Residency in Andorra and the 2026 Real Estate Market: New Limits on Aid and Purchase Requirements
Obtaining residency in Andorra is a highly attractive strategic step for high-net-worth individuals, entrepreneurs, and qualified professionals seeking to optimize their tax and family situation. However, the Principality is undergoing a legislative reorganization phase to balance demographic growth with the accessibility of its residential market. The latest example of this regulatory effort is the recently published Decret 359/2026, enacted by the Government of Andorra, which establishes a strict filter for its new affordable housing program.
Key Updates in 1 Minute
- Strict temporal filter: The applicant must demonstrate a minimum of fifteen years of legal, effective, and uninterrupted residency in the country immediately prior to the application.
- Mortgage limit: €600,000.
- Temporary support: Renewable every 12 months.
The Impact of Decret 359/2026 on the Residential Sector
What does the Andorran legislator truly seek with these measures? The answer lies in the need to protect the housing stock and public aid against the recent arrival of high-purchasing-power migratory flows, ensuring that subsidies for mortgage and rental payments remain exclusively in the hands of very long-term residents.
The regulation sets the start of applications for November 1, 2026, with direct economic effects from January 1, 2027. This means that public funds will not cover retroactive expenses for the current year. For those considering living in Andorra in the medium term, understanding how these financial limitations work is fundamental when planning their asset investment structure.
The decree regulates both rental support and the payment of the installment for the first acquired property, provided that the total value of the property—including annexes such as storage rooms or parking spaces—does not exceed the threshold of 600,000 euros.
This value limit is a clear indication of the price parameters for mid-range and upper-mid-range housing in the Principality today.
Financial Limits and Income Structure
Access to the program is not only restricted by the length of stay in the country but also by the gross income of the household and the financial burden that housing represents on their total income. The law seeks to protect only families where all adults actively work, either as self-employed or employed, with very few exceptions for incapacity or studies.
To visually understand the layout of these requirements, the main parameters are detailed in the following table:
| Regulated Concept | Established Limit or Requirement |
|---|---|
| Prior Legal Residency | Minimum 15 uninterrupted years |
| Purchase Price (First Property) | Maximum €600,000 (including annexes) |
| Family Gross Income Range | Between 1.2 and 3.5 times the minimum wage |
| Financial Effort on Mortgage | Must exceed 40% of household income |
| Program Exclusions | Non-lucrative residences, room rentals, and subleases |
What implications does this have for non-lucrative residencies? The exclusion is explicit. Those holding these types of passive authorizations are outside the public housing support system, assuming they have their own independent means of living.
AndorraWay’s Perspective on Housing Policy
This legislative adjustment confirms a clear trend: Andorra is precisely segmenting welfare rights based on the resident’s length of establishment. While the attraction of international capital and investments is channeled through corporate tax incentives and legal certainty, social assistance mechanisms are reserved for profiles that have already consolidated more than a decade and a half of active life in the valleys.
Last week, a Swiss client who was relocating his assets asked us if the acquisition of a residential apartment for 580,000 euros in Escaldes-Engordany could be subject to subsidies or government protections in case of a business downturn. After analyzing his profile under our comprehensive service, we clarified that, lacking the fifteen-year residency history and possessing an active international business structure, his focus should be exclusively on optimizing his company’s tax situation and not on public residential protection schemes. Thanks to our intervention, we structured the purchase through an efficient private asset pathway, concurrently coordinating the moving process and the registration of his vehicles without any legal setbacks.
Aligning investment expectations with Andorran legal reality avoids last-minute tax surprises or operational hurdles.
Andorra continues to offer one of Europe’s safest, cleanest, and most fiscally competitive environments. However, navigating its regulatory framework requires expert guidance to avoid strategic errors.
If you wish to optimally structure your assets in the Principality or need comprehensive support to establish your company, let’s analyze your relocation case without obligation and define the most agile and secure path towards your new life.