Written and reviewed by the Axior Global Advisory Team — Andorra-based tax, corporate and residency advisors.
Andorra Residency by Investment 2026: Full Cost & Route Breakdown
TL;DR: In 2026, Andorra’s investment-based residency (the passive, non-lucrative permit) requires a minimum EUR 1,000,000 invested in Andorran assets, of which a EUR 50,000 payment to the Andorran Financial Authority (AFA) is a non-refundable state fee — no longer a returnable deposit — plus EUR 12,000 per dependent, also non-refundable. Under the Omnibus Law 2 (Law 2/2026, in force 13 February 2026), you can meet the requirement either by placing EUR 1,000,000 in qualifying Andorran assets, or by directing EUR 400,000 to the national housing fund alongside other qualifying investment. Real estate used toward the threshold must be worth at least EUR 800,000 and attracts the foreign-investment tax (IEI) at 6% on a first property and 10% on additional ones. Once resident, you benefit from personal income tax (IRPF) capped at 10%, 0% wealth, inheritance, gift and exit taxes, and capital gains reaching 0% after 10 years. This guide breaks down every number, both routes, and the total cost.
Key Facts: Andorra Residency by Investment (2026)
| Item | Figure (2026) | Notes |
|---|---|---|
| Minimum investment (financial route) | EUR 1,000,000 | Qualifying Andorran assets; Omnibus Law 2 (Law 2/2026) |
| Alternative route | EUR 400,000 to national Housing Fund | Plus other qualifying investment |
| State fee to AFA | EUR 50,000 | Non-refundable — no longer a returnable deposit (Law 2/2026) |
| Per-dependent amount | EUR 12,000 each | Non-refundable |
| Minimum property value (if using real estate) | EUR 800,000 | Counts toward the EUR 1,000,000 |
| Foreign-investment tax (IEI) | 6% first property; 10% additional | Payable on real-estate purchase |
| Personal income tax once resident (IRPF) | 0–10% | 0% to EUR 24,000; 5% EUR 24–40k; 10% above |
| Wealth / inheritance / gift / exit tax | 0% | None levied in Andorra |
| Capital gains on property | 0% after 10 years | Sliding scale before then |
| Physical presence (passive residency) | 90+ days/year in Andorra | Passive permit; less than the 183-day tax-residency test |
| Corporate tax (if you also set up a company) | 10% flat | Special regimes as low as 2% |
What Is Andorra Residency by Investment?
Andorra residency by investment is the passive (non-lucrative) residence permit granted to individuals who place a qualifying minimum investment in the country without working locally. It is Andorra’s closest equivalent to a “golden visa,” though Andorra does not use that term. The permit lets high-net-worth individuals become Andorran residents — and, after meeting the 183-day test, Andorran tax residents — while living off investments, pensions, or foreign business income rather than local employment.
The legal backbone changed meaningfully in 2026. According to the Omnibus Law 2 (Law 2/2026, in force 13 February 2026), the investment threshold and the structure of the state fee were both reformed. The headline minimum rose to EUR 1,000,000, and the EUR 50,000 paid to the Andorran Financial Authority (AFA) became a definitive, non-refundable state fee rather than the refundable deposit it had been under the prior regime. This is the single most important change for anyone budgeting a move: that EUR 50,000 is now a cost, not a parked deposit you get back.
Passive residency is distinct from active (self-employed or employed) residency, which requires far less capital but obliges you to work in Andorra and contribute to CASS social security. If your goal is investment-led relocation rather than running a local business, the passive route described here is the relevant one.
How Much Does Andorra Residency by Investment Cost in 2026?
Budget a minimum of EUR 1,000,000 in qualifying investment plus a non-refundable EUR 50,000 state fee, with EUR 12,000 more for each dependent — before professional and property-transaction costs. The investment itself is largely recoverable capital (it remains your asset), but several line items are true, unrecoverable costs.
The core structure, per Law 2/2026, is:
- EUR 1,000,000 minimum invested in qualifying Andorran assets (recoverable — it stays yours), or the EUR 400,000 housing-fund route described below.
- EUR 50,000 state fee to the AFA — non-refundable.
- EUR 12,000 per dependent (spouse, children) — non-refundable.
On top of these statutory amounts you should budget transaction taxes and fees. If you satisfy the investment through real estate, the property must be worth at least EUR 800,000, and the foreign-investment tax (IEI) applies at 6% on a first Andorran property and 10% on additional properties — so an EUR 800,000 first home carries roughly EUR 48,000 of IEI. Add legal, notarial, and advisory fees, plus proof of private health insurance and a clean criminal record. A single applicant using an EUR 800,000 property plus other qualifying assets to reach EUR 1,000,000 should therefore plan for well over EUR 100,000 in genuinely non-recoverable outlay (state fee + IEI + professional costs) layered on top of the recoverable EUR 1,000,000 of invested capital.
What Are the Two Investment Routes Under Law 2/2026?
You can qualify either by investing EUR 1,000,000 in a broad basket of Andorran assets, or by directing EUR 400,000 specifically to Andorra’s national housing fund alongside other qualifying investment. The Omnibus Law 2 introduced the housing-fund alternative to channel investor capital toward Andorra’s housing supply.
Route 1 — the EUR 1,000,000 asset route. You place at least EUR 1,000,000 into qualifying Andorran instruments. These can include Andorran real estate (minimum EUR 800,000 per property), holdings in Andorran companies, Andorran public debt, deposits or financial products with Andorran institutions, or a combination. The capital remains your property; it is an allocation, not a payment.
Route 2 — the EUR 400,000 housing-fund route. Instead of committing the full seven-figure sum to general assets, you direct EUR 400,000 to the national housing fund, combined with other qualifying investment to complete the requirement. This route is designed to be more accessible while supporting Andorra’s housing policy. Because the precise mechanics of how the housing-fund contribution combines with other assets are set administratively and can be updated, confirm the current composition with an advisor before committing — the figures here reflect the position under Law 2/2026 as of 2026.
Both routes lead to the same permit and the same tax treatment once you are resident. The choice is about how you prefer to deploy capital: diversified Andorran assets you control, or a housing-fund allocation with a lower headline commitment.
Do You Have to Live in Andorra Full-Time?
No — the passive residency permit requires a minimum physical presence of 90 days per year, which is less than the 183-day threshold that makes you an Andorran tax resident. This distinction matters. Holding the permit keeps your residence status valid; becoming a tax resident (and unlocking Andorra’s 0–10% IRPF on worldwide income) requires spending more than 183 days per year in the country or having your main centre of economic interests there.
Most HNWIs who relocate for tax reasons aim to clear the 183-day line so they can genuinely break tax residency in their former country and benefit from Andorra’s rates. If you only intend to spend the minimum 90 days, you retain the residence permit but will typically remain tax-resident elsewhere — so be clear about which goal you are pursuing. For the mechanics of the day-count test, see our guide to the Andorra 183-day rule, and for the full step-by-step application process, see our passive residency requirements guide.
What Taxes Will You Pay Once Resident?
Once you are an Andorran tax resident, personal income tax (IRPF) is capped at 10%, and there is no wealth, inheritance, gift or exit tax. According to Llei 5/2014, IRPF applies at 0% on the first EUR 24,000 of income, 5% between EUR 24,000 and EUR 40,000, and 10% above EUR 40,000. Capital gains on the sale of Andorran property fall to 0% after 10 years of ownership on a sliding scale, and gains on shareholdings below 25% are generally exempt.
If you pair residency with an Andorran company, corporate tax (IS) is a flat 10% (with special regimes as low as 2% for qualifying activities), and general VAT (IGI) is 4.5% — the lowest standard VAT rate in Europe. Andorra also has a growing double-taxation-treaty network — 22 treaties in force in 2026, most recently with Estonia (in force 24 March 2026) — which helps residents avoid being taxed twice on cross-border income. For the full picture of how these rates interact, see our Andorra tax system pillar guide and the “Andorra Law & Tax Changes in 2026” hub.
How Long Does the Process Take?
Investment-based (passive) residency in Andorra typically completes in around three to six months from engagement to permit issuance, depending on how quickly you finalise the qualifying investment and assemble documentation. The critical-path items are usually securing the property or arranging the qualifying assets, opening an Andorran bank account, and obtaining apostilled personal documents (criminal-record certificate, proof of health cover, and civil-status paperwork). Because the EUR 50,000 AFA fee is now non-refundable, it is worth completing due diligence on your chosen investment before you trigger the fee, rather than after.
Frequently Asked Questions
1. How much money do I need to get residency in Andorra by investment in 2026?
A minimum of EUR 1,000,000 in qualifying Andorran assets (or the EUR 400,000 housing-fund route plus other investment), a non-refundable EUR 50,000 state fee to the AFA, and EUR 12,000 per dependent — plus property tax (IEI) and professional fees if you invest through real estate. These figures reflect the Omnibus Law 2 (Law 2/2026).
2. Is the EUR 50,000 payment refundable?
No. Under Law 2/2026, the EUR 50,000 paid to the Andorran Financial Authority is a definitive, non-refundable state fee — it is no longer the returnable deposit it was under the earlier regime.
3. Can I use property to meet the investment requirement?
Yes. Andorran real estate qualifies, provided each property is worth at least EUR 800,000. Remember the foreign-investment tax (IEI) of 6% on a first property and 10% on additional ones is payable on purchase.
4. Do I have to live in Andorra all year?
No. The passive permit requires a minimum of 90 days per year in Andorra. However, to become an Andorran tax resident and benefit from the 0–10% IRPF, you generally need to spend more than 183 days per year in the country.
5. What is the difference between passive residency and residency by investment?
They are the same thing in practice. “Residency by investment” is the common international term for Andorra’s passive (non-lucrative) residence permit, which is granted on the basis of a qualifying investment rather than local employment.
6. What taxes will I pay as an Andorran resident?
Personal income tax (IRPF) of 0–10%, corporate tax of 10% if you run a company, 4.5% VAT (IGI), and 0% on wealth, inheritance, gifts and exit. Capital gains on property reach 0% after 10 years.
Ready to Model Your Numbers?
Every relocation is different, and the difference between the EUR 1,000,000 asset route and the EUR 400,000 housing-fund route — plus the IEI on any property — can shift your total cost by tens of thousands of euros. Use our Tax Savings Calculator to estimate how much you could save each year under Andorra’s 0–10% regime versus your current country, then book a free consultation with Axior Global to map the fastest, most cost-efficient route to your permit.
Sources
- Portal Jurídic del Principat d’Andorra (primary source of Andorran law): https://www.portaljuridic.ad
- Butlletí Oficial del Principat d’Andorra (BOPA): https://www.bopa.ad
- Omnibus Law 2 (Law 2/2026), in force 13 February 2026 — passive residency investment thresholds and AFA state fee (published in BOPA)
- Llei 5/2014, del 24 d’abril, de l’impost sobre la renda de les persones físiques (IRPF)
- Govern d’Andorra — official double-taxation-treaty table: https://www.govern.ad
Related Axior guides: Andorra Passive Residency: Requirements & Process · Andorra Tax Residency: the 183-Day Rule · Buying Property in Andorra · Andorra Law & Tax Changes in 2026 (pillar hub).
This article is for general information only and does not constitute tax or legal advice. Figures reflect Andorran law as of August 2026 and should be confirmed for your circumstances.