The Parliament of Andorra has officially approved a landmark bill that reshapes the nation’s passive residency program. Starting in early 2026, the standard investment requirement will increase from €600,000 to €1 million, signaling Andorra’s transition into a more exclusive destination for global investors.
The legislation, approved on January 22, 2026, introduces a more rigorous financial framework. Beyond the higher investment entry, the law replaces traditional refundable deposits with non-refundable state fees, although it introduces a more accessible €400,000 “Housing Fund” option for those supporting local social infrastructure.
From €600,000 to €1 Million: The New Investment Tiers
Under the new law, passive residents (those not working locally) must now invest a minimum of €1 million in Andorran assets. These assets can include real estate, shares in local companies, government bonds, or life insurance products.
Key Investment Rules:
- Real Estate Focus: If an applicant chooses to invest in property, each individual unit must have a value exceeding €800,000.
- The €400,000 Alternative: Applicants can reduce their total investment to €400,000 if they choose to invest “permanently and effectively” into the national Housing Fund, a mechanism designed to promote affordable social housing in the Principality.
- Timeline: Investors have six months from their immigration authorization date to finalize their investment.
Non-Refundable State Fees Replace Deposits
One of the most significant administrative changes is the shift in how fees are handled. Previously, applicants paid a deposit to the Autoritat Financera Andorrana (AFA) which was refundable upon leaving the country.
- Main Applicant: Must now pay a non-refundable state fee of €50,000.
- Dependents: A non-refundable fee of €12,000 per dependent is now required.
- Exceptions: Elite athletes, artists, and scientists who qualify for “special interest” status will retain access to the older, refundable deposit structure to keep Andorra attractive for high-profile cultural and sporting figures.
Impact on Self-Employed and Tech Entrepreneurs
The reform also affects active residency (self-employed). These applicants must now pay the same €50,000 non-refundable fee.
However, in an effort to boost the “Digital Economy,” the law waives the €50,000 payment for entrepreneurs establishing high-tech companies focused on digital innovation, entrepreneurship, or technology-based services.
Transitional Rules: Who is Exempt?
The law will take effect the day after its publication in the Official Gazette. However, the government has included protections for those already in the process:
- Pre-Approval: Applicants who submitted their foreign investment requests before January 22, 2026, will follow the old rules.
- Real Estate Agreements: A six-month transitional period applies to property taxes for those who can prove they had a signed purchase agreement and made an economic transaction before the law was passed.
Experts view this reform not as a simple adjustment, but as a deliberate repositioning of Andorra. By raising the bar, the Principality aims for sustainable demographic growth while evolving into one of Europe’s most exclusive jurisdictions.
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