Key Takeaways
- Invest €1,000,000 in Andorran assets, or €400,000 through the national Housing Fund.
- Non-refundable €50,000 to the AFA, plus €12,000 per dependent.
- Prove income above 300% of the Andorran minimum wage (~€56,500/year), plus 100% per dependent.
- Private health insurance required; passive residents are not in CASS.
- 90 days a year minimum presence — but that is not enough for tax residency.
Andorra’s passive residency route is for people who can support themselves without working locally. Since the 2026 Omnibus Law it requires a permanent investment of at least €1,000,000 in Andorran assets (or €400,000 through the Housing Fund), a non-refundable €50,000 payment to the Andorran Financial Authority plus €12,000 per dependent, proof of income above 300% of the Andorran minimum wage, private health cover, and physical presence of at least 90 days a year.
Who passive residency is for
Passive residency (residència sense activitat lucrativa — residence without gainful activity) suits investors, business owners who have exited, and retirees with capital. You cannot carry out economic activity in Andorra on this permit — if you intend to keep working, active residency is the route. What passive residency gives you is a low-tax European base with a light 90-day presence requirement.
The €1,000,000 investment, category by category
The defining requirement is a permanent, effective investment of at least €1,000,000 placed in Andorra. You can spread it across:
- Andorran real estate — if property is your route, the unit value must exceed €800,000
- Shares in Andorran resident companies
- Andorran public debt or debt instruments issued by Andorran entities
- Andorran collective investment funds
- A non-interest-bearing deposit with the Andorran Financial Authority (AFA)
The €400,000 Housing Fund option
The reduced €400,000 threshold applies only where the investment is directed — directly or indirectly — into Andorra’s national Housing Fund (Fons d’Habitatge). This is a deliberate government lever to channel foreign capital toward the housing shortage rather than toward luxury purchases.
The 36-month rule
Investments in Andorran financial instruments and investment funds are only recognised for 36 months. After three years the capital must be moved into real estate or company shares to keep counting toward your residency. Plan the sequence before you commit, not after.
The payments on top of the investment
| Item | Amount | Refundable? |
|---|---|---|
| AFA contribution (main applicant) | €50,000 | No — non-refundable since 13 Feb 2026 |
| AFA contribution per dependent | €12,000 | No |
| Government / immigration fees | Several hundred euros | — |
| Legal and advisory fees | Typically €8,000–15,000 | — |
Income and insurance
- Income proof: annual income above 300% of the Andorran minimum wage for the main applicant, plus 100% more per dependent. With the minimum wage at €1,568.67 a month since 1 July 2026, that is roughly €56,500 a year for the applicant and €18,800 per dependent — and it rises with the minimum wage. Evidence: pension statements, the previous year’s tax return, or bank statements.
- Health cover: passive residents do not join the CASS social-security system, so you need private health insurance covering you and your dependents in Andorra for the full permit period.
- Housing: proof of a place to live in Andorra — owned or rented — adequate for everyone on the permit.
Presence: 90 days is the immigration floor, not the tax test
To keep the permit you must be physically present in Andorra at least 90 days per year. But 90 days does not make you an Andorran tax resident. Tax residency needs more than 183 days in the country, or your centre of vital interests there. If your goal is the 10% tax environment — not just a second residence card — you need to plan for a real move and, often, to manage an exit tax in your departure country. This is the step where professional advice pays for itself.
The process, step by step
- Structure the investment and confirm it qualifies (2–4 weeks with an advisor)
- Open an Andorran bank account and pass compliance / source-of-funds checks (3–6 weeks)
- Place the investment and make the AFA contribution
- Gather documents: criminal-record certificate, medical certificate, proof of income, private insurance, housing
- File the immigration application; attend in person for biometrics and the medical
- Receive the permit — initial validity 2 years, then a renewal ladder of 2, 3 and eventually 10-year periods
Realistic end-to-end timeline: 2 to 4 months once your funds and paperwork are ready. The bank-account compliance step is the usual bottleneck.
Renewals and the Catalan requirement
Passive permits renew on a lengthening schedule — commonly 2 years, then 2, then 3, then 10-year terms — provided you keep the investment in place, maintain health cover, and meet the 90-day presence test. The Catalan requirement is being phased in: since 26 April 2026 work-permit holders need A1 at their first renewal and A2 at the second, and the remaining permit categories — passive residency included — follow within five years. Courses are free and the level is elementary.
Frequently asked questions
How much do I need to invest for Andorra passive residency in 2026?
€1,000,000 in qualifying Andorran assets, or €400,000 if the investment goes through the national Housing Fund, plus a non-refundable €50,000 AFA contribution and €12,000 per dependent.
Can I use property to meet the investment requirement?
Yes, but the property unit must be worth more than €800,000, and as a recently arrived buyer you will also pay the 6% foreign real-estate investment tax on a first home.
How many days a year do I have to spend in Andorra as a passive resident?
At least 90 days to keep the permit. To be an Andorran tax resident you need more than 183 days, or your centre of vital interests in Andorra.
Do passive residents get Andorran healthcare?
No. Passive residents are not in the CASS system and must hold private health insurance for the duration of the permit.
Is the €50,000 AFA payment returned when I leave?
No. Since the 2026 Omnibus Law it is a non-refundable contribution.
Can my family be included?
Yes. Dependents can be included, subject to the higher income proof (an extra 100% of the minimum wage each) and the extra €12,000 AFA payment per person.
Last reviewed: 3 September 2026. General information, not legal or tax advice; figures move with Andorran law and the minimum wage and this page may become out of date. Confirm your situation with a licensed Andorran advisor. Speak to our team.
