The passive residency in Andorra has established itself as one of the most attractive options for investors and individuals seeking a high quality of life with favorable taxation. However, the Principality is in a constant process of evolution, adjusting its regulations to ensure sustainable and balanced growth. In this context, the Andorran government has introduced a key modification through the new Sustainable Growth Law, also known as Law Omnibus 2, which directly impacts the requirements to obtain this type of residence. The most significant change is the increase in the minimum required investment, now set at 1 million euros.
This legislative adjustment responds to the growing demand and the country’s aim to attract a more qualified investor profile, who not only seeks tax benefits but also makes a solid contribution to the Andorran economy. If you are considering living in Andorra, it is essential to know these new conditions in detail. Below, we outline everything you need to know about this important update.
What is the new Omnibus Law and how does it affect your future in Andorra?
The Sustainable Growth Law, or Law Omnibus 2, is a package of legislative reforms that modifies various regulations in Andorra with the goal of promoting long-term sustainable economic and social development. It is not an isolated law but a set of amendments affecting areas such as immigration, the labor market, and foreign investment.
The main purpose of this law is twofold: on one hand, to strengthen the economy of the Principality by attracting high-value capital; and on the other, to regulate migratory flow to ensure that the country’s infrastructure and services can continue offering the high quality and exclusivity it is known for. Within this framework, tightening the conditions for passive residence in Andorra is one of the flagship measures.
The context of the legislative change
Andorra has experienced a notable increase in popularity in recent years. Its safety, natural environment, and, of course, its attractive taxes in Andorra have drawn thousands of new residents. However, this success has also generated challenges, such as pressure on the real estate market and the need to maintain the country’s exclusivity and prestige. With this new law, the government aims to modulate this growth, prioritizing quality over quantity and ensuring that new residents have a more substantial financial commitment to the Principality.
Increase in investment for passive residence in Andorra: One million euros
The most impactful change in Law Omnibus 2 is the increase in the capital needed to qualify for residency in Andorra without engaging in lucrative activities. The minimum investment amount has risen from 600,000 euros to 1 million euros. This increase of 400,000 euros signifies a major qualitative leap and positions Andorra in a more exclusive segment on the international residence-by-investment landscape.
According to the legislative text, this one million euros is the new reference figure for those wishing to establish themselves in the country without exercising a professional activity. This measure aims to align Andorra with other high-end destinations and ensure that new passive residents have significant financial solidity.
What can this one million euros be invested in?
Although the total amount has increased, the conditions and types of assets in which one can invest remain flexible to accommodate different investor profiles. The options do not significantly change from the previous regulations and allow for diversification of capital in Andorran assets. The main investment destinations are:
- Real estate: You can invest in one or more properties located in Andorra. It’s important to highlight that the law specifies that if investing in housing, it must have a value exceeding 800,000 euros and be for residential use without profit activity.
- Andorran investment funds: Investing in financial products managed by local entities, such as investment funds or SICAVs.
- Andorran public debt: Purchasing bonds issued by the Government of Andorra, considered one of the safest options.
- Participations in Andorran companies: Buying shares or interests in companies resident in the Principality.
In addition to this investment, applicants must make a non-remunerated deposit of 50,000 euros with the Andorran Financial Authority (AFA), which is added to the main amount.
New requirements also for self-employed workers
Law Omnibus 2 not only impacts passive residents. It also introduces changes for professionals wishing to establish themselves as self-employed. For this group, a mandatory deposit of 50,000 euros without reimbursement is required. This measure seeks to ensure a greater commitment from new entrepreneurs and professionals settling in the country, contributing directly to state coffers from the start of their activities.
This change represents a significant tightening of conditions, as previously the deposit for self-employed was refundable once residency was ended. Now, this amount becomes a direct non-recoverable contribution.
Other important measures in the Omnibus Law
Apart from the investment requirement changes, the new legislation reinforces other key aspects of the country model that Andorra aims to establish.
Tightening of migration policies
The law emphasizes combating fraud and illegal immigration. Control mechanisms are strengthened, and sanctions are increased for practices such as fraudulent family reunifications or document and personal condition falsifications to obtain residence permits. The goal is clear: ensure that the immigration process is transparent, legal, and orderly.
Flexibility in the labor sector
Not all measures are restrictive. The law also introduces modifications to make certain aspects of the labor market more flexible. For example, it will be easier for temporary workers to move within the same company or business group. This measure aims to optimize human resources in key sectors of the Andorran economy, such as tourism and winter sports, better adapting to seasonal business needs.
What does this change mean for Andorra’s future?
The approval of Law Omnibus 2 marks a turning point in Andorra’s strategy to attract talent and investment. By raising the financial bar, the Principality sends a clear message: it seeks long-term committed investors and residents, who see the country not merely as a tax haven but as a place to settle, invest, and contribute to its sustainable development.
In the short term, there might be a slight slowdown in passive residence applications. However, in the medium and long term, this strategy could strengthen the Andorra brand, establishing it as an exclusive and high-quality destination similar to other small European states like Monaco or Luxembourg. This could positively impact real estate values and the sophistication of the country’s business and financial fabric.
Are you thinking of moving to Andorra? We can help you through the process
The legislative changes may generate doubts and uncertainty. The new Omnibus Law redefines the rules for obtaining passive residence in Andorra, making expert advice more crucial than ever.
At Andorraway, we specialize in facilitating your move to Andorra. We have in-depth knowledge of the new regulations and can guide you through every step, from planning your investment to managing all bureaucratic procedures. If the new requirement of one million euros fits your plans, we will help you structure the investment as efficiently and securely as possible.
Don’t let the changes overwhelm you. Contact our team of experts for a personalized consultation to analyze your case and design the best strategy to make your dream of living in Andorra a reality.