €50,000 payment to the Andorran Financial Authority. Each dependant adds €12,000. These amounts are generally non-refundable, unless the initial immigration authorisation is refused.
4. The applicant proves sufficient financial means for the whole family. In 2026, the threshold is about €54,912 a year for the main applicant and €18,304 a year for each dependant.
5. The residents must live in Andorra for at least 90 days per calendar year to keep status. This is enough to maintain residence status, but it does not automatically make the person an Andorra tax resident.
6. Tax residency is assessed separately. A person may become an Andorra tax resident if they spend more than 183 days a year in the country or if their main economic interests are there.
7. Andorra may be attractive for tax planning because the standard personal income tax rate is 10%. Corporate income tax is also generally 10%, and the general indirect tax rate is 4.5%.
8. The initial Andorra residence permit is valid for 2 years. Later renewals are granted for 2 years, then 3 years, and then 10 years, provided the resident continues to meet the rules.
9. Andorra residency may lead to citizenship only in the long term. Naturalisation usually requires 20 years of residence, integration into the country and renunciation of previous nationality or nationalities.