Looking for a tranquil, safe, and tax-friendly place to enjoy your golden years? Andorra has become a popular choice for retirees seeking a high standard of living close to both Spain and France.

And, although there is no official “Andorra retirement visa,” the Principality’s passive residency permit works just like one, giving retirees a comfortable gateway to life in Andorra.

Below, we explain how it all works, from requirements and tax benefits to the ease of enjoying the Pyrenees while receiving your pension.

Andorra retirement visa?

Technically, Andorra does not issue any permit named a “retirement visa.” What retirees use instead is the passive residency permit, known as “residència sense activitat lucrativa” (residence without lucrative activity) in Catalan. This type of residency is designed for those who do not plan to work within the Principality. Whether you have pension income from abroad or investment proceeds that support your retirement, passive residency is the go-to solution.

Compared to active residency, which requires you to work in Andorra and spend at least 183 days per year in the country, passive residency is far more flexible. You only need to stay in Andorra for 90 days per year to keep the permit (although for tax residency benefits, you will need to spend at least 183 days here).

The permit also facilitates travel to Spain, France, and Portugal thanks to bilateral agreements between Andorra and these countries. This is particularly valuable for non-EU citizens, though it should not be confused with full Schengen area access.

Requirements for retirement in Andorra

For most retirees, the path to living in Andorra involves meeting specific financial and administrative conditions. The requirements below reflect the current legislation, including the changes introduced by the Llei de continuïtat i consolidació de les mesures per al creixement sostenible (commonly known as Llei Òmnibus 2), which tightened the conditions for passive residency.

Investment and financial requirements

• Minimum investment in Andorran assets: €1,000,000. This can be directed toward real estate, shares in Andorran companies, bonds or financial instruments issued by Andorran entities, or deposits with the Andorran Financial Authority (AFA). If investing in real estate, each property unit must have a minimum value of €800,000.
• AFA deposit: a mandatory, non-refundable payment of €50,000 to the Andorran Financial Authority. Unlike the previous regime where this deposit was returned when leaving the country, this amount is now definitive (“a fons perdut”). An additional €12,000 per dependent (also non-refundable) applies for each family member included in the application.
• Income requirement: you must demonstrate annual income exceeding 300% of the Andorran minimum wage, plus an additional 100% for each dependent. Based on the 2025 minimum wage of €1,447.33/month, this translates to approximately €52,000/year for a single applicant, with roughly €17,400 extra per dependent.

Administrative and personal requirements

• Private health coverage: retirees must secure private health insurance covering medical expenses, disability, and old age for the full duration of the permit, for both the main applicant and all dependents.
• Criminal record check: a certificate of good conduct from your country of origin, nationality, and previous countries of residence, duly apostilled.
• Valid passport: a current and valid passport (EU/EEA nationals may use their national ID instead).
• Medical examination: a medical checkup through the Andorran Immigration Medical Service, completed once in the country.
• Housing in Andorra: proof of accommodation, whether through a rental contract, property ownership, or equivalent.
• Minimum stay: spend at least 90 days per year in Andorra to maintain your administrative residency.

These measures are designed to guarantee that retirees can support themselves comfortably and to maintain Andorra’s high living standards.

You can read our in-depth guide on Andorra’s passive residency.

Tax benefits for retirees in Andorra

One of the standout reasons retirees choose Andorra is its exceptional tax system. While passive residency is primarily an administrative status, it often pairs well with establishing tax residency if you spend at least 183 days per year in the Principality.

The key tax benefits for retirees include:

• No wealth tax: Andorra does not levy any wealth tax, so your assets remain intact regardless of their value.
• No inheritance or gift tax: passing on property or wealth to heirs is significantly less burdensome compared to most European countries.
• Low or no capital gains tax: the maximum rate is 10%, and in many cases it drops to 0% depending on the type of asset and how long you have held it.
• Low or no dividend tax: the maximum rate is also 10%, with exemptions that can bring the effective rate to 0% in many situations.
• Favorable treatment of foreign pensions: pension income received from abroad is subject to Andorra’s personal income tax (IRPF), capped at a maximum rate of 10%. Depending on the applicable double taxation agreement (if any) between Andorra and your country of origin, part or all of this income may benefit from reduced taxation or credits.

For those with substantial assets, these policies are highly appealing. Whether your primary income comes from pensions, investments, or a combination of sources, Andorra’s tax framework can make your retirement years significantly more tax-efficient compared to countries like Spain, France, or the UK.

Other advantages of retiring in Andorra

Beyond the tax perks, Andorra provides a range of qualities that enhance the retirement experience:

• World-class healthcare: consistently ranked among the best in Europe, Andorra’s healthcare system is both efficient and comprehensive. Passive residents access it through private health insurance.
• Excellent security: crime rates are among the lowest in Europe, giving retirees genuine peace of mind.
• Pleasant climate: the climate combines the mildness of the Mediterranean influence with fresh mountain air and four distinct seasons.
• Easy transportation: well-maintained roads connect you to Barcelona (approximately 2.5 hours) and Toulouse (approximately 3 hours). Airports in both cities offer extensive international connections.
• Political and economic stability: Andorra is a parliamentary co-principality with a long history of neutrality and prudent fiscal management.
• Serene environment: nestled in the heart of the Pyrenees, the Principality offers stunning mountain scenery, hiking trails, ski resorts, and a relaxed pace of life ideal for retirement.

All these aspects work together to create a peaceful and high-quality lifestyle for retirees who wish to enjoy their golden years in a uniquely beautiful location.

Planning your financial future

Thoughtful planning is key to a successful retirement in Andorra. Before you start the application, make sure you have a clear strategy in place:

• Investment strategy: decide if you will purchase property, invest in Andorran financial products, or acquire shares in a local company. Each option fulfills the residency requirements differently and has distinct implications for liquidity and returns. Keep in mind the €800,000 minimum threshold per real estate unit.
• AFA payment: the €50,000 contribution is non-refundable, so factor this into your overall budget from the outset. The same applies to the €12,000 per dependent.
• Income verification: proving you meet the 300% minimum wage threshold (plus additional amounts for dependents) is essential. Prepare pension certificates, tax returns from your previous country of residence, and bank statements.
• Healthcare coverage: obtain a private health insurance policy recognized by Andorran authorities before submitting your residency application. The policy must cover medical, disability, and old age expenses.
• Tax planning: if you intend to become a tax resident (183+ days), consult with a tax advisor about the implications for your pension income, investments, and any applicable double taxation agreements.

Ahead-of-time preparation ensures you meet all criteria and enjoy a smooth transition into Andorran life.

Steps to apply for Andorra’s passive residency

While the process is not overly complex, following an organized approach will streamline your application. Processing typically takes 4 to 8 weeks from the submission of a complete file:

1. Initial consultation: contact us to assess which investment route best suits your financial situation and goals.
2. Document preparation: gather your passport, proof of income, criminal record certificate (apostilled), marital status certificate, and any other required paperwork.
3. Health insurance: obtain a private insurance policy that meets Andorran requirements before submitting your application.
4. AFA payment and investment: make the €50,000 non-refundable payment to the AFA. You have up to 6 months from the date of your permit to complete the full investment in Andorran assets.
5. Submit your application: file all documents with the Andorran Immigration Service (Servei d’Immigració).
6. Medical examination: once in Andorra, complete the mandatory medical checkup.
7. Receive your permit: the initial permit is valid for 2 years.
8. Maintain residency: comply with the 90-day minimum stay and keep your investment, insurance, and income requirements current.

Permit renewal timeline

Period	Duration
Initial permit	2 years
First renewal	2 years
Second renewal	3 years
Subsequent renewals	10 years each

After 20 years of continuous legal residence, it is possible to apply for Andorran nationality (note: Andorra does not permit dual nationality).

Ready to retire in Andorra?

If you are looking for a peaceful, secure, and tax-friendly place to enjoy your pension, Andorra is a top contender. The passive residency permit serves precisely that purpose, allowing retirees to settle here without employment obligations.

Take your next step by downloading our in-depth report “The definitive guide to living in Andorra” to learn more about taxation, residence requirements, and day-to-day life in the Principality. If you need personalized assistance, do not hesitate to contact us.

Sources

• Llei 5/2025, del 6 de març, per al creixement sostenible i el dret a l’habitatge (BOPA, 26 March 2025)
• Llei de continuïtat i consolidació de les mesures per al creixement sostenible (Llei Òmnibus 2), approved 22 January 2026
• Govern d’Andorra, Residència sense treball: autorització inicial
• Autoritat Financera Andorrana (AFA)
• Llei 5/2014, del 24 d’abril, de l’impost sobre la renda de les persones físiques