Passive Residence in Andorra 2026: Requirements, Changes, and Tax Benefits

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What is passive residence?

It is a residence permit designed for people who want to live in Andorra without carrying out labor activity within the country. In other words: you can legally reside in the Principality as long as your income comes from abroad or your own wealth.

Who is it designed for?

• ✓ Digital nomads and teleworkers with international clients.
• ✓ Investors and rentiers who live off dividends or rentals.
• ✓ Pensioners with stable income from abroad.
• ✓ High-net-worth individuals who do not need to work.

2026 Updates: Residence Without Lucrative Activity and Requirements

The most common modality is residence without lucrative activity, which does not allow working in Andorra. Following the changes published in the Official Bulletin of the Principality of Andorra in 2026, investment requirements have been updated:

1. Minimum Investment of €1,000,000

The main holder of a residence without lucrative activity must invest permanently and effectively an amount of at least one million euros (€1,000,000) in Andorran assets. This includes:

• ✓ Real estate (an amount greater than €800,000 must be allocated to each acquired real estate unit).
• ✓ Shares in the share capital or equity of resident companies.
• ✓ Debt or financial instruments issued by resident entities (maximum 36 months).
• ✓ Debt instruments issued by any public Administration of the Principality of Andorra.
• ✓ Life insurance products contracted with resident entities.
• ✓ Non-remunerated deposits with the Andorran Financial Authority.

Exception: This amount is reduced to €400,000 provided the investment is made permanently and effectively in the Housing Fund.

2. Deposit with the Andorran Financial Authority (AFA)

The main holder must make a deposit in favor of the Andorran Financial Authority of an amount of €50,000. In addition, an extra deposit of €12,000 must be made for each of the dependents.

*Note: The applicant is committed to making the investment effective within a maximum period of six months, which can be extended for another six months provided force majeure is proven.

Other passive residence modalities

• ✓ Professionals with international projection: Does not require a minimum investment, but does require creating a company where at least 85% of the billing is generated outside the country. The main holder must deposit €47,500 unremunerated with the AFA, and an additional €9,500 per dependent.
• ✓ Scientific, cultural, or sports interest: Aimed at professionals with recognized trajectories. The main holder must deposit €47,500 unremunerated with the AFA, and an additional €9,500 per dependent.
• ✓ Residence for admission to private geriatric centers or for admission to private medical or therapeutic care centers: Authorizes residing in the country during the validity of the authorization in a private geriatric center or private medical or therapeutic care center for at least 90 days per calendar year, without exercising any labor or professional activity.

Tax Advantages and Considerations

You will obtain unique advantages such as a maximum personal income tax (IRPF) of 10%, no wealth tax, and no inheritance tax. In addition, to maintain the authorization you only need to reside 90 days a year.

Important: Obtaining passive residence does not automatically imply becoming an Andorran tax resident. Many countries, such as Spain, consider a tax resident someone who stays more than 183 days in their territory or maintains their center of economic interests there. Therefore, proper international tax planning is key to avoid problems.