Andorra Passive Residency: Enjoy Tax Benefits with Minimal Time Commitment
Passive residency in Andorra is the ultimate solution for high-net-worth individuals, successful investors, and retirees who want European residency with exceptional tax benefits but don’t need or want to work in Andorra. Unlike active residency, the passive option requires only 90 days per year in the Principality—giving you maximum flexibility while accessing one of Europe’s most favorable tax systems.
If you’re an international investor managing a global portfolio, a successful entrepreneur who’s sold your business, a retiree seeking better tax treatment on your pension and investments, or a business owner who can work remotely without an Andorran company, passive residency offers the perfect balance of tax efficiency, lifestyle quality, and personal freedom.
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Passive residency (officially called “residència passiva” or “residence without gainful activity”) authorizes foreign nationals to live in Andorra without working or operating a business within the Principality. This residency category is designed for individuals who have sufficient financial means to support themselves from external income—investments, pensions, foreign business operations, remote work for non-Andorran entities, or other sources.
The defining characteristic is simple: you cannot be employed in Andorra or provide services to Andorran clients. Your economic activity happens outside Andorra while you enjoy residency, tax benefits, and the exceptional lifestyle the Principality offers.
Key Advantages:
- Only 90 days per year physical presence required
- Full tax residency benefits if you choose 183+ days
- No requirement to operate an Andorran business
- Complete investment flexibility
- Includes spouse and dependent children
- Path to permanent residency
- Financial privacy and asset protection
Complete Requirements & Investment Options
Passive residency has straightforward requirements, with the investment component being the most substantial consideration.
Investment Requirement: €600,000 Minimum (As of 2025)
The cornerstone of passive residency is demonstrating significant investment in Andorra. You must invest at least €600,000 in qualifying categories:
Real Estate Investment (Most Popular)
Purchase Andorran property worth at least €600,000. This can be:
– Residential property for your personal use
– Multiple properties totaling €600,000+
– Commercial real estate for investment purposes
– Combination of residential and commercial
Advantages: Tangible asset, personal enjoyment, potential appreciation, rental income potential
Andorran Bank Deposits
Deposit €600,000+ in Andorran banks. Can be:
– Fixed-term deposits
– Savings accounts
– Investment accounts at Andorran institutions
Advantages: Liquidity, simplicity, low maintenance
Andorran Company Shares
Invest €600,000+ in Andorran companies through:
– Direct equity purchases
– Participation in Andorran businesses
– Investment funds managed by Andorran entities
Advantages: Potential growth, economic contribution, relationship building
Andorran Government Bonds
Purchase €600,000+ in Andorran sovereign debt instruments.
Advantages: Government backing, predictable returns
Mixed Portfolio
Combine different investment types totaling €600,000+. Example: €400,000 real estate + €200,000 bank deposits.
Investment Flexibility:
Your €600,000 investment belongs to you—it’s not a fee or donation. You maintain full ownership and can benefit from appreciation, income, or interest. Upon leaving Andorra or canceling residency, you can liquidate and take your investment with you (subject to any applicable taxes).
Government Deposit: €50,000 (as of 2025)
In addition to your €600,000 investment, you must deposit €50,000 with the Andorran Financial Authority (AFA). This deposit is:
– Non-interest-bearing
– Fully refundable upon residency cancellation
– Serves as security for the government
– Additional €9,500 deposit required per dependent
Total Refundable Deposits:
– Single applicant: €50,000
Financial Requirements
Beyond the investment and deposit, you must demonstrate:
Sufficient Annual Income:
Prove annual income of at least 300% of Andorra’s minimum wage (currently approximately €50,000/year), plus 100% of minimum wage for each dependent. Income can come from:
– Investment returns
– Pension income
– Foreign business profits
– Rental income
– Any other legitimate source outside Andorra
Clean Source of Funds:
Banks and immigration authorities require proof that your investment funds come from legitimate sources. We help you prepare documentation showing:
– Origin of funds (business sale, inheritance, career savings, etc.)
– Bank statements demonstrating financial capacity
– Tax compliance in your home country
Required Documentation
Personal Documents:
– Valid passport (1+ year validity)
– Birth certificate (apostilled or legalized)
– Marriage certificate if applicable (apostilled or legalized)
– Clean criminal record certificates from:
– Country of citizenship
– Country of current residence
– Any country of residence for past 10 years
– All issued within past 3 months and apostilled
Financial Documents:
– Bank statements (typically past 6 months)
– Proof of income sources
– Investment documentation
– Tax returns (typically past 2-3 years)
– Letter from bank or financial advisor confirming assets
Housing Documentation:
– Proof of accommodation in Andorra:
– Property purchase deed (if buying), OR
– Long-term rental agreement
– Properties must meet habitability standards
Health Insurance:
– Valid health insurance covering you in Andorra
– Private insurance accepted (no requirement to join CASS)
– Minimum coverage typically €30,000-50,000
Medical Certificate:
– Obtained from Andorran doctor after arrival
– Confirms good health and no contagious diseases
Types of Residency
Choose the residency type that best fits your lifestyle and goals
Active Residency
For those who want to work and live actively in Andorra
Requirements:
- Minimum 183 days/year in Andorra
- Employment or business activity
- Elemento de lista
Benefits:
- Work permit included
- Access to healthcare
- EU travel benefits
Passive Residency
For investors and retirees seeking tax optimization
Requirements:
- Minimum investment of €600,000
- Minimum 90 days/year in Andorra
- Cannot work for others
Benefits:
- Tax advantages
- Investment flexibility
- Privacy protection
Family Reunification
For family members of Andorran residents
Requirements:
- Existing resident family member
- Proof of relationship
- Financial support guarantee
Benefits:
- Same rights as principal
- Healthcare access
- Education access
Study Residency
For students enrolled in Andorran institutions
Requirements:
- University enrollment
- Proof of financial means
- Health insurance
Benefits:
- Student visa benefits
- Part-time work allowed
- EU student exchange
The Passive Residency Process: Step by Step
01
Planning & Preparation
Initial Consultation:
We assess your eligibility, discuss investment options, explain the timeline, provide accurate cost estimates, and create your strategic roadmap.
Investment Strategy:
We help you decide which investment type suits your financial goals:
– Real estate: We connect you with reputable agents and advise on locations, prices, and rental potential
– Banking: We introduce you to Andorran banks and help structure your deposits for optimal flexibility
– Mixed approach: We design a portfolio combining real estate and financial investments
Document Preparation:
You begin gathering personal documents (criminal records, apostilles) while we prepare your financial documentation package.
02
Investment Execution
Banking Setup:
We coordinate Andorran bank account opening. This is essential for:
– Receiving and holding your investment funds
– Making the €50,000 government deposit
– Demonstrating financial solvency
– Managing future Andorran financial affairs
Our banking relationships dramatically accelerate this typically slow process.
Property Purchase (if applicable):
If investing in real estate:
– Property search and viewings
– Legal due diligence
– Purchase negotiation
– Notary coordination
– Registry and title transfer
– Typically 6-12 weeks for property transactions
Investment Confirmation:
Banking authorities verify your €600,000 investment is in place and meets requirements.
Government Deposit:
Once your main investment is confirmed, you transfer the €50,000 to the AFA.
03
Application Submission
Complete Dossier Compilation:
We compile your entire application including:
– All personal documents (apostilled and translated)
– Financial documentation and investment proof
– Housing confirmation
– Health insurance certificate
– Government deposit receipt
Immigration Submission:
We submit your complete application to Immigration Services and schedule required appointments.
Government Review:
Immigration reviews your application (typically 4-8 weeks). They may request:
– Additional documentation
– Clarifications on income sources
– Updated certificates
We handle all communications and requests immediately.
04
Approval & Finalization
Approval Notification:
Once approved, you receive official authorization to collect your residency card.
Medical Examination:
You travel to Andorra for a medical examination with an authorized doctor (quick appointment, typically 30 minutes).
Residency Card Issuance:
Immigration issues your physical residency card (tarjeta de residencia).
Parish Registration:
We help you register with your local parish (administrative district where you’ll reside).
Finalization:
Your residency is active. We provide guidance on:
– Banking relationship maintenance
– Annual compliance requirements
– Tax obligations (if any)
– Renewal process
Average Total Timeline: 4-6 months from initial consultation to receiving your residency card.
Why Choose JH Corporate for Passive Residency?
Investment Advisory Expertise
We help you choose the right investment strategy based on your financial goals, risk tolerance, and preferences. Our real estate and banking contacts give you insider access and better deals.
Banking Relationship Management
Our established relationships with all major Andorran banks mean your accounts open faster with less hassle. Banks trust our client vetting, streamlining approvals.
Complete Financial Documentation
We expertly package your financial documentation to satisfy both banks and immigration authorities, addressing compliance requirements while protecting your privacy.
Ongoing Wealth Management Coordination
We connect you with Andorran wealth managers, tax advisors, and financial professionals who serve international clients with discretion and expertise
Family-Focused Approach
We ensure your spouse and children's applications are perfectly coordinated, maximizing efficiency and minimizing delays.
Long-Term Relationship
Many passive residency clients work with us for years, relying on our support for renewals, tax questions, additional property purchases, and ongoing compliance.
Find Out Which Residency Is Right for You
Passive residency offers an exceptional quality of life combined with legitimate tax optimization. Imagine spending your winters in the Pyrenees, your summers exploring Europe, all while paying a fraction of the tax you currently face.
Frequently Asked Questions
It depends on the type of residency and administrative timelines. We’ll provide a realistic schedule during your first consultation.
No, passive residency doesn’t allow local employment. We’ll explain compatible options based on your situation.
Active residency requires you to spend most of the year in Andorra; passive residency only requires a minimum number of days.
We’ll give you a clear, upfront quote including government fees, insurance, and our service costs before starting.
Yes — we manage family regrouping and explain requirements for spouses and children.
