# Andorra — Residency & Citizenship Conditions

> Source: https://residencyradar.org/conditions/andorra.html | Last checked: 2026-10-12 | Last updated: 2026-10-11

## Quick answer

- Remote workers: D.3 Residència per a nòmada digital: Income ≥ 300% minimum wage (≈€4,342–4,576/mo); foreign clients only (2 yr) [source: https://www.govern.ad]
- Investment: 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)
- Founders: Self-employed residence (compte propi): Own ≥20% of an Andorran company; AFA deposit €15,000 (2 yr)
- Citizenship by naturalisation: 20 years of legal residence

## 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. ^[https://www.advantia.ad/en/living-in-andorra/omnibus-2-law-new-requirements-residence-andorra]

## 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. ^[https://www.relotus-relocation.com/en/journal/andorra-residence-permit-for-russians]
- **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. ^[https://legalclarity.org/andorra-digital-nomad-visa-requirements-tax-and-costs]
- **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). ^[https://www.expatfocus.com/andorra/guide/andorra-citizenship]
- **Language**: Catalan — B1 (mandatory for under-70s) plus a history & geography exam. ^[https://europeanconservative.com/articles/news-corner/andorra-tightens-nationality-rules-new-catalan-language-residence-requirements]
- **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**. ^[https://legalclarity.org/andorra-digital-nomad-visa-requirements-tax-and-costs]
- **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. ^[https://www.relotus-relocation.com/en/journal/andorra-residence-permit-for-russians]

## 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 Snapshot

| Field | Value | Source / Confidence |
|---|---|---|

| Population | ~82,900 (World Bank 2025) | [hard/official](https://data.worldbank.org/country/andorra) |
| Main religion | Roman Catholicism | [hard/official](https://www.cia.gov/the-world-factbook/countries/andorra/) |
| Main language | Catalan (official) | [hard/official](https://www.cia.gov/the-world-factbook/countries/andorra/) |
| Main city | Andorra la Vella (capital) | [hard/official](https://www.cia.gov/the-world-factbook/countries/andorra/) |
| On the coast? | No — landlocked in the Pyrenees [soft/estimate] | soft/estimate |
| Tourism impact in season | High — ski (Dec–Apr) and summer; duty-free retail draws day-trippers [soft/estimate] | soft/estimate |
| GDP per capita (PPP) | ~$74,000 (World Bank GDP PPP ÷ population) | [hard/official](https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locations=AD) |
| Median net monthly salary | ~€2,000–2,300  [soft/estimate] | [soft/estimate](https://www.numbeo.com/cost-of-living/country_result.jsp?country=Andorra) |
| Cost of living index | ~58 (Numbeo, NYC=100)  [soft/estimate] | [soft/estimate](https://www.numbeo.com/cost-of-living/rankings_by_country.jsp) |
| Monthly rent, 1-bedroom apartment | ~€950 (city centre)  [soft/estimate] | [soft/estimate](https://www.numbeo.com/cost-of-living/country_result.jsp?country=Andorra) |
| Effective personal tax rate for remote workers | 0–10% (max 10%) | [hard/official](https://www.impostos.ad) |
| Remote-work / self-employment residence available? | Yes — D.3 nomad permit + self-employed route | See [[#digital-nomad-visa]] | hard/official |
| Years to citizenship | 20 years | See [[#citizenship]] | hard/official |
| Maximum permitted absence | 90+ days/year presence required to hold the permit | [soft/estimate] | soft/estimate |
| Passport strength | 170 visa-free destinations (Henley 2026) | [hard/official](https://www.henleyglobal.com/passport-index/ranking) |
| Rule of Law Index | No reliable data (not ranked in WJP 142-country index)  low | [hard/official](https://worldjusticeproject.org/rule-of-law-index/global/2024) |
| Freedom House score | 93/100 Free (2025) | [hard/official](https://freedomhouse.org/country/andorra/freedom-world/2025) |
| Average annual sunshine hours | ~2,400 h  [soft/estimate] | [soft/estimate](https://www.climatestotravel.com/climate/andorra) |
| Average annual temperature | ~8–10 °C (mountain climate)  [soft/estimate] | [soft/estimate](https://www.climatestotravel.com/climate/andorra) |

## Extended Snapshot

_Coverage: 48/55 fields. Only facts verifiable against official sources or published indices; practice-dependent topics (bank attitudes, real-world acceptance of Russian applicants, flights, policy mood) are deliberately excluded until community-sourced data is collected._

| Block | Field | Value | Source / Confidence |
|---|---|---|---|
| Geography & size | Area | 468 km² (2024) | [World Bank](https://data.worldbank.org/indicator/AG.SRF.TOTL.K2?locations=AD) — hard/official |
| Geography & size | Population density | 175 /km² (2024) | [World Bank](https://data.worldbank.org/indicator/EN.POP.DNST?locations=AD) — hard/official |
| Geography & size | Urban population | 89% (2025) | [World Bank](https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=AD) — hard/official |
| Geography & size | Coastline | 0 (landlocked) | [source](https://en.wikipedia.org/wiki/Geography_of_Andorra) — soft/estimate |
| Geography & size | Highest point | Coma Pedrosa, 2,942 m | [source](https://en.wikipedia.org/wiki/Geography_of_Andorra) — soft/estimate |
| Geography & size | Type | landlocked | [source](https://en.wikipedia.org/wiki/Geography_of_Andorra) — soft/estimate |
| Geography & size | Time zone | UTC+1 (CET), UTC+2 summer; Moscow -2h | [source](https://en.wikipedia.org/wiki/Time_in_Andorra) — soft/estimate |
| Climate | Avg precipitation | No reliable data | — |
| Climate | PM2.5 exposure | 8.9 µg/m³ (2023) | [World Bank](https://data.worldbank.org/indicator/EN.ATM.PM25.MC.M3?locations=AD) — hard/official |
| Climate | Climate zone | Oceanic (Cfb) in valleys, alpine (ET/Dfc) at elevation | [source](https://en.wikipedia.org/wiki/Geography_of_Andorra#Climate) — soft/estimate |
| Climate | Temp winter / summer | Andorra la Vella: Jan avg 2°C, Jul avg 19°C | [source](https://en.wikipedia.org/wiki/Andorra_la_Vella#Climate) — soft/estimate |
| Climate | Rainy days | ~90 days/year (Andorra la Vella) | [source](https://en.wikipedia.org/wiki/Andorra_la_Vella#Climate) — soft/estimate |
| Climate | Humidity | ~70% avg annual | [source](https://en.wikipedia.org/wiki/Andorra_la_Vella#Climate) — soft/estimate |
| Climate | Natural hazards | Avalanches, landslides; INFORM Risk not rated (microstate) | [source](https://drmkc.jrc.ec.europa.eu/inform-index) — hard/official |
| Climate | Air quality | 8.9 µg/m³ PM2.5 annual mean (IQAir 2023) | [source](https://www.iqair.com/world-most-polluted-countries) — soft/estimate |
| Economy | GDP (nominal) | $4.5B (2025) | [World Bank](https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=AD) — hard/official |
| Economy | GDP growth | 3.9% (2025) | [World Bank](https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=AD) — hard/official |
| Economy | Inflation (CPI) | No reliable data | — |
| Economy | Unemployment | No reliable data | — |
| Economy | Central govt debt | 40% of GDP (2024) | [World Bank](https://data.worldbank.org/indicator/GC.DOD.TOTL.GD.ZS?locations=AD) — hard/official |
| Economy | Gini index | No reliable data | — |
| Economy | Tourism receipts | 82% of exports (2019) | [World Bank](https://data.worldbank.org/indicator/ST.INT.RCPT.XP.ZS?locations=AD) — hard/official |
| Economy | Remittances | 0.9% of GDP (2025) | [World Bank](https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=AD) — hard/official |
| Economy | Credit rating | Fitch A- (10/2024), stable outlook; not rated by S&P/Moody's | [source](https://www.fitchratings.com/research/sovereigns/fitch-affirms-andorra-at-a-outlook-stable-18-10-2024) — hard/official |
| Economy | Currency | EUR (Euro), unilaterally adopted, not in Eurozone | [source](https://en.wikipedia.org/wiki/Andorra_and_the_euro) — soft/estimate |
| Economy | Top industries | Tourism ~80% of GDP, banking, retail | [source](https://en.wikipedia.org/wiki/Economy_of_Andorra) — soft/estimate |
| Economy | Economic Complexity | Not ranked (microstate) | [source](https://atlas.hks.harvard.edu/rankings) — soft/estimate |
| Technology | Internet users | 94% of population (2024) | [World Bank](https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=AD) — hard/official |
| Technology | Fixed broadband subs | 52.4 per 100 people (2024) | [World Bank](https://data.worldbank.org/indicator/IT.NET.BBND.P2?locations=AD) — hard/official |
| Technology | High-tech exports | 21.4% of manufactured exports (2023) | [World Bank](https://data.worldbank.org/indicator/TX.VAL.TECH.MF.ZS?locations=AD) — hard/official |
| Technology | R&D spend | 0.16% of GDP (2022) | [World Bank](https://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS?locations=AD) — hard/official |
| Technology | Global Innovation Index | Not ranked (microstate) | [source](https://www.wipo.int/web-publications/global-innovation-index-2024/en/gii-2024-results.html) — hard/official |
| Technology | E-Government (UN EGDI) | Not ranked separately (UN EGDI) | [source](https://publicadministration.un.org/egovkb/en-us/Data/Country-Information) — hard/official |
| Technology | Median broadband speed | Not in Ookla Global Index (microstate) | [source](https://www.speedtest.net/global-index) — hard/official |
| Technology | 5G | 5G available (Andorra Telecom, launched 2021) | [source](https://www.itu.int/en/ITU-D/Regional-Presence/Europe/) — soft/estimate |
| Technology | Online payments | Stripe not available; PayPal available | [source](https://stripe.com/global) — soft/estimate |
| Technology | Startup ecosystem | Not ranked (microstate) | [source](https://www.startupblink.com/) — soft/estimate |
| Human development & health | Life expectancy | 84.2 years (2024) | [World Bank](https://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=AD) — hard/official |
| Human development & health | Hospital beds | No reliable data | — |
| Human development & health | HDI | 0.913, rank 35 (UNDP HDI 2023) | [source](https://worldpopulationreview.com/country-rankings/hdi-by-country) — soft/estimate |
| Safety | Global Peace Index | Not ranked (GPI, microstate) | unsourced/unverified |
| Safety | US travel advisory | Level 1: Exercise normal precautions (05/21/2026) | [source](https://travel.state.gov/content/travel/en/traveladvisories/traveladvisories.html) — hard/official |
| Money & tax | FATF status | Not on FATF black or grey list (as of 2026-06-19) | [source](https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html) — hard/official |
| Money & tax | CRS exchange | No reliable data | — |
| Money & tax | Tax treaty with Russia | No reliable data | — |
| Money & tax | Wealth / inheritance / CGT | No wealth tax; inheritance tax 0-7%; capital gains 10% (PwC) | [source](https://taxsummaries.pwc.com/andorra) — soft/estimate |
| Money & tax | CFC rules | No CFC rules (PwC) | [source](https://taxsummaries.pwc.com/andorra) — soft/estimate |
| Business | Company setup | ~10 days, cost ~€600 (electronic registration) | unsourced/unverified |
| Business | Corporate tax | 10% (Jan 2026, PwC) | [source](https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/countrytaxrates.html) — soft/estimate |
| Family & education | Top university | University of Andorra; not in QS top 1500 | [source](https://www.topuniversities.com/world-university-rankings) — hard/official |
| Connectivity | Visa-free for Russians | Visa required; Schengen visa applies (Andorra de facto Schengen) | [source](https://www.exteriors.ad/en/visas) — soft/estimate |
| For Russian citizens | Sanctions position | Aligned with EU sanctions against Russia | [source](https://www.govern.ad/) — soft/estimate |
| Quality of life | World Happiness rank | Not ranked (microstate) | [source](https://worldhappiness.report/ed/2025/) — hard/official |
| Quality of life | Expat friendliness | Not listed (Expat Insider) | [source](https://www.internations.org/expat-insider/) — soft/estimate |
| Quality of life | Local language need | EF EPI not ranked; Catalan official; Spanish/French widely spoken | [source](https://www.ef.com/wwen/epi/) — soft/estimate |

## Country Card

### General description
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.

### Well-known 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

### Well-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

## Status
- **Last monitored**: 2026-10-12
- **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.
- **Watch items**: Quota exhaustion; further tightening of nationality rules; AFA contribution guidance on govern.ad still shows old amounts.

## Official and primary sources
- https://www.engage.ad/en/blog/residence-passive-andorre
- 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://www.expatfocus.com/andorra/guide/andorra-citizenship
- https://www.impostos.ad