Andorra Raises the Cost of Residence by Investment

Andorra has significantly tightened the cost of obtaining residence without the right to work, raising the minimum required investment in local assets to €1 million from the previous €600,000. The change forms part of a wider policy reset tied to housing affordability, stricter foreign-investment rules and the government’s effort to reduce the impact of external capital on the domestic property market.

Why Andorra raised the investment threshold

The political driver is laid out in Law 5/2025 on sustainable growth and the right to housing. In the law’s stated rationale, the authorities describe access to housing as one of the country’s main concerns and reposition foreign-investment policy to better match sustainable-growth goals and the protection of Andorra’s socio-economic order. The same legal framework makes clear that housing pressure and affordability are central reasons for the reform.

That means Andorra is no longer treating investment residence purely as a capital-attraction tool. It is now tying the regime more directly to housing policy, trying to make it less accessible to mid-tier international capital while steering some inflows toward uses that are less inflationary for the residential market. This is an inference based on the goals of the law and the redesign of the regime.

What changed for Andorra residence in 2026

Legal and industry reviews of the 2025–2026 reform say the minimum investment for passive residence, meaning residence without employment in Andorra, has been raised to €1 million. The same reviews say a lower-cost route remains available through the state housing fund, where the threshold is €400,000.

At the same time, Andorra’s official government page for the D.1 initial no-work residence confirms the structure of the regime itself: applicants must file a commitment to invest in Andorran assets, show they have accommodation in the country and prove sufficient annual income. The page also states that holders of this residence must spend at least 90 days per year in Andorra.

What financial requirements remain beyond the investment

The regime is not defined only by the investment amount. The government page says applicants must prove annual income above 300% of the annual minimum wage, with an additional 100% of that benchmark for each dependent family member. The document checklist also separately includes the investment-commitment form and materials linked to the deposit procedure with the Andorran Financial Authority.

For some special subcategories of no-work residence, such as internationally projected professionals and residents admitted on scientific, cultural or sporting grounds, the government also specifies a non-interest-bearing deposit of €47,500 for the main applicant and €9,500 per dependent. Those amounts apply to specific categories and should not be confused with the general investment threshold for passive residence.

What this means for Andorra’s housing market

The higher threshold is part of a broader tightening of foreign-capital rules in real estate. Law 5/2025 and subsequent regulatory changes explicitly connect the reform to the need to reduce the negative effects of external demand on housing, while foreign real-estate investment has been moved into a stricter prior-authorization framework.

That is why the change matters beyond migration policy. A €1 million entry point should reduce the number of applicants using property purchases as a comparatively accessible path to European residence. At the same time, the survival of the €400,000 housing-fund route suggests the government is not simply shutting capital out, but trying to redirect it toward housing-policy objectives. This is an inference based on the legal logic of the reform and public descriptions of the alternative channel.

Why the reform matters for investors

For international applicants, the change means Andorra is no longer a relatively low-cost residence-by-investment jurisdiction. A €1 million threshold makes the program much more exclusive and shifts it closer to the upper end of Europe’s investment-migration market. At the same time, the rules on physical presence, accommodation and income keep it anchored as a real residence status rather than a purely symbolic permit.

As experts at International Investment report, the jump to a €1 million threshold shows that Andorra is changing the philosophy of its investment residence model in 2026. The aim now is less about maximizing inflows of wealthy newcomers and more about aligning migration policy with housing scarcity, real-estate stability and the social limits of a small domestic economy.

FAQ on Andorra residence by investment

What changed in Andorra’s residence-by-investment rules in 2026?

The minimum investment threshold for no-work residence rose to €1 million from the previous €600,000.

Is there a cheaper route to Andorra residence?

Yes. Legal reviews of the reform say an alternative route remains through the state housing fund at €400,000.

Do applicants need to live in Andorra after approval?

Yes. The official government page says holders must reside in the country for at least 90 days a year.

Is income proof still required?

Yes. Applicants must show income above 300% of the annual minimum wage, plus an extra 100% for each dependent.

Why did Andorra change the rules?

The reform is tied to the housing crisis, tighter control of foreign investment and a broader push toward a more sustainable growth model.

When were these changes introduced?

The new framework is linked to Law 5/2025 of March 6, 2025 and subsequent regulatory implementation during 2025 and 2026.