New Rules for Obtaining Residency in Andorra in 2026
Andorra residency has recently undergone a significant shift due to new regulations approved by the General Council (Andorran Parliament). Aiming to balance economic growth and ensure the social sustainability of the Principality, the Government has tightened the economic requirements for foreigners wishing to settle in this Pyrenean enclave. These measures not only seek to filter the type of investment entering the country but also to generate direct resources to alleviate internal problems such as the scarcity of affordable housing.
If you are seriously considering the residency in Andorra process, it is crucial to understand that the landscape has changed drastically compared to previous years. It is no longer enough to prove solvency; a greater financial commitment is now required, and, for entrepreneurs, a proposal that brings real value to the country’s productive structure.
Passive Residency: Investments of up to One Million Euros
One of the most discussed changes directly affects residents without lucrative activity, popularly known as passive residents. Starting in 2026, the total investment threshold required will increase to one million euros. This capital must be allocated to Andorran assets, but there are important nuances if the investment is made through real estate.
- Real Estate Investment: If you choose to meet the requirement by purchasing a home, the minimum property price must be at least 800,000 euros.
- Non-Refundable Contribution: A historic novelty is introduced: a non-recoverable fee of 50,000 euros.
- Destination of Funds: Unlike old deposits held at the AFA (Andorran Financial Authority) and returned upon leaving the country, these 50,000 euros are considered a direct contribution to the State.
This restructuring aims to prevent speculation in the luxury real estate market and ensure that those who choose to live in Andorra effectively contribute to the common good from day one.
New Developments for Entrepreneurs and Self-Employed Professionals
The profile of the entrepreneur seeking the benefits of Andorra taxes also faces new entry barriers. Until recently, the deposit for active self-employed residents was refundable, serving as a guarantee of good tax and social behavior. However, the new legislation stipulates that entrepreneurs must also pay 50,000 euros as a non-refundable contribution to obtain their residency permit.
This change is a turning point. The Government now has the absolute power to reject any application for opening a business or company if it considers that the project does not offer sufficient “added value” for the national economy. Andorra no longer seeks quantity but quality and specialization in technology, sustainability, or innovation.
What Does the Concept of “Added Value” Mean?
For the Andorran administration, an added value project is one that goes beyond mere tax optimization. The following will be positively valued:
- Creation of qualified local jobs.
- Investment in green economy or digitalization sectors.
- Projects that do not generate a negative impact on the country’s natural resources.
- Activities that diversify the current offer, traditionally dependent on tourism and retail trade.
For many, this tightening is a natural response to the country’s success. The cost of living in Andorra has been pressured upwards, and these fees will help finance social policies and public housing, a sector that requires immediate attention to maintain social peace.
Impact on Moving Management and Planning
Given this new legal framework, moving management and legal planning become critical processes. It is no longer advisable to carry out procedures improvisationally. Preparing a solid business plan is now an indispensable requirement, not only for the banking entity but also to convince the Government itself that your presence in the Principality is beneficial.
It is important to remember that Andorra continues to offer one of the highest qualities of life in the world, with a top-tier healthcare system and citizen safety almost unparalleled in Europe. However, access to these privileges now demands a greater initial investment.
Is Andorra Still an Attractive Destination?
Despite the increase in fees and the minimum investment, Andorra maintains its competitive advantages. Corporate tax remains capped at 10%, and personal income tax (IRPF) is one of the lowest on the continent. For a large investor or a successful entrepreneur, the 50,000 euro contribution is an acceptable cost compared to the long-term tax savings and legal security offered by the country.
Furthermore, the Government has been transparent in indicating that the collection of these new fees will be entirely allocated to improving infrastructure and facilitating access to housing for resident workers, which will stabilize the economy in the medium term.
If you are evaluating your move, we recommend seeking advice from experts who understand the fine print of this new 2026 law. Residency in Andorra remains a golden opportunity, but the doors are now opening for those who truly commit to the country’s future.
Conclusion on the New Migration Framework
In summary, the new economic conditions for passive residents and entrepreneurs mark the beginning of an era of exclusivity and social responsibility in the Principality. With minimum investments of one million euros and non-refundable fees of 50,000 euros, the country ensures it attracts profiles with a high economic commitment. If your project has the added value the Government seeks, Andorra will welcome you with open arms and all the benefits that have made it famous worldwide.