Andorra has just made its passive‑residence “golden‑visa” program significantly more expensive. The Parliament approved a bill on 22 January that raises the minimum investment from roughly €600 000 to €1 million and introduces a series of new, non‑refundable state fees.
New financial requirements
| Requirement | Previous level | New level |
|---|---|---|
| Minimum passive‑residence investment | ~€600 000 | €1 000 000 (≈ US $1.2 million) |
| Refundable deposit (previously) | €48 500 + €10 000 per dependent | Eliminated – replaced by non‑refundable fees |
| Non‑refundable state fee (main applicant) | – | €50 000 (≈ US $60 000) |
| Non‑refundable state fee (per dependent) | – | €12 000 |
| Alternative “housing fund” option | – | €400 000 (public‑private mechanism) |
The law also caps certain investment vehicles at 36 months, after which the capital must be moved to another asset. Real‑estate investments must allocate at least €800 000 to a single property; the €1 million threshold cannot be spread across many small units.
Investment routes that satisfy the €1 million threshold
- Real estate – purchase of a property (or a single‑unit development) valued at ≥ €800 000.
- Government bonds – purchase of Andorran sovereign debt.
- Equity or debt in Andorran companies – shares or bonds of locally incorporated firms.
- Collective investment funds – regulated funds under Andorran law.
- Life‑insurance products – policies issued by Andorran insurers.
All investments must be “permanent and effective,” meaning the capital cannot be withdrawn at will.
Why the change?
Andorra’s program, long praised for its low tax rates, political stability and Alpine lifestyle, is being repositioned as a “high‑end” jurisdiction. The government cites:
- Housing pressure – concerns that foreign investors drive up local property prices.
- Sustainability – a desire to limit demographic growth.
- Political considerations – avoiding the perception that golden‑visa holders are responsible for rising housing costs, even though they represent a tiny fraction of the market.
These justifications mirror a broader European trend. Over the past decade, many EU states introduced or expanded residence‑by‑investment schemes to attract capital during economic downturns. As economies recover, several have raised thresholds or closed programs altogether:
- Spain and Portugal – have reduced options and tightened requirements.
- Latvia – increased its fee from a few hundred euros to €25 000.
- Ireland – still offers a pathway via company formation and employment, but with a clearer route to citizenship.
- Greece – remains one of the more straightforward EU options.
Practical implications for prospective applicants
- Act quickly – the new regime is already law; once published in the official gazette it takes effect immediately.
- Budget for higher costs – beyond the €1 million investment, applicants must also pay the €50 000 (plus €12 000 per dependent) state fee and any transaction costs associated with the chosen asset class.
- Consider alternative jurisdictions – for those seeking EU mobility without a seven‑figure outlay, options such as Ireland (company‑based route), Greece (property‑based visa), or non‑EU programs (e.g., Dubai, Georgia, Singapore) may offer lower barriers and clearer paths to citizenship.
- Assess investment liquidity – many of the permissible assets (government bonds, real estate) are relatively illiquid, and some fund investments are time‑limited to 36 months.
Bottom line
Andorra’s passive‑residence scheme has shifted from a relatively accessible tax‑friendly option to a high‑cost, exclusive program. The €1 million investment floor, combined with new non‑refundable fees, places it on par with the most expensive European golden‑visa schemes. Prospective investors should weigh the increased financial commitment against the benefits of Andorran residency and explore alternative jurisdictions that may better align with their budget and citizenship goals.
