Passive Residency (Investors)

Valid investments include Andorran real estate, shares in local companies, government bonds, or non-interest bearing contributions with the AFA (Andorran Financial Authority).

Since 13 February 2026 the tax on foreign investment in real estate is 6% on a first dwelling and 10% on each additional one, double the previous 3% and 5%. On the €800,000 unit this route requires, that is roughly €48,000 payable on top of the purchase price, alongside the €50,000 contribution and the usual notary and registration costs.

To encourage affordable housing, the government allows a reduced investment of €400,000 for the real estate component if the property is directed to the National Housing Fund. This is a popular choice for those looking for a lower entry point into the real estate market.

Only if you become an Andorran tax resident, which passive residency by itself does not make you: that requires 183 days a year in Andorra, or your main centre of economic interests here. As an Andorran tax resident, worldwide income is taxed at a maximum of 10%, with a credit for tax already paid abroad — dividends from Andorran companies are exempt, foreign dividends are not, and gains on shareholdings below 25% are exempt. If you stay at the 90-day minimum, you remain tax resident elsewhere and Andorran rates do not apply to your income.

Passive residents are only required to spend 90 days per year in Andorra. This flexibility makes it the preferred choice for international business people and retirees who travel frequently.

Yes, for each dependent, an additional €12,000 non-refundable contribution is required. You must also demonstrate 100% of the minimum wage in additional financial means for each family member.

Yes, it is possible to switch residency types, but you would need to go through the full application process for the new category, including meeting the €50,000 contribution requirement.

Yes, the investment can be spread across multiple real estate units, provided the total value meets the required threshold. However, under the new law, at least one unit must be valued at €800,000 or more if not using the Housing Fund option.

No, the 90-day requirement is cumulative throughout the calendar year. You can enter and leave Andorra as often as you like, as long as your total presence exceeds 90 days.

Yes, you are free to rent out your property. However, if you chose the €400,000 Housing Fund option, the property must be managed by the government for affordable housing purposes for a specific period.

If you decide to cancel your residency, you are free to sell your assets or withdraw your contributions. The €50,000 government contribution, however, is non-refundable.

The €50,000 contribution is for the main applicant. Each dependent (spouse or child) requires an additional non-refundable contribution of €12,000.

Yes, passive residents often maintain businesses and investments globally. The key is that you do not engage in local professional activities within the Andorran territory.