Andorra’s investment visa program offers a pathway to residency for individuals willing to make a significant financial contribution to the principality’s economy. This program is particularly attractive for high-net-worth individuals seeking European residency with favorable tax treatment.
This guide covers the requirements, benefits, and application process for Andorra’s investment visa in 2026.
Types of Investment Residency
Passive Residency
Passive residency is designed for individuals with sufficient passive income who do not need to work in Andorra. Requirements include:
- A deposit of €59,400 in an Andorran bank (plus €29,700 for each dependent)
- Proof of passive income sufficient to support yourself
- Investment in Andorran real estate of at least €400,000
- Private health insurance
- Clean criminal record
Active Residency for Investors
Active residency is available for individuals who establish or invest in a business in Andorra. Requirements include:
- Investment in an Andorran company with a minimum shareholding
- Active involvement in the management of the business
- Proof of sufficient income and accommodation
Investment Requirements
Real Estate Investment
A minimum real estate investment of €400,000 is required for passive residency. This can be a residential or commercial property. The property must be maintained throughout the residency period.
Financial Deposit
A bank deposit of €59,400 (plus €29,700 per dependent) must be maintained in an Andorran bank for the duration of the residency. This deposit serves as a guarantee of financial self-sufficiency.
Business Investment
For active residency, you must invest in an Andorran business. The minimum investment varies depending on the type of business and the level of ownership. A typical investment ranges from €50,000 to €100,000.
Tax Benefits of Andorran Residency
Low Income Tax
As an Andorran tax resident, your worldwide income is subject to Andorra’s progressive income tax, with a maximum rate of 10%.
No Wealth Tax
Andorra does not impose a wealth tax, making it attractive for high-net-worth individuals.
No Inheritance Tax
Andorra does not have an inheritance tax, though this may change in the future as the government modernizes its tax system.
Low Indirect Tax
Andorra’s IGI (indirect tax) has a standard rate of 4.5%, significantly lower than VAT in most European countries.
Application Process
Step 1: Choose Your Residency Type
Determine whether passive or active residency is most appropriate for your situation.
Step 2: Prepare Documentation
Gather the required documents, including:
- Valid passport
- Criminal background check (apostilled and translated)
- Proof of income and financial resources
- Health insurance policy
- Real estate purchase agreement or lease
- Bank deposit certificate
Step 3: Submit Application
Submit your application to the Andorran immigration authorities (Imigracio). Processing times vary but typically take 2 to 4 months.
Step 4: Receive Residency Permit
Once approved, you will receive a residency permit valid for one year, renewable annually. After five years, you may apply for permanent residency.
Path to Permanent Residency and Citizenship
Permanent Residency
After 20 years of continuous residency, you may apply for permanent residency. This can be reduced to 10 years under certain conditions, such as completing primary and secondary education in Andorra.
Citizenship
Andorran citizenship is available after 20 years of residency. The process requires renouncing your previous citizenship, as Andorra generally does not permit dual nationality.
Frequently Asked Questions
Can I work in Andorra on a passive residency permit?
No. Passive residency does not allow you to work in Andorra. You must have sufficient passive income from outside Andorra to support yourself.
Do I need to live in Andorra full-time?
To maintain tax residency, you must spend at least 183 days per year in Andorra. However, the residency permit itself does not have a strict physical presence requirement beyond this.
Can I bring my family?
Yes. You can include your spouse and dependent children in your residency application. Additional financial deposits are required for each dependent.
Key Takeaways
Andorra’s investment visa offers a pathway to European residency with one of the most favorable tax regimes in the region. The combination of low income tax, no wealth tax, and no inheritance tax makes it an attractive option for high-net-worth individuals.
Professional advice is essential to navigate the application process and ensure compliance with Andorran regulations.
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws change frequently. Consult a qualified tax advisor for guidance specific to your situation.