Andorra · Residency by investment
Residence without gainful activity (Residència sense activitat lucrativa)
Repriced. Law 2/2026, the sustainable growth and right-to-housing law known as Llei Omnibus 2, was approved on 22 January 2026, published in BOPA no. 15 on 12 February 2026, and entered into force on 13 February 2026. It amended Article 96 of Law 9/2012, raising the investment from EUR 600,000 to EUR 1,000,000 and converting the AFA deposit into a non-refundable payment to the State.
Two things changed in February 2026, and both hurt. The investment nearly doubled to EUR 1m. And the EUR 50,000 that used to be a refundable AFA deposit, returned when you left, is now a non-refundable payment to the Treasury. A family of four now writes off EUR 86,000 permanently just to arrive. The real story here, and the one that is widely missed, is the Housing Fund route at EUR 400,000. It is 60% cheaper than the headline figure, and it is the reform's deliberate incentive.
Qualifying routes
Under Article 96(1), the EUR 1m threshold drops to EUR 400,000 if the investment goes, directly or indirectly, permanently and effectively, into the Housing Fund. This is the cheapest lawful way in, and it is new for 2026.
Article 96(1) allows permanent and effective investment across one or more categories. These are Andorran real estate, equity in Andorran-resident companies, debt or financial instruments issued by Andorran entities and Andorran collective investment funds (subject to a 36-month limit), Andorran public debt, life insurance with Andorran-resident entities, and non-remunerated deposits with the AFA.
Under Article 96(2), this is paid to the Andorran Financial Authority on a final and non-refundable basis, except where the initial immigration authorisation is refused. It does not count toward the EUR 1m threshold.
Under Article 96(2), each dependant acquiring passive resident status adds EUR 12,000, on the same non-refundable terms.
The facts
- Minimum investment
- €400k
- Total landed cost
- For a family of four, expect EUR 1,000,000 invested (or EUR 400,000 via the Housing Fund), plus EUR 50,000 + (3 x EUR 12,000) = EUR 86,000 in non-refundable State contributions, plus EUR 15–40k in legal, notarial and housing costs. That puts roughly EUR 1.1m committed in total, of which EUR 86k is gone for good.
- Route type
- Residency by investment
- Timeline
- 2–6 months (The immigration decision comes relatively fast. The investment itself must be completed within 6 months of the application commitment, extendable by 6 months only for force majeure or third-party fault (Article 96(3)).)
- Physical presence
- 90 days per calendar year, plus regular long-term accommodation in Andorra. This is one of the lightest genuine presence requirements in Europe.
- Family
- SpouseDependent childrenDependent ascendants. Each dependant triggers a further EUR 12,000 non-refundable payment
- Permanent residency
- Renewable permits, typically 2 + 2 + 2 + 3 years, then 10-year renewals. There is no EU-style permanent residence.
- Citizenship
- 20 years of principal and permanent residence, and Andorra does not allow dual citizenship. In practice this is a residency programme, not a citizenship one.
- Language test
- Catalan language and Andorran civics examination
- Dual citizenship
- Not permitted. You would have to renounce.
- Requirements
- Permanent and effective investment of EUR 1,000,000 in qualifying Andorran assets, or EUR 400,000 in the Housing Fund.A non-refundable payment of EUR 50,000 to the AFA, plus EUR 12,000 per dependant.A commitment at application to complete the investment within 6 months.Regular long-term accommodation in Andorra, whether owned or leased.Private health and disability insurance valid in Andorra.A clean criminal record from both country of nationality and country of residence.A medical examination.No gainful activity in Andorra.Physical presence of at least 90 days per calendar year.
- The EUR 50,000 (plus EUR 12,000 per dependant) is now non-refundable and sits separately from the EUR 1m. Article 96(2) is explicit on this point. It states the payment is made on a definitive basis and is transferred to the State once the authorisation is granted. Any advisory material still describing it as a returnable deposit is describing the law as it stood before February 2026.
- Financial instruments and Andorran collective investment funds only count for a maximum of 36 months. After three years, Article 96(1)(c) requires the capital to move into other qualifying asset classes, such as real estate or company equity. If it doesn't, the investment stops counting, and the authorisation can be annulled. This is a structural trap. The easiest way to park EUR 1m comes with a three-year fuse.
- If part of the investment goes into real estate, more than EUR 800,000 must be allocated to each property unit acquired. That means a EUR 1m budget buys one qualifying unit, not two.
- Foreigners buying real estate in Andorra now face a foreign real-estate investment tax of 6%, rising to 10% for investments beyond the single-dwelling limits. The rate is banded progressively by number of units and aggregated across related parties (Law 3/2024 as amended by Law 2/2026).
- If the investment is not proven by the deadline, the residence authorisation is annulled outright (Article 96(3)).
- Dual citizenship is not permitted under any circumstances. Andorra requires renunciation, and the standard qualifying period is 20 years, so citizenship should be treated as effectively unavailable.
- Andorra is not in the EU or the Schengen Area, and it has no airport. There is no free movement or right of establishment in the EU, and access is by road via Spain or France.
- Andorra is a CRS participant and maintains an EU monetary and tax-cooperation relationship. This is a low-tax jurisdiction, not an opaque one.
- Banking onboarding is slow and genuinely selective. Source-of-funds diligence on large crypto positions is a common point of failure.