Residence in Andorra: apart from lucrative activity


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Conseguir tu residencia en Andorra


This article has been revised and updated in accordance with the latest amendments to Andorran regulations. Updated August 2023. The desire to live in Andorra has grown over time and many…

Passive residence without gainful activity is a type of residence that allows you to live in Andorra without carrying out any economic or professional activity there. In other words, it is a residence permit for people who have sufficient income to support themselves without having to work. In this article, we explain what the passive residence permit without gainful activity in Andorra is, and also the requirements for obtaining it, and the advantages.

Table of contents:

  1. Conditions of application for residence without gainful activity
    Financial conditions for applying for passive residence
    Permitted period of residence without gainful activity
    Advantages of living in Andorra



Conditions of application for residence without gainful activity

How can one obtain passive residence in Andorra if one is interested in investing? Andorra grants passive residence permits to foreigners who invest in its territory, whether in real estate, business projects or bank deposits. This measure aims to attract foreign investment and generate wealth for the country.
In order to apply for a passive residence permit, certain requirements must be fulfilled, such as:

• Being of legal age.
• Providing proof of no criminal record with the Hague Apostille.
• Having private health insurance with cover in Andorra.
• Having sufficient financial means to support both the person applying for passive residence and his/her family (see details in the next paragraph of this article “Financial conditions for applying for residence without gainful activity”).
• Residence in Andorra for at least 90 days.
• An investment in Andorra is also required.

Financial conditions for applying for passive residence

In this section we list the current financial requirements following the recent changes to the Immigration Act.
• Proof of an annual income of more than 300% of the Andorran minimum wage (about €62,000) plus an additional 100% for each dependant (about €15,500). The minimum wage in 2023 will be €1,286.13 per month.
• Having accommodation in Andorra, either owned or rented.
• Payment of a non-refundable deposit of €47,500 to the Andorran Financial Authority (AFA), plus €9,500 for each dependant.
• Investment of at least 600,000 euros in real estate located in the territory of Andorra (in real-estate units with a minimum value of 400,000 euros per unit), in shares in Andorran companies, in bonds or financial instruments issued by local companies, in life assurance contracted with companies established in the country or in non-interest-bearing deposits with the Andorran Financial Authority. However, that amount is reduced to €400,000 if the investment is made directly or indirectly, permanently and effectively in the Housing Fund.

Permitted period of residence without gainful activity

Residence permits without entitlement to work are issued for a renewable period of two years. The first renewal is for two years, the second for three years and the third for 10 years.

In addition to residence without gainful activity, Andorra offers other forms of fiscal residence, such as professional residence with international projection, residence for reasons of scientific, cultural or sporting interest, as well as residence for admission to geriatric centres or private medical-therapeutic centres.

Advantages of living in Andorra

Are you looking for a unique place in which to start your new life? Andorra offers many advantages. Besides the financial considerations, the high quality of life is one of the most appreciated aspects. Here are some of the points most appreciated by new residents in Andorra:

• An exceptional natural environment

Did you know that 90% of Andorra’s territory is a natural landscape of mountains, lakes, meadows and forests? One of its greatest attractions is its impressive mountains, making it an ideal place for nature lovers. It offers a wide range of outdoor activities, from hiking in summer to skiing and other activities in the winter snow.

• A good location, with good connections

The country is located in the Pyrenees, between Spain and France, close to major cities such as Barcelona and Toulouse. It is easily accessible by car and public transport. In addition, from the end of 2021 there will be regular flights to Madrid from Andorra-La Seu airport, 20 minutes from the Principality. In fact, the Andorran government is considering increasing the number of routes with three new destinations, which could be London, Palma de Mallorca and Paris.

• Good quality of life

Another of the great advantages of living in Andorra is the high quality of life. First, it is a safe country to live in, with a much lower crime rate than those of neighbouring countries. In addition, the health system is highly regarded, and life expectancy is one of the highest in the world at over 85 years. With regard to employment, the unemployment rate for the active population is 1.7%, whereas the average for EU countries is about 6% (data from the Andorran Statistical Office from April 2023).

• Education system

If you come to live in Andorra with your family, and have children of school age, you can choose from among three free education systems: Andorran, Spanish and French. In addition to the public schools, Andorra has two private schools where you can study for the International Baccalaureate and some university degrees.

• Fiscal advantages

Andorra is renowned for having one of the most favourable fiscal regimes in Europe. Taxes are lower than in other countries, and this is very attractive for investors and entrepreneurs wishing to set up their businesses.
It is also a politically and economically stable country with a strong economy.

• New business opportunities

The country is making great strides in new economic sectors and is adapting to current market demands. In this context it has created legal frameworks and specific laws to promote new business opportunities, mainly related to the digital economy, to innovation and to entrepreneurship.

These are only some of the advantages of living in Andorra, which is a
very attractive place in which to enjoy a high quality of life, surrounded by an exceptional natural environment and benefiting from low taxes and economic stability.

If you have been persuaded by the wonderful conditions our country has to offer, but do not know where to start, the Advantia Assessors team will be delighted to help you through the whole process.