New requirements for obtaining a residence permit through investment have come into force in Andorra. Now, to apply for a residence permit, you must invest at least one million euros in the country’s assets. In addition, the refundable deposit has been abolished, replaced by a non-refundable state fee of 50,000 euros for the main applicant and 12,000 euros for each family member. These changes make Andorra one of the most expensive jurisdictions in Europe for wealthy foreigners.
Previously, the country attracted investors with a relatively low entry threshold and the possibility to recover part of their investment. Now, the authorities are clearly demonstrating a policy aimed at limiting the influx of new residents and raising the country’s status as an exclusive destination. According to RUSSPAIN.COM, for a family of four deciding to purchase property worth one million euros, total expenses for obtaining a residence permit and taxes will exceed 186,000 euros, while the total capital required for legalization will be at least 1.186 million euros.
New barriers
The changes affected not only the amount of investment. For those choosing real estate, the minimum threshold is now 800,000 euros per property. Alternatively, an investment of 400,000 euros into a special housing fund remains possible, but this option also requires substantial resources. Authorities emphasize that the reform’s goal is not only to increase budget revenues but also to restrain demographic growth, which in recent years has raised concerns among local residents.
Particular attention has been given to the abolition of the refundable deposit, which previously could be returned upon leaving the country. Now, all fees have become non-refundable, making relocation to Andorra even less attractive for those considering the country as a temporary refuge or tax haven. As Talent24h notes, these measures are aimed at shaping a new image for the country—as an exclusive and expensive club for the select few.
Exceptions and Benefits
Despite the tightening of rules, some categories of applicants retain the previous conditions. Athletes, artists, and scientists recognized as persons of special interest still have the opportunity to obtain a residence permit under the old rules with a refundable deposit. This decision is explained by the desire to maintain the influx of talented professionals and to support the country’s cultural and scientific potential.
Parliament approved the reform without significant objections, as the initiative came from the government, which holds an absolute majority. The authorities believe that the new rules will allow better control over migration and provide additional income for the budget. At the same time, according to some experts, such measures may reduce Andorra’s appeal for new investors and lead to a decrease in residence permit applications.
Financial Context
The introduction of new requirements coincided with the tightening of tax policies in several European countries. Many wealthy foreigners viewed Andorra as an alternative to Spain, where in 2025 the deadlines for filing tax returns changed, which also influenced interest in changing tax residency. More details about the new rules in Spain can be found in the article about the deadlines for filing tax returns in 2025.
In recent years, Andorra has been actively reforming its financial system to comply with international transparency standards. This has led to a gradual abandonment of its ‘tax haven’ status and stricter controls over foreign capital. The new residency rules have become a logical continuation of this course, ultimately establishing the country’s reputation as a closed and expensive destination for living.
Andorra, a small state located between France and Spain, was long considered attractive to wealthy foreigners thanks to its lenient tax regime and simple residency requirements. However, in recent years the country has consistently tightened requirements for new residents in order to meet European standards and reduce demographic pressure. A similar trend has been observed in other European countries, where authorities have also revised conditions for investors in an effort to balance the interests of the budget and the local population.
