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Andorra residency in 2026 runs through two routes: passive residency, now requiring a EUR 1,000,000 investment (or EUR 400,000 via the housing fund) and a 90-day annual stay, and active residency for those who work in Andorra and stay 183 days. Both give access to a personal income tax capped at 10%.

What Are the Ways to Get Residency in Andorra?

Two paths, split by whether you work in Andorra. Passive residency (officially residence without gainful employment) suits investors and retirees living on foreign income; it needs a large Andorran investment but only 90 days a year in the country. Active residency suits people who work or run a business in Andorra and requires 183 days a year.

The gap between them widened sharply in 2026. The Omnibus 2 Law, formally Law 2/2026, took effect on February 13, 2026 and reshaped the passive route, raising its cost and changing the economics of the mandatory deposit. Any Andorra guide written before that date, and many written after, still quotes figures that no longer apply. The numbers below reflect the law as it stands in August 2026, and the table sets the four routes side by side before we take each in turn.

Notice the trade the table encodes: the passive routes buy you a low 90-day presence requirement in exchange for a large locked-up investment, while the active routes ask for little or no capital but a genuine 183-day life in Andorra. Almost every Andorra decision comes back to that choice between money and time.

How Much Does Andorra Passive Residency Cost in 2026?

The standard passive route now requires a permanent, effective investment of at least EUR 1,000,000 in Andorran assets, raised from EUR 600,000 under the earlier April 2025 reform. A reduced threshold of EUR 400,000 applies if the investment goes into the National Housing Fund (Fons d'Habitatge).

On top of the investment sits a mandatory payment to the Autoritat Financera Andorrana (AFA) of EUR 50,000 for the main applicant plus EUR 12,000 per dependent. The single most important change in the 2026 reform: this AFA payment used to be a refundable bond returned when you left or naturalized, and it is now non-refundable, a permanent cost of entry. Where the investment is made in real estate, each property unit must exceed EUR 800,000. Qualifying assets include Andorran real estate, shares in resident companies, Andorran public debt, life insurance from resident entities, and AFA deposits, and the investment must be completed within six months of approval.

The headline investment is only part of the budget. Applicants must also show income above roughly 300% of the Andorran minimum wage (about EUR 54,900 a year in 2026, rising with each dependent), carry private health insurance, and pay professional, translation, and government fees. The table below lays out the full picture so nothing is a surprise later.

The distinction that matters most in that table is recoverability. The EUR 1,000,000 investment is your capital, held in Andorran assets you can eventually sell, so it is committed rather than spent. The EUR 50,000 AFA payment, the fees, and the insurance are true costs that do not come back. Budgeting the two the same way is a common and expensive planning error.

What Are the Active Residency Options?

Active residency is for people whose economic life is in Andorra, and it carries no large investment threshold, but it does require living there at least 183 days a year and becoming a tax resident. There are two forms: employed and self-employed.

The employed route requires a job with an Andorran employer, who handles the work-permit process; there is no direct investment cost to the applicant. The self-employed route is for entrepreneurs who own at least 10% of an Andorran company they run, and it requires a refundable government bond of about EUR 15,000 lodged with the AFA. Both forms lead through the same renewal ladder toward long-term residency.

For entrepreneurs, active self-employment is often far cheaper than the EUR 1,000,000 passive route, and it comes with a genuine upside: an Andorran company pays a flat 10% corporate tax, and dividends paid to Andorran resident shareholders are effectively untaxed at the personal level, so total tax on business profit is capped at 10%. The cost is a real 183-day presence and the administrative reality of running a live Andorran business, with CASS social security registration and monthly contributions. Andorra also runs a digital nomad residency, introduced in 2023, for remote professionals whose work is performed entirely for foreign clients or employers; it is a distinct category with its own income and background requirements.

How Is Andorra Taxed in 2026?

Andorra's appeal is a low, simple tax system, not a zero-tax one. Personal income tax (IRPF) is charged at 0% up to EUR 24,000, 5% from EUR 24,000 to EUR 40,000, and 10% above, with 10% as the ceiling. There is no wealth tax, no inheritance tax, and no general capital gains tax.

Corporate tax is a flat 10% (with a 3% minimum effective rate introduced in 2024), and IGI, Andorra's VAT, is 4.5%, the lowest in Europe. Andorran tax residents are taxed on worldwide income at these rates, which is why the active-versus-passive tax-residency choice matters so much. Savings income such as interest and foreign dividends is taxed at 10% with the first EUR 3,000 exempt, and dividends from Andorran companies that have already paid corporate tax are exempt at the personal level.

One correction to a persistent myth: Andorra is not a secrecy jurisdiction. It has exchanged account information automatically under the Common Reporting Standard since 2018, reports to more than 100 jurisdictions, and updated its EU exchange protocols from January 1, 2026. It is not on the EU or OECD blacklists. A fuller comparison of low-tax European bases sits in our Portugal residency guide and Malta residency guide.

When Do You Become an Andorran Tax Resident?

Holding a residence permit does not by itself make you a tax resident. Under Andorran law you become a tax resident if you spend more than 183 days in the country in a calendar year, or if your center of economic interest is in Andorra, or if your spouse and dependent children reside there.

This is the trap in the 90-day passive route. Spending only 90 days in Andorra and the rest of the year in Spain or France usually makes you a tax resident of that other country under its own 183-day rules, not of Andorra. Passive residency preserves the option of Andorran tax residency, but the option is only real if you actually restructure your presence and ties. Treating a 90-day permit as automatic tax relief is the single most common and expensive mistake, and it needs professional analysis in both countries before you rely on it. Spain and France both scrutinize departures to Andorra closely, and a nominal move that leaves your real economic life across the border invites a challenge you are likely to lose.

What Is Life in Andorra Actually Like?

Beyond the tax table, Andorra is a genuine place to live, and for the right person it is an exceptional one. It is a small Pyrenean principality of roughly 80,000 people, safe, outdoor-oriented, and wedged between two major European economies, with Barcelona and Toulouse airports each about three hours away by road. There is no airport or train station of its own, which is the main practical constraint.

Healthcare is strong for a microstate. The public system, CASS, reimburses about 75% of outpatient care and up to 90% of hospital treatment, with the national hospital in Andorra la Vella handling acute care and complex cases referred to Barcelona or Toulouse. Active residents contribute to CASS; passive residents carry private insurance. Schooling is a particular strength: Andorra runs three free public school systems in parallel, Catalan, French, and Spanish, so families elect the curriculum they want, while English-medium private schools such as the British College of Andorra and Agora International School run roughly EUR 7,000 to EUR 16,000 a year. Safety is close to the top of any global ranking, with violent crime almost unheard of.

On cost of living, Andorra is moderate by Western European standards and often cheaper than its neighbors thanks to the 4.5% VAT, with a comfortable single-person budget around EUR 3,000 a month. The clear exception is housing: prices have risen sharply and now rival Barcelona or Madrid, which is precisely what the 2026 reforms and the foreign-property tax were designed to address. Banking is served by a handful of Andorran houses including Andbank, Credit Andorra, MoraBanc, and Vall Banc; accounts are available to residents but opening one involves substantial compliance and source-of-funds review, so it should be planned early rather than assumed.

How Do You Apply for Andorra Residency Step by Step?

The process is orderly and, for the passive route, mostly about assembling documents and completing the investment. Expect roughly 2 to 3 months from a complete submission to approval, though the full relocation including tax deregistration from your old country often runs 3 to 6 months.

• Choose your route: passive (standard or housing fund) or active (employed or self-employed).
• Confirm eligibility and prepare the file: criminal record, financial proof, health insurance, accommodation.
• Legalize or apostille documents and translate them into Catalan.
• Submit the application in person at the Andorra Immigration Service in Andorra la Vella, by appointment.
• Complete the medical examination required for residency.
• Complete the qualifying investment and the AFA payment within the required window.
• Await background checks and approval, then collect the residency card in person and register with your parish office and the tax office.

Because passive residency is capped by an annual quota, set at 163 places for 2026 under Decree 74/2026, preparing early in the year is wise; places can run out before December.

What Are the Requirements and Documents?

Beyond the investment, every applicant must clear the same core requirements: a clean criminal record, proof of financial means, private health insurance, Andorran accommodation, and the qualifying investment or employment. Passive applicants must also show income above a set multiple of the Andorran minimum wage, rising with each dependent.

• Valid passport for every applicant.
• Criminal-record certificate issued within the last three months, legalized or apostilled.
• Proof of accommodation in Andorra, owned or rented.
• Proof of financial means, and for passive applicants, proof of income above the required threshold.
• Private health insurance valid in Andorra (passive), or CASS registration (active).
• Evidence of the qualifying investment or the AFA deposit.
• Marriage and birth certificates for dependents, with vaccination and medical records for children.

All foreign documents must be translated into Catalan, Andorra's sole official language, and legalized or apostilled. Missing or wrongly translated documents are the most common cause of delay, so build the document file before booking the immigration appointment rather than after.

How Does Residency Renew and Become Permanent?

Andorran residency is not a one-time grant; it runs on a renewal ladder that rewards continuity. A passive permit is typically issued for an initial period and then renewed in staged intervals, commonly two years, then two more, then three, building toward long-term residency after roughly a decade of maintained status.

Each renewal re-tests the basics: the investment must remain in place, the stay requirement must be met, health insurance must stay current, and the criminal record must stay clean. Active permits follow their own comparable ladder tied to continued employment or the ongoing operation of the Andorran company. The practical point is that Andorra rewards genuine, maintained residence and penalizes neglect: let the investment lapse, miss the days, or drop the insurance, and a renewal can be refused. Long-term residency, once reached, relaxes some conditions but does not confer citizenship, which remains on its own separate and much longer track.

How Does Andorra Compare to Other European Options?

Andorra is rarely considered in isolation; most applicants weigh it against EU residency-by-investment programs. The honest summary: Andorra wins decisively on tax and safety, and loses on entry cost and EU access. The table sets it beside two common alternatives.

The decision usually turns on what you actually want. If the goal is the lowest possible tax on global income and you can commit capital and time to the Pyrenees, Andorra is hard to beat. If the goal is EU and Schengen access, a lower entry price, or an eventual EU passport, Portugal or Malta fit better despite higher ongoing tax. Andorra is not in the EU or Schengen, so residents travel freely into France and Spain but not automatically across the wider zone. For applicants whose real objective is a second passport rather than a residence, neither Andorra nor these EU residency routes is the fastest answer; our citizenship by investment overview covers the direct-citizenship alternatives.

Does Andorra Residency Lead to Citizenship?

Only over a very long horizon. Andorran citizenship generally requires 20 years of continuous legal residence, reduced to 10 years for those educated in Andorra and 3 years through marriage to an Andorran citizen. There is no citizenship by investment and no fast track for wealth.

Andorra also does not permit dual nationality in most cases, so naturalizing generally means renouncing your existing citizenship, a serious trade-off for most international applicants. The honest framing: Andorra is a residency and lifestyle jurisdiction with an outstanding tax and safety profile, not a passport play. Applicants whose real goal is a second citizenship should look at citizenship-by-investment programs instead, which our citizenship by investment overview maps in full.

What Are the Common Mistakes to Avoid?

Andorra rewards careful planning and punishes assumptions carried over from outdated guides. These are the errors we see most often.

• Relying on pre-2026 figures. The investment is now EUR 1,000,000, not EUR 400,000 or EUR 600,000, and the AFA payment is non-refundable.
• Assuming 90 days delivers Andorran tax residency. It usually does not; the other country's 183-day rule applies.
• Believing Andorra offers banking secrecy. It reports under the CRS to more than 100 jurisdictions.
• Underestimating the real estate rule. Property routes require units above EUR 800,000, and foreign buyers face an extra purchase tax.
• Assuming Andorran residency gives Schengen access. It does not; it grants free movement only into France and Spain.
• Expecting a fast passport. Citizenship takes 20 years and generally requires renouncing your current nationality.
• Leaving the application late in the year, when the annual quota of 163 places may already be filled.

Sergey Voinich, Founder and Managing Partner at С²ÝÓ°Ôº, notes: "The clients who struggle with Andorra are the ones who arrived with a number from an old article and a plan built around 90 days. The country is still one of the best low-tax bases in Europe, but the 2026 reforms mean the entry cost and the tax-residency reality both have to be modeled honestly before anyone commits."

Frequently Asked Questions

How Much Money Do You Need for Andorra Residency?

Passive residency requires a EUR 1,000,000 investment in Andorran assets as of 2026, or EUR 400,000 through the National Housing Fund, plus a non-refundable EUR 50,000 AFA payment and EUR 12,000 per dependent. Active residency has no large investment but requires living in Andorra at least 183 days a year. Professional and document fees are additional.

How Long Do You Have to Live in Andorra?

Passive residents must spend at least 90 days per year in Andorra, and active residents at least 183 days. The 90-day minimum keeps the permit valid but does not secure Andorran tax residency, which generally needs the 183-day presence or a center-of-interest test. Plan presence around your tax goal, not just the permit minimum.

Is Andorra Still a Good Tax Choice in 2026?

Yes, for the right profile. Personal income tax is capped at 10%, with no wealth, inheritance, or general capital gains tax, and VAT is just 4.5%. The 2026 reforms raised the entry cost of passive residency rather than the ongoing tax rates, so Andorra remains one of Europe's most efficient low-tax bases for those who genuinely relocate.

Can Foreigners Buy Property in Andorra?

Yes, foreigners can buy Andorran property, and real estate is a common qualifying investment for passive residency. Since the Omnibus 2 Law, buyers who have not been residents for three years face a foreign real estate investment tax of roughly 3% to 10% at purchase, plus the standard transfer tax of around 4%. Passive property routes require units above EUR 800,000.

Does Andorra Share Bank Information With Other Countries?

Yes. Andorra has participated in the OECD Common Reporting Standard since 2018 and automatically exchanges financial account information with more than 100 jurisdictions, with updated EU protocols from January 1, 2026. Reporting follows tax residence rather than nationality, so a genuine Andorran tax resident is reported as such, not to their country of citizenship.

Does Andorra Residency Give Me Schengen Access?

No. Andorra is outside the EU and the Schengen Area, so an Andorran permit does not grant Schengen-wide travel. Residents move freely into France and Spain under bilateral arrangements, but travel deeper into Schengen depends on your underlying nationality. If borderless European travel is a core goal, an EU program suits better than Andorra.

How Long Until You Can Get Andorran Citizenship?

Andorran citizenship generally requires 20 years of continuous residence, reduced to 10 years for those educated in Andorra or 3 years through marriage to an Andorran citizen. There is no citizenship by investment. Because Andorra does not allow dual nationality in most cases, naturalizing usually means giving up your current passport, so most international residents treat Andorra as a residency base rather than a citizenship route.

How С²ÝÓ°Ôº Helps

С²ÝÓ°Ôº advisors work Andorra from the reforms forward: confirming the current EUR 1,000,000 or EUR 400,000 thresholds against your situation, modeling whether the passive or active route fits your presence and income, structuring the qualifying investment and the AFA payment, planning banking and school timing around your move, and analyzing the tax-residency question in both Andorra and your current country before you rely on any figure. Where Andorra is one option among several low-tax European bases, we compare it honestly against alternatives such as Portugal and Malta so the decision is made on facts, not outdated headlines.