Overview
Andorra is one of Europe's best-kept secrets for internationally mobile high-net-worth individuals. Nestled between France and Spain in the Pyrenees mountains, this tiny principality of just 77,000 inhabitants operates as a co-principality governed jointly by the Spanish Bishop of Urgell and the French President — a genuinely unique constitutional arrangement that has endured for over seven centuries.
What makes Andorra remarkable for wealth management and residency planning is not its size but its tax structure. Andorra introduced personal income tax only in 2015, and even then, set the top rate at just 10%. There is no inheritance tax, no gift tax, and no wealth tax. Corporate tax is capped at 10%. Combined with a stable, safe society, excellent skiing, clean air, and easy access to both Spain and France, these factors have made Andorra an increasingly attractive destination for European high-net-worth individuals seeking legitimate, low-tax residency within a recognisable and prestigious European environment.
Andorra is not an EU member and is not part of the Schengen Area, which is an important limitation to understand before planning. Andorran residents do not gain Schengen freedom of movement as a right of their Andorran status, though the country has a special relationship with the EU and operates open borders with France and Spain in practice.
All information reflects the rules as of 2026. Andorran law can change; verify with a licensed Andorran adviser before proceeding.
Types of Residency in Andorra
Andorra offers several categories of residency. For internationally mobile investors, the most relevant are:
- Passive Residency (Residència per Raons d'Interès Econòmic) — the main investment-linked route, covered in detail in this guide
- Active Residency (for business owners/self-employed) — requires establishing a business in Andorra
- Residency for Professionals — for those working for an Andorran employer
This guide focuses on passive residency, which is the route of choice for investors, retirees, and digital professionals who do not wish to operate an Andorran business.
Eligibility Requirements
The passive residency programme is open to non-Andorran nationals who:
- Do not intend to engage in any gainful employment or business activity in Andorra (passive income only)
- Make the required investment in Andorran assets (see below)
- Commit to residing in Andorra for at least 90 days per year (a relatively low minimum stay requirement)
- Demonstrate sufficient income from passive sources (investments, pensions, rental income, royalties, etc.) to support themselves without recourse to Andorran public assistance — the requirement is set at 300% of the Andorran minimum wage per year (approximately €55,000 in 2026), plus an additional 100% of the minimum wage (approximately €18,000) per dependant
- Pass due diligence checks (criminal record clearance, source of wealth verification)
Investment Requirement
€1,000,000 Minimum Investment (raised from €600,000 by the Omnibus 2 Law, approved 22 January 2026 and in force from 13 February 2026)
Qualifying passive residents must place a minimum of €1,000,000 in Andorran assets. The investment can take the form of:
- Real estate in Andorra (the most common choice): purchase of residential or commercial property in Andorra. Under the Omnibus 2 Law, the real-estate route is set at €800,000 per dwelling. The Andorran real estate market, while small, has been appreciating in recent years driven by inbound residency demand. Property in Andorra offers a potentially capital-efficient way to meet the investment threshold while acquiring a functional residence.
- Investment in authorised Andorran financial instruments or company shares: placement with a licensed Andorran financial institution.
- Contribution to the Andorran Housing Fund: a €400,000 contribution is an alternative qualifying route introduced under the Omnibus 2 Law (confirm current approved categories with your adviser, as the list of qualifying assets is periodically reviewed).
Additionally, a €50,000 deposit with the Andorran government must be made. Under the Omnibus 2 Law this deposit is now non-refundable (under the previous regime it was a refundable surety bond), and an additional €12,000 per dependant is required.
Application Process and Timeline
Step 1 — Legal Preparation (1–2 months) Engage a licensed Andorran lawyer (assessor). Obtain criminal background checks from all countries of residence in the past five years. Gather evidence of passive income, source of wealth, and identity documentation.
Step 2 — Investment and Deposit Make the €50,000 government deposit (plus €12,000 per dependant). Arrange the €1,000,000 qualifying investment (property purchase from €800,000 per dwelling, financial placement, or €400,000 Housing Fund contribution).
Step 3 — Residency Application Submit the passive residency application to the Andorran Immigration Department (Departament d'Immigració i Fronteres). Documentation includes proof of investment, proof of income, health insurance confirmation, criminal record extracts, and passport copies.
Step 4 — Approval and Permit Issue Processing time: approximately 3–4 months. On approval, a residence permit (autorització de residència passiva) is issued, valid for two years.
Step 5 — Renewal Renewable for two-year periods, then for five-year periods. The qualifying investment must be maintained throughout.
Andorran Citizenship Andorran citizenship by naturalisation requires twenty years of legal residency — one of the longest timelines in the world. Andorra does not permit dual citizenship. For most investors, the attraction is the residency environment and tax status, not citizenship.
Total timeline from first contact to residence permit: approximately 4–7 months.
Benefits
Income Tax — Maximum 10% Andorra's personal income tax rate is capped at 10% on income above approximately €24,000 (income below this threshold is exempt). For individuals with large investment income, royalties, capital gains, or other significant revenue streams, this represents a substantial tax saving compared to most European jurisdictions.
No Inheritance Tax Andorra levies no inheritance or gift tax between family members. This makes it highly attractive for inter-generational wealth planning.
No Wealth Tax There is no annual wealth or net assets tax.
Privacy and Stability Andorra has a tradition of privacy and political stability. It is not involved in geopolitical conflicts. Its government and institutions are small but effective.
Lifestyle The Andorran lifestyle is exceptionally appealing for the right individual. The country offers world-class skiing (Grandvalira is one of the largest ski resorts in the Pyrenees), clean mountain air, excellent shopping (duty-free status for many goods), and proximity to both Barcelona (3 hours) and Toulouse (2 hours). Healthcare is good and improving. The social environment is safe and family-friendly.
Open Borders with Spain and France In practice, Andorra maintains open borders with its neighbours, and residents cross daily for shopping, dining, and travel. The country is accessible and internationally connected despite its size.
EU Social Security Agreement Andorra has bilateral social security agreements with Spain and France, which is relevant for residents with pension entitlements or healthcare needs in those countries.
Important Limitations
Not EU / Not Schengen Andorra is not an EU member and is not part of the Schengen Area. Andorran residency does not grant Schengen visa-free freedom of movement as of right, and does not confer EU citizenship. Andorran residents travel to Schengen countries on their own national passport and are subject to normal visa requirements.
No Andorran Passport Advantage The Andorran passport is not widely useful as a second passport — it provides access to only around 90 countries visa-free, far fewer than EU alternatives. Investors seeking a strong second passport alongside tax efficiency should consider an EU residency programme (such as the Greek Golden Visa) as a complement.
Minimum Stay The 90-day annual presence requirement is low by international standards, but must be met and documented. Andorra monitors residency more carefully than many offshore jurisdictions.
Bank Account Complexity Non-residents and new Andorran residents may find opening Andorran bank accounts requires thorough KYC/AML documentation. Several Andorran banks serve international clients; engaging the right institution early is important.
Due Diligence
The Andorran Immigration Department and Andorran Financial Intelligence Unit (UIFAND) conduct:
- Criminal record checks from all jurisdictions of prior residence
- Source of wealth and source of funds verification
- Ongoing monitoring of investment maintenance
Andorra is a FATF-compliant jurisdiction and participates in the OECD's automatic exchange of information framework. Tax transparency is a feature of the modern Andorran environment.
Comparison with Alternatives
| Programme | Min. Investment | Annual Stay | Top Income Tax | Citizenship Timeline |
|---|---|---|---|---|
| Andorra Passive | €1,000,000 | 90 days | 10% | 20 years |
| Monaco Residency | €500,000 bank | 90 days | 0% | No path |
| Malta Non-Dom | €150,000 one-off | 90 days | 15% (flat) | 5 years (separate) |
| Switzerland Lump Sum | CHF 150,000+ tax/yr | ~180 days | Lump sum | 10 years |
| Greece Golden Visa | €250,000+ property | None | Standard rates | 7 years |
Andorra's key selling point is its combination of low tax and low minimum stay relative to Switzerland and Monaco. Its key weaknesses are the non-EU, non-Schengen status, the extremely long naturalisation timeline, and the substantially higher investment threshold following the 2026 Omnibus 2 Law.
How Global Investments Can Help
Global Investments works with licensed Andorran assessors (lawyers), real estate agents, and Andorran financial institutions to support investors pursuing passive residency. We assist with the full application process: investment sourcing, government deposit, Immigration Department submission, and ongoing compliance.
We also help clients position Andorran residency within a broader international tax planning strategy — often complementing Andorran tax residency with property and investment structures in adjacent jurisdictions.
Contact our citizenship and residency advisory team for a confidential initial consultation. Tax rules and immigration requirements change; investment values can fall as well as rise. Nothing in this guide constitutes legal or tax advice.
This guide is for general information only and does not constitute legal, financial or immigration advice. Programme details, investment thresholds, and eligibility requirements change; always verify current requirements with a qualified immigration lawyer and financial adviser before making any investment or application. Investment values can fall as well as rise.