Passive residency in Andorra: 2026 strategic guide
Eduardo BonéMay 6, 2026Guides
Passive Residency in Andorra
Passive residency in Andorra is a residence permit designed specifically for people who will not carry out paid work within the country but who have sufficient financial resources to settle and maintain their standard of living in the Principality. This regime is ideal for those with enough wealth to live in the country without needing to work locally and who want to enjoy the excellent quality of life the Principality offers. Passive residency makes it possible to legalise your stay in Andorra beyond the 90-day tourist limit, with the option of becoming a tax resident if you live more than 183 days a year in the country, thereby gaining access to its attractive tax regime.
Table of contents
What types of passive residency are there?
Not all passive residencies are the same. The Andorran government has established several categories to suit different profiles and situations.
Non-lucrative passive residency
This is the standard type of residency for individuals who will not carry out any professional activity in Andorra. It is intended for investors, individuals with passive income, retirees, and people with sufficient wealth, as it does not allow you to work or engage in any professional or business activity in the country. To obtain it, a minimum investment of €1,000,000 in Andorran assets is required. This investment may be made through real estate, shares in Andorran companies, debt instruments, investment funds, or other assets permitted under the applicable regulations. If the investment includes real estate, each qualifying property must have a minimum value of €800,000.
Residency for professionals with international reach
Ideal if you are a professional working mainly for clients outside Andorra. The key requirement is the obligation to set up or acquire a company headquartered in Andorra that carries out at least 85% of its activity outside the country. The main advantage is that no minimum investment is required, but the company must generate enough income to support both the applicant and their family in the country. Typical profiles include digital nomads, international consultants and entrepreneurs with a global business.
Residency on grounds of scientific, cultural or sporting interest
Aimed at recognised professionals in these fields. The fundamental requirement is to prove international recognition through awards, publications, qualifications or notable achievements. It also requires no minimum investment, but carries the condition that at least 85% of the applicant's income comes from activities outside Andorra.
Residency through admission to private therapeutic centres
This is a specific category for those who require medical treatment in the country. It allows you to reside in Andorra for the duration of the treatment and requires medical documentation justifying the need for it.
Advantages of passive residency
Choosing passive residency in Andorra brings a number of significant advantages. On the tax side, you will enjoy a personal income tax with a maximum rate of 10%. There is no wealth, inheritance or gift tax. There are double taxation treaties with more than 20 countries to avoid paying tax twice on the same income. For non-tax residents, there is no withholding at source on dividends, interest or capital gains. In terms of quality of life and safety, Andorra is one of the safest countries in the world, with exceptionally low crime rates. It has a high-quality healthcare system, accessible through private insurance or a voluntary contribution to the CASS. It offers a privileged natural setting in the Pyrenees, ideal for lovers of nature and mountain sports, and an excellent educational offering with international schools. The flexibility and mobility it provides are notable: to enjoy this residency, you only need to spend a minimum of 90 days a year in the country (not necessarily consecutive) to keep the permit and, in return, you enjoy freedom of movement across the Schengen area, with the possibility of immediate family reunification when starting the process.
Passive vs active: a quick comparison
| Aspect | Passive residency | Active residency (self-employed) |
|---|---|---|
| Required investment | €1,000,000 in Andorran assets (or €400,000 in the Fons d'Habitatge (Housing Fund), if this option is chosen). | No mandatory minimum investment |
| AFA deposit | €50,000 + €12,000 for each dependent. | €50,000 |
| Work permit | No (except specific categories) | Yes |
| Self-employment contribution | Not applicable | approximately €450-500 per month |
| Health insurance | Private (€100-150/month/person) | Included in the self-employment contribution |
| Family reunification | Immediate | Between 6-18 months' wait |
| Time to obtain | approximately 6-8 weeks | approximately 3-4 months |
| Minimum stay | 90 days per year | 183 days per year (for tax residency) |
Passive residency is for profiles who do not need to work in Andorra, have enough wealth to make the required investment, want to reunite their family immediately and plan to spend between 90 and 183 days a year in the country. Active residency, on the other hand, is for those who do plan to carry out a professional activity in Andorra, do not have the capital for the passive residency's minimum investment, do not mind waiting to reunite their family and plan to spend more than 183 days a year in the country.
Requirements and documentation: what do you need to apply?
The requirements are demanding but clear, designed to ensure that applicants have the necessary financial standing.
Financial and investment requirements
As a general rule, passive residency in Andorra requires a minimum investment of €1,000,000 in Andorran assets, although this amount may vary depending on the type of residency. The investment may be made in real estate located in Andorra, shares in Andorran companies, debt instruments, Andorran investment funds, or other assets permitted under the applicable regulations, or through a combination of these options. If the investment includes real estate, each qualifying property must have a minimum value of €800,000.
Alternatively, the legislation allows the investment requirement to be met through a contribution of €400,000 to the Andorran Government's Fons d'Habitatge (Housing Fund), which is intended to finance affordable housing projects. This option constitutes an exception to the general €1,000,000 investment requirement.
In addition, a mandatory contribution of €50,000 must be made to the Andorran Financial Authority (AFA) for the main applicant, plus an additional €12,000 for each dependent. This contribution is final and, as a general rule, non-refundable.
Applicants must also demonstrate sufficient financial means equivalent to 300% of the Andorran minimum wage, increased by an additional 100% for each dependent, by providing the appropriate financial documentation. Furthermore, applicants must comply with the remaining applicable legal requirements, such as holding private health insurance valid in Andorra, proving a residential address in the Principality, and submitting a criminal record certificate, among others.
Personal documentation
Valid passport and a full photocopy. A criminal record certificate from the country of origin (and from every country you have previously lived in) duly apostilled. A civil status certificate (birth, marriage) apostilled. A medical certificate issued in Andorra. Private health insurance with 100% coverage in Andorra (approximately €100-150 per month per person). A purchase or rental contract for a home in Andorra.
Other important requirements
It will also be necessary to open an account with an Andorran bank, an essential prerequisite, as well as to cover the payment of administrative fees: approximately €2,500 for the main holder and €500 for each reunited family member. Finally, you must commit to a minimum stay of 90 days a year in Andorran territory.
Process and timelines: step by step towards residency
The process to obtain passive residency follows these main stages.
Phase 1: preparation (1-2 months). It is advisable to contact a specialised advisor before opening a bank account in Andorra (the most critical step and the one that can take the longest), prepare all your personal documentation with the necessary apostilles, find and rent or buy a home in Andorra, and take out private health insurance with coverage in Andorra. Phase 2: formal application (6-8 weeks). This involves submitting the complete application to the Immigration Department, making the deposit with the AFA and paying the administrative fees. Phase 3: resolution and obtainment. The authority issues its decision (usually favourable if all requirements are met) and sends the passive residency card. Within the following 6 months you must complete the mandatory minimum investment if you opted for the non-lucrative category.
The first authorisation is for 2 years and the first renewal for an additional 2 years; the second renewal is for 3 years and subsequent renewals (after 7 years of continuous residency) for 10 years. If after this guide you believe that passive residency is the best option for your profile, do not hesitate to contact Boné Consulting: our advisors will help you choose the right category, prepare the appropriate documentation and navigate the process with the greatest guarantees of success. Andorra awaits, with its doors open, those who seek not only tax advantages but a genuine change in their quality of life, in the heart of the Pyrenees.
Frequently asked questions
Is passive residency the same as tax residency?
Not necessarily. Passive residency allows you to legally reside in Andorra for more than 90 days. To become a tax resident and fully benefit from the Andorran tax system, you need to spend more than 183 days a year in the country.
Can I work or invoice from Andorra with passive residency?
With standard (non-lucrative) passive residency, you may NOT work or invoice from Andorra. However, you can manage your personal wealth and investments and act as an unpaid director of companies in which you hold at least 50% ownership. If the applicant needs to invoice, the best option will be the professional-with-international-reach category, or considering active self-employed residency.
What about my family?
Passive residency allows immediate family reunification. This includes your spouse or partner (through marriage or civil union; de facto couples must register their union in Andorra) and children (under 18, or up to 25 if studying). Each reunited family member will require their own health insurance and will generate additional costs in the AFA deposit, as well as various administrative fees.
Can I switch from passive to active residency later on?
Yes, it is possible. If you later decide to carry out a professional or business activity in Andorra and meet the applicable legal requirements, you may apply to change your passive residency to active residency. The change is not automatic and must be processed through the competent authorities. Since the 2026 reform, the contribution made to the Andorran Financial Authority (AFA) is final and, as a general rule, non-refundable. Therefore, changing residency status does not entitle the applicant to any refund.
About the author:
Eduardo Boné
Eduardo Boné is an advisor at Boné Consulting, specialising in residency and taxation in Andorra. He guides wealth holders, athletes, artists, entrepreneurs and investors through the entire process of settling in the Principality with legal certainty and tax efficiency.
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