Andorra passive residency: €1 million invested, 90 days a year, and a €50,000 payment you won't get back
Since February 2026, living on your investments in the Pyrenees takes about $1.14 million in Andorran assets and yearly income above three times the local minimum wage.
Andorra set aside 163 passive permits for 2026, handed out in the order files come in. Here's what the new law requires, what it costs an American, and what it won't do for you.
Is this your route?
Your money has to come from assets, not a paycheck
This permit is for people who won't work in Andorra and can keep serious money there. You live on investment or foreign income, spending at least 90 days a year in the country.
Income has to top three times Andorra's annual minimum wage. One local firm put that at €54,911.88 (about $62,500) for 2026 before the wage rose in July. Social Security alone won't clear it.
The 2026 numbers (at €1 = $1.14, September 2026)
€1,000,000
Minimum investment
about $1.14M in Andorran assets
€400,000
Housing Fund option
about $455,000 instead
€50,000
Payment to the AFA
non-refundable, about $56,900
€12,000
Extra per dependent
non-refundable, about $13,650
90 days
Minimum stay each year
per calendar year
3x
Yearly minimum wage, as income
wage is €1,568.67/mo since July 2026
€2,500
Application fee
plus €500 per dependent
163
Passive permits in the 2026 quota
assigned in filing order
The investment
What counts toward the €1 million
Llei 2/2026 took effect February 13, 2026. You have six months after filing to put the money in place, extendable only if something outside your control delays it. Can't prove the investment? The permit is canceled.
- Andorran property, if each unit costs more than €800,000 (about $910,000)
- Shares in Andorran companies
- Andorran bonds, financial instruments or funds, for 36 months at most before the money must move
- Debt issued by Andorra's government
- Life insurance with an Andorran insurer
- An interest-free deposit with the Andorran Financial Authority (AFA)
Passive Residency Permit
Designed for retirees, investors, and high net worth individuals who do not work in Andorra. Offers favorable tax conditions for those with significant financial means.
- Government cost
- $600,000
- Processing time
- ~90 days
- Timeline
- 3 months
- Difficulty
- Hard
About that data card
Our listing still reads "Invest at least €600,000 in Andorra" and "Provide a financial guarantee deposit." Both describe the rules before February 13, 2026. The floor is now €1,000,000 (or €400,000 in the Housing Fund), and the €50,000 AFA payment is final, not a deposit. The government's own procedures page still showed the old amounts in September 2026, so ask which rules any quote is based on.
Six catches to weigh before you commit
No public health system
Passive residents can't join CASS, Andorra's social security. You need private coverage valid in Andorra for illness, disability and old age.
No local work
The permit bars paid work in Andorra. Your income has to come from investments or from outside the country.
U.S. taxes keep going
The IRS taxes citizens on worldwide income, and there's no U.S.-Andorra tax treaty. The foreign earned income exclusion doesn't cover pensions or Social Security.
Tax residency is a separate test
Andorra's 10% top rate applies to its tax residents. One test is more than 183 days a year there, well past the 90 the permit asks for.
Buying got pricier
Foreign buyers now pay a real estate investment tax of 6% on a first property and 10% on a second, double the old rates.
Catalan is coming
From 2029, Catalan tests at renewal extend to passive permits. Citizenship takes 20 years, B1 Catalan and giving up U.S. citizenship.
The process
How an application moves
The government has up to two months to decide. Your first permit lasts two years, then renews for two, then three, then ten at a time. Quota places go in filing order, so a complete file early in the year matters.
- Line up Andorran housing, rented or owned, that meets habitability rules
- Buy private health insurance valid in Andorra and get a medical certificate there
- Gather your passport, a criminal record check and proof of income
- File, paying the €2,500 fee and the €50,000 AFA payment
- Put the investment in place within six months
- Register at your parish Comú within one month of approval
People who help with the U.S. side
Plan-B Outbound Migration
Multi-Country Visa Support
Visa and relocation support across several countries, useful for comparing Andorra with other passive-income routes before you commit money.
MyExpatTaxes
U.S. Expat Tax Service
Files the U.S. tax return Americans abroad still owe each year.
Beacon Global Advisors
Financial Planning
Financial planning for Americans overseas, covering retirement accounts and investment portfolios.
Moneycorp
Currency Exchange
Currency exchange and international transfers for turning dollars into the euros an investment and AFA payment require.
ExpatInsure
Global Health Insurance
International health insurance for people living outside their home country.
Hunter Schultz
Healthcare Coach
A healthcare coach who helps Americans plan how they'll get care and coverage abroad.
Andorra passive residency questions
Can buying a home in Andorra count as the investment?
Yes, but each property unit must cost more than €800,000 (about $910,000). Foreign buyers also pay Andorra's real estate investment tax, which doubled in 2026 to 6% on a first property and 10% on a second. Have a local adviser confirm you're allowed to buy before you sign anything.
Is the €50,000 AFA payment refundable?
No. Since February 2026, the €50,000 for the main applicant and €12,000 per dependent are final payments to the state. You get them back only if your first application is denied. Older guides describe a refundable €47,500 deposit, and that rule no longer applies to new applications.
Does passive residency make you an Andorran tax resident?
Not automatically. Tax residency is a separate test, based on things like spending more than 183 days a year in Andorra or having your main economic interests there. Andorran tax residents pay nothing on the first €24,000 of net income, an effective 5% up to €40,000, and 10% above that. As a U.S. citizen, you'll still file with the IRS and owe U.S. tax on worldwide income.
How much do you need to invest for Andorra passive residency in 2026?
At least €1,000,000 (about $1.14 million as of September 2026) in Andorran assets, under Llei 2/2026, in force since February 13, 2026. Putting the money into Andorra's Housing Fund lowers it to €400,000 (about $455,000). On top of the investment, you pay €50,000 (about $56,900) to the Andorran Financial Authority, plus €12,000 (about $13,650) for each dependent.
How many days a year do you have to spend in Andorra?
At least 90 days per calendar year. It's a condition of the passive residency permit itself, so keep records of your time there in case you're asked to show it.
Can you work in Andorra on a passive residency permit?
No. Passive residency doesn't allow paid work in Andorra. If you work remotely for employers or clients abroad, Andorra's digital nomad permit costs €224.61 (about $256) to file and has no investment requirement.
Does Andorra's passive residency lead to citizenship?
Only after a long wait and a hard trade. Naturalization takes 20 years of residence with the last five uninterrupted, a B1 Catalan certificate, and giving up your other nationality. For an American, that means renouncing U.S. citizenship.
How long does approval take, and how long does the permit last?
The government's stated maximum is two months to decide. The first permit lasts two years, the first renewal two more, the second three, and after that it renews for ten years at a time. The 2026 quota has 163 passive permits, assigned in the order applications are filed.
Other ways to live in Andorra
Andorra's Active Residency Permit: a local job or your own company, and a quota to beat
Founders now pay about $57,300 (€50,000) that they won't get back, and Americans sit last in line for the 2026 self-employed quota. Here's how both routes work and what they cost.
Andorra's digital nomad permit: Pyrenees living on a paycheck earned elsewhere
Two government sign-offs, a fee of about $256, and at least 90 days a year in the country. Here's who qualifies, what it costs, and what the rules leave unclear.
Weighing Andorra against the rest of your list?
Take the free Expatsi Test to compare Andorra with other countries on cost, healthcare and residency, then talk it through with our team.
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