The easy “tax haven” is over: Andorra raises the price of residency by investment
Andorra’s Parliament has approved today an immigration law that will radically transform the country’s demographic and economic profile. With this vote, the Principality marks the definitive end of its era as an easily accessible tax refuge, turning its residency-by-investment program—popularly known as the Golden Visa—into one of the most expensive and exclusive in Europe.
Until now, Andorra was seen by many as an accessible place to obtain residency with significant tax advantages. That perception is changing. The new legislation requires those interested in passive residency to invest a minimum of 1 million euros in Andorran assets, or at least €800,000 if they choose to purchase real estate, with the option of €400,000 through a housing fund.
The most controversial change, however, is the elimination of the refundable deposit with the AFA. This will be replaced by a non-refundable payment to the State of €50,000 for the main applicant and €12,000 for each dependent—an expense that will also affect new self-employed active residents.
The measure not only applies to those seeking the so-called “passive residency,” but also to those who wish to establish themselves as self-employed active residents, strengthening the economic and administrative requirements for all profiles.
Andorra has been adjusting its policies to protect housing availability, ensure sustainable and balanced population growth, and curb speculative pressure in the real estate market.
Authorities have stated that these reforms are part of a broader agenda known as the Sustainable Growth and Right to Housing Law, designed to ensure that the arrival of new residents does not negatively affect local citizens or the labor market.
The measure is driven by sustainability concerns and the need for controlled demographic growth, as Andorra seeks to stop being an “accessible tax alternative” and become a “highly exclusive” jurisdiction.
It will no longer be so easy—nor so cheap—to move to the Principality for tax reasons or lifestyle purposes. While the country remains open to investment and the arrival of foreigners, those who aspire to live there now face much higher economic barriers.
Until recently, the idea of relocating to Andorra for tax advantages was perceived as relatively accessible; now, with investments exceeding one million euros and non-refundable payments, that landscape changes completely.
These types of changes show how small governments are reassessing their models for attracting foreign capital—not only to increase revenue, but also to protect their local communities from speculation and demographic pressure.
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