Summary
On January 22nd, 2026, the Andorran Parliament approved the Omnibus 2 Law that changed the procedure for obtaining residence by investment.
Eymi Castro, an investment immigration expert, explained which updates affect investors.
Andorra has reformed the procedure and conditions for those seeking residence by investment in the country[1].
Investors are now required to invest more, while property buyers must pay higher taxes. Below is a breakdown of each update.
Changes for investors
Higher investment threshold. The minimum investment for residency without lucrative activity has increased from €600,000 to 1 million. Investors opting for real estate must now purchase property valued at more than €800,000 per unit.
AFA payment becomes non-refundable. The mandatory AFA contribution of €50,000, plus €12,000 per dependant, has been transformed from a refundable bond into a non-refundable payment to the state. This measure effectively increases the overall cost of participation.
Time limit on financial assets. Investments in local financial assets such as Andorran funds or debt instruments are now limited to 36 months. After this period, the capital must be reinvested into other eligible asset classes, reducing the flexibility of purely financial strategies.
Higher property investment tax
The foreign investment tax on real estate has been doubled:
- for a first property — from 3 to 6%;
- for a second property — from 5 to 10%.
The 10% rate for a third and subsequent properties, as well as for developers, remains unchanged.
Eymi Castro,
Investment Migration Expert
Andorra has become more selective. The government aims to attract wealthier residents.
Investors should review their calculations and investment strategies. This primarily concerns real estate: due to the higher minimum investment amount and increased tax burden, such projects now require more precise financial planning.
How to obtain Andorra residence permit by investment
Andorra offers residence to investors who meet several financial requirements. An application may include a spouse and financially dependent children.
Eligible investment options include:
- shares in companies that are tax residents of Andorra;
- debt or financial instruments issued by residents or public authorities;
- life insurance products;
- real estate in Andorra.
Proof of income. Applicants must also demonstrate annual income of at least 300% of the country’s minimum wage, plus an additional 100% for each dependent. This amounts to approximately €49,548 for the main applicant and €16,516 per family member.
Investors obtain residence in Andorra for tax advantages and as a “safe haven” in Europe. However, if the primary goal is visa-free access to Schengen countries, investors more often choose Portugal, Greece, or Hungary.
Sources
- Andorra Omnibus Law 2026, Andorra Government
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