Passive residence in Andorra, also known as residence without lucrative activity, is one of the most attractive options for people who wish to establish their residence in the Principality without engaging in professional or employment activity in the country. It is particularly valued by investors, retirees, families with international assets, and individuals who prioritize legal security, stability, and quality of life.
However, in 2026, this regime requires an updated understanding. The regulations have changed significantly, and it is no longer correct to explain this authorization using historical amounts prior to the entry into force of Llei 2/2026, of January 22.
Who is passive residency in Andorra intended for?
Passive residence is designed for people who want to live in Andorra without working actively in the country. In practice, it generally appeals to investors, retirees, individuals with sufficient assets, families receiving income from abroad, and international professionals whose main economic activity does not need to be carried out in Andorra.
The key element is not only the absence of professional activity in Andorra, but also the ability to demonstrate that one has sufficient means to reside in the country, support the family, and comply with investment obligations, effective residence, insurance, and documentation required by the current regulations.
Discover how to set up your company in Andorra step by step: requirements, benefits, and procedures.
Read moreTypes of Passive Residency
Among residence permits without professional activity, several types can be distinguished depending on the applicant’s profile and the basis of the authorization. The most well-known is residence without lucrative activity, which is the usual reference when discussing “passive residence” in Andorra.
There are also permits related to international profiles, scientific, cultural, or sports activities, as well as specific cases linked to treatments in private therapeutic centers.
Of all these options, residence without lucrative activity generates the most inquiries because it combines residence in Andorra with investment in Andorran assets and medium- to long-term wealth planning.
Benefits of Passive Residency
Passive residence offers a very attractive combination of personal, financial, and fiscal factors. Andorra provides a safe and stable environment, low crime rates, quality services, and a strategic location between Spain and France. Added to this is a competitive tax framework and an expanding network of agreements to avoid double taxation.
Furthermore, this authorization allows one to reside legally in the country without integrating into the Andorran labor market. To maintain it, a minimum effective residence of 90 days per year in Andorra is required, according to applicable regulations and immigration procedures.
It is important not to confuse passive residence with automatic tax residence. Holding a residence permit in Andorra does not, by itself, automatically make someone a tax resident, as tax residence also depends on criteria such as effective presence, center of interests, and applicable laws in each case.
Discover how to set up your company in Andorra step by step: requirements, benefits, and procedures.
Read moreRequirements for Applying for Passive Residency in Andorra
Naturally, given the advantages this type of residency offers, applicants must meet a number of conditions, all aimed at demonstrating financial solvency. Regarding financial requirements, you must:
1. Minimum investment in Andorran assets
This is the aspect that has changed the most. In 2026, the main holder of a residence without lucrative activity must make a permanent and effective investment of at least €1,000,000 in Andorran assets permitted by law. These include real estate located in Andorra, shares in resident companies, certain debt or financial instruments issued by resident entities, Andorran public debt, life insurance products contracted with resident entities, and non-remunerated deposits with the AFA.
An important exception applies: this minimum investment may be reduced to €400,000 if the investment is made directly or indirectly, permanently and effectively, in the Fons d’Habitatge, according to applicable law.
Additionally, when the investment is partially or fully in real estate, the law requires more than €800,000 per property unit. This detail significantly affects the strategy of those who intended to access passive residence through smaller real estate investments.
2. Deposit with the Andorran Financial Authority (AFA)
Another key change concerns the deposit required by the Autoritat Financera Andorrana. Currently, the main holder must deposit €50,000, plus €12,000 per dependent who also obtains residence without lucrative activity.
This is no longer a refundable deposit. The law explicitly states that these amounts are final and non-refundable, except in the event the initial immigration authorization is denied.
Source: Government of Andorra
3. Investment commitment and timeframe
If the investment has not been made at the time of application, the applicant must commit to completing it within six months, extendable by another six months in justified cases.
Once the period elapses, supporting documentation must be provided. Failure to justify the investment or the new destination required by law for certain assets may result in the authorization being canceled.
4. Minimum stay in Andorra
To maintain passive residence, the authorized person must have effective residence of at least 90 days per year in Andorra. This remains a core requirement of the regime.
5. Housing and health coverage
Applicants must prove they have housing in Andorra, whether owned, rented, or in the process of acquisition. They must also demonstrate health insurance and, if applicable, disability and old-age coverage for themselves and dependents, in accordance with administrative requirements.
6. Financial solvency
Regulations require proof that the main holder has annual income greater than 300% of the current minimum annual salary, plus an additional 100% per dependent.
7. Personal documentation
Commonly required documents include a valid passport or ID, a criminal record certificate duly legalized or apostilled, civil status documents, proof of residence, commitment to effective residence, and required medical and administrative documents.
Eligible assets for passive residence
The law allows structuring the investment in one or more categories of Andorran assets: real estate, shares in resident companies, debt or financial instruments, public debt, life insurance, and non-remunerated deposits with the AFA.
A technical change introduced by Llei 2/2026 should be noted: certain financial instruments and Andorran collective investment funds are only counted for a maximum of 36 months. After this period, the investment must be redirected to other Andorran assets to continue being recognized for residence purposes.
Is Passive Residency the Same as Tax Residency?
No. Passive residence is a migration authorization allowing legal residence in Andorra without professional activity. Tax residence depends on other criteria, including effective presence and the center of economic and personal interests.
Thus, spending 90 days in Andorra may be sufficient to maintain the residence permit, but not to automatically determine tax residence, which must always be analyzed case by case.
| Feature | Tax Residency (Active) | Passive Residency (Non-Working) |
| Main Target | People who work or carry out an economic activity in Andorra (employees, self-employed, business owners). | People who do not engage in any work activity in Andorra and live off their savings, investments, income, or pensions from abroad. |
| Source of Income | Income mainly comes from economic activity conducted within Andorra. | Income comes from abroad: pensions, capital income, dividends, rent, sale of assets, etc. |
| Investment Requirement | Not mandatory. Based on economic activity. | Yes, mandatory. A permanent and effective investment must be made in Andorran assets approved by law for a minimum of €1,000,000. The minimum investment can be reduced to €400,000 if made in the Fons d’Habitatge. For real estate investments, more than €800,000 must be allocated per property unit. Additionally, the main applicant must make a final deposit of €50,000 with the AFA, plus €12,000 per dependent, which is non-refundable. |
| Work Permit | Required and obtained. Allows working legally for an Andorran company or as a self-employed professional. | Not permitted. Passive residency explicitly prohibits any paid work activity within Andorra. |
| Minimum Stay Requirement | Must spend more than 183 days per year in the country to be considered a tax resident. | Must spend more than 90 days per year physically in Andorra; however, more than 183 days are recommended to maintain tax residency status. |
| Social Security Contributions | Mandatory. Both employee and employer make monthly contributions to the Andorran health and social security system (CASS). | Not mandatory, but voluntary contributions to CASS are highly recommended to access public healthcare and other services. |
| Process and Authorization | Requires obtaining a work permit and employment contract or company formation. Usually tied to a specific job offer. | Does not require a work permit. Process focuses on proving funds, making the investment, and demonstrating no economic activity will be conducted in the country. |
| Taxation on External Income | Taxed in Andorra on worldwide income. | Taxed in Andorra on worldwide income, with the advantage of no tax on capital gains from financial asset sales (shares, funds) if not a professional in the sector. |
| Typical Profile | Employees, professionals, entrepreneurs, local business owners. | Retirees, digital nomads (under certain conditions with the new law), rentiers, investors. |
Passive residence in Andorra under the 2026 framework
Passive residence remains a highly attractive option for international and asset-rich profiles, but in 2026 it requires a much more precise explanation than in older content. It is no longer correct to refer to a general investment of €600,000 or a refundable deposit of €47,500 + €9,500. The current framework is different and must be explained carefully.
At Augé Legal & Fiscal, each case is analyzed individually to help structure residence in Andorra correctly from a migratory, financial, and tax perspective.
FAQs
What is the minimum investment currently?
Generally €1,000,000, reducible to €400,000 via Fons d’Habitatge.
How much must be deposited with the AFA?
€50,000 for the main applicant plus €12,000 per dependent.
Is this amount refundable?
No, except if the initial authorization is denied.
How many days must one live in Andorra?
At least 90 days per year.
What is the duration of the authorization?
Initially 2 years, first renewal 2 years, second renewal 3 years, and subsequent renewals up to 10 years.
