Passive residence in Andorra: evolution, requirements and legal framework

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🏁 Historical background and evolution

Passive residence in Andorra —officially called residence without lucrative activity until 2025— is the oldest form of economic residence in the country.

It was introduced by the Qualified Immigration Law of 14 May 2002 as a way to attract investors, high-net-worth individuals, and retirees wishing to settle in the Principality without engaging in local employment.

At first, only proof of sufficient income and a minimum investment of €400,000 were required, with no mandatory deposit.

Over time, the system evolved to ensure greater transparency and financial control.

🏛️ Key legislative milestones

1️⃣⚖️ Law 27/2007 and the 2008 Decree

Starting in 2008, the reform of Law 27/2007 and its implementing decree introduced for the first time a mandatory deposit of €15,000 with the INAF (National Institute of Finance).

The goal was to strengthen the figure of the economic resident and provide the government with a financial guarantee mechanism.

2️⃣⚖️ Qualified Law 9/2012 of 31 May

The 2012 reform marked a major turning point:

• Mandatory deposit: €50,000 + €10,000 per dependent.
• Minimum investment: €400,000 in Andorran assets (real estate, shares, bonds or deposits).
• Minimum stay: 90 days per year within a 365-day period.

From then on, passive residence became an exclusive regime for high-net-worth individuals with genuine interests in the country.

3️⃣⚖️ Consolidated texts of 2017 and 2019

These updates did not introduce material changes but confirmed the 2012 structure, keeping the INAF as the managing entity.

They also clarified the criteria for dependents, housing and mandatory health insurance.

4️⃣⚖️ Law 10/2018 and Law 42/2022

Although mainly focused on other categories (such as self-employed residence and digital nomads), these laws paved the way for a gradual harmonisation of economic residence regimes.

5️⃣⚖️ Law 3/2024 and Decree 76/2024

The Decree 76/2024 of 10 July raised the minimum investment threshold from €400,000 to €600,000, aligning it with the Andorran property market.
It also broadened the definition of eligible assets:

• Real estate located in Andorra.
• Bank deposits or sovereign bonds.
• Shares in Andorran companies or collective investment vehicles.

6️⃣⚖️ Law 5/2025 of 6 March (Omnibus Law)

The Omnibus Law 5/2025 (To learn more, see the article The Omnibus Law in Andorra) modernises and consolidates the regime:

• Maintains the €50,000 deposit, increasing to €12,000 per dependent.
• Transfers the deposit management from the INAF to the AFA (Andorran Financial Authority).
• Replaces the term “without lucrative activity” with passive residence.
• Unifies procedures and allows future adjustments by decree.

💶 Current requirements (2025)

To obtain or renew passive residence in Andorra, applicants must provide:

• Deposit: €50,000 in the AFA’s guarantee account.
• Dependents: €12,000 additional for each (spouse, children, or ascendants).
• Minimum investment: €600,000 in Andorran assets.
• Effective stay: at least 90 days per year.
• Full health insurance and suitable accommodation.
• No criminal record and proven financial solvency.

The deposit is non-remunerated and refundable upon termination of residence, provided the holder has fulfilled all fiscal and social obligations.

➤ To better understand how the guarantee deposit works and how it is managed by the AFA, see The residency deposit in Andorra: origin, evolution and applicable regime.

🧭 Purpose and advantages

This residence category is particularly suited to individuals who wish to:

• Benefit from Andorra’s maximum tax rate of 10%, if they become tax residents.
• Maintain geographical freedom and flexible asset management.
• Enjoy a secure and stable European environment.
• Access high-quality banking, healthcare and education services.

Unlike other European models, Andorra requires a real economic link with the country — not just formal registration — which strengthens its credibility before international institutions.

To clearly understand the distinction between passive residence (an administrative permit) and tax residence, we recommend reading Tax residency in Andorra: requirements and real advantages.

🧩 Comparison with other residence types

• Self-employed residence: also requires a €50,000 deposit, but it is linked to an active business or professional activity.

➤ To learn more, see the article Self-employed residence in Andorra.

• Employed residence: requires no deposit, as solvency is derived from the employment contract and CASS contributions.
• Temporary or cross-border residence: does not require a deposit either.

➤ For an overview of the different residence categories, see Types of residence in Andorra: active, passive and tax.

🧭 Conclusion

The Andorran passive residence remains one of the most solid and exclusive ways to establish residence in the Principality.

From its creation in 2002 to the Omnibus Law of 2025, the regime has evolved from €400,000 to €600,000 in required investment and from €15,000 to €50,000 in deposit, strengthening Andorra’s reputation for solvency and international credibility.

As a result, the profile of new applicants has become increasingly qualified and financially robust.

👉 If you wish to know whether you meet the requirements to apply for passive residence or plan your relocation to Andorra, you can book your personalised meeting below or fill out the contact form.

Last updated: November 2025