Andorra Residency: The Complete 2026 Guide

To become a resident of Andorra in 2026 you take one of three routes: active residency (you run or work in an Andorran company and spend 183+ days a year in the country), passive residency (you invest at least €1,000,000 in Andorra and spend 90+ days), or the digital nomad residence permit (you work remotely for clients abroad, but the annual quota is small). All three now require a non-refundable €50,000 payment to the Andorran Financial Authority.

The three routes at a glance

Andorra does not have a single “residence visa.” It has distinct permits, each built for a different kind of person. Choosing the wrong one wastes months, so start here.

What the Omnibus Law changed

The reference point for anyone researching Andorran residency today is Law 2/2026, known as the second “Omnibus Law,” which entered into force on 13 February 2026. It rewrote the economics of both main routes:

• Passive residency investment rose from €600,000 to €1,000,000. A reduced €400,000 threshold applies if the investment goes into the national Housing Fund (Fons d’Habitatge).
• The €50,000 AFA payment is now non-refundable (“a fons perdut”) for both active and passive residents. Previously it was a deposit you got back when you left. There is an additional €12,000 per dependent for passive applicants.
• Property bought to support passive residency must have a unit value above €800,000.
• Foreign buyers face higher property transfer taxation on their first Andorran purchase.
• Certain investments count for only 36 months. If you satisfy the €1,000,000 through Andorran financial instruments or investment funds, that capital must be moved into another qualifying asset class — real estate or company shares — within three years.

If you applied before 22 January 2026, the old rules still apply to your file — the lower investment threshold and the refundable deposit. This transitional provision is the single most valuable thing to know if your move was already in progress.

Businesses validated as digital-economy, innovation or technology ventures by a government-recognised body can be exempt from the non-refundable €50,000 AFA contribution.

Figures on this page reflect the law as it stands after the 2026 Omnibus reform. Thresholds, quotas and the minimum wage that some requirements are pegged to are reviewed regularly — confirm the current numbers with a licensed advisor before you commit capital.

Active residency: for people who will work or run a business

Active residency (residència activa) is the route for anyone who intends to earn their living through activity based in Andorra — founders, consultants, agency owners, online businesses. You become a resident by being a substantial owner and director of an Andorran company.

What you need

• Form a new Andorran company and hold more than 34% of it, or take at least a 20% stake in an existing one — and sit on its board as a director.
• A non-refundable €50,000 contribution to the Andorran Financial Authority (AFA).
• A €3,000 refundable deposit lodged for the immigration card.
• Registration with Andorran social security (CASS) as a self-employed worker — roughly €500 per month.
• Physical presence of at least 183 days per year.
• A clean criminal-record certificate, a medical certificate, and private health cover until CASS is active.
• Catalan A1 before your first renewal and A2 before the second, phased in by permit category since 26 April 2026. The government runs the courses free of charge.

The real all-in cost

Beyond the €50,000 AFA payment, budget around €7,000 for company incorporation (notary, legal fees, registration taxes for an SLU), plus the share capital, plus ongoing accounting at roughly €150–300 per month. Your company does not have to be profitable immediately, but it must be genuinely active and meet its CASS and tax-filing obligations.

Who it suits

Active residency makes sense if your income is earned — you are still working — and you are comfortable spending more than half the year in Andorra. Many location-flexible founders and creators choose it precisely because the Andorran company can invoice their international clients while personal tax is capped at 10%.

Passive residency: for people with capital who won’t work locally

Passive residency (residència sense activitat lucrativa) is for people who can support themselves from investments, a pension or existing wealth and do not need to work in Andorra. It is often called residency by investment, because the defining requirement is capital placed in the country.

The €1,000,000 investment

You must make a permanent, effective investment of at least €1,000,000 in qualifying Andorran assets. That can be spread across categories:

• Andorran real estate (a unit valued above €800,000 if property is the route)
• Shares in Andorran resident companies
• Andorran public debt or financial instruments issued in Andorra
• Andorran collective investment funds
• A non-remunerated deposit with the AFA

Two caveats matter. First, the €400,000 reduced threshold is available only where the investment is directed — directly or indirectly — into the national Housing Fund. Second, financial instruments and investment funds are recognised for a maximum of 36 months, after which the money must move into real estate or company shares to keep counting.

Income and payments

• Proof of annual income above 300% of the Andorran minimum wage for the main applicant — on the 2026 minimum wage that is roughly €56,500 per year — plus 100% more per dependent (around €18,800 each). Evidenced by pension statements, prior-year tax returns or bank statements.
• The non-refundable €50,000 AFA contribution, plus €12,000 per dependent.
• Private health insurance covering you and your dependents in Andorra (passive residents do not join CASS).
• Physical presence of at least 90 days per year.

Who it suits

Passive residency fits high-net-worth individuals and retirees who want a low-tax European base without the obligation to run a business or spend most of the year in one place. The 90-day floor is light — but see the tax section below, because 90 days is not enough to make Andorra your tax home.

The digital nomad residence permit: real, but a bottleneck

Andorra’s Digital Economy, Entrepreneurship and Innovation Law (Law 42/2022) created a residence permit for people who work remotely, using technology, for companies or clients outside Andorra. It exists and has been issued since 2023.

The practical problem is scale. The number of these permits granted per year is small — commonly reported at around 50 — and the process has been slower to bed in than the two main routes. For most remote workers with a real business, active residency through an Andorran company is the more reliable path, and often more tax-efficient because it routes income through a 10%-capped Andorran entity. Treat the digital nomad permit as a niche option, not the default.

Residency is not the same as tax residency

This distinction trips up more people than any single number. Holding an Andorran immigration permit does not automatically make you an Andorran tax resident. You are tax resident when either:

• you spend more than 183 days of the calendar year in Andorra, or
• your centre of vital interests — your main economic and personal life — is in Andorra.

A passive resident who spends only the required 90 days in Andorra and keeps a home, family and business in their old country may still be taxed there. Worse, some countries — the Netherlands is the sharpest example — levy an exit tax on the unrealised gains of a substantial shareholder the moment they emigrate. Getting the Andorran permit is the easy part; unwinding tax residency in your departure country is where the planning actually happens.

The renewal ladder and the Catalan requirement

Every Andorran residence permit starts temporary and lengthens as you show continued compliance. At the time of writing, the typical pattern is:

• Active: 1 year, then renewals of 2 years (three times), then 10-year renewals.
• Passive: 2 years, then 2 years, then 3 years, then 10-year renewals.

Exact validity periods are set by the Immigration Department and have been adjusted before — verify the current schedule when you apply. What is firm: the language law phases the requirement in by permit category — A1 at the first renewal, A2 at the second. Courses are free and the level is genuinely basic, but it is a hard requirement, not a formality.

Bringing your family

Both main routes allow family reunification. Active residents can generally bring dependents after 12 months; passive applicants can include family in the initial application, subject to the higher income proof and the extra €12,000 AFA payment per dependent. You will need to show adequate housing for everyone on the permit.

How long the whole process takes

For active residency, plan on 3 to 4 months end to end: company incorporation (4–6 weeks), opening a corporate bank account, then the immigration application (4–8 weeks), with an undertaking to finish all company and licensing steps within three months of approval.

For passive residency, the timeline is driven by how quickly you can place the investment and assemble documentation — typically 2 to 4 months once your funds and paperwork are ready.

Which route is right for you

• You are still actively earning (business, freelance, agency, creator income) and will live in Andorra most of the year → active residency.
• You live off investments or a pension, have €1M+ to place, and want a light-touch presence requirement → passive residency — but plan your days carefully if you want the tax residency too.
• You are a salaried remote employee with no business of your own and a modest income → the digital nomad permit may fit, but expect a queue; active residency via a company is the fallback.
• Your move was already underway before 22 January 2026 → check whether your file qualifies for the pre-Omnibus rules before doing anything else.

Frequently asked questions

What is the minimum investment for Andorran residency in 2026?

Active residency has no fixed investment figure beyond forming a company and the non-refundable €50,000 AFA contribution. Passive residency requires a €1,000,000 investment in Andorran assets, reduced to €400,000 if channelled through the national Housing Fund, plus the €50,000 AFA contribution.

Is the €50,000 AFA payment refundable?

No. Since the Omnibus Law took effect on 13 February 2026, the €50,000 contribution to the Andorran Financial Authority is non-refundable for both active and passive residents. It was a returnable deposit under the previous rules.

How many days a year must I spend in Andorra?

Active residents must be physically present at least 183 days per year; passive residents at least 90 days. To also be tax resident, you need more than 183 days in the country or your centre of vital interests there.

Can I get Andorran residency while working for a foreign company?

Yes. The common route is active residency: you form an Andorran company that invoices your foreign clients or employer, and you become a resident as its director and majority owner. The digital nomad permit also allows remote work for non-Andorran clients, but has a small annual quota.

Do I have to learn Catalan?

Since 26 April 2026 the language law requires Catalan A1 at your first renewal and A2 at the second, three years later. Work-permit categories are covered first, with the remaining permits — passive residency included — brought in within five years. The courses are free, the level is elementary, and 30 hours of tuition satisfies a first renewal if you do not yet hold A1.

What happens to applications filed before the Omnibus Law?

Applications for active or passive residency submitted before 22 January 2026 continue to be processed under the previous requirements, including the lower €600,000 passive threshold and the refundable deposit.

Does Andorran residency lead to citizenship?

Only after a long period. Andorran naturalisation generally requires around 20 years of continuous residence (less in specific cases), and Andorra does not permit dual citizenship — you would have to renounce your current nationality.