Andorra residency & citizenship
ADWestern EuropeHigh confidenceupdated 2026-10-11 · checked 2026-10-12- Years to citizenship
- 20 years
- Passport
- 170 visa-free
- Remote-work visa
- Yes — D.3 nomad permit + self-employed route
- Tax, remote workers
- 0–10% (max 10%)
- 1-bed rent / month
- ~€950 (city centre)
Monitoring
- Recent changes
- Omnibus 2 / Act 2/2026 (Feb 2026) raised passive-residence investment €600,000→€1,000,000, made AFA deposit non-refundable (€50,000, was €47,500 refundable), cut 2026 quota to 163. Nationality reform (2026) added mandatory B1 Catalan and raised marriage route to 5 years.
- Watching
- Quota exhaustion; further tightening of nationality rules; AFA contribution guidance on govern.ad still shows old amounts.
Overview
Andorra is a microstate in the Pyrenees between France and Spain. It is not an EU member, but its low taxes (max 10% personal income tax) make it a leading European relocation target. Its signature program, passive residence (residència sense activitat lucrativa), was reworked by the "Omnibus 2" law (Act 2/2026, in force 12–13 Feb 2026): the minimum investment rose from €600,000 to €1,000,000, and the AFA deposit became non-refundable. Citizenship is among Europe's hardest: 20 years. [1]
Residency Programs
| Type | Official Program | Key Conditions | Duration | Detail |
|---|---|---|---|---|
| investment_residency | Passive residence (residència sense activitat lucrativa) | €1,000,000 in Andorran assets (or €400,000 Housing Fund) + €50,000 non-refundable AFA contribution (+€12,000/dependent) | 2 yr → 2+2+10 | #passive-residence |
| passive_income_residency | Not available (folded into passive residence by investment since 2026) | — | — | — |
| digital_nomad_visa | D.3 Residència per a nòmada digital | Income ≥ 300% minimum wage (≈€4,342–4,576/mo); foreign clients only | 2 yr | #digital-nomad-visa |
| highly_skilled_employment | Not available | — | — | — |
| startup_entrepreneur | Self-employed residence (compte propi) | Own ≥20% of an Andorran company; AFA deposit €15,000 | 2 yr | #self-employed-residence |
| employment_residency | Active residence (compte d'altri) | Employment contract with an Andorran company (work permit quota) | 2 yr | #self-employed-residence |
| student_residency | Not available | — | — | — |
| family_reunification | Family reunification | Dependent of a resident; +€12,000 AFA contribution each | 2 yr | — |
| retired_residency | Not available (covered by passive residence) | — | — | — |
| citizenship_by_investment | Not available | — | — | — |
Per-Program Detail
Passive residence
- Official name: Residència sense activitat lucrativa (passive / by-investment residence)
- Conditions: €1,000,000 in Andorran assets (authorised funds, local company shares, insurance) OR €400,000 in the Fons d'Habitatge housing fund; non-refundable €50,000 AFA contribution (+€12,000/dependent); 90+ days/year presence; private health insurance; clean criminal record. 2026 quota: 163 permits. [2]
- Duration / renewal: 2-year initial, then renewals of 2+2+10 years.
- Path to citizenship: 20 years residence; Catalan B1 + history/geography exam.
- Official source: https://www.impostos.ad (Andorran government)
- Community verdict: Works well for high-net-worth profiles; the €1,000,000 threshold (up from €600,000) sharply narrowed eligibility in 2026.
Digital Nomad Visa
- Official name: D.3 Residència per a nòmada digital
- Conditions: Remote work for foreign clients/employers; income ≥ 300% of the minimum interprofessional wage (€4,342–4,576/mo in 2026); +50% per adult dependent, +30% per child; no AFA deposit required; 90+ days/year. [3]
- Duration / renewal: 2-year initial, renewable (2+3+10 ladder).
- Path to citizenship: 20 years residence.
- Official source: https://www.govern.ad
- Community verdict: Works well — lower bar than passive residence (no €1,000,000 investment); capped at 100 permits/year.
Self-employed residence
- Official name: Residència per compte propi (self-employed / company owner)
- Conditions: Incorporate and own ≥20% of an Andorran company; AFA deposit €15,000; monthly self-employed social contribution (≈€450–500).
- Duration / renewal: 2-year, renewable.
- Path to citizenship: 20 years residence.
- Official source: https://www.govern.ad
- Community verdict: Works well — standard route for business owners.
Citizenship
- Residence requirement: 20 years (standard); 10 years if educated in Andorra; 5 years if married to a citizen (raised from 3 in 2026). [4]
- Language: Catalan — B1 (mandatory for under-70s) plus a history & geography exam. [5]
- Dual citizenship: NOT permitted — must renounce prior nationality.
Tax
- Personal income tax (IRPF): 0% up to €24,000; 5% €24,000–40,000; 10% above €40,000 — 10% maximum. [6]
- Corporate tax: 10% maximum (reduced rates for new companies).
- IGI (VAT equivalent): 4.5% general rate.
- No wealth tax, inheritance tax, or capital-gains tax on most assets.
IT / Digital Nomad
Andorra runs a dedicated D.3 digital-nomad permit with no large deposit, but the income bar (~€4,400/mo) is high relative to the low tax. Andorra la Vella has a modest coworking scene; most nomads live there or in Escaldes-Engordany. 0–10% tax is the main draw for high-earning remote workers.
Yacht / Maritime
Landlocked — no coastline or yachting infrastructure. Not applicable.
Notes for RU citizens
No blanket ban on Russians, but three practical hurdles: needing Schengen access to reach Andorra, last place in the quota queue, and the EU sanctions cap on new deposits above €100,000 in Andorran banks. The €1,000,000 investment route and the €50,000 non-refundable contribution are the entry cost. Andorran banks run enhanced KYC for RU passport holders. [7]
Community pulse
Long-standing reputation as Europe's "low-tax Switzerland alternative" has held, but the Feb 2026 Omnibus-2 reform (€600,000 → €1,000,000, non-refundable €50,000, quota cut to 163) triggered broad criticism from advisors and a shift toward the D.3 nomad permit and self-employed routes. Processing is fast (~6 weeks for passive) once the file is complete.
Country Card
Andorra is a tiny, mountainous principality of ~83,000 people wedged between France and Spain, with Catalan as its official language and a service/tourism economy built on duty-free retail and winter sports. It is outside the EU but inside the euro area and Schengen-adjacent. Its defining attraction is a 10%-maximum personal income tax, which, combined with a high quality of life and low crime, draws high-net-worth expats and remote workers.
Strong points
- Personal income tax capped at 10% (0–10% brackets)
- Very safe, politically stable parliamentary co-principality (FH 93/100)
- Strong passport (170 visa-free, Henley 2026)
- High quality of life, mountain/ski environment, excellent healthcare
- No wealth, inheritance, or capital-gains tax
Known problems
- Citizenship requires 20 years and renunciation of prior nationality
- Feb 2026 reform raised passive-residence investment to €1,000,000 and made the €50,000 contribution non-refundable
- Tiny 2026 quota (163 passive permits)
- No coastline; small, expensive housing market
- High income threshold (~€4,400/mo) for the digital-nomad permit
Country Snapshot
| Field | Value | Source |
|---|---|---|
| Population | ~82,900 (World Bank 2025) | hard/official ✓ |
| Main religion | Roman Catholicism | hard/official ✓ |
| Main language | Catalan (official) | hard/official ✓ |
| Main city | Andorra la Vella (capital) | hard/official ✓ |
| On the coast? | No — landlocked in the Pyrenees [soft/estimate] | ~ |
| Tourism impact in season | High — ski (Dec–Apr) and summer; duty-free retail draws day-trippers [soft/estimate] | ~ |
| GDP per capita (PPP) | ~$74,000 (World Bank GDP PPP ÷ population) | hard/official ✓ |
| Median net monthly salary | ~€2,000–2,300 [soft/estimate] | soft/estimate ~ |
| Cost of living index | ~58 (Numbeo, NYC=100) [soft/estimate] | soft/estimate ~ |
| Monthly rent, 1-bedroom apartment | ~€950 (city centre) [soft/estimate] | soft/estimate ~ |
| Effective personal tax rate for remote workers | 0–10% (max 10%) | hard/official ✓ |
| Remote-work / self-employment residence available? | Yes — D.3 nomad permit + self-employed route | digital nomad visa |
| Years to citizenship | 20 years | citizenship |
| Maximum permitted absence | 90+ days/year presence required to hold the permit | ~ |
| Passport strength | 170 visa-free destinations (Henley 2026) | hard/official ✓ |
| Rule of Law Index | No reliable data (not ranked in WJP 142-country index) low | hard/official ✓ |
| Freedom House score | 93/100 Free (2025) | hard/official ✓ |
| Average annual sunshine hours | ~2,400 h [soft/estimate] | soft/estimate ~ |
| Average annual temperature | ~8–10 °C (mountain climate) [soft/estimate] | soft/estimate ~ |
Extended Snapshot
48/55 fields · ✓ official ~ estimate or secondary source, may be outdated ? unverified · fields without reliable data are hidden
Geography & size 7/7
| Area | 468 km² (2024) | World Bank ✓ |
| Population density | 175 /km² (2024) | World Bank ✓ |
| Urban population | 89% (2025) | World Bank ✓ |
| Coastline | 0 (landlocked) | en.wikipedia.org ~ |
| Highest point | Coma Pedrosa, 2,942 m | en.wikipedia.org ~ |
| Type | landlocked | en.wikipedia.org ~ |
| Time zone | UTC+1 (CET), UTC+2 summer; Moscow -2h | en.wikipedia.org ~ |
Climate 7/8
| PM2.5 exposure | 8.9 µg/m³ (2023) | World Bank ✓ |
| Climate zone | Oceanic (Cfb) in valleys, alpine (ET/Dfc) at elevation | en.wikipedia.org ~ |
| Temp winter / summer | Andorra la Vella: Jan avg 2°C, Jul avg 19°C | en.wikipedia.org ~ |
| Rainy days | ~90 days/year (Andorra la Vella) | en.wikipedia.org ~ |
| Humidity | ~70% avg annual | en.wikipedia.org ~ |
| Natural hazards | Avalanches, landslides; INFORM Risk not rated (microstate) | drmkc.jrc.ec.europa.eu ✓ |
| Air quality | 8.9 µg/m³ PM2.5 annual mean (IQAir 2023) | iqair.com ~ |
Economy 9/12
| GDP (nominal) | $4.5B (2025) | World Bank ✓ |
| GDP growth | 3.9% (2025) | World Bank ✓ |
| Central govt debt | 40% of GDP (2024) | World Bank ✓ |
| Tourism receipts | 82% of exports (2019) | World Bank ✓ |
| Remittances | 0.9% of GDP (2025) | World Bank ✓ |
| Credit rating | Fitch A- (10/2024), stable outlook; not rated by S&P/Moody's | fitchratings.com ✓ |
| Currency | EUR (Euro), unilaterally adopted, not in Eurozone | en.wikipedia.org ~ |
| Top industries | Tourism ~80% of GDP, banking, retail | en.wikipedia.org ~ |
| Economic Complexity | Not ranked (microstate) | atlas.hks.harvard.edu ~ |
Technology 10/10
| Internet users | 94% of population (2024) | World Bank ✓ |
| Fixed broadband subs | 52.4 per 100 people (2024) | World Bank ✓ |
| High-tech exports | 21.4% of manufactured exports (2023) | World Bank ✓ |
| R&D spend | 0.16% of GDP (2022) | World Bank ✓ |
| Global Innovation Index | Not ranked (microstate) | wipo.int ✓ |
| E-Government (UN EGDI) | Not ranked separately (UN EGDI) | publicadministration.un.org ✓ |
| Median broadband speed | Not in Ookla Global Index (microstate) | speedtest.net ✓ |
| 5G | 5G available (Andorra Telecom, launched 2021) | itu.int ~ |
| Online payments | Stripe not available; PayPal available | stripe.com ~ |
| Startup ecosystem | Not ranked (microstate) | startupblink.com ~ |
Human development & health 2/3
| Life expectancy | 84.2 years (2024) | World Bank ✓ |
| HDI | 0.913, rank 35 (UNDP HDI 2023) | worldpopulationreview.com ~ |
Safety 2/2
| Global Peace Index | Not ranked (GPI, microstate) | ? |
| US travel advisory | Level 1: Exercise normal precautions (05/21/2026) | travel.state.gov ✓ |
Money & tax 3/5
| FATF status | Not on FATF black or grey list (as of 2026-06-19) | fatf-gafi.org ✓ |
| Wealth / inheritance / CGT | No wealth tax; inheritance tax 0-7%; capital gains 10% (PwC) | taxsummaries.pwc.com ~ |
| CFC rules | No CFC rules (PwC) | taxsummaries.pwc.com ~ |
Business 2/2
| Company setup | ~10 days, cost ~€600 (electronic registration) | ? |
| Corporate tax | 10% (Jan 2026, PwC) | pages.stern.nyu.edu ~ |
Family & education 1/1
| Top university | University of Andorra; not in QS top 1500 | topuniversities.com ✓ |
Connectivity 1/1
| Visa-free for Russians | Visa required; Schengen visa applies (Andorra de facto Schengen) | exteriors.ad ~ |
For Russian citizens 1/1
| Sanctions position | Aligned with EU sanctions against Russia | govern.ad ~ |
Quality of life 3/3
| World Happiness rank | Not ranked (microstate) | worldhappiness.report ✓ |
| Expat friendliness | Not listed (Expat Insider) | internations.org ~ |
| Local language need | EF EPI not ranked; Catalan official; Spanish/French widely spoken | ef.com ~ |
https://www.advantia.ad/en/living-in-andorra/omnibus-2-law-new-requirements-residence-andorra ↩
https://www.relotus-relocation.com/en/journal/andorra-residence-permit-for-russians ↩
https://legalclarity.org/andorra-digital-nomad-visa-requirements-tax-and-costs ↩
https://www.expatfocus.com/andorra/guide/andorra-citizenship ↩
https://europeanconservative.com/articles/news-corner/andorra-tightens-nationality-rules-new-catalan-language-residence-requirements ↩
https://legalclarity.org/andorra-digital-nomad-visa-requirements-tax-and-costs ↩
https://www.relotus-relocation.com/en/journal/andorra-residence-permit-for-russians ↩
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