Family reunification in Andorra is governed by strict requirements regarding financial solvency, suitable housing, and healthcare coverage, which allow for the relocation of spouses and children without multi-year delays. Recent political proposals to defer this right by three to six years or to impose a 50% personal income tax (IRPF) on certain profiles lack regulatory backing and clash with the Principality’s constitutional framework.
- Current regime: Llei 9/2012 and Llei 2/2026 regulate the inclusion and reunification of dependents based on objective criteria of financial solvency and financial bonds.
- Passive residency: There is no waiting period to include family members; a mandatory additional bond of €12,000 per dependent must be deposited with the Andorran Financial Authority (AFA), and sufficient passive income must be proven.
- Self-employment residency: Requires effective corporate activity, a non-refundable deposit of €50,000, and proof of housing and means to support the immediate family unit.
- Political debate: Suggestions to delay reunification for several years and establish punitive 50% tax rates are part of pre-election debates regarding housing and service saturation, but they face clear constitutional barriers.
How does family reunification currently work for residents and investors?
Moving a family to Andorra depends directly on the type of residency in Andorra obtained by the main applicant. Andorran regulations do not treat an employee hired under a general quota the same as a self-employed professional or a holder of residency without lucrative activity.
Residency without lucrative activity (passive residency)
Under the modality of tax residency without economic activity in the country (Article 96 of the Immigration Law, adapted by Llei 2/2026), the holder does not undergo a deferred labor reunification process, but rather a joint application or an extension to dependent family members:
- Asset investment: Prove at least €1,000,000 in Andorran assets (or €400,000 in the Housing Fund). If the investment includes real estate, each unit must exceed €800,000.
- Bond with the AFA: Mandatory and definitive deposit of €50,000 with the AFA for the primary applicant and an additional non-refundable amount of €12,000 for each dependent.
- Demonstrable solvency: Justify annual income exceeding 300% of the Andorran minimum wage for the holder, plus an additional 100% for each reunited dependent.
- Private coverage and housing: Full medical insurance valid in Andorra and proof of a lease agreement or title deed that guarantees sufficient space.
Self-employment residency (entrepreneurs and professionals)
For those who choose to create a company in Andorra and apply for self-employed residency and work permits, corporate requirements imply holding more than 34% of the capital, exercising effective management functions, residing at least 183 days in the country, and paying a non-refundable deposit of €50,000 to the AFA.
Under Llei 9/2012, the right to reunite a spouse or common-law partner and minor children (or dependent children up to 25 years old if students) requires demonstrating continuous income equivalent to 100% of the Andorran minimum wage plus proportional percentages for each dependent, in addition to certifying the availability of housing suitable for the size of the family unit.
What do new political forces propose regarding family and taxation?
In the context of the debate on the Principality’s carrying capacity, representatives of new political groups such as Virtus have suggested conditioning the entry of family members on a prior stay of three to six years, arguing that reunification accelerates pressure on the school system, traffic, and emergency healthcare services. Additionally, there has been a theoretical proposal to apply a 50% income tax to residents who supposedly move only for tax advantages or whose digital business models are perceived to have little physical presence.
It is worth analyzing the real legal viability of such statements against the consolidated Andorran legal framework:
| Analyzed aspect | Current legal framework (Llei 9/2012 and Llei 2/2026) | Political proposals in debate | Legal or practical obstacle |
|---|---|---|---|
| Waiting period for reunification | Immediate for passive residency with bond; regulated by stability and housing for self-employed and employees. | Impose a mandatory moratorium of 3 to 6 years of residence before authorizing reunification. | Article 13 of the Constitution of Andorra (protection of the family) and international human rights conventions. |
| General income tax rate (IRPF) | Maximum general rate of 10% (exempt up to €24,000, 5% between €24,000 and €40,000, 10% above €40,000). | Special 50% rate for residents considered “non-value generators.” | Article 37 of the Constitution (fair, general, and equitable tax system without arbitrary discrimination). |
| Financial guarantee per dependent | €12,000 non-refundable to the AFA per dependent (art. 96 Llei 2/2026 for passive). | No specified amount; focus on temporary denial. | The law already requires preventive solvency to ensure dependents do not become a burden on the State. |
Why do a 50% income tax or a five-year moratorium lack legal standing?
The Andorran institutional system is based on legal certainty and the principle of legality enshrined in its 1993 Constitution. Arbitrarily differentiating tax rates based on subjective economic activity or country of origin would violate the pillars of the tax regime.
The constitutional principle of general taxation
Article 37 of the Andorran Constitution establishes that everyone must contribute to public expenses according to their economic capacity, through a fair tax system based on the principles of general application and equitable distribution. Establishing a 50% tax rate specifically targeting content creators, investors, or high-income profiles who establish their domicile in the Principality would constitute a confiscatory and individualized regime that is manifestly unconstitutional. Currently, the framework of taxes in Andorra maintains a homogeneous nominal rate of 10% for both personal income tax and corporate tax.
The right to family life and international agreements
Article 13 of the Constitution proclaims that public authorities guarantee the legal, economic, and social protection of the family. Simultaneously, Andorra is a signatory to the European Convention on Human Rights (ECHR), whose Article 8 protects the right to respect for private and family life. While States have sovereignty to regulate the entry of foreigners and set material conditions of economic sufficiency, preventing the cohabitation of spouses and minor children for five years would generate immediate litigation before the Constitutional Court and the courts of Strasbourg.
Illustrative calculation: establishment costs for a family unit in passive residency
For a high-net-worth profile considering moving their family under passive residency in accordance with Llei 2/2026, the direct entry cost does not depend on hypothetical waiting periods, but rather on the allocation of immobilized capital and definitive payments:
Illustrative example under current regulatory assumptions for a holder with a spouse and two minor children:
- Mandatory asset investment in the Principality: €1,000,000 (in real estate where each unit exceeds €800,000, corporate shares, or Andorran funds; or €400,000 in the Housing Fund).
- Non-refundable deposit by the holder to the AFA: €50,000.
- Non-refundable deposits for dependents (3 dependents): 3 × €12,000 = €36,000.
- Proof of minimum estimated annual passive income: 300% of the minimum wage for the holder plus 100% for each of the 3 dependents (equivalent to justifying continuous income above 600% of the annual Andorran minimum wage).
- Total non-returnable bond delivered to the Government: €86,000 (€50,000 + €36,000), refundable only in the event of the initial application being denied.
This economic filter ensures that the family unit does not rely on public assistance funds and has sufficient means to pay for private healthcare and schooling.
Who is affected and who is not affected by the current debate?
It is essential to distinguish between internal political rhetoric and the regulations in force:
- Profiles unaffected by the current situation: High-net-worth families who comfortably meet the thresholds of Llei 2/2026 through investments in funds or real estate and the AFA bond of €12,000 per dependent. Their authorization includes family members from the very beginning.
- Established self-employed entrepreneurs: Those with real economic activity, commercial invoicing, and a leased local or office, who justify net income well above the average wage and have appropriate housing in the rental or purchase market.
- Profiles subject to greater scrutiny: Workers under temporary contracts or seasonal quotas where companies do not provide housing, as well as professionals with diffuse operational structures lacking local substance, on whom the Government and the Immigration Service apply more rigorous inspections regarding housing and effective residency.
Sources
- Diari d’Andorra: Virtus requests to restrict family reunification and proposes a 50% IRPF
- Official Bulletin of the Principality of Andorra (BOPA): Immigration Law and consolidated texts
- Department of Taxes and Borders: Tax rates and IRPF regulations
- Government of Andorra: Immigration Service requirements for residency and reunification
If you are evaluating the relocation of your residency and that of your family to the Principality and need to analyze the viability of your wealth structure in compliance with current regulations, you can contact our team here.