Andorra signs its Association Agreement with the EU: what would change, and when
On 19 October 2026 in Brussels, Andorra signed its Association Agreement with the European Union. The Head of Government, Xavier Espot, signed for Andorra and Executive Vice-President Maroš Šefčovič for the EU. San Marino signed on the same day. Signature is an important step. It is not the end of the process, and it does not change the rules that apply to residents and companies in Andorra today.
In a nutshell:
The Andorran Government states that signature does not imply approval of the Agreement and does not bring its entry into force or application in Andorra. Without ratification, the Agreement cannot be applied.
The steps that follow
According to the Government, the planned sequence is:
The European Parliament gives its consent, provisionally planned for its 18–21 January 2027 session.
The Andorran Government calls a consultative referendum.
If the result is favourable, the Consell General ratifies the Agreement by a two-thirds majority.
On the EU side, the Council then concludes the Agreement, and each Member State ratifies it under its own procedure. No referendum date has been given, and reports suggest it may come after Andorra's 2027 general election. Each step can take time, and we will not guess at dates.
What it means for residents and companies now
Nothing changes today. The Government's FAQ states that the Agreement does not regulate non-EU immigration legislation, so the rules for residence permits stay as they are. Quotas, permit categories, and conditions continue to be set by Andorran law and the annual quota decrees.
The Agreement is also separate from the border management agreement, which deals with how the EU's Entry/Exit System applies at Andorra's land borders. That agreement has not entered into force.
What would change once the Agreement is in force
The Agreement would bring Andorra into the EU internal market for goods, services, capital and persons. Andorra would apply EU single-market rules as they evolve, and the Court of Justice of the EU would be the final arbiter of disputes on interpretation. It is not EU membership: Andorra would have no vote in EU decisions and would not contribute to the EU budget. Most changes start only after entry into force, and several have long transition periods.
Residence of EU citizens. Today: annual quotas set by Andorra alone; renewals after 1, 2, 2 and 2 years, then every 10 years. Once in force: Andorra keeps quotas in three categories: economically active, passive, and seasonal (under 12 months). Minimum quota numbers are fixed with the EU and based on the average number of valid permits. Renewal periods are set by Andorran law, up to 5 years; residence becomes permanent after 5 years. Applicants must still show sufficient resources. When: the new system starts 2 years after entry into force; it is reviewed every 10 years, and changes need both sides' agreement.
Family of EU citizens. Today: family reunification is not possible once the quota is exhausted. Once in force: family reunification remains possible even when the quota is exhausted. When: with the new residence system.
Criminal-record checks for EU citizens. Today: systematic checks. Once in force: a sworn self-declaration, checked at random. Systematic checks remain for sensitive professions such as health, education, law and financial services. When: with the new residence system.
Setting up a business. Today: Andorran rules on establishment and foreign investment apply. Once in force: restrictions on the freedom of establishment of EU nationals are prohibited. When: from entry into force, subject to the detailed annexes.
Cross-border services, including liberal professions. Today: Andorran rules apply. Once in force: free provision of services, on the same terms as nationals. When: after a 3-year transition period.
Financial services (banking, insurance, investment funds, securities). Today: no access to the EU market. Once in force: access granted step by step, only after EU supervisory authorities assess Andorra's rules and supervision and the Commission gives a positive recommendation. Access can be suspended if weaknesses appear. AML enforcement, including beneficial ownership, will be closely monitored. When: up to 15 years.
Capital and property. Today: Andorran rules apply. Once in force: restrictions on capital movements and payments are prohibited, with exceptions for tax, prudential supervision and public order. Andorra may limit purchases of secondary homes by non-residents, on the model Malta uses, once it amends its Foreign Investment Law. When: from entry into force.
Other sectors. Telecoms, including "roam like at home": 7-year transition. Customs duties on tobacco phased out over 30 years.
What the Agreement would not change
Immigration from outside the EU. The Agreement does not regulate it. Residence for non-EU nationals, including passive and investor routes, stays under Andorran law and the annual quota decrees.
Borders. Andorra is not joining Schengen, and border checks on persons continue.
Taxes. Taxation is excluded, so IRPF, corporate tax and IGI stay under Andorran law. Andorra does commit to the EU's tax good-governance standards: transparency, exchange of information and minimum standards against base erosion and profit shifting.
Requirements for passive residents. The Government's summary does not say whether the current financial requirements for passive residence would apply in the same way to EU nationals. We will update this note when the detail is published.
What to do in the meantime
Plan according to the rules that apply today.
If you are considering residency or moving a company to Andorra, take advice on your own situation before you decide.
Follow official announcements. We will update this note at each step.
Sources
AndorraUE, announcement of the signing in Brussels, 14 October 2026
AndorraUE FAQ: what changes and what does not change on immigration
Andorran Government, summary of the content of the Agreement (2024)
European Parliament interim report A10-0003/2026, 19 January 2026
Council of the EU press release, 16 July 2026
Altaveu, "Firmat l'acord d'associació amb la UE", 19 October 2026
Altaveu, "Els controls migratoris amb l'acord d'associació", 19 October 2026
VilaWeb, 18 October 2026
This article is general information, not legal or tax advice. Rules change; check current official sources. Information as of 19 October 2026, the day of signature. Details may change when the full text and implementing rules are published.
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