Andorra residency & tax 2026: how to apply, cost & timeline

How residency in Andorra works

Residency is administered by the Servei d'Immigració, the immigration service within Andorra's Ministry of Justice and Interior (Govern d'Andorra). It assesses applications, grants and renews immigration authorisations, and distinguishes between active residency (for those working or running a business locally) and passive residency, formally the residence authorisation without lucrative activity. Holding a permit does not by itself make you a tax resident: that depends separately on physical presence and where your centre of economic interests sits, so the two questions should be planned together.

Routes to residency

The two main routes are active residency and passive residency. Active residency suits people who work for an Andorran employer or set up and manage a local company, and generally requires spending at least 183 days a year in the country. Passive residency (residence without lucrative activity) is aimed at retirees, investors and remote earners living on income from outside Andorra; under Law 2/2026 the main applicant must make a permanent investment of around EUR 1 million in qualifying Andorran assets (a reduced figure of roughly EUR 400,000 applies if channelled into the public housing fund), plus a non-refundable payment to the State. A separate carve-out on more favourable deposit terms exists for recognised elite athletes, artists and scientists.

How to apply, step by step

1. Decide between active and passive residency, and confirm current 2026 thresholds with the Servei d'Immigració or a licensed adviser.
2. Gather and apostille your civil documents, criminal-record certificate, proof of income and private health cover.
3. Secure Andorran accommodation (rental or purchase) and, for passive residency, arrange the qualifying investment and state payment.
4. Submit the immigration authorisation application to the Servei d'Immigració with all supporting documents.
5. Complete the required medical examination in Andorra and attend any appointments requested.
6. Receive approval and formalise the investment within the permitted window (roughly six months for passive applicants).
7. Collect your residence card, then renew it on the scheduled cycle to keep the permit valid.
8. After long-term continuous residence, consider permanent residency or eventual naturalisation, noting citizenship requires renouncing your prior nationality.

What you'll need

• Valid passport and passport photographs
• Criminal-record certificate from your country of origin, apostilled and translated
• Birth certificate and, where relevant, marriage certificate, apostilled
• Proof of sufficient income or financial means
• Private health insurance covering Andorra
• Proof of Andorran accommodation (rental contract or property deed)
• Evidence of the qualifying investment and state payment (passive route)

Document lists and fees change — always confirm current requirements with the authorities (linked below) before you start.

Cost & timeline

How your income is taxed

Andorran tax residents are taxed on their worldwide income under the personal income tax (IRPF), but at low rates: broadly 0% on the first tranche of income (around EUR 24,000), 5% on the next band, and a maximum of about 10% above roughly EUR 40,000. There is no wealth tax and no inheritance tax, and the general indirect tax (IGI) is low by European standards.

You become a tax resident chiefly by spending more than 183 days a year in Andorra, or by having your centre of economic interests or immediate family there. Holding a residence permit alone does not create tax residency, so it is possible to hold passive residency without being an Andorran tax resident; treaty rules and your home country's exit and CFC provisions should be checked carefully.

Plan your position deliberately — see how to establish tax residency abroad, and mind exit taxes and any double-tax-treaty tie-breakers.

The upside — why people choose Andorra

• Personal income tax capped at roughly 10%, with no wealth or inheritance tax
• A safe, stable micro-state in the Pyrenees with a high quality of life
• Passive residency requires only about 90 days a year in the country
• Strong banking sector and access to good private healthcare and schools
• Proximity to Barcelona and Toulouse airports for onward travel
• Clear, codified routes with a predictable, if demanding, process

Common challenges to plan for

• Law 2/2026 sharply raised the passive-residency bar to around EUR 1 million in investment plus a non-refundable state payment
• Andorra is not in the EU or Schengen, so a permit does not grant free movement across the bloc
• Annual immigration quotas can limit or delay approvals
• Naturalisation is slow, typically around 20 years, and requires renouncing your existing citizenship
• Housing is expensive and limited, and winters in the mountains are harsh
• Documents must be apostilled and translated, and the process usually needs a local adviser

Who it suits

Andorra suits financially independent individuals, retirees, investors and business owners who can comfortably meet the seven-figure passive-residency commitment, or entrepreneurs willing to base a genuine business and themselves in the country under active residency. It rewards those who value low, transparent taxation, safety and Alpine living over EU free movement, and who can commit to real presence rather than a paper permit. It is a poor fit for anyone seeking a cheap, fast or purely nominal residency.

How Expectat helps

Andorra's routes are navigable on your own — and if that's your plan, the steps above are the plan. But if you'd rather not manage forms, apostilles and appointments in a second language, we can map the right route for your situation, connect you with vetted local specialists, and make sure the move actually delivers the tax outcome you're after — not just a residence card. Book a strategy call and we'll plan it with you.

Where it fits in a borderless plan

Residency is one flag of several. Pair a base like Andorra with a deliberate capital structure and a Bitcoin self-custody plan. For daily life on the ground, see our Andorra banking, healthcare and schools guides. For the wider map of low- and zero-tax bases, see countries with no income tax in 2026.