The Omnibus 2 Law introduces significant changes to Andorra’s residency and investment policies. One of the most notable changes is the increase in the minimum investment required for passive residency, rising from €600,000 to €1 million. The initial contribution of €50,000 required from passive residents and self-employed individuals is also being modified to make it non-refundable, though there will be some exceptions.
If you are considering applying for residency in Andorra, this article will be of interest to you, as the new situation may directly affect the conditions and requirements you need to meet.
Table of contents:
- What is the Omnibus 2 Law, and why has it been approved?
The minimum investment required for passive residence in Andorra in 2026 is now €1 million
What is changing with the initial contribution of €50,000?
Changes in foreign real estate investment in Andorra
Other measures included in the Omnibus 2 Law
A new landscape for residence and investment in Andorra in 2026
Still unsure about applying for residency in Andorra?
What is the Omnibus 2 Law, and why has it been approved?
Law 2/2026 of 22 January on the continuity and consolidation of measures for sustainable growth is a reform that promotes key measures in areas such as immigration, taxation and trade. It aims to adapt Andorra’s growth model in response to population increase and pressure on certain strategic sectors. With this reform, the government intends to enhance the country’s sustainability, protect access to housing, and create a more balanced internal economic framework.
This initiative builds on Law 5/2025 of 6 March on sustainable growth and the right to housing, which introduced significant changes to the real estate and tourism sectors, as well as the aforementioned areas. We explore this in more detail in this article.
The minimum investment required for passive residence in Andorra in 2026 is now €1 million
The new law increases the minimum investment required for passive residence in Andorra, raising it from €600,000 to €1,000,000 of Andorran assets. This directly affects foreign investors who wish to establish residence in Andorra without carrying out profitable activities.
In 2026, to qualify for passive residence under the new regulatory framework, one of the following financial requirements must be met:
- €1,000,000 in Andorran assets, including authorised financial instruments or shares in companies within the country.
- €800,000 in real estate investment per dwelling, according to the new thresholds established.
- €400,000 contribution to the Housing Fund, which remains unchanged.
The increase in the minimum investment required in Andorra further consolidates its status as a destination for high-net-worth investors. The model is evolving towards a more selective structure that prioritises stable capital and sustainable growth.
What is changing with the initial contribution of €50,000?
Another key aspect of the Omnibus 2 Law is the amendment to the €50,000 contribution to the AFA (Andorran Financial Authority), which is required from passive residents and self-employed individuals. Once this reform comes into force, this contribution will change from a deposit to a non-refundable payment. The same principle applies to the €12,000 required for each dependent of a passive resident. These payments will go to the country, which will use them for social policies and improvements.
However, one exception has been made. This contribution will not be required if the Andorran company has been established to develop a business project that has previously been validated by a government-recognised entity. The same applies to activities related to the digital economy, innovation and technological entrepreneurship, provided the regulatory criteria are met.
Changes in foreign real estate investment in Andorra
This package of measures will directly affect foreign real estate investment in Andorra, with the minimum amounts and applicable taxes being adjusted.
Firstly, a new threshold of €800,000 has been set for each property acquired, increasing the requirement for access to the residential market.
Secondly, the tax rate on foreign real estate investment will increase to:
- 6% for the first unit purchased.
- 10% for each additional unit purchased.
This represents a doubling of the rates provided for in the previous regulations, which were approved in April.
Other measures included in the Omnibus 2 Law
In addition to the changes relating to passive residence and foreign real estate investment, the Omnibus 2 Law includes a series of supplementary measures that affect the country’s economic, fiscal and business framework.
Stricter criteria and tougher penalties
For cross-border workers, the requirements for obtaining and renewing permits are being tightened. Renewal may be refused if the conditions that allowed the permit to be granted are no longer met.
New grounds for revoking a permit in the event of non-compliance have also been established. These include engaging in an activity other than that for which the permit was granted, or failing to meet the requirements for study permits.
Additionally, penalties for fraudulent behaviour, such as sham marriages or false contracts to improperly obtain residence, are being increased.
Finally, a new fee is being introduced for temporary authorisations at the point of origin.
New criteria in commercial policy
The reform strengthens the Government’s ability to set criteria and conditions for granting commercial authorisations for activities impacting the country’s urban and demographic growth.
In practice, this will enable specific limitations or requirements to be set for certain commercial projects, while respecting the powers of local authorities.
Additionally, a new area of analysis is being incorporated for large commercial establishments: their impact on the labour market and the company’s planned recruitment policies.
A new landscape for residence and investment in Andorra in 2026
A new phase of the Andorran residency model is beginning. The increase in the minimum investment to €1,000,000, the tightening of conditions for foreign real estate investment, and the strengthening of administrative criteria are creating a more selective and structured environment.
Andorra is clearly committed to attracting investors with a long-term vision, solid financial resources and a genuine desire to settle in the country.
For international investors, this new framework does not diminish the Principality’s appeal. In fact, it cements its status as a stable jurisdiction with competitive taxation and legal certainty, albeit with a more rigorous entry threshold.
Still unsure about applying for residency in Andorra?
Planning ahead is no longer optional; it’s a necessity. Andorra’s new residency framework requires a strategy aligned with the new requirements as well as rigorous tax analysis. Having the right structure in place allows you to minimise your investment, select the most efficient route, and ensure regulatory compliance from the outset.
Contact our team today to analyse your case and determine the most suitable strategy for safely and efficiently establishing your residence in Andorra.