Residence in Andorra in 2025: stability and upcoming changes

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A turning point in Andorra’s residence policy

In recent years, Andorra has attracted more and more people seeking a competitive tax environment, safety and quality of life.
This has significantly affected the country’s demographics and pushed the Government to rethink its migration and foreign investment policies.

One of the main motivations for new residents is a highly attractive tax framework, with effective tax rates below 10 %, strong legal certainty, and a relevant and steadily expanding international network.
If you wish to learn more about taxation, we recommend the article Taxation in Andorra: a practical guide to understanding taxes, obligations and real risks.

New residents can benefit from this environment, provided they qualify as tax residents in the country.
If this concept is not entirely clear to you, or if you wish to explore it further, we recommend the article Tax residence in Andorra: requirements, benefits and obligations.

While the current framework remains stable, the direction towards tighter control and sustainable growth is becoming increasingly clear.

If you are not familiar with the process of obtaining residence in Andorra, we recommend reading beforehand the article Living in Andorra: the essential guide to obtaining residence and settling with confidence, which provides all the key information and answers regarding the process.

Population growth without precedent

Andorra has experienced steady demographic growth.
By September 2025, the resident population reached 88,649, a 2.4% annual increase.

Over recent years, average population growth has ranged between 1.5% and 2.5%, figures that are high for a country with limited resources (the European average stands at 0.4%).

If this pace continues, Andorra could exceed 100,000 inhabitants before 2030, a level difficult to sustain given the country’s limited size.

This demographic pressure, combined with rising real estate demand and higher housing prices, is driving political and legal debate.

If you wish to understand how this evolution has impacted the real estate market, we recommend The Andorran real estate market (2019–2025): prices, new developments and access to housing.

Official reduction of residence quotas

One of the key changes is the reduction of general residence and work permits to 900, approved by the Andorran Government.

🔹 Key figures

• 200 permits for self-employed residence.
• Previous years saw over 2,000–3,000 authorisations.
• This represents a significant restriction for new residents and workers.

The Economic and Social Council endorsed the measure in March 2025, citing the need to prevent labour and housing market saturation.

🔹Complementary measures

Other adjustments reinforce this selective approach:

• Six years of professional experience required for non-EU applicants.
• Reserved quotas for essential sectors such as healthcare, education and transport.
• Nearly 5,000 seasonal permits in 2025 to support the tourism industry.

These policies show a broader strategy: stability over uncontrolled growth.

A stricter legal framework: the 2025 Omnibus Law

These changes fall within the scope of Law 5/2025, of 6 March, on sustainable growth and the right to housing, commonly referred to as the “Omnibus Law”.

Published in BOPA No. 33 of 26 March 2025, this legislation seeks to balance economic development with territorial and social sustainability.

See full article on the Omnibus Law 2025: impact on foreign investment

🔹 Key provisions

• Restrictions on foreign real estate investment:
  Non-Andorran individuals may only acquire a single detached house or a maximum of two apartments, together with their annexes.
  Property development for speculative purposes is prohibited, unless at least 50% of the project is allocated to affordable rental housing for a period of ten years.
• Minimum effective residence:
  Foreign residents with less than three years of residence in the country may not accumulate an unlimited number of properties, and any investment requires prior authorisation.
• Strengthened immigration control:
  The Law amends the Llei 9/2012 d’Immigració, expanding the grounds for refusal or revocation of permits where abusive practices are identified.
• Enhanced supervision and sanctions:
  Infringements may result in fines of up to €20,000 or, in serious cases, the nullity of the company or business activity established.

Overall, the Omnibus Law legally consolidates a more controlled, sustainable growth model focused on access to housing.

An open debate with a clear direction

The reduction of quotas, increased professional requirements and the adoption of Law 5/2025 have triggered intense debate, both domestically and internationally.

Some sectors welcome the shift towards a more orderly and sustainable development model, while others fear that tighter rules may hinder the inflow of talent and productive capital.

🔹 Proposals under discussion

Among the measures currently being considered are:

• Converting part of the deposit required for passive residence or self-employment (€50,000) into a non-refundable fee of €30,000, in order to contribute more effectively to the country.
• Increasing the minimum investment required for passive residence from €600,000 to €800,000.
• Introducing language requirements (A1 or A2 level in Catalan) for permit renewals.
• Strengthening oversight of self-employed individuals and independent professional activities.
• Limiting the opening of new low-qualification businesses, prioritising specialised professional profiles.

These proposals confirm a clear trend: greater control, higher value added, and less speculation.

A moment of transition

The residence system in Andorra remains stable, but legal reforms point to a selective and sustainability-driven future.
The Omnibus Law and reduced quotas mark a transition towards a value-based, long-term model.

The message is clear: Andorra is moving towards a model in which residence and investment will become increasingly linked to the real contribution of value to the country.
For those considering relocating or investing, the optimal moment is now.
Each year, the conditions tend to become more demanding, reflecting an irreversible structural shift.

📞 Are you considering relocating to or investing in Andorra?

Given the current context, if you are considering relocating to Andorra, discover everything we can assist you with. As a first step, we recommend reviewing our publications section; however, if the available information does not fully address your situation, feel free to contact us via our Contact form.

If, instead, you prefer a confidential and expert meeting from the outset, you can book it just below this article.

We will be pleased to assist you in any case.

Last review date: December 2025.