Andorra residency requirements fall into two tracks: a passive permit for people living off outside income and investments, and an active permit for people who own and run a business in the country. Both demand a clean criminal record, proof of where your money comes from, private or public health coverage, and a fixed address in one of the seven parishes. A 2026 reform raised the passive investment floor from €600,000 to €1,000,000, so anyone weighing the move should plan around the new numbers rather than older figures still circulating online.
The Passive Permit
Passive residency is built for financially independent applicants: retirees, investors, and people whose income comes from a foreign business. You get to live in Andorra without working there, and you keep a low physical-presence obligation, but the capital commitment is heavy.
The €1,000,000 Investment
Under the 2026 rules, passive residents must place at least €1,000,000 into qualifying Andorran assets. Local real estate counts, as do shares in Andorran companies and government debt instruments. If you buy a home to live in, its value applies toward the total. There is an alternative: contribute €400,000 to the state Housing Fund, which finances affordable social housing.
The investment must be completed within six months of your residency authorization. Every euro has to be documented under strict anti-money-laundering rules, so expect banks and the government to ask for source-of-funds records going back years.
The AFA Deposit
You also lodge a deposit with the Andorran Financial Authority. Historically that was €50,000 for the main applicant plus roughly €9,500 per dependent, held as a refundable security bond. The 2026 reform reclassifies these as non-refundable contributions, though the finalized figures were still awaiting formal publication at the time this was written.
Annual Income
Passive applicants must show income of at least 300% of Andorra’s minimum annual salary, plus another 100% for each dependent. With the 2026 minimum wage set at €1,525.33 per month, that comes to roughly €54,900 a year for a single applicant. A couple with one child needs to demonstrate about €91,500. The income can come from pensions, dividends, rental property abroad, or any source outside Andorra.
Ninety Days a Year
Passive residents must spend at least 90 days per calendar year in Andorra. That threshold is deliberately below the 183-day tax residency line, letting permit holders keep a global life. Fall short of the 90 days, or let the investment lapse, and the permit can be revoked.
The Active Permit
The active route is for anyone who plans to run a business in Andorra. The capital bar is lower, but you commit to living there full-time and paying Andorran tax on your worldwide income.
Company Ownership and a Real Office
You must own at least 20% of the share capital of an Andorran-incorporated company and hold a management role such as director or administrator. The company needs a physical office in one of the seven parishes. A mailbox or virtual address will not qualify. Most applicants incorporate a Societat de Responsabilitat Limitada, Andorra’s limited liability company, which requires €3,000 in paid-in share capital. Foreign nationals have been allowed to hold 100% of an Andorran company since 2012, so no local partner is required.
183 Days and Tax Residency
Active residents must spend at least 183 days a year in the country, which automatically makes them Andorran tax residents. That is the core trade-off: lower entry cost, but you genuinely live there and file Andorran tax on your global income.
Deposit and Social Security
Active residents pay a non-refundable €50,000 deposit to the AFA. Once the business is operating you register with CASS, the national social security system, which provides health coverage and a pension. Self-employed contributions run at roughly 22% of the country’s average salary (a 10% general branch and a 12% retirement branch), which worked out to about €563 a month under the 2025 standard regime. New registrants who have been outside the system for the prior 36 months may qualify for a reduced startup rate of around €64 a month covering only the general branch.
The first residency card is valid for one year and then renews in two-year increments. Keeping CASS contributions current, staying in the country, and running a genuinely active business are all conditions of renewal.
Tax Consequences of the Choice
Tax exposure is one of the biggest practical differences between the two permits. Passive residents who stay under 183 days are generally not Andorran tax residents and owe no Andorran income tax on worldwide earnings, though they still must hit the 90-day minimum to keep the permit. Active residents cross the 183-day line by design and pay Andorran personal income tax on a progressive scale that tops out at 10%: nothing on the first €24,000, 5% from €24,001 to €40,000, and 10% above that. Married couples filing jointly get the 0% band extended to €40,000. There is no wealth tax, no inheritance tax, and no gift tax.
Property Purchase Costs
Because real estate is the most common way to satisfy the €1,000,000 investment, the transaction costs matter to the residency math. Resale properties carry a 4% property transfer tax (ITP), split between the state and the parish. New builds are hit with a 4.5% IGI charge instead. Notary fees add another 0.7% to 1%.
Since February 2024, Andorra also applies a foreign investment tax (IIEI) to real estate bought by non-residents and by residents with fewer than three years of legal residency. It runs on a progressive scale:
- 3% on a first primary residence up to 250 square meters
- 5% on the second through fifth properties of similar type
- 8% on the sixth through ninth
- 10% on anything beyond that, or on large-scale development projects
On a €1,000,000 apartment bought to meet the passive threshold, the IIEI alone can add €30,000. With the transfer tax and notary fees layered on, expect €70,000 to €75,000 in total transaction costs over the sticker price. The IIEI stops applying once you have held residency for three years.
Documents You Must Gather
The paperwork stage derails more applications than any other. Catalan is Andorra’s sole official language, so every foreign document needs a certified Catalan translation, and because Andorra is a Hague Apostille country, foreign public records need an apostille to be recognized.
- Valid passport with at least six months of remaining validity, for the applicant and each dependent
- Criminal record certificate from your country of nationality and from every country where you have resided, generally issued within the last three to six months (U.S. citizens need an FBI Identity History Summary Check apostilled by the U.S. Department of State)
- Apostilles on all foreign public documents, including birth and marriage certificates
- Health insurance: private coverage valid in Andorra for passive applicants, CASS enrollment for active ones
- Proof of housing in the form of a registered rental contract or property deed
- Bank statements, investment records, and source-of-funds evidence proving you meet the income and investment thresholds
Andorra does not maintain a sworn translator registry the way Spain or France does, but the translator must be a professional who signs a formal attestation of accuracy. Build in extra time for apostilles and translations, especially if you have lived in several countries and need criminal records from each.
How the Application Runs
Complete files are submitted in person at the Servei d’Immigració in Andorra la Vella, by appointment. Shortly after intake, every applicant undergoes a mandatory medical exam arranged through the Andorran health department, covering a general physical and standard screening tests.
After medical clearance, the government issues a provisional residency card so you can live in the country while final checks run. The AFA confirms receipt of your deposits and, for passive applicants, tracks the investment against the six-month deadline. From submission to final card, most files take around six weeks. Complex ones take longer.
The final card carries a photo and biometric data and is what you will use for banking, government business, and applying for a local driving license.
What Residency Does Not Get You
A residency permit is not a path to a quick Andorran passport. Standard naturalization takes 20 years of continuous residence, dropping to 10 years for people educated in Andorran schools and three years for foreign spouses of citizens. Andorra does not permit dual citizenship for naturalized citizens, so becoming Andorran means renouncing your current nationality. Permanent residency, which offers greater security of status without forcing you to give up your passport, becomes available after 10 years. For most foreigners, Andorra works as a long-term residency jurisdiction rather than a citizenship destination.