Population
GDP (per capital)
Visa-Free Countries
GDP (purchasing power parity)
-
Residency by Investment in Andorra
-
Andorra, nestled between France and Spain, is renowned for its low taxes, political stability, high living standards, and breathtaking natural scenery. These qualities make it an attractive destination for those seeking a prosperous and peaceful lifestyle. This article delves into the 2025 pathways to Andorran residency through investment, offering insights on eligibility, investment options, and the steps to make Andorra your new home.
- Main Industries
- Tourism and Hospitality
- Banking and Finance
- Trade and Retail
- Construction and Real Estate
- Financial Advisory Services
(UTC+1)
467.63 km2
Euro
Andorra la Vella
Catalan (official)
Spanish, French, Portuguese
Overview of Andorra’s Investment Residency Program
Andorra’s investment residency program offers a unique opportunity for individuals seeking to establish a legal residence in the country without the need for employment or active business involvement. This is known as passive residency, which allows individuals to live in Andorra while maintaining their financial activities abroad.
This pathway is particularly appealing to high-net-worth individuals, retirees, and entrepreneurs with global income streams who are looking for a stable and tax-efficient environment. With its attractive tax regime and high quality of life, Andorra provides an ideal setting for those seeking to relocate without the complexities of traditional residency requirements.
-
Eligibility and General Requirements
- To qualify for Andorra’s passive residency by investment in 2025, applicants must meet the following criteria:
- Minimum Investment: A total of €600,000 must be allocated to Andorran assets. This includes:
- €47,500 deposited with the Andorran Financial Authority (AFA), plus €9,500 for each dependent.
- The remaining amount can be invested in real estate, shares in Andorran companies, government bonds, life insurance products, or non-interest-bearing deposits with the AFA.
- Proof of Sufficient Income: Applicants must demonstrate an annual income of at least 300% of the Andorran minimum wage (€1,447.33 in 2025), plus an additional 100% for each dependent.
- Accommodation: Provide evidence of a rental contract or property ownership in Andorra.
- Health Insurance: Obtain private medical insurance valid in Andorra.
- Criminal Record: Submit a certificate of good conduct.
- Medical Examination: Undergo a medical check-up in Andorra.
- Residency Requirement: Reside in Andorra for a minimum of 90 days per year.
- These requirements ensure that applicants have the financial means to support themselves and their dependents without engaging in local employment, aligning with the passive nature of this residency option.
Investment Options Explained
Investment Options Explained
Andorra’s passive residency program offers various investment avenues, each with distinct characteristics to suit different investor profiles. Here’s an overview of the primary options available as of 2025:
Real Estate
Investing in Andorran property remains a popular choice. To qualify for residency, a minimum of €552,500 must be allocated to real estate, securities, investment funds, or an interest-free deposit with an Andorran bank. The average property price in Andorra has seen a significant increase, reaching €4,582 per square meter in January 2024, marking a 14.4% rise from the previous year. Notably, regions like Les Escaldes and La Massana have experienced substantial growth in property values.
Government Bonds or AFA-Regulated Assets
For those seeking a lower-risk investment, allocating funds to Andorran government bonds or assets regulated by the Andorran Financial Authority (AFA) is an option. This approach offers a stable investment vehicle, though it may yield lower returns compared to other avenues.
Andorran Business Capital
Investing in local businesses or company shares presents a higher-risk opportunity but with the potential for greater returns. This option is particularly appealing to entrepreneurs and investors looking to actively engage in Andorra's business landscape. However, it's essential to note that passive residents are not permitted to work in Andorra, making this option more suitable for those considering active residency.
Affordable Housing Fund
For a more straightforward investment route, contributing €400,000 to the government’s affordable housing fund is an option. This investment is structured as a SICAV (Société d’Investissement à Capital Variable), combining both public and private contributions. It offers a simplified process for obtaining residency, backed by government support.
Each investment option comes with its own set of considerations, including risk levels, potential returns, and alignment with personal financial goals. It’s advisable to consult with financial and legal experts familiar with Andorran regulations to determine the most suitable investment path for your circumstances.
Application Process for Andorran Passive Residency
Application Process for Andorran Passive Residency
Embarking on the journey to secure Andorran passive residency through investment involves a series of methodical steps. Here’s a concise guide to navigating the process:
1. Document Preparation (Approximately 2 Weeks)
Begin by gathering essential documents, including:
- Valid passport copies
- Proof of income and financial stability
- Medical insurance coverage
- Criminal background checks
- Medical examination records
- Proof of accommodation in Andorra
All documents must be translated into Catalan, Spanish, or French, and notarized. Criminal background checks and marriage certificates should be certified with an apostille to meet application standards.
2. Financial Verification and Deposit to AFA (Approximately 1 Week)
Open a bank account in Andorra to facilitate the required financial transactions. This includes:
- Depositing a minimum of €47,500 with the Andorran Financial Authority (AFA)
- An additional €9,500 for each dependent
3. Application Submission to Immigration Authorities (Approximately 1–2 Days)
Submit your completed application in person at the Andorran Immigration Department (Servei d’Immigració d’Andorra). The submission process typically spans two days:
- On the first day, submit the application
- On the second day, attend an interview, if required
4. Background Check and Medical Examination (Approximately 1 Week)
Undergo a comprehensive medical examination in Andorra, which includes:
- A Mantoux test on the first day
- Evaluation of the test results three days later
5. Issuance of Passive Residency Card (Approximately 3–8 Weeks Post-Approval)
Upon approval, you will receive your Andorran passive residency card. This card grants you legal residency status in Andorra. The entire process typically takes about two months from initiation to completion.
Note: While the general processing time is approximately two months, it is advisable to consult with legal and financial experts familiar with Andorran regulations to ensure a smooth application process.
Challenges and Considerations
While Andorra presents numerous benefits for investors, there are several challenges and factors to consider before committing to residency through investment. Understanding these elements is key to ensuring a smooth and successful application process.
Rising Investment Thresholds
One of the primary considerations for potential investors is the increase in the required investment amount. The minimum investment for residency has risen to €600,000, which may pose a challenge for some. However, there are still options such as investing €400,000 into the government’s affordable housing fund, which can serve as a more accessible route for some applicants.
Limited Housing Inventory in Popular Parishes
Andorra’s real estate market, particularly in its most desirable areas, is experiencing limited housing availability. This is especially true in highly sought-after parishes like Escaldes-Engordany and Andorra la Vella, where properties are in high demand. As a result, investors may face challenges in finding suitable accommodations or may need to adjust expectations regarding location and price.
Language (Catalan) Requirements for Long-Term Residency
For those seeking long-term residency in Andorra, it is important to note that Catalan is the official language. While proficiency is not required for all residency options, applicants may be asked to meet a language proficiency requirement at certain stages of the application process, particularly during residency renewals. This means that learning Catalan can be an essential step for those planning to stay in Andorra for the long term.
90-Day Physical Presence Rule
Andorra’s 90-day physical presence rule requires that residents spend at least 90 days per year within the country to maintain their residency status. This can be an important consideration for those whose business or personal life requires frequent international travel. Ensuring the ability to meet this requirement should be factored into any decision regarding Andorran residency.
Benefits of Investing in Andorran Residency
Investing in Andorra’s residency program offers a multitude of advantages, making it an attractive option for high-net-worth individuals, retirees, and entrepreneurs seeking a stable and prosperous environment. Here are some of the key benefits:
Favorable Tax Regime
Andorra boasts one of Europe’s most advantageous tax systems. Residents benefit from:
- No wealth, inheritance, or capital gains tax in most cases,
- Personal income tax capped at a maximum of 10%,
- Corporate tax set at 10%,
- Dividend and interest income often exempt from taxation.
This fiscal framework is particularly appealing to investors and entrepreneurs seeking to optimize their financial strategies.
High Quality of Life
Andorra offers an exceptional living environment characterized by:
- Low crime rates, ensuring a safe community,
- Clean air and stunning natural landscapes, ideal for outdoor enthusiasts,
- A high standard of living, with access to modern amenities and services.
These factors contribute to a peaceful and fulfilling lifestyle.
Access to Top-Tier Healthcare and Education
Residents have access to:
- World-class healthcare services, with both public and private options available,
- High-quality education systems, offering multilingual instruction and international curricula.
These institutions uphold rigorous standards, ensuring comprehensive development for all residents.
Strategic Location and Mobility
Andorra’s position between France and Spain provides:
- Visa-free travel to both neighboring countries,
- Simplified access to the Schengen Area, facilitating travel across 26 European countries.
This strategic location enhances mobility for both business and leisure purposes.
Conclusion
In summary, Andorra’s residency-by-investment program offers a compelling opportunity for those seeking a favorable tax regime, high quality of life, and access to world-class healthcare and education. While the program presents numerous advantages, it is important for potential investors to be aware of the challenges, including rising investment thresholds, limited housing options, language requirements, and the 90-day physical presence rule. By carefully considering these factors and preparing accordingly, investors can make a well-informed decision and fully benefit from all that Andorra has to offer.
FAQ about Residency by Investment in Andorra
1. What is Andorra's residency-by-investment program?
Andorra offers a residency program where individuals can obtain residency through significant investment in the country, such as real estate, government bonds, or business capital.
2. How much is the minimum investment for Andorran residency?
The minimum investment is €600,000 in Andorran assets, or €400,000 in the government’s affordable housing fund.
3. Can I get Andorran residency if I invest in real estate?
Yes, purchasing real estate is one of the primary ways to qualify for residency, as long as it meets the minimum investment requirements.
4. What is the minimum amount required for investment in government bonds?
The investment threshold in government bonds is €600,000 or an equivalent in other approved assets.
5. Can I invest in Andorra without moving there?
No, residency requirements stipulate that you must live in Andorra for at least 90 days per year.
Looking for expert visa support?
PROGRAM MATCH
Compare the different programs in a nutshell and discover their features
PROGRAM COST
Check the cost estimates for each offered program
PROGRAM MAP
Explore the power of global mobility for every passport in the world