The passive-residency investment requirement is EUR 600,000 in Andorran assets, in any combination of: Andorran real estate (most common, typically EUR 400,000+ property), Andorran company shares (SL or SA), Andorran government bonds, and Andorran-denominated bank deposits. The EUR 50,000 AFA bond (principal) plus EUR 10,000 per dependant counts as part of the total Andorran asset requirement but is held separately as a refundable government deposit. The investment must remain in place for the duration of the residency; withdrawal below EUR 600,000 can trigger residency cancellation.

Passive residents must spend a minimum 90 days per calendar year in Andorra. This is documented via border-crossing evidence, utility usage, Andorran banking activity, and other residence indicia. The 90-day threshold is meaningfully lower than Monaco (effective residence) or Switzerland (6-month majority-year), making Andorra accessible for clients who split time across multiple countries. Failure to meet the 90-day requirement can trigger residency cancellation. Active residents are expected to maintain centre-of-life residence (typically closer to 183 days effective residence).

Personal income tax (IRPF) is progressive: 0% on annual income up to EUR 24,000; 5% on income between EUR 24,001 and EUR 40,000; 10% on income above EUR 40,000. Dividends from Andorran or qualifying foreign companies benefit from participation-exemption reliefs. Capital gains on Andorran-company shares held more than 10 years are exempt; gains on foreign securities are generally exempt under participation rules. Wealth tax, inheritance tax, and gift tax are all 0%. Andorran IGI (VAT) is flat 4.5% — among the lowest in Europe.

No, not for naturalisation. Andorran naturalisation (after 20 years residence) requires renunciation of prior citizenship. Andorran-born persons can retain dual citizenship under specific provisions of the Constitution of Andorra (1993). For most foreign residents, dual-citizenship restriction is the principal reason not to pursue Andorran naturalisation — most UHNW clients maintain permanent residency indefinitely rather than naturalise and lose their existing passport. The 20-year track and language / civics requirements are also meaningful gates.

Yes. Andorra is a CRS participant (First Exchange 2018) and exchanges financial account information annually with partner jurisdictions globally. The US is not a CRS participant; Andorra has a FATCA Model 1 IGA with the US in force. Andorran banks and financial institutions perform full CRS and FATCA reporting to the Departament de Tributs (Competent Authority). Residents with foreign financial accounts should expect those accounts to be reported back to Andorra annually; Andorran accounts held by foreign tax residents are reported to their home tax-residency country.

Yes, and the Digital Nomad residency route (launched 2023) is specifically designed for this. Digital nomads work for foreign employers or on foreign-based business activity, tax-resident in Andorra under the 0-10% IRPF framework. Separately, passive residents cannot carry out Andorran commercial activity, but can continue foreign employment or passive investment activity; and active residents can operate Andorran business or hold Andorran employment. For pure remote professionals whose work is entirely outside Andorra, the Digital Nomad route is typically the cleanest fit.

Andorra has DTAs with France (2013), Spain (2016), Portugal, Luxembourg, Liechtenstein, Cyprus, Malta, the UK (2024 in force), and a growing network including Monaco, San Marino, and the Czech Republic. The Spain and France DTAs are particularly important for clients departing those jurisdictions — they provide clean treaty-residence allocation and prevent double taxation. Andorra does NOT have a DTA with the US; US persons rely on foreign tax credit. US persons remain subject to US citizenship-based taxation regardless of Andorran residence — only expatriation ends that.

Yes. Foreigners can acquire Andorran property — either as residents (most common) or as non-residents subject to a foreign-investment authorisation (in the Llei 10/2012 framework). For passive residency, EUR 400,000+ property acquisition is the most common component of the EUR 600,000 investment commitment. Property prices vary by parish: Andorra la Vella and Escaldes (EUR 5,000-12,000/sqm for premium properties), ski-adjacent parishes (La Massana, Ordino, Canillo EUR 4,000-8,000/sqm), valley parishes (Sant Julià EUR 3,000-5,000/sqm). Property taxes are modest.

No. Andorra is not a Schengen member and does not have formal Schengen-border controls because it shares land borders only with Spain and France (both Schengen members). In practice, travel to and from Andorra requires crossing Schengen borders via Spain or France; non-Schengen-permitted travellers face the Spain / France visa requirements, not a separate Andorran visa. Andorra maintains its own immigration system and is not part of the Schengen Information System. EU Association Agreement negotiations (ongoing as of 2026) may address this in future.

Five main houses: Andbank (strong international private-banking profile, presence in Luxembourg / Monaco / Miami); Crèdit Andorrà (largest, domestic + international); MoraBanc (private-banking focus, strong on-ramp for UHNW); Vall Banc (Swiss-owned by J.C. Flowers & Co., institutional and private-banking); and the smaller Banca Privada d'Andorra (restored post-2015). Post-CRS-2018 and post-FATCA, all Andorran banks operate at full EU-compliance standards. Private-banking minimums typically EUR 500k-1M; retail accounts accessible with residency. Andorran banks are Euro-denominated with multi-currency capability.

Moderate by Western European standards; below Monaco, Zurich, London, Paris, or Madrid. Andorra la Vella / Escaldes 2-bed rental runs EUR 900-2,000/month; family 3-bed EUR 1,500-3,500. Private schools (Andorra International School; British School of Andorra) run EUR 8,000-20,000/year; Andorran state schools (Catalan, Spanish, French systems) are free. Healthcare via CASS is comprehensive and covers both state and a deeply integrated private sector. Groceries, restaurants, and services are 10-30% below Spanish border prices. Comfortable UHNW household costs run EUR 10,000-25,000/month.

Four: First, Andorra is not Schengen, which means non-EU residents face some travel-paperwork friction entering Spain or France (though in practice the border is lightly managed). Second, the 20-year naturalisation track with renunciation requirement makes Andorran citizenship impractical for most residents — Andorra is a long-term-residency destination, not a passport destination. Third, Catalan language dominates government, schooling, and significant daily life — while Spanish is widely spoken, Catalan familiarity is important for integration. Fourth, the country is genuinely small (80,000 people, 468 square kilometres) with corresponding lifestyle constraints compared with Switzerland or Spain.