TL;DR: Andorra passive residency (officially residència sense activitat lucrativa) lets non-EU and EU nationals live in Andorra without working locally. As of 2026, you must invest EUR 1,000,000 in Andorran assets (or EUR 400,000 into the Housing Fund), place a EUR 50,000 non-refundable contribution with the state (plus EUR 12,000 per dependent), hold private health and pension cover, and spend at least 90 days per year in the country. Income tax for Andorran tax residents runs 0–10%, and there is no wealth, inheritance, gift or exit tax. The legal basis is Llei 2/2026 (Llei Òmnibus 2). Processing typically takes 2–4 months.
Key Facts: Andorra Passive Residency (2026)
| Item | 2026 figure | Legal basis |
|---|---|---|
| Minimum investment in Andorran assets | EUR 1,000,000 | Llei 2/2026 (Òmnibus 2) |
| Alternative: investment in Housing Fund | EUR 400,000 | Llei 2/2026 (Òmnibus 2) |
| Non-refundable state contribution (AFA) | EUR 50,000 | Llei 2/2026 (Òmnibus 2) |
| Additional contribution per dependent | EUR 12,000 each | Llei 2/2026 (Òmnibus 2) |
| Minimum property value (if buying real estate) | EUR 800,000 | Real estate market / IEI rules |
| Foreign real estate investment tax (IEI) | 6% first property / 10% additional | Reglament IEI 2026 (Llei Òmnibus 2) |
| Minimum physical presence | 90 days per year | Immigration regulation |
| Income tax (IRPF) if Andorran tax resident | 0–10% | Llei 5/2014 |
| Wealth / inheritance / gift / exit tax | 0% | Andorran tax framework |
| Annual quota on non-work authorizations | Yes — subject to quota | Decret 74/2026 |
| Typical processing time | ~2–4 months | — |
What Is Andorra Passive Residency?
Andorra passive residency is a long-term residence permit for people who want to live in Andorra without carrying out paid work inside the country. According to the Andorran immigration framework, it falls under the category of residence authorizations without work (residència sense treball), which also covers retirees, investors and individuals living off passive income such as dividends, rent, pensions or capital gains.
The permit is designed for high-net-worth individuals who want a stable European base with low taxation and strong legal certainty. You can manage your own foreign assets, invest, and run businesses abroad — but you cannot be employed by, or actively work for, an Andorran company under this permit. If you intend to work or run an operating business in Andorra, the active residency route (self-employed or company-based) applies instead.
The current rules were reshaped by Llei 2/2026, the “Llei Òmnibus 2”, in force since 13 February 2026, which raised the investment thresholds and made the state contribution non-refundable.
Who Qualifies for Andorra Passive Residency?
You qualify if you can meet the financial thresholds, prove sufficient passive income, and pass standard background checks. There is no nationality restriction: EU and non-EU citizens both apply through the same channel.
In practice, applicants must demonstrate financial self-sufficiency (typically several multiples of the Andorran minimum wage for the main applicant, plus an additional amount per dependent), hold valid private health insurance covering Andorra, arrange a private pension/disability cover, present a clean criminal record from their countries of residence over recent years, and secure accommodation in Andorra (owned or rented). Applicants must also undergo a medical check in Andorra as part of the file.
According to Decret 74/2026 (11 March 2026), authorizations for residence without work are now subject to an annual quota. This does not change the eligibility criteria or the investment amounts, but it does mean the number of permits available each year is capped — so confirming current availability before filing is strongly recommended.
How Much Does Andorra Passive Residency Cost in 2026?
The headline cost is a EUR 1,000,000 qualifying investment in Andorran assets, plus a EUR 50,000 non-refundable contribution to the state, with EUR 12,000 added for each accompanying dependent. According to Llei 2/2026 (Llei Òmnibus 2), these figures replaced the previous, lower thresholds and changed the nature of the state contribution from a refundable deposit to a definitive, non-refundable payment.
The EUR 1,000,000 is an investment, not a fee — it remains your capital, deployed into qualifying Andorran assets (see below). The EUR 50,000 (and the per-dependent EUR 12,000) is a true cost: under Òmnibus 2 it is not returned if you later leave the country. On top of these, budget for professional fees, translations and apostilles, the medical examination, and ongoing private insurance premiums.
A simplified illustration for a couple with one child:
| Component | Amount |
|---|---|
| Qualifying investment (Andorran assets) | EUR 1,000,000 |
| Non-refundable state contribution (main applicant) | EUR 50,000 |
| Per-dependent contribution (2 dependents × EUR 12,000) | EUR 24,000 |
| Indicative committed total (excl. fees) | EUR 1,074,000 |
Because the EUR 1,000,000 stays invested, the genuinely “spent” amount in this example is the EUR 74,000 of non-refundable contributions, plus professional and administrative costs.
What Counts as a Qualifying Investment?
The EUR 1,000,000 must be invested in Andorran assets — and there is a lower-cost alternative through the Housing Fund. According to Llei 2/2026, qualifying investments generally include Andorran real estate, equity in Andorran companies, Andorran public debt instruments, and certain Andorran bank deposits or investment products. The law also created a route via the Housing Fund (Fons d’Habitatge), where a EUR 400,000 investment can satisfy the requirement — a deliberate policy lever to channel capital toward Andorra’s housing supply.
Whichever route you choose, the investment must be made and maintained in Andorra; it cannot be parked in foreign assets. An advisor will typically structure the qualifying investment alongside your wider wealth and any property purchase.
Do You Have to Buy Property in Andorra?
No — buying property is one way to satisfy the investment requirement, but it is not mandatory. If you do buy real estate as your qualifying asset, the practical market entry point for the kind of property HNWIs acquire is around EUR 800,000.
Property purchases by non-residents trigger the Impost sobre la Inversió Estrangera Immobiliària (IEI). According to the 2026 IEI Regulation adapting the tax to Llei Òmnibus 2, the rate is 6% on a first property and 10% on additional properties. The same regulation introduced a streamlined exemption procedure (certification before a notary rather than a separate filing with the Tax and Borders Department). Many passive residents prefer to rent initially and deploy the qualifying EUR 1,000,000 into financial assets or the Housing Fund, keeping a property purchase as a separate, later decision.
Are Passive Residency Permits Subject to a Quota?
Yes. According to Decret 74/2026 (11 March 2026), residence authorizations without work — the category that includes passive residency — are governed by an annual quota. This is a meaningful practical change: even when an applicant meets every financial and documentary requirement, the permit can only be issued while quota remains for the year. The decree accompanies Andorra’s broader 2026 immigration-quota package. The sensible response is to verify live availability before committing funds and to file early in the quota cycle.
How Much Tax Will You Pay as an Andorran Resident?
If you become an Andorran tax resident, your personal income is taxed under the IRPF at a maximum of 10%, and Andorra levies no wealth, inheritance, gift or exit tax. According to Llei 5/2014, the IRPF is progressive: the first EUR 24,000 of income is effectively exempt, income between EUR 24,000 and EUR 40,000 is taxed at 5%, and income above EUR 40,000 at 10%. Corporate profits (IS) are taxed at a flat 10%, with special regimes as low as 2%, and the general consumption tax (IGI/VAT) is just 4.5% under Llei 11/2012.
An important distinction: holding a passive residency permit is not the same as being a tax resident. Passive residency requires a minimum of 90 days of physical presence per year, whereas tax residency generally arises when you spend more than 183 days in Andorra in a calendar year or your centre of vital/economic interests is located there. Many passive residents deliberately establish full tax residency to access the 0–10% regime; others maintain ties elsewhere. Cross-border situations should always be reviewed against the relevant double taxation treaty — Andorra now has 22 such treaties in force.
Capital gains also benefit: gains on the transfer of qualifying assets can reach 0% after a 10-year holding period, depending on the asset.
How Long Does the Process Take?
A well-prepared passive residency application typically takes about 2 to 4 months from filing to approval, assuming documents are complete and quota is available. The timeline is driven by document gathering (criminal records, apostilles, certified translations), arranging insurance and accommodation, completing the qualifying investment, and the immigration authority’s review, including the medical examination performed in Andorra. Incomplete files and translation delays are the most common causes of slippage.
What Documents Do You Need?
You will generally need a valid passport, recent criminal-record certificates (apostilled and translated), proof of sufficient passive income and assets, evidence of the qualifying investment, private health and pension/disability insurance valid in Andorra, proof of accommodation in Andorra (deed or lease), and a medical certificate from the Andorran examination. Married applicants and families add marriage and birth certificates for dependents. All foreign documents typically require apostille and official Catalan translation.
Passive vs Active Residency: Which Fits You?
Choose passive residency if you live off passive income and do not need to work in Andorra; choose active residency if you will run an Andorran company or be self-employed there. Passive residency centres on the EUR 1,000,000 investment and the 90-day presence rule. Active residency instead requires real economic substance — an operating Andorran company or registered self-employment, social security (CASS) enrolment, and, in most cases, more time on the ground. CASS contributions total 22% (15.5% employer and 6.5% employee). For purely passive wealth-holders, the passive route is usually simpler; for entrepreneurs, the active route unlocks the 10% (or 2% special-regime) corporate environment.
Frequently Asked Questions
1. How much money do I need for Andorra passive residency in 2026?
You need a EUR 1,000,000 qualifying investment in Andorran assets (or EUR 400,000 into the Housing Fund), plus a EUR 50,000 non-refundable state contribution and EUR 12,000 per dependent, under Llei 2/2026 (Òmnibus 2).
2. Is the EUR 50,000 state contribution refundable?
No. According to Llei 2/2026 (Llei Òmnibus 2), the state contribution is now non-refundable — a change from the previously refundable deposit.
3. Do I have to live in Andorra full-time?
No. Passive residency requires a minimum of 90 days per year of physical presence. Full tax residency, by contrast, generally requires more than 183 days or your centre of interests in Andorra.
4. Do I have to buy property?
No. A property purchase is one way to meet the investment requirement, but you can also qualify through Andorran financial assets or a EUR 400,000 Housing Fund investment. If you do buy, the IEI applies at 6% on a first property and 10% on additional ones.
5. How much tax will I pay?
If you are an Andorran tax resident, income tax (IRPF) is 0–10%, corporate tax (IS) is 10% (2% in special regimes), and IGI (VAT) is 4.5%. There is no wealth, inheritance, gift or exit tax.
6. Are passive residency permits limited in number?
Yes. According to Decret 74/2026, authorizations for residence without work are subject to an annual quota, so availability should be confirmed before applying.
7. How long does approval take?
Typically 2–4 months for a complete file, subject to quota availability.
Sources
- Llei 2/2026 (Llei Òmnibus 2), Portal Jurídic d’Andorra — https://www.portaljuridicandorra.ad/L2026002
- Llei 2/2026, BOPA (Núm. 15, 12/02/2026) — https://www.bopa.ad
- Decret 74/2026 (quota of residence authorizations without work), Govern d’Andorra — https://www.govern.ad/ca/tematiques/immigracio/normativa-i-legislacio
- Residence without work (initial authorization), Govern d’Andorra — https://www.govern.ad/ca/tematiques/immigracio/residencia/residencia-sense-treball-autoritzacio-inicial
- IEI Regulation 2026, Govern d’Andorra — https://www.govern.ad/ca/w/aprovat-el-reglament-de-l-impost-sobre-la-inversio-estrangera-immobiliaria-1
- Llei 5/2014 (IRPF) & Andorran tax framework, Impostos.ad — https://www.impostos.ad
- Double taxation treaties, Govern d’Andorra — https://www.govern.ad/ca/tematiques/impostos-taxes-i-duana/impostos-en-andorra/convenis-per-evitar-la-doble-imposicio
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This article is for general information only and does not constitute legal or tax advice. Figures reflect Llei 2/2026 (Llei Òmnibus 2) and 2026 regulations as of the publication date. Always confirm current quota availability and your personal position with a qualified advisor.