Andorra remains one of the few European jurisdictions that, in 2026, continues to maintain a lawful residence permit regime based on investment.
While a number of European countries have fully discontinued investment residence programs, Andorra has not abandoned this model but has instead revised the specific conditions for its application – primarily the minimum investment thresholds, the structure of mandatory payments, and the requirements imposed on applicants.
On 22 January 2026, the Andorran Parliament approved a bill aimed at consolidating and further developing migration and housing reforms previously introduced under the so-called Omnibus Law of 2025 (Law 5/2025). The initiative is intended to curb speculative demand in the real estate market, address the housing shortage, and transition toward a more selective approach to attracting new residents.
The law will enter into force following its official publication in the Official Gazette of the Principality of Andorra (BOPA). Until that time, its parameters should be regarded as approved by Parliament but not yet legally effective.
Key changes affecting passive residence permits
(residence without the right to work – residència sense activitat lucrativa)
Following parliamentary review, the following reform parameters have been approved:
Minimum investment threshold.
The total volume of mandatory investments required to obtain a passive residence permit is increased to EUR 1,000,000. The government had previously considered a threshold of EUR 800,000; however, a higher level was ultimately adopted during parliamentary hearings.
Alternative through the Housing Fund.
A preferential route remains available, allowing applicants to obtain residence by investing EUR 400,000 in the state Housing Fund, which is focused on the development of affordable social housing.
Change in the model of state payments.
The reform provides for a transition from a system of refundable security deposits to a model of non-refundable contributions payable to the state. The final amounts of such payments will be confirmed following publication of the law in BOPA; however, the principle of changing the legal nature of these payments has already been approved at the parliamentary level.
Active residence and self-employment
The reform also affects individuals planning to carry out entrepreneurial activities in Andorra:
- a mandatory state contribution is set forth for the self-employed category, structured in a manner comparable to that applicable to passive residence;
- at the same time, an exemption or special regime has been announced for projects in the digital economy, innovation, and high-technology sectors.
In addition, control over the labor market is being strengthened: foreign nationals who are not EU citizens will be able to change their professional sector only after the third renewal of their permit, which effectively limits professional mobility during the initial years of residence.
Reform context and procedural requirements
The law approved by Parliament does not establish a new migration framework but rather develops mechanisms introduced in 2025 as part of the policy on sustainable growth and real estate market regulation. In particular, the following elements are retained and further developed on a phased basis:
- integration requirements for residents, including confirmation of basic proficiency in the Catalan language for the renewal of certain categories of permits, with transitional periods;
- the timeframe for completing the required investment after submission of a residence application – generally six months, unless otherwise specified in the final version of the law;
- application of the new rules following official publication in BOPA, with possible transitional provisions.
Nordic Star expert commentary
The 2026 reform confirms Andorra’s strategic move toward a model of “selective exclusivity.” For investors, the key factor is not only the increase of the investment threshold to EUR 1,000,000, but also the change in the financial logic of obtaining residence permits – namely, the shift away from refundable deposits toward non-refundable state payments.
When planning relocation in 2026, we recommend allowing for additional time and budgetary reserves and making investment decisions only after reviewing the published text of the law and its transitional provisions.
Nordic Star Law Offices continues to monitor publications in BOPA and is ready to assist clients with relocation matters, investment residence permits, and asset structuring in Andorra.