Andorra's New Immigration Law — What Changed in 2026 and What It Means for You
Andorra's New Immigration Law — What Changed in 2026 and What It Means for You
In early 2026, Andorra passed a significant piece of legislation — the Law on Continuity and Consolidation of Measures for Sustainable Growth — which introduced some of the most meaningful changes to the country's immigration framework in several years. If you are considering relocating to Andorra, or if you already hold a residency permit, there are changes here that directly affect you.
This post sets out the key changes in plain language.
1. The €50,000 AFA deposit is now non-refundable
This is the most significant change for anyone considering passive residency.
Previously, applicants for passive residency (residència sense activitat lucrativa) were required to make a deposit of €50,000 with the Andorran Financial Authority (AFA). Although it earned no interest, this amount was refundable — you could recover it if you left Andorra or chose not to renew your permit.
Under the new law, this is no longer the case. The €50,000 is now a permanent, non-refundable contribution to the state. It will not be returned under any circumstances, except in the one case where the initial application is refused.
The additional €12,000 per dependent family member acquiring residency is subject to the same terms — permanent and non-refundable once the permit is granted.
What this means in practice: the decision to apply for passive residency in Andorra now carries a higher irreversible financial commitment than before. This makes it more important than ever to be well-prepared and properly advised before submitting an application.
2. The minimum investment requirement has increased to €1,000,000
The qualifying investment required for passive residency has been raised to €1,000,000 in Andorran assets. The eligible asset types have also been expanded and now include:
· Real estate in Andorra — with a minimum of €800,000 per property unit · Shares or equity in Andorran resident companies · Debt or financial instruments issued by Andorran entities, or Andorran collective investment funds — subject to a maximum 36-month holding period, after which funds must be reinvested in another eligible asset type · Debt instruments issued by Andorran public authorities · Life insurance products from Andorran resident entities · Non-remunerated deposits with the AFA
There is a reduced route: if the full investment is made in the Andorran Housing Fund (Fons d'Habitatge), the threshold drops to €400,000.
Applicants have 6 months from the date of application to complete the investment, with the possibility of a further 6-month extension in cases of force majeure or third-party fault.
3. Stricter grounds for cancellation of permits
The new law introduces additional grounds on which an immigration permit can be cancelled. These now include:
· Failure to reside permanently and effectively in Andorra for the required period · Working outside the activity or sector for which the permit was granted · Fraud or omission of information in the application — including simulation of family or contractual relationships · For temporary workers: working more than 52 hours per week in total, or more than 12 hours per week in a sector different from the one authorised
The message is clear: Andorra expects genuine compliance, not formal compliance. Permits are granted for real activity and real presence — and the authorities are actively monitoring this.
4. Tighter requirements for self-employed (compte propi) permits
The law introduces more demanding requirements for those seeking residency through self-employment. The quota reservation system — previously applicable only to non-professional freelancers — now extends to all self-employed applicants including regulated professions. Applicants have 6 months to complete the required investment once their quota is reserved.
5. New rules on changing sectors for non-EU workers
Non-EU workers who hold a residence and work permit will now be required to have at least 5 years of residence in Andorra before they can change to a different employment sector. This is a significant restriction on mobility within the labour market.
6. Reduced immigration quota for 2026
The overall immigration quota for 2026 has been reduced by 11% compared to the initial quota approved in October 2025. The quota for passive residents has been cut by nearly 50%, and the quota for self-employed permits has been reduced by 6%. Only 200 self-employed permits will be available in 2026 in total.
This means that the window for obtaining certain types of permit is considerably narrower than in previous years. Timing matters.
What this means if you are considering Andorra
The 2026 law signals that Andorra is managing its growth deliberately and carefully. The country is not closing its doors — but it is raising the bar for who comes in, and making the financial commitment to passive residency more significant and irreversible.
For anyone who is genuinely committed to relocating to Andorra and has the means to do so properly, the fundamentals remain compelling: low taxes, political stability, high quality of life, and a well-regulated legal environment.
For anyone who was considering Andorra as a light-touch, low-commitment option — the new law makes clear that this is not that kind of jurisdiction.
If you would like to understand how these changes affect your specific situation, the best starting point is a conversation. We will give you an honest assessment of your options and whether the timing is right for you.
📩 info@rankre.net 📱 +376 644118 (WhatsApp)
RANKRE Business Services · Andorra la Vella This post is for informational purposes only and does not constitute legal advice. The law is subject to further regulatory development. We recommend taking professional advice before making any decisions.
