Andorra Residency by Investment: 2026 Update, What Hnwis Must Know

Andorra residency by investment has been reshaped by Law 2/2026, and high-net-worth individuals (HNWIs) and their advisers now face a materially different set of thresholds, tests and transitional deadlines. This updated guide explains what changed, how the passive and active routes compare, how tax residency is triggered, and the step-by-step process to secure an Andorran residence permit. Written for HNWIs, family offices and the professionals who serve them, it is grounded in primary-source law and official government guidance so you can plan a relocation or qualifying investment with confidence.

Snapshot: what changed in Law 2/2026

Law 2/2026 revises the financial thresholds and qualifying-investment tests underpinning Andorra residency by investment. Reporting and specialist commentary have pointed to increased passive investment amounts and refined economic-contribution requirements, alongside transitional rules affecting in-flight applications. Because figures have been quoted inconsistently across the market, this page anchors every threshold to the official Butlletí Oficial del Principat d’Andorra (BOPA) text and the parliamentary record so readers rely on definitive numbers, not aggregator estimates.

Who this guide is for and how to use it

Use this guide if you are an HNWI evaluating a move, or an adviser structuring an application. Read the executive summary for headline takeaways, then work through the pathways, step-by-step process and tax modelling before consulting the transitional-planning section for urgent deadlines.

Executive summary, headline takeaways

• Passive investment threshold: Law 2/2026 revises the qualifying capital required for non-lucrative residency; verify the exact figure against the official BOPA publication before committing funds.
• Active/business residency: Entrepreneur and self-employed routes hinge on genuine economic activity, local substance and, in many cases, a company incorporation and management presence in Andorra.
• Tax residency trigger: Physical presence of more than 183 days per calendar year, or locating your centre of vital interests in Andorra, generally makes you an Andorran tax resident.
• Urgency and transitional deadlines: Law 2/2026 contains transitional provisions; applicants with pending or planned filings should confirm which threshold applies to them and date supporting evidence accordingly.

Andorra residency pathways, passive vs active

Passive (non-lucrative) residency: overview and who it suits

Andorra passive residency, often called andorra non-lucrative residency, suits individuals whose income derives from investments, pensions, dividends or other passive sources rather than from work performed inside Andorra. The route requires a qualifying investment in Andorran assets (which can include real estate, Andorran financial instruments, or a non-interest-bearing deposit with the regulator), proof of sufficient financial solvency, private health insurance and secured accommodation. It appeals to retirees, portfolio investors and families seeking lifestyle, security and favourable taxation without operating a local business. Passive residents must maintain a minimum physical presence in Andorra each year, typically at least 90 days, while committing not to earn active Andorran employment income.

For many HNWIs the andorra non-lucrative residency route is the cleanest path to establishing tax residency, provided the investment and presence conditions under Law 2/2026 are satisfied and evidenced correctly.

Active/business residency (entrepreneur/employment): overview and who it suits

Active residency is designed for entrepreneurs, self-employed professionals and those relocating an operating business or family office. It generally requires incorporating or acquiring an Andorran company, holding a meaningful ownership and management role, and demonstrating that the enterprise carries out real economic activity. This route suits founders, executives and family-office principals who want to combine residence with genuine commercial substance. It typically demands a higher day-count commitment (often around 183 days) because the individual is treated as economically active in the Principality.

Comparative quick facts

Passive residency prioritises capital and minimal presence; active residency prioritises economic substance and a larger footprint. Both are legitimate forms of andorra residency by investment, and both can lead, over time, to long-term residence and eventual naturalisation. The right choice depends on your income profile, mobility needs and appetite for local operational commitments.

How to get Andorra residency by investment, step-by-step process

The following numbered steps outline how to get Andorra residency by investment in practice. Timelines are indicative; Law 2/2026 changes are flagged where relevant.

1. Preliminary eligibility check and advisory: Begin with a structured assessment of nationality, source of wealth, income type and family composition. This determines whether the passive or active route fits and flags any source-of-funds issues early. A short pre-screening avoids wasted deposits and rejected filings.
2. Choose route: passive vs active / investment vehicle: Decide between andorra passive residency and an active/business permit, then select the investment vehicle. Passive applicants weigh real estate against Andorran financial instruments or the mandatory regulator deposit; active applicants plan company incorporation, capitalisation and management structure. This choice drives the andorra investment threshold that applies to you under Law 2/2026, so confirm figures against the primary law text before proceeding. Advisers should model both the immigration and tax consequences of each vehicle side by side.
3. Secure qualifying investment / capital deposit: Fund the qualifying investment and, where required, lodge the non-interest-bearing deposit with the Andorran Financial Authority. Under Law 2/2026 the qualifying amounts and eligible asset categories have been revised, so the deposit and investment must satisfy the version of the law that governs your application. Ensure transfers originate from clearly documented, compliant sources; Andorran banks and the regulator apply rigorous anti-money-laundering scrutiny, and incomplete source-of-funds files are a leading cause of delay. Retain dated bank confirmations, purchase contracts and valuation reports, because transitional provisions may turn on whether investments were committed before or after the law’s effective date. Structuring the investment correctly at this stage protects both the immigration outcome and later tax positioning.
4. Prepare and notarise documents, translations and apostilles: Assemble civil-status documents, criminal-record certificates, proof of income and solvency, and health-insurance confirmation. Foreign documents generally require apostille or legalisation and official translation. Diplomas, marriage and birth certificates must be current and consistently named across the file to avoid rejection.
5. Submit application to immigration authority / local office: File the complete dossier with the Andorran Immigration Service. The application includes the personal forms, evidence of the qualifying investment, accommodation and insurance, and the biometric appointment. A well-ordered submission that mirrors the checklist published by the Govern d’Andorra reduces requests for additional information. Expect the authority to verify each document independently, so accuracy and internal consistency across the file are essential to a first-time approval.
6. Medical insurance and proof of accommodation / lease or property: Provide comprehensive private health insurance covering Andorra and a valid lease or property title as proof of accommodation. HNWIs frequently purchase property both to satisfy this requirement and to contribute toward the qualifying investment, but a long-term rental is acceptable where the investment is held in other qualifying assets.
7. Initial permit issuance (timing) and temporary stay conditions: On approval, the initial andorra residence permit is issued for a fixed term. From issuance you must observe the applicable annual presence obligation and maintain the qualifying investment, insurance and accommodation throughout the permit period. Keep records demonstrating ongoing compliance from day one.
8. Renewal pathway and path to long-term residence / citizenship: Permits are renewed periodically, with each renewal confirming that the investment, solvency, presence and insurance conditions remain satisfied. Continuous lawful residence over the years opens the path to permanent residence and, ultimately, to naturalisation. Andorran citizenship, however, follows a long qualifying period and generally requires renunciation of prior nationalities, so most HNWIs treat citizenship as a long-horizon objective rather than an immediate outcome of andorra residency by investment. Maintain immaculate records across every renewal cycle: gaps in presence, lapsed insurance or a reduced investment can jeopardise both renewal and any future citizenship claim. Advisers should calendar renewal dates and evidence requirements well in advance.

Costs, timelines and comparison table for Andorra residency by investment

The table below compares the principal routes for andorra residency by investment. Threshold figures shifted under Law 2/2026 and have been quoted inconsistently across the market; treat the amounts here as indicative and confirm exact numbers against the official law text before acting.

Beyond the qualifying investment, budget for professional fees (immigration and tax counsel), notarisation, apostille and certified translation, private health insurance, and either a property purchase or long-term lease. HNWIs should also model ongoing living costs and, for active residents, the recurring accounting and compliance cost of maintaining a genuine Andorran company. Because thresholds and eligible asset classes changed under Law 2/2026, the single most valuable cost-control measure is early, precise legal advice that confirms which figures apply to your specific timeline. Getting the andorra investment threshold right at the outset avoids the expense and delay of restructuring a non-compliant investment mid-application.

Key requirements & eligibility

Minimum investment and financial solvency tests

Every applicant must satisfy the applicable andorra residency requirements for qualifying investment and financial solvency. Passive applicants must both hold the qualifying investment (which may include the mandatory deposit with the Andorran Financial Authority) and demonstrate income or assets sufficient to support themselves and any dependents without local employment. Solvency is usually shown through bank statements, investment portfolios and income evidence set against a multiple of the Andorran minimum wage for the applicant and each family member. Law 2/2026 revised the qualifying amounts, so the correct benchmark depends on the version of the law governing your file. Document every source of funds meticulously; regulators reject applications where the origin of capital is unclear or inconsistently evidenced.

Physical presence and tax-residency trigger

Presence obligations differ by route. Passive residents typically commit to a minimum annual stay (commonly around 90 days), while active residents usually spend more time locally. Separately, andorra tax residency is triggered where you spend more than 183 days in Andorra in a calendar year, or where your centre of vital interests, family, home and principal economic activity, is located there. Meeting only the immigration presence minimum does not automatically make you a tax resident; conversely, an HNWI who genuinely relocates will usually meet the tax-residency test. Align your immigration presence with your intended tax outcome deliberately, because the two are governed by different tests.

Good character, health insurance, criminal-record checks and language/integration

Applicants must provide clean criminal-record certificates from countries of residence, valid private health insurance covering Andorra, and evidence of good character. Integration expectations, including familiarity with Catalan, become more relevant on the longer path toward permanent residence and citizenship.

Eligibility checklist:

• Qualifying investment: funded and evidenced under the applicable Law 2/2026 threshold.
• Financial solvency: income/assets sufficient for the applicant and dependents.
• Accommodation: Andorran property title or long-term lease.
• Health insurance: comprehensive private cover valid in Andorra.
• Clean record: apostilled criminal-record certificates and good character.
• Documentation: apostilled, translated and internally consistent.

Tax residency and HNWI considerations, modelling and examples

Andorra tax residency rules and tests

Andorra applies a residence-based system. You are generally an Andorran tax resident if you spend more than 183 days there in a calendar year, or if your centre of vital interests sits in the Principality. Andorra is well known among HNWIs for competitive headline personal and corporate income-tax rates and for having no wealth tax, but the decision to move to andorra tax planning must account for exit taxes, controlled-foreign-company rules and reporting obligations in your departure jurisdiction. Confirm current rates and rules against the Ministeri de Finances, Govern d’Andorra before modelling any outcome.

Corporate / personal tax implications for HNWIs, VAT and social-security notes

Active residents operating an Andorran company will encounter corporate income tax and the general indirect tax (IGI, Andorra’s VAT equivalent), which is notably low by European standards. Social-security contributions apply to those economically active locally. Personal income tax is levied on residents, with a top rate that remains modest compared with most of Europe, making Andorra attractive for both entrepreneurs and passive investors who genuinely relocate.

Two quick modelling examples for HNWIs

Passive investor: An HNWI with a diversified portfolio takes andorra passive residency, spends the required days locally and establishes centre of vital interests, capturing Andorra’s low personal tax on qualifying income while satisfying the qualifying investment. Entrepreneur relocating a family office: A founder incorporates an Andorran company, spends more than 183 days locally, and brings genuine substance, accessing competitive corporate tax while meeting the active-residency day count.

Transitional planning under Law 2/2026, what to do now

Applicants with pending or imminent filings should act deliberately. First, determine which version of the law governs your application, this depends on filing dates and the transitional provisions set out in the enacted text. Second, date every piece of evidence carefully: bank confirmations, investment contracts and deposit receipts may need to fall before or after the law’s effective date to secure grandfathering or the more favourable threshold. Third, do not commit capital until counsel confirms the applicable andorra investment threshold, because funds deployed under the wrong assumption may need restructuring. Fourth, calendar the transitional deadlines and any window for in-flight applications.

Anyone planning andorra residency by investment in 2026 should confirm these points against the primary law before releasing funds or submitting a dossier, as small timing differences can materially change the qualifying amount.

Practical compliance and local requirements

After approval, complete local formalities: register with your parish (comú), maintain valid private health insurance, and open Andorran bank accounts to support both living costs and the qualifying investment. Engaging local advisers, legal, tax and accounting, is strongly recommended, particularly for active residents running a company with ongoing filing obligations. Family dependents included in the application are subject to their own conditions, and employment rules for dependents differ from those applying to the principal. Keep continuous records of presence, insurance and investment status, because every renewal will test ongoing compliance with the conditions of your andorra residence permit.

Risks, quotas and obstacles, what can delay or block approval

Several factors can slow or defeat an application. Andorra periodically applies quotas and discretionary assessment, so approval is never purely mechanical. The most common obstacle is inadequate source-of-funds documentation: unclear origin of capital, or transfers routed through jurisdictions that attract enhanced scrutiny, frequently trigger requests for further information or refusal. Inconsistent names across documents, expired certificates and missing apostilles also cause avoidable delays. Regulatory change is itself a risk, thresholds and eligible assets shifted under Law 2/2026, so an application planned around outdated figures may fail. Criminal-record issues, insufficient solvency evidence and failure to maintain the qualifying investment during the permit term round out the leading reasons approvals are delayed or withdrawn.

Comparison: Andorra vs alternative residency-by-investment European options

HNWIs frequently weigh Andorra against other European routes. The comparison below highlights the key differentiators; confirm each country’s current rules independently before deciding.

Next steps for advisors and HNWIs

Begin by confirming which version of Law 2/2026 governs your timeline, then map the route, passive or active, against your income profile and mobility needs. Start assembling core documents early: passports, civil-status certificates, criminal-record checks, proof of income and detailed source-of-funds evidence, all apostilled and translated. Engage coordinated immigration and tax counsel before committing capital, and model both the immigration presence obligation and the andorra tax residency outcome together. Advisers should calendar transitional deadlines and renewal dates from the outset. Careful sequencing, investment, documentation, filing, is what turns andorra residency by investment from an aspiration into an approved, durable outcome for HNWIs and their families.

Sources and further reading

This page is grounded in primary Andorran legislation and official government guidance so readers can rely on definitive figures rather than aggregator estimates. Consult the sources below for the authoritative text of Law 2/2026, the parliamentary record, official residency and tax guidance, and Schengen status, and always verify current thresholds directly against the primary law before acting.

• Butlletí Oficial del Principat d’Andorra (BOPA): official publication of Law 2/2026
• Consell General (Parliament of Andorra): legislative record and press releases
• Govern d’Andorra, Immigration & Residency: official residency permit guidance
• Ministeri de Finances, Govern d’Andorra: tax residency and rates information
• European Commission: Schengen Area membership