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Passive Residence in Andorra
What is passive residence?
Passive residence is a permit aimed at those who wish to live in Andorra without having an employment contract with a local company.
It is specially designed for international investors, businessmen, and professionals, pensioners, and recognized individuals in the cultural, scientific, or sports fields.
Information updated as of February 2026 according to Law 2/2026. Amounts may vary depending on the chosen route and the annual minimum wage update.
Main requirements
To apply for passive residence, the following requirements must be met:
- Minimum residence: live in Andorra 90 days per calendar year.
- Housing: own or rent a property in the Principality.
- Minimum investment: permanently and effectively invest €1,000,000 in Andorran assets (real estate, shares in resident companies, debt or financial instruments and investment funds under Andorran law —maximum 36 months—, public debt, life insurance, or deposits at the AFA).
- If the investment is made in real estate: more than €800,000 per real estate unit.
- Reduction to €400,000 if the investment is made in the Government Housing Fund.
- Deposit at the AFA: €50,000 for the main applicant and €12,000 for each dependent, with definitive and non-refundable character (only returned if the initial authorization is denied).
- Financial solvency: annual income equivalent to 300% of the Andorran minimum wage (SMI 2026: €1,525.33/month), plus an additional 100% for each dependent.
- Private medical insurance valid in Andorra.
- Criminal record certificate from the country of origin and previous residences.
Duration of the authorization
- First authorization: 2 years.
- Renewal: 2 years.
- Subsequent renewal: 3 years.
- Successive renewals: 10 years.
Advantages of passive residence
- Very low taxation:
- Maximum IRPF of 10%.
- Exemption up to €24,000 annually and a reduced tax rate of 5% between €24,000 and €40,000.
- Exemption on dividends from Andorran companies.
- No succession or inheritance taxes.
- Property purchase with low taxes:
- Second-hand housing: subject to a 4% ITP (1% Government + 3% Comú).
- New housing: subject to a 4.5% IGI.
- Exceptional quality of life: top-level security, healthcare and education, natural environment, and political stability.
- Flexible and long-term residence.
How we help you from Àgora Consultors
At Àgora Consultors we accompany you throughout the process to obtain passive residence in Andorra:
- Legal and personalized advice.
- Preparation and submission of all documentation.
- Administrative follow-up with the authorities.
- Comprehensive management so you can settle in the Principality with peace of mind.
