Andorra
Andorra Passive Residency & Active Residency
Also known as: Andorra Residencia Pasiva, Andorra Residencia Activa
- Min investment
- $440K
- Program tier
- Renewable Temp
- Program type
- Investor Visa
- Initial validity
- 2 yr
- Renewable
- Yes
- Path to PR
- 20 yr
- Path to citizenship
- 20 yr
- Schengen access
- Yes
Investment options
Real Estate
$1.1MPassive Residency (post-Jan 2026 reform) — EUR 1,000,000 invested in Andorran assets within first 6 months. Acceptable assets: real estate, Andorran company shares, government bonds, Andorran bank deposits. ALTERNATIVE: EUR 400,000 contribution to the Andorran Housing Fund + qualifying residence.
Donation
$440KAlternative passive route — EUR 400,000 contribution to the Housing Fund of Andorra (Fons d'Habitatge), plus qualifying residence accommodation. Lower entry than EUR 1M direct investment.
Business Investment
$0Active Residency — for those who plan to work or run a business in Andorra. EUR 50,000 deposit with INAF (Andorran Financial Authority) refundable; EUR 15,000 per dependent; income from Andorra-registered employment or company shareholding/active business. Requires 183+ days/year physical presence.
Physical presence
Path to citizenship
- Available: Yes
- Minimum years: 20
- Physical-presence years: 20
- Language test: Yes
Naturalization requires 20 years legal residence + Catalan language exam + cultural integration + RENUNCIATION of all other citizenships (Andorra does NOT allow dual citizenship). Among the longest residency requirements globally. Most economic residents never naturalize.
Tax implications
- Becomes tax resident automatically: No
- Worldwide income taxed: Yes
- Territorial tax system: No
- Day-count for tax residency: 183 days
- Wealth tax: No
Tax residency triggered by 183+ days OR center of vital interests. Worldwide income taxed for tax residents BUT at very low rates — 10% flat PIT above EUR 40,000 (0% below EUR 24,000; 5% intermediate). Capital gains tax 10% with extensive exemptions (real estate over 10 years held = 0%). NO wealth tax, NO inheritance tax, NO gift tax. IGI (VAT) 4.5% (lowest in Europe). New tax residents bringing capital benefit from extensive exemptions.
Family inclusion
- Spouse: Yes
- Children under 18: Yes
- Dependent adult children: Yes
- Parents: Yes
Spouse and dependent children, plus dependent parents possible. Each dependent additional EUR 15,000 deposit (active) or proportional uplift to passive investment.
Additional fees
- Application fee: $1K
- Government fees: $2K
- Legal/agent (est.): $10K
Application fees ~EUR 800-1,500. Mandatory medical exam ~EUR 200. CASS (social security) registration if active. Legal/agent fees EUR 6,000-15,000. Old EUR 47,500 refundable deposit eliminated in 2026 reform (replaced by non-refundable state fees).
Eligibility requirements
- Age 18+
- Clean criminal record (apostilled)
- Medical exam in Andorra
- Proof of qualifying investment or income
- Health insurance covering Andorra
- Suitable accommodation (purchase or 12+ month lease)
Disqualifiers
- Insufficient physical presence at renewal
- Failure to maintain qualifying investment
- Criminal record
- Adverse media/financial findings
Recent changes
- 2024
EU-Andorra Association Agreement negotiations advanced; Andorra to harmonize on certain capital flows but retain low-tax structure.
- 2026-01-22
Parliament approved new residence law: Passive residency investment threshold raised from EUR 600,000 to EUR 1,000,000 with EUR 400,000 Housing Fund alternative. Refundable INAF deposit (EUR 47,500) eliminated in favor of non-refundable state fees. Existing residents grandfathered at old terms.
Notes
Andorra is a niche low-tax microstate — 10% flat PIT, no wealth, no inheritance. Catalan is the official language (Spanish/French widely spoken). The 2026 reform raised the passive-residency entry to EUR 1M, narrowing the field to genuinely affluent applicants. NOT EU, NOT Schengen (but accessible only via France/Spain — practically Schengen-adjacent). Citizenship in 20 years with renunciation is rarely sought. Best for tax-optimizing Spanish/French HNWIs and crypto-traders given lenient digital-asset treatment. Skiing/Pyrenees lifestyle a key draw.
EasyPassport is a document-organization tool focused on citizenship by descent. This page is reference research, not legal or financial advice. Always verify with the official program authority.