Main Upadates
Immigration
- Self-employment residence permits and residence permits for individuals without lucrative activity now replace the former refundable deposit with a non‑refundable payment to the AFA:
- €50,000 for the main applicant
- €12,000 per dependent (for residence without lucrative activity)
- Non‑refundable payment exemptions remain for projects in the digital economy, entrepreneurship and innovation, and are now extended to activities with high technological added value.
- The grounds for the refusal and revocation of authorizations have been broadened.
Foreign Investment
- The minimum investment required for residence without lucrative activity increases from €600,000 to €1,000,000 in Andorran assets.
- The possibility of investing in Andorran debt instruments, financial instruments, and collective investment schemes is reintroduced, for a maximum period of 36 months.
- For real estate investment, the minimum value per property increases from €600,000 to €800,000.
Taxation: Amendments to Law 3/2024 (foreign real estate investment tax)
Taxpayer criteria:
The determining criterion is now residence, rather than nationality.
This applies to:
- Non‑resident individuals
- Individuals who cannot prove 3 years of effective residence within the previous 10 years (except for study‑related absences)
- Foreign legal entities
- Andorran legal entities with foreign participation of 50% or more.
Tax rates:
- 6% on the first residential unit or plot intended for a single‑family home
- 10% on investments that exceed these thresholds, or where the conditions for applying the exemption linked to business activity are not met.
Why is this relevant?
These changes result in:
- Stricter requirements for obtaining residence and making investments
- Higher financial contributions for applicants
- Enhanced administrative oversight and compliance controls
- A growing need for careful strategic planning for prospective residents and investors
