Andorra’s investment residence program appeared in the country in 2012, when the Government of the principality approved the relevant changes in immigration legislation. The legal basis of the program is the Law 9/2012 “On Modification of the Qualified Immigration Law”. Additionally, the Immigration Act and the Law 16/2013 of the Department of Immigration of the Government of Andorra are in force. The practical implementation is regulated by the Decree approving the Rules of Immigration Permits for residence without income activities.
The program provides the status of a passive residence, which excludes the right to work in the territory of the principality. The minimum investment threshold is set at 600,000€, including an insurance deposit of 50,000€.
Advantages of a residence permit in Andorra
- Financial benefits. With a confirmed annual income of 52,100€, the resident pays income tax on a progressive scale.
- Investment opportunities and prospects of the European market.
- Transport mobility. Holders of a resident card visit France and Spain without a visa.
- Social security. CASS medical insurance covers 90% of medical expenses, including premium dental services.
- Banking preferences. Financial institutions issue mortgage loans at 2.7% per annum with 70% financing the cost of the facility.
- Security. The crime rate does not exceed 1.2 cases per 1,000 inhabitants (7 times lower than the European average).
- The environmental air purity index is 82 points out of 100 (due to the ban on industrial emissions).
Investment options for obtaining a residence permit
The Andorran Residency through capital investment program provides 5 basic options. Each of them requires compliance with minimum financial thresholds and specific conditions.
Real Estate
The purchase of housing stock remains the most popular option. 63% of investors choose it because of the transparency of the procedure. The minimum cost of the property is 400,000€ when purchased through the public housing fund. For private transactions, the threshold is raised to €600,000. An additional security deposit of 50,000€ is paid for the main applicant and 12,000€ for each dependent family member. Investment real estate is not subject to lease and must remain owned for the entire duration of the residency.
Share in the company
Investing 600,000€ in the authorized capital of a local organization allows you to apply for residency status. The investor must own at least 21% of the shares and participate in the management of the company. The company is obliged to rent office space, and its activities should not contradict the strategic interests of the principality. To register a business, an authorized capital of 3,000€ is required. But practice shows that projects with a base of 150,000euros or more often receive approval.
Debt and financial instruments
Investing in bonds, stocks or units of local funds requires investments starting from €600,000. Priority is given to securities issued by government agencies or companies with a credit rating of at least BBB.
The profitability of such assets ranges from 2-4% per annum, which is lower than the European average. However, the key advantage is the possibility of a return on investment. If the residence is cancelled, the securities can be sold without restrictions.
Interest-free deposit
The placement of 50,000€ in a special account of the Central Bank of Andorra ensures the fulfillment of the basic condition of the program. The amount is increased by 10,000euros for each dependent and is blocked for the entire period of residence.
The deposit is refunded upon revocation of the status or transfer to citizenship, but fines for administrative violations are deducted from it. The option is often combined with other investment options to reduce the tax burden.
Life Insurance Products
A policy valid for at least 5 years in the amount of € 600,000 allows you to participate in the program without direct investment in assets. Insurance premiums must be paid through an Andorran provider registered in the Register of Financial Institutions. Upon early termination of the contract, the resident status is automatically revoked. Income from the investment component of the policy is taxed at the standard rate of 10%, but is exempt from capital gains tax.
Minimum investment volume and preservation conditions
Andorra’s residency program sets fixed financial requirements that vary depending on the type of asset. For public housing facilities, the minimum amount has been reduced to 400,000euros, while private real estate transactions require investments of 600,000euros. Alternative options are to purchase shares in the company, securities or insurance products. Investments start at €600,000, including a mandatory deposit of €50,000 for the main applicant and €12,000 for each dependent.
The investment retention period is linked to the period of validity of the residence status. Real estate cannot be sold or rented out until the moment of cancellation of the residence permit or transfer to citizenship. Financial instruments and deposits remain blocked for at least 2 years. This is the standard period for a primary residence permit. Early withdrawal of funds entails automatic termination of the status with the possibility of challenging it through the administrative court within 30 days.
The conditions for extending the residence permit after the return of the investment depend on the tax history. Residents who have confirmed the legality of income and the absence of debts receive indefinite status without additional investments. A key requirement remains a physical presence in the country. 90 days of annual stay are recorded through marks in the migration card and bank transaction data. Violation of this rule will result in a fine of up to 15,000 euros and a 6-month suspension of residency.
Additional expenses and taxes
Financial obligations when applying for residency go beyond the basic investment. Government fees, taxes, and commissions account for 25-30% of the total cost.
For reviewing the application, the migration service charges € 191 from the main applicant and € 179.90 for each dependent family member. Issuing a resident card will cost 3,000€ for the investor plus 1,000€ for each dependent. A medical examination (mandatory for all applicants over the age of 18) adds €1,400 per adult and €500 per child.
Buying a home entails 4 types of mandatory payments:
- Property Transfer Tax (ITP). 4% of the cadastral value. Of these, 1% goes to the state budget, 3% to the municipal treasury. For properties purchased under lease for a period of 5 years or more, the rate is reduced to 3%.
- General Indirect Tax (IGI). 4.5% when buying from legal entities or entrepreneurs.
- Notary fees. 0.1% of the property price plus a fixed fee of 600-1,300€.
- Speculative tax. 5% surcharge on the sale of real estate for 2 years after the acquisition.
The annual maintenance of the facility includes a municipal tax of 100 € and housing insurance of 800 €/year. For investors from abroad, there is a progressive tax scale: 3% for the first purchase, 5% for the second, 8% for the sixth, 10% for the tenth.
Tax consequences of obtaining a residence permit
The acquisition of a residence permit in Andorra entails a change in tax status, regulated by the Law 5/2014 on personal income tax. A resident is a person who stays in the territory of the principality for more than 183 days in a calendar year or has a center of vital interests in the country (real estate, business, family). Spouses and minor children automatically receive residency status when living together with the main applicant.
Residents pay income tax on a progressive scale:
- 0% on amounts up to €24,000;
- 5% – from €24,001 to €40,000;
- 10% – over €40,000.
For married couples, the zero rate is valid for up to 40,000€ of total income. Dividends from Andorran companies, interest on government bonds and the first 3,000€ of savings income are exempt. Income outside the principality is included in the tax base, but offsetting amounts paid abroad reduces liabilities.
Requirements for the applicant and family members
According to the Immigration Permit Regulations 2012, the applicant must meet 4 basic conditions:
- age from 18 years;
- no criminal record;
- confirmed annual income from €52,100;
- availability of housing on the territory of the principality.
Additionally, it is required to confirm the legality of the origin of funds through an audit report and bank statements for the last 3 years. Medical insurance covering 90% of expenses is mandatory for all applicants over the age of 18.
The application may include family members:
- Spouse/partner. An official or civil marriage that was registered at least a year ago.
- Children under the age of 24, unmarried, financially dependent, and full-time students. For students, it is necessary to provide a certificate from the university and proof of tuition fees.
- Dependent parents over the age of 65 or with a disability (subject to full financial support from the applicant).
Each family member undergoes a separate security check at a cost of €11,200. Minors additionally require the notarized consent of the other parent to move.
The investor’s annual income should cover 300% of Andorra’s minimum wage. For a family of 3 people, the minimum amount is €78,000, increasing by €17,370 for each additional family member.
Dual citizenship
Andorra adheres to a strict position regarding multiple citizenship. According to Law 9/2012 and the 2016 amendments, obtaining a passport of the principality requires an official renunciation of previous citizenship. Exceptions are provided only for minors who can temporarily keep 2 passports until the age of 18, and persons who have inadvertently acquired a different status.
The procedure for obtaining a residence permit
The registration of a residence permit through investments in Andorra is regulated and goes through the following stages:
- Preliminary audit. Legal examination of the applicant’s trustworthiness. At this stage, criminal record certificates, credit history for the last 5 years, and income compliance with the stated investment opportunities are analyzed.
- The formation of a dossier. Preparation of a package of documents. It is necessary to prepare apostilled translations of the documentation into Catalan.
- Making a request. The applicant submits documents to the migration service and undergoes biometrics. At this stage, there is an interview with representatives of the Immigration Department (details of the investment plan are being clarified) and a medical examination at an accredited clinic.
- Investment action. Within 45 days after the approval of the application, the investor is required to transfer 50,000€ (+ funds for additional family members) of the security deposit to the Central Bank of Andorra. In parallel, the investment process begins: buying real estate, shares or opening a deposit.
- Receipt of documents. It takes 10 business days to prepare a resident card. You can pick up the document in person or through a trusted person by providing a notarized power of attorney. At the same time, a tax number is issued that matches the residence permit ID.
- Commitment monitoring. Within 6 months after the issuance of the ID card, the migration service verifies the fulfillment of the investment conditions. If violations are found, the status is revoked with the right to appeal within 30 days through the Administrative Court.
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Application processing time
The procedure for obtaining residency through investments takes from 45 to 90 calendar days. Immigration Department statistics for 2024 show: 78% of applications are considered within 60 days, 12% – up to 75 days due to the need for additional checks on the origin of funds, 10% – over 3 months due to errors in documents.
Required documents
The main list includes the following set:
- The original passport with a validity period of at least one year;
- A notarized copy of the internal passport;
- 2 color photographs measuring 35×45 mm;
- Apostilled marriage and child birth certificates, translated into Catalan by an accredited bureau (if applicable);
- For students over the age of 18, a certificate from the university is required confirming full-time education and financial dependence on the investor;
- Certificate of absence of criminal record;
- Insurance policy covering 90% of expenses;
- A lease agreement for a period of one year or a contract for the purchase and sale of real estate;
- Three-year bank statements;
- Certificate 2-personal income tax or its international equivalent (demonstration of the legality of income);
- Certificate of deposit in INAF;
- Detailed investment plan.
Failure and return on investment
The main risk factors for rejection include non-compliance with financial criteria, errors in documents, and trustworthiness issues. Insufficient evidence of the legality of income is also one of the main reasons.
You can appeal the decision of the migration Service within 30 days through the Administrative Court of Andorra. Appeals are successful, supported by additional evidence: new income certificates, expert opinions on the origin of capital. Corrected applications are accepted 6 months after rejection.
The 50,000€ deposit is refunded in full upon cancellation of the status or transfer to citizenship. The exception is fines for administrative violations (up to 45,000euros). Real estate is allowed to be sold after 10 years of permanent residence without loss of status. Financial instruments are available for withdrawal after 2 years, but early sale entails a ban on repeated participation in the program.
Recent changes in the program
In 2023-2025, the Andorran Investment Program underwent significant changes aimed at tightening requirements for applicants and optimizing tax mechanisms.
From December 2022, the minimum investment threshold for a passive residence has been increased to 600,000euros (instead of the previous 400,000euros). An exception has been made for participants of the Sobiran Real Estate public housing fund. The limit of 400,000€ has been saved here. For the active residence (self-employed), the security deposit has been increased from 15,000€ to 50,000€, but digital nomads are exempt from this requirement.
A progressive tax on foreign investment in real estate has been in effect since February 2024 (the rates are indicated above). Exceptions apply to inheritances, gifts between relatives, and divorce transactions.
In accordance with the amendments to the housing regulations (in April 2025), tenants now require the notarized consent of the owner to accommodate third parties, which complicates the application procedure for large families.
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