The second Omnibus Law (Law 2/2026), in force since 13 February 2026, raised the minimum investment for Andorran passive residency from €600,000 to €1,000,000, made the €50,000 payment to the Andorran Financial Authority non-refundable for all applicants, and doubled the tax on foreign real-estate purchases to 6% for a first home. Applications filed before 13 February 2026 keep the old rules.

What the Omnibus Law is

“Omnibus law” is the informal name for Andorra’s periodic packages of economic reform that amend many separate laws at once. The second Omnibus Law — Law 2/2026 — was approved by the General Council on 22 January 2026 and entered into force on 13 February 2026. It is the single most important piece of legislation for anyone planning a move to Andorra today, because it changed the economics of residency and property in ways that are not yet reflected in a lot of the advice online.

The changes that matter most

1. Passive residency now costs €1,000,000

The headline change. To qualify for passive residency (residència sense activitat lucrativa) you must now make a permanent, effective investment of at least €1,000,000 in Andorran assets — real estate, shares in Andorran companies, Andorran public debt, Andorran investment funds, or a non-remunerated deposit with the AFA. A reduced threshold of €400,000 applies where the investment is channelled, directly or indirectly, into the national Housing Fund (Fons d’Habitatge).

2. The €50,000 AFA payment is gone for good

Under the old rules the €50,000 lodged with the Andorran Financial Authority was a bond — you got it back when you ended your residency. It is now a non-refundable contribution (“a fons perdut”) for both active and passive residents, with an extra €12,000 per dependent for passive applicants. Treat it as a sunk cost of entry, not a deposit.

3. Buying property as a newcomer costs more

The foreign real-estate investment tax introduced by Law 3/2024 was doubled. A first home now carries a 6% charge on the real value of the purchase (up from 3%); a second property is taxed at 10% (up from 5%); the ceiling for portfolios and developments stays at 10%. This sits on top of the roughly 4% standard transfer tax.

Crucially, “foreign investor” is defined broadly: it covers non-residents and Andorran residents who have been effectively resident for fewer than three of the previous ten years. A newly arrived resident buying a home is still taxed as a foreign investor.

4. Some investments have a shelf life

If you meet the €1,000,000 through Andorran financial instruments or collective investment funds, that capital is only recognised for 36 months. After three years it must be redirected into real estate or company shares to keep counting toward your residency.

5. Exemption for tech and digital-economy businesses

Ventures validated as digital-economy, innovation or technology projects by a government-recognised body can be exempt from the non-refundable €50,000 AFA contribution. This is the route Andorra is using to keep attracting founders while raising the bar for passive investors.

Who is affected — and who isn’t

• You applied before 13 February 2026: your file is processed under the old rules — the €600,000 threshold and the refundable deposit. This transitional protection is the most valuable thing to establish about your situation.
• You are already an Andorran resident renewing a permit: the new investment threshold does not retroactively apply to you, but check with an advisor if your circumstances have changed.
• You are planning a move now: budget for the full €1,000,000 (or €400,000 Housing Fund route), the non-refundable €50,000, and 6% on a first property purchase.
• You run an online or tech business: active residency is largely unchanged, and the digital-economy exemption may remove the €50,000 sting entirely.

What did not change

Andorra’s tax system was left alone: personal income tax still caps at 10%, corporate tax at 10%, IGI (VAT) at 4.5%, and there is still no wealth, inheritance or gift tax. The presence requirements are unchanged — 183 days for active residents, 90 for passive. The Catalan A1/A2 requirement before first renewal still applies.

Frequently asked questions

When did the Omnibus Law 2026 take effect?

Law 2/2026 was approved on 22 January 2026 and entered into force on 13 February 2026. Applications submitted before that date are processed under the previous rules.

How much is passive residency in Andorra now?

A minimum investment of €1,000,000 in Andorran assets, or €400,000 if directed through the national Housing Fund, plus a non-refundable €50,000 payment to the AFA and €12,000 per dependent.

Is the €50,000 AFA deposit still refundable?

No. Since 13 February 2026 it is a non-refundable contribution for both active and passive residents.

Did the Omnibus Law change Andorra’s tax rates?

No. Personal and corporate income tax remain capped at 10%, IGI stays at 4.5%, and there is still no wealth, inheritance or gift tax. The change to property taxation is a separate foreign-investment levy, not an income tax.

I started my application in 2025 — which rules apply to me?

If your application was formally submitted before 13 February 2026, it is processed under the pre-Omnibus rules, including the €600,000 passive threshold and the refundable deposit.

Last reviewed: 3 September 2026. General information, not legal or tax advice; Andorran law and its figures change and this page may become out of date. Confirm your situation with a licensed Andorran advisor. Speak to our team.