The residency deposit in Andorra: origin, evolution and applicable regimes

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🏁 Context and purpose of the residence deposit

The residence deposit is a mechanism established by the Government of Andorra to guarantee the economic solvency of non-salaried residents and strengthen financial oversight and risk prevention.

It was first introduced by Law 27/2007, which amended the Qualified Immigration Law of 2002, and initially applied only to residents without lucrative activity (passive residents).

The first specific amount was set by the 2008 Government Decree, requiring a €15,000 deposit with the National Institute of Andorran Finance (INAF).

Since then, the system has evolved to adapt to new residence categories with two main objectives:

• to ensure that economic residents maintain sufficient financial resources;
• and to align Andorra’s regime with international standards of transparency and financial supervision.

➤ To better understand the general fiscal framework, see Taxation in Andorra: structure, rates and real advantages.

This evolution also reflects Andorra’s broader economic openness policy, driven over the last decade, particularly after signing double taxation agreements and joining international compliance frameworks.

➤ Learn more in the article Double Taxation Agreements (DTA) in Andorra.

🟡 Passive residence (without lucrative activity)

Passive residence — also known as residence without lucrative activity — was the first and oldest category requiring a mandatory deposit.

⚖️ Legislative evolution

• 2008 → Implementation Decree of Law 27/2007: introduces a €15,000 deposit with the INAF.
• 2012 → Qualified Law 9/2012, of 31 May: raises the deposit to €50,000 + €10,000 per dependent, still managed by the INAF.
• 2017 and 2019 → Consolidated versions of the Qualified Immigration Law, confirming the amounts and existing framework.
• 2025 → Law 5/2025, of 6 March (“Omnibus Law”): maintains the €50,000 deposit for the main holder and increases the additional amount to €12,000 per dependent, transferring management to the Andorran Financial Authority (AFA).

“Amounts deposited with the INAF or AFA as a financial guarantee do not generate interest and are refundable upon cancellation or termination of the residence.”
(Art. 39, Law 5/2025 on competitiveness and administrative simplification)

💡 Other key requirements

In addition to the financial deposit, passive residence requires other conditions that demonstrate the resident’s genuine commitment to the country and financial stability:

• Minimum investment in Andorran assets: €600,000, according to Decree 76/2024, of 27 September.
• Minimum effective stay: 90 days per year in Andorra.
• Non-interest-bearing and refundable deposit upon termination of residence.

➤ For full details, read Passive residence in Andorra: requirements, advantages and obligations.

🟢 Residence and self-employment

The residence and self-employment status was created by Law 9/2012, but in its early years, no deposit was required. Applicants only had to prove a minimum 20% shareholding and effective activity in the country.

⚖️ Legislative evolution

• 2012 → Articles 34–38 of Law 9/2012: creation of the self-employment category without deposit.
• 2018 → Law 10/2018, of 17 May: introduces for the first time a mandatory €15,000 deposit with the INAF.

“Make effective and deposit at the National Institute of Andorran Finance the amount of fifteen thousand euros (€15,000) not bearing interest…”
(art. 38 ter, Law 10/2018)

• 2022 → Law 42/2022, of 1 December, on the digital economy, entrepreneurship and innovation: maintains the deposit but allows exemptions for innovative projects.
• 2023 → new amount of €50,000 comes into force, now managed by the AFA.
• 2025 → Law 5/2025 (“Omnibus Law”) consolidates the regime and confirms the AFA’s authority.

💡 Deposit characteristics

The deposit regime for self-employed residents follows a similar logic to that of passive residence, though linked to the professional or business activity of the holder. Specifically:

• The deposit is mandatory, non-remunerated and refundable when residence is cancelled or expires.
• It aims to guarantee economic solvency and the applicant’s commitment to Andorra.
• It does not replace the obligation to maintain minimum shareholding and effective activity.

➤ For more details, read Residence and self-employment in Andorra: requirements and procedure.

⚪ Other types of residence without deposit

The following residence categories do not require any financial deposit:

• Residence and employment (salaried workers): requires an employment contract, Immigration authorisation and registration with the CASS, but no deposit.
• Seasonal residence: governed by Law 11/2022, which regulates authorisation periods.
• Frontier residence: for cross-border workers living outside Andorra and employed within the country.

These categories are based on labour or temporary activity, not on the applicant’s economic capacity or investment.

➤ To better understand the differences between residence types, see Residences in Andorra: comparison of categories and requirements.

➤ You may also be interested in Tax residency in Andorra: requirements and real advantages.

Conclusion

The residence deposit regime in Andorra has evolved from a symbolic financial control to an essential instrument of economic solvency and transparency:

• 2008–2012: creation under passive residence (€15,000).
• 2012: increase to €50,000 for passive residence.
• 2018: extended to self-employment (€15,000).
• Since 2023: unified at €50,000, managed by the AFA.

These amounts are refundable upon cancellation of residence, as they are not considered a tax or installation fee.

This evolution reflects Andorra’s commitment to international financial supervision standards, balancing legal certainty and economic attractiveness for new residents.

👉 To find out which residence type best fits your profile — passive, active or self-employed — you can book your personal consultation below or fill out the contact form.

Last revision date: November 202