Andorra residence permit in 2025: an ultimate guide

The Principality of Andorra is a small but thriving country in South-Western Europe, located between Spain and France in the Pyrenees. With a total area of 468 km² and a population of around 80,000 people, it is one of the smallest nations in the world.

Andorra is not a member of the European Union or the Schengen Area, but part of the EU Customs Union, and the euro is the official currency.

The country’s official language is Catalan, but Spanish, Portuguese, and French are also widely spoken.

Andorra has a stable economy and a high standard of living. In terms of GDP per capita, Andorra ranks among the top 15 wealthiest countries in the world, with an estimated $46,545 per person in 2023, reflecting the country’s strong economic position and high quality of life.

To obtain residency, an individual must invest a minimum of €600,000, including a refundable deposit of €47,500. This type of residence permit, known as Passive Residency, does not grant the right to work or run a business in Andorra. All income must come from abroad.

Unlike other investment-based residency programs, it is not typically chosen for visa-free travel benefits. Instead, investors value Andorra’s low tax rates, financial privacy, and high quality of life.

1. Low taxes and financial privacy. Andorra offers one of the most favourable tax regimes in Europe. There are no taxes on wealth, capital gains, inheritance, property, or dividends, and corporate and income tax rates are among the lowest in the region.

The country does not participate in the automatic exchange of banking information, ensuring financial privacy for residents.

2. Visa-free access to France and Spain. Residency in Andorra allows free travel to France and Spain, making cross-border movement effortless. Additionally, residents can get a Schengen visa in just 1 day to travel for up to 90 days within 180 days.

The country also offers a simplified process for obtaining visas to the USA, Canada, Australia, and New Zealand, making global travel more accessible.

3. Minimum residency requirements. Andorra’s passive residency requires only 90 days of physical presence per year, making it an attractive option for those who prefer flexibility and do not wish to relocate permanently. This is ideal for individuals seeking residency benefits while spending most of their time elsewhere.

4. Top-quality education. The principality offers an excellent education system with multilingual instruction in Catalan, French, Spanish, and English. Students can access high education standards and international programs, ensuring a strong academic foundation.

5. World-class healthcare system. Andorra boasts one of the top five healthcare systems in the world. Both public and private health insurance plans cover 75 to 90% of medical expenses, providing comprehensive healthcare access.

The country has an average life expectancy of up to 83 years, reflecting its high quality of life.

6. Safety and stability. Andorra is known for its exceptional safety and has one of the lowest crime rates in the world. According to 2025 data, Andorra has a crime index of 15.3 and a safety index of 84.7.

7. Thriving economy and high GDP per capita. Andorra ranks among the top 15 countries in the world by GDP per capita. The country’s economy is primarily driven by tourism, banking, and trade, ensuring continued financial growth and a strong investment climate for residents.

Investment amount. Obtaining a residence permit in Andorra requires a minimum investment of €600,000. The investment consists of two parts:

• €47,500 must be deposited with the Andorran Financial Authority as proof of solvency. This deposit is interest-free and refundable upon the expiration of the residence permit;

• €552,500+ сan be allocated to real estate, national securities, investment funds, or an interest-free deposit with an Andorran bank.

A deposit of €9,500 will need to be added for each family member moving with the main applicant, reducing the main investment amount.

Requirements for applicants. To qualify for Andorra’s residence permit by investment, the main applicant must meet the following criteria:

• be over 18;

• have no criminal record;

• have an annual income of at least €52,100;

• own or rent housing in Andorra.

The investor can include a spouse or registered partner and children in their residency application. Children aged 18 to 25 can get residency provided they are university students, unmarried, and financially dependent on the main investor.

Same-sex marriages are legally recognised in Andorra. If the marriage is not yet registered, one partner can first obtain residency and later register the marriage in Andorra. Once the marriage is officially recognised, the spouse can apply for residency as a family member.

Maintaining residency. Investments must be maintained for the entire duration of the residence permit.

The investor must live in the country for 90 days a year. The residence permit will be cancelled if they stay in Andorra for less time.

The Andorra residence permit can be obtained within 90 days if invested in it. First, the applicant prepares all the documents:

1. Completed application form.

2. Valid passport. EU and EEA citizens may submit their national ID instead.

3. Criminal record certificate from the country of origin, nationality, and residence.

4. Police clearance proving the absence of criminal records.

5. Recent passport photo 35 × 45 mm, taken within the last six months.

6. Ownership or rental agreement meeting minimum living standards or proof of ongoing home purchase in Andorra must be completed within one year.

7. Proof of civil status.

8. Proof of valid health, disability, and retirement insurance for the applicant and dependents, except minors and those over 60, who must have valid health insurance in Andorra.

9. Evidence of sufficient income. The investor transfers a minimum of €52,100 to an Andorran bank account. Each family member adds €17,370 to the required amount.

10. Birth certificates for dependent children.

11. For children under 16, a vaccination record and medical certificate are required.

All documents are translated into Catalan, Spanish or French and certified by a notary. Police clearance and marriage certificates must be certified with an apostille.

Work in Andorra. This permit is for individuals who have secured employment in Andorra. Applicants must provide a valid work contract and meet other criteria set by the immigration authorities.

Remote work. Andorra has introduced a Digital Nomad Residence Permit to attract professionals who work remotely. This permit allows individuals to reside in Andorra while performing their work without needing a fixed geographic location.

Studies. Intended for students enrolled in educational institutions in Andorra. Applicants need to provide proof of enrollment, financial means, and health insurance.

Family reunification. This permit allows family members of legal residents or citizens of Andorra to join them. Applicants must provide proof of family relationship and meet specific requirements.

Business. Aimed at individuals who plan to establish and manage a business in Andorra. Applicants must present a viable business plan and fulfil investment criteria.

Citizens of EU countries can apply for Andorra’s residence permit under the same conditions as non-EU nationals. The country offers two main residency options:

1. Passive residency is for individuals who invest in Andorra but do not work there.

2. Active residency is for those who plan to work or run a business in Andorra.

Many EU citizens choose Andorra over other European residency options due to its tax efficiency, safety, and lifestyle benefits.

With no wealth tax, low living costs compared to other European financial hubs, and stunning natural surroundings, the country appeals to investors, retirees, and digital nomads looking for a peaceful yet well-connected location in Europe.

The real estate market in Andorra has gained popularity among investors due to low taxes, high rental demand, and a stable economy. Property prices have been rising steadily, driven by foreign buyers, limited land availability, and increasing demand for residency.

Property prices and investment potential. In January 2024, the average house price in Andorra reached €4,582 per square meter, marking a 14.4% increase from January 2023 and setting a new record high. Since January 2019, when the average was €3,112 per square meter, prices have surged by approximately 47.2%.

The most significant year-on-year growth was observed in the following regions:

• Les Escaldes – +20.1%, from €4,737 to 5,689 per m²;

• La Massana – +13.7%, reaching €4,221 per m²;

• Encamp – +9.5%, now at €4,090 per m²;

• Andorra la Vella – +5%, increasing to €5,032 per m².

Overall, house prices in Andorra have risen by almost 50% since 2019, coinciding with the COVID‑19 pandemic.

Buying property as a resident or investor. To qualify for Andorra’s residence permit by investment, at least €552,500 may be allocated to real estate.

Foreign investors must obtain government approval before purchasing property, ensuring compliance with local regulations.

The transaction process is as follows:

1. The buyer pays a deposit, usually 10% of the agreed purchase price. The deposit is not refunded if the transaction is cancelled.

2. The seller provides a “certificate of habitability” from a local architect confirming that the house or apartment can be lived in.

3. The notary guarantees that the buyer has paid the remaining property value and registers the title to the buyer.

The deal can take from several weeks to a couple of months.

Costs when buying a property in Andorra:

• notary fees: from €600 to 1,300 + 0.1—0.3% of the selling price;

• flat tax: 1.5% of the sales price;

• property transfer tax: 2.5% of the sale price.

One must pay an agency fee ranging from 5 to 10% when selling.

Taxes and fees on property transactions. When transferring real estate, a combined maximum tax rate of 4% applies to the property’s value. This consists of a 1.25% government tax and a local tax ranging from 0.5 to 2.75%, depending on the municipality.

A capital gains tax on properties owned for less than 12 years exists. The longer you own a property, the lower the tax. At first, it is 15%; after 12 years, it decreases to zero:

• sold within 1 year → 15% tax;

• sold within 2 years → 13% tax;

• sold within 3 years → 10% tax;

• for each additional year, the tax rate decreases by 1%;

• after 12 years of ownership, the tax is 0%.

Andorra is considered a tax haven for wealthy people. The Principality’s tax regime is one of the most profitable in Europe. Besides, Andorra’s residency is popular among Spaniards and French, who want to enjoy the local preferential tax regime.

To become a tax resident of the Principality, one must spend over 183 days a year in the country. However, resident status is not automatically granted; it must be specifically requested from the tax office.

No wealth, inheritance, or capital gains tax. Andorran residents do not pay taxes on wealth, inheritance, or dividends. Additionally, capital gains tax does not apply if an individual owns less than 25% of a company’s shares.

Low personal income tax. Andorra’s income tax system is simple and beneficial for high-net-worth individuals:

• 0% on income up to €24,000 per year;

• 5% on income between €24,000 and €40,000;

• 10% on income above €40,000.

Low corporate tax. Andorra’s corporate tax rate is a flat 10%, significantly lower than in most European countries. In certain cases, businesses can reduce the rate to as low as 2%, depending on the industry and business model.

Low VAT rate Andorra has a General Indirect Tax (IGI), which is comparable to VAT in other countries. At 4.5%, it is one of the lowest in Europe, making goods and services cheaper than in neighbouring Spain and France.

No double taxation on capital gains. If a resident sells assets abroad, Andorra does not impose additional capital gains tax if the individual has already paid taxes in another country at a rate of 10% or higher. This prevents double taxation on global investments.

No automatic exchange of banking information. Unlike many European countries, Andorra does not participate in automatic exchange agreements for tax residents, offering greater financial privacy.

Standard naturalisation. Obtaining Andorran citizenship is a long-term process, as the country has strict naturalisation requirements and does not allow dual citizenship.

To become a citizen, a resident must renounce their current nationality and meet the following criteria:

1. Maintain legal residence in Andorra for at least 20 years. This is the standard pathway for most foreign nationals.

2. Apply after 10 years if educated in Andorra. Individuals who have studied in an Andorran school for at least 10 years can apply earlier.

3. Demonstrate integration into Andorran society. Applicants must pass tests on the Catalan language, Andorran history, and geography.

4. Prove long-term commitment. Applicants must provide proof of continuous residence in Andorra and active participation in the local community.

Since Andorra does not allow dual citizenship, successful applicants must renounce their previous nationality to obtain an Andorran passport. This makes it less flexible than other European citizenship options, but Andorran nationality grants visa-free access to 160+ countries, including the Schengen Area states, the UK, and Canada.

Marriage to an Andorran сitizen. A foreign spouse of an Andorran citizen can apply for citizenship after three years of residence in Andorra. Unlike the standard naturalisation pathway, this process allows for faster eligibility.

However, the applicant must still prove their integration into Andorran society and renounce any other citizenship upon approval. The marriage must be officially registered in Andorra, and authorities may verify the relationship’s legitimacy before granting nationality.

Birth in Andorra. Children born in Andorra are not automatically granted citizenship unless at least one parent is an Andorran citizen. In this case, the child immediately receives Andorran nationality at birth.

1. Andorra residency by investment program offers a blend of financial benefits, security, and an exceptional quality of life. With a €600,000 investment, individuals can gain residency in a low-tax, politically stable, and highly secure European country.

2. The favourable tax regime, which includes no wealth, inheritance, or capital gains tax, makes it particularly attractive for investors and high-net-worth individuals looking to optimize their finances.

3. Andorra provides a safe and peaceful environment, high educational and healthcare standards, and access to world-class ski resorts and outdoor activities.

4. The minimal residency requirement of 90 days per year ensures flexibility, making it an appealing option for those who wish to maintain residency without committing to full-time living in the country.

5. The country does not grant Andorra passports by investment, and the path to naturalisation requires at least 20 years of continuous residence and renouncing any other nationality.