Andorra

Andorra Non-Lucrative Residency Overview

The Andorra Non-Lucrative Income Residency, officially known as the residència sense activitat lucrativa, is open to foreign nationals who can demonstrate sufficient independent means to live in Andorra without engaging in any work or business activities. Applicants must make a minimum investment of €1,000,000 (approx. US$1,180,000) in Andorran assets and pay a non-refundable deposit of €50,000 (approx. US$59,000) to the Andorran Financial Authority. 

There is no employment or business activity permitted under this permit; holders must sustain themselves entirely from income generated outside Andorra.

The permit is initially valid for 2 years and then renews every 2 years, then every 3 years, then every 10 years. The minimum physical stay required is 90 days per calendar year. 

The main applicant can include a spouse and dependent children. Each dependent requires an additional AFA deposit of €12,000 (approx. US$14,160).

Eligibility Requirements

Applicants must be foreign nationals seeking to establish principal and effective residence in Andorra for a minimum of 90 days per calendar year without engaging in any work or business activity. 

Permits are subject to a government quota; currently 600 per year. 

The following conditions apply.

Financial Conditions

• Minimum annual income exceeding 300% of the Andorran minimum wage, which amounts to approximately €49,500 per year based on the 2025 minimum wage of €1,447 per month; an additional 100% of the minimum wage per dependent must also be demonstrated
• Minimum investment of €1,000,000 (approx. US$1,180,000) in one or more qualifying Andorran assets, maintained on a permanent and effective basis throughout the validity of the permit; eligible assets include real estate in Andorra (minimum value €800,000 per property), equity participations in Andorran companies, Andorran ISIN-registered financial instruments, or debt instruments issued by Andorran entities or public administrations
• The investment threshold may be reduced to €400,000 (approx. US$472,000) if the full amount is invested directly or indirectly in the Andorran Housing Fund (Fons de l’Habitatge)
• Non-refundable deposit of €50,000 (approx. US$59,000) payable to the Andorran Financial Authority (AFA) by the main applicant at the time of application; an additional €12,000 (approx. US$14,160) per dependent is required; this deposit is separate from and does not count toward the investment threshold
• The investment must be completed within seven months of submitting the application; a six-month extension may be requested if there is a documented delay in formalizing the acquisition

General Conditions

• Valid passport with sufficient remaining validity
• Certificate of good conduct from the country of origin, country of nationality, and any other countries of prior residence
• Medical certificate issued in Andorra following examination by the Andorran Immigration Department
• Private health insurance covering illness, disability, and old age, valid in Andorra and maintained throughout the full validity of the permit
• Proof of ownership or rental of a property in Andorra meeting minimum habitability conditions, or documented evidence that acquisition procedures have been initiated; this property obligation is separate from and additional to the investment requirement
• Genuine commitment to establish effective residence in Andorra for a minimum of 90 days per calendar year

Route to Citizenship

The passive residency permit follows a ladder of renewal. The initial permit is valid for 2 years. Upon first renewal, a further 2-year permit is granted. The second renewal adds 3 years. From the 7th year onward, renewals are granted for 10-year periods, subject to continued compliance with all financial, investment, and minimum-stay conditions.

After 20 years of continuous and lawful residence in Andorra, holders become eligible to apply for Andorran citizenship by naturalization. Andorra does not permit dual nationality.

Mobility and Taxation

Mobility

Andorran citizens can access approximately 172 destinations visa-free or visa-on-arrival, ranking 18th globally, including all EU and Schengen member states, the United Kingdom, the United States, and all major international destinations. 

As a non-EU microstate with open-border agreements with Spain and France, Andorra is in practice part of the Schengen Area, allowing its residents to travel freely within the Schengen zone during their stay, though Andorra is not formally a Schengen member. 

Tax

Passive residents who spend fewer than 183 days per year in Andorra are not automatically Andorran tax residents and remain subject to the tax laws of the country where they spend the majority of their time. International tax rules, not Andorran law, determine where a person is taxed, and spending only 90 days in Andorra is unlikely to satisfy the conditions for tax residency under most bilateral tax treaties. 

Holders who do establish Andorran tax residency by spending 183 or more days per year in the country are subject to Andorran personal income tax at a flat rate of 10% on income above €24,000, with the first €24,000 fully exempt. 

There is no capital gains tax, no wealth tax, and no inheritance tax in Andorra. Andorra has a standard VAT rate of 4.5%, one of the lowest in Europe. 

How to Apply

The program is administered by the Immigration Service of the Government of Andorra under Decree 407/2025 of 12 November 2025. Applications must be submitted in person at the Immigration Service in Andorra; remote applications are not accepted. The process typically runs as follows.

• Step 1: Verify that the current passive residency quota has available spots under the standard residency without lucrative activity category; quota availability is published by the Government of Andorra.
• Step 2: Engage a local Andorran legal advisor or immigration consultant to prepare documentation and guide the application; compile all required documents including a valid passport, certificate of good conduct from all relevant countries, proof of annual income exceeding €49,500, and documentation of the qualifying investment or evidence that investment procedures have been initiated.
• Step 3: Arrange a medical examination with the Andorran Immigration Department and obtain the required medical certificate; arrange private health insurance valid in Andorra for illness, disability, and old age.
• Step 4: Secure a property in Andorra through purchase or rental meeting minimum habitability conditions, or document that acquisition is underway; this is required at application stage separately from the investment obligation.
• Step 5: Submit the application in person at the Immigration Service and pay the non-refundable AFA deposit of €50,000 for the main applicant plus €12,000 per dependent at the time of submission.
• Step 6: Complete the qualifying investment of €1,000,000 (or €400,000 if entirely in the Andorran Housing Fund) within seven months of application submission; provide proof of investment to the Immigration Service within the deadline.
• Step 7: Receive the two-year passive residency permit; establish effective residence in Andorra for a minimum of 90 days per calendar year and renew the permit before expiry, providing updated documentation of continued compliance with all financial and investment conditions.