Let's start by clarifying that while Andorran passive residency is very similar to what other countries call "Golden Visa", practically no one in the country refers to this residence as the Andorra Golden Visa.

It is called passive (“residència passiva” in Catalan) to distinguish it from the other residence permit that is most commonly used in the country, the active residence. While active residence is the entry route for those who come to Andorra to work (self-employed or employed), Andorra’s passive residency allows individuals to live in the country without engaging in work or business activities, requiring at least 90 days of residence per year. This is a very attractive option for those looking for a tax-advantaged lifestyle, a high standard of living, and the ability to spend less time in Andorra.

Passive residence also presupposes a significant purchasing power, as it currently requires a minimum investment of €1,000,000 in Andorran assets, plus a non-refundable payment of €50,000 to the Andorran Financial Authority (AFA).

Below you will find a complete guide to passive residence and all its requirements, advantages and features.

Who is passive residence for?

Andorran passive residence can be granted for the following reasons:

• For reasons of scientific, cultural or sporting interest (many MotoGP and professional cycling athletes have used this route).
• Professionals and entrepreneurs with projects at international level (large entrepreneurs with overseas business).
• For investment in Andorra.

However, its most popular form is undoubtedly the third one (residence by investment), so in this guide we will focus on it.

This modality is aimed at people who wish to live in Andorra without working as an employee and living mainly from their passive income, so it is ideal for retirees and HNWI (“High-Net-Worth Individuals”) who live from their rents, investment portfolios, bank interests and income generated outside Andorra in general.

In short, if you have a high purchasing power and have considered living in Andorra without an employment relationship with any company, this residence is probably the route that suits you best.

It is important to emphasize the “without an employment relationship” because this residence permit has many advantages (as we will see in the next section), but it also has the limitation that it is completely incompatible with a work activity in Andorra.

If you entered the country as a passive resident and received an irresistible job offer from an Andorran company, you would have to cancel your passive residence and reapply for active residence.

You could, in certain cases, be paid for work done abroad or for the role of administrator in an Andorran company, although these cases should be analyzed individually.

Advantages of passive residence

Passive residence, despite its barriers to entry, offers a number of very attractive advantages:

Ideal for non-EU nationals

For some types of residence, such as active residence as an employee, Andorra gives priority to people from Spain, France and Portugal.

However, for passive residence there is no distinction between these countries, other European Union countries, and any other country, which makes it very popular among citizens from Mexico, Argentina, Uruguay, Russia and other non-EU nations.

For non-Europeans, this permit is especially convenient because it also grants the right to move freely not only within Andorra, but also within Spain, France and Portugal, regardless of the passport held.

Quick processing

Although the Andorran administration is not the fastest in its procedures, obtaining passive residence is a relatively quick process. From the day we start the process, you can obtain your passive residence permit in approximately two months.

Access to Andorran taxation

As we will explain later, administrative residence (the residence permit you obtain through passive residence) does not automatically mean that you are an Andorran tax resident.

However, if you meet the requirements and do obtain tax residency status, you will be able to benefit from an exceptionally favorable tax framework, with no or very low taxes on capital gains, interest, dividends and other forms of passive income.

Lower minimum yearly stay

Passive residence only requires staying in the country 90 days per calendar year, compared to the 183 days required for active self-employed residency. This is very convenient for people who travel frequently.

(Keep in mind that 90 days is the minimum for administrative residency, but it may be insufficient for tax residency, which generally requires 183 days.)

What are the requirements?

Following the approval of the Llei de continuïtat i consolidació de les mesures per al creixement sostenible, commonly known as Omnibus 2, which has been in force since February 13, 2026, the requirements to obtain Andorran passive residence by investment have been significantly tightened. As covered by IMI Daily, the investment migration industry’s leading publication, this reform represents not a simple policy adjustment but a deliberate repositioning of the Principality as a highly exclusive jurisdiction. These are the current requirements:

• Investment of €1,000,000 in Andorran assets. This investment must be made within the first six months. If the investment is in real estate, the minimum property value must be €800,000 per unit.
• Non-refundable payment to the AFA of €50,000 for the main applicant, plus €12,000 for each dependent (spouse, children). This payment is definitive and is not returned when the residence is cancelled.
• Minimum stay of 90 days per calendar year.
• Have a real estate property in Andorra or a rental contract (this is separate from the investment requirement).
• Certificate of good conduct.
• Private medical insurance valid in Andorra.
• Medical certificate issued in Andorra.
• Sufficient income: you must demonstrate income of more than 300% of the Andorran minimum wage. If you have dependents, add 100% of the minimum wage for each one.

Where can the €1,000,000 be invested?

The investment can be made in one or a combination of the following Andorran assets:

• Real estate properties located in the Principality of Andorra (minimum €800,000 per property)
• Participations in the equity of Andorran companies
• Debt or financial instruments issued by Andorran entities, including banks
• Debt instruments issued by any public administration of the Principality of Andorra
• Life insurance products contracted with entities resident in Andorra
• Non-interest-bearing deposits with the Andorran Financial Authority

It is important to note that the €50,000 AFA payment is a separate obligation and does not count toward the €1,000,000 investment threshold.

The real estate route

Although there are various investment options, the majority of those who come to the country through passive residence opt for real estate investment.

Even though housing prices in Andorra have risen significantly in recent years (they are now on a par with Barcelona or Madrid), the passive residents that we at AndorraInc bring to the country do not usually consider these prices to be prohibitive.

Passive residents from the United States, the United Kingdom, Norway, the United Arab Emirates or Monaco are often pleasantly surprised by Andorran real estate prices, as they are significantly lower than in their countries of origin.

However, the rapid escalation of prices is a serious concern for local authorities, which is why a tax on foreign real estate investment applies to non-residents and residents who have been in the country for less than three years:

• 6% for the first property
• 10% for the second property

This is a one-off surcharge applied at the time of purchase, not an annual tax. In other words, if you purchase a property to obtain passive residence, since you will not have been living in the country for three years, you will have to pay this surcharge on top of the purchase price.

Does passive residence allow me to pay taxes in Andorra?

Some consultants make the mistake of selling passive Andorran residency and its 90-day rule as a solution that allows you to reduce your tax bill and continue living in your country. This is completely wrong.

This is the important distinction between administrative residence and tax residence:

• Administrative residence: the Andorran passive residency is a migratory authorization to reside in the country legally. It does not, by itself, make you a tax resident.
• Tax residence: the obligation (or, in the Andorran case, privilege) to pay taxes in a country. This status requires, broadly speaking, spending 183 days in a country and having the centre of economic and family interests there.

For Andorra, sporadic absences are not counted as days outside the country, so, especially if there are no conflicts with the center of economic or financial interest being in another country, it is not strictly necessary to spend exactly 183 days in the Principality.

However, to avoid potential conflicts, and especially to ensure that you do not spend more days of the year in another country (which is extremely risky), we always advise spending at least 183 days in Andorra if you want to maintain tax residency here and avoid inspections from third countries.

How much tax would I pay?

For a full analysis of Andorran taxation, including income tax brackets, capital gains treatment and dividend taxation, we recommend visiting our dedicated Andorra tax overview page, where you can also calculate your estimated tax bill.

As a quick summary: the top personal income tax rate in Andorra is just 10%, there is no wealth or inheritance tax, and many forms of capital gains (particularly from foreign non-real-estate assets or shares held for more than 10 years) are exempt.

How to take the first step?

If you are considering moving to Andorra, we recommend reading the report “The definitive guide to living in Andorra”, with the most complete information on Andorran taxation, residence and society.

For any other matter, please do not hesitate to contact us.

Sources:

• IMI Daily: Andorra Parliament Approves Bill Reshaping Passive Residency Investment Thresholds (Jan 2026)
• Llei de continuïtat i consolidació de les mesures per al creixement sostenible (Consell General, Jan 2026)
• Altaveu: Residents passius hauran d’invertir un mínim d’un milió en actius andorrans (Jan 2026)
• Altaveu: Residents passius i autònoms hauran de fer ingressos de 50.000 euros a fons perdut a l’AFA (Jan 2026)
• Autoritat Financera Andorrana (AFA)