Andorra residency categories and the latest changes
If you have not already familiarised yourself with current and proposed changes to ALL categories please do so first before reading on.
As well as this page, both Passive residents and Active residents whether existing or potential please read here first.
What is the state of the current passive residency quota that is still open?
As at 7th October 2025, we were told that there are still many passive places left under the current quota and Immigration are not aware currently of any reasons why the quota will not be renewed, (but things do change!). In my research I can see that 490 authorisations were issued specifically for Category A of passive residency in March 2023 (Note that one authorisation is a single applicant or a family, in other words one authorisation per principal applicant and the number of dependents does not change the number of authorisations.
I have no further information and a wild guess may not be constructive, but..... in any case I will have a go....
It has taken 6 months to exhaust an active residency quota of 150. In my statistics there are twice as many active applications in this and recent years than passive, so by extreme interpretation of logic, 50 passive places were used in the same 6 month period.
If we project that back to March 2023, about 250 therefore have been used, leaving 240 available, just under half of the quota which coincides with Immigration saying there are many in the quota left, BUT DO NOT BANK ON IT !!!
And... If the above logic is a sound estimate, then passive residency applications are good for another (conservative) 18 months, BUT laws can change and so can requirements. New laws which include any increase in the bond etc. will apply to any quota allocation, current or planned so keep tuned in for updates.
October 2025 Urgent news on Residency Changes
The Government has now summarised its plans for new requirements for passive and active residents and is under Parliamentary process as soon as next week. The proposals for discussion include for all bonds of 50K for the Government to retain 30K permanently, the passive residency investment requirement to increase to 800K but with a relaxation of bank investments, the purchase taxes to be doubled from the 3% current rate for one property to 6% for non residents (which definition include residents of less than 3 years "service"); For active residents (Compte Propi/company formation), there will be a tightening up of foreign investment approval to weed out those applications that require numerous employees and that do not directly benefit Andorra. All this and more will be up for discussion.
Meanwhile, Immigration have announced that the 200 quota from April for Compte Propi and Liberal Professionals where under the new law it became necessary to reserve an Immigration quota before company formation/application is now exhausted (there are still places for Liberal Professional) and it was announced yesterday that it is unlikely but becoming more probable that a new quota will be issued this year, and specific restrictions are being considered both in the planning for employment, habitation and bond amounts and refunds.
Those already in the "reserva" system and pending company formation / application are not affected within their 6 month period of validity.
August 2025 New Regulations for Family Groupings and dependents (Active)
For Active residents whether Compte Propi Cat D or employees who apply for family dependents to join them there are now new requirements as far as rental contracts are concerned:-
- EITHER the names and passport numbers of the dependents are entered into a paragraph in the original rental contract and expressly authorised by the owner to reside there,
- OR the names and passport numbers of the dependents are entered into a separate Immigration form and signed by the owner with a copy of his passport, or where signed with the authority of an agent a copy of those powers that the owner authorises the agent to sign on his behalf.
Evidently there has been some abuse of the old system !
An overview of common requirements
The first point to note that on this page there is no reference to categories of digital nomad / entrepreneur, simply because I do not offer assistance in these new categories as the complications outweigh any benefit !
For all categories, you must be here in person with any dependent over 16 years old at the time of application. For children under 16 we can get around that requirement Also having been perfected in the COVID lockdowns of 2020 and 2021 it is possible to present an application without the applicant BUT it will not be processed until you appear in person.
Also now required, not by law but by Immigration demands, is for all RE-APPLICATIONS (This is where the residency is cancelled or unable to be renewed necessitating a reset or re-application) for passive residency to obtain an Andorran police certificate. It has been clarified that this is NOT a new requirement for new applications or for the usual renewals of residency.
All applications must be 100% complete for all certificates and documents. IF any certificate is incorrect you will have 10 days to produce a correct one otherwise the application is cancelled and you will need a new and complete set of application papers.
Police certificates from any third country are now required to be completely free of any record. Immigration seems to think it is easy to get removed spent convictions, unfortunately if you are from the UK and many other countries that simply is not so easy. However under this new diktat, if you have any conviction you should not apply for residency.
Time spent here or not spent here is not monitored ( except with the possibility of category D at first renewal). This means in reality you can spend as much or as little time here as you wish BUT be aware of the new tax rulings for passive residents.
It is advisable now to also familiarise yourself with the renewal requirements which for passive residents need to be fully understood. Please have a look in your own time at the renewal requirements page.
Categories can be inter-changeable once approved, but strictly in compliance with the bureaucracy of Immigration. A change from active to passive and vice versa is now regarded as a new application and the clock ( years of residency under your belt) is reset from the year of your original application to the current application.
Let me summarise the different categories available. Once you have decided which category may be appropriate for you, then please click on the appropriate category link to read in detail the requirements and how to go about starting the procedure.
Have a read of shenanigans Andorra style, a collection of cynical matters that did happen, did not happen, should have happened or should not have happened, you can make up your own mind !!
Category A Passive Residency
You may continue to have an existing company or employment outside Andorra.
The fully refundable but non-interest bearing deposit payable to the government is € 50,000 for the head of household and € 12,000 for each dependent. Within six months of approval the applicant must then show that he has invested a total amount of €600,000 in Andorra, please note that this government deposit does form part of this investment but not for property.(Explanation: the € 50,000 deposit is paid at the time of application as is an additional € 12,000 for each dependent. Therefore, a husband and wife and one child will pay € 62,000 as a deposit. The extra investment requirement in the bank (Not for property) will then be € 538,000). This investment may be in property or financial investments in Andorra or a combination, and these are outlined in detail on the page specific to Category A.
On approval of the residency, the card will then cost 3,000 EUR for the principal applicant and 1,000 EUR for each dependent and these fees are non refundable.
On paper the minimum required stay is 90 days per year. The minimum required stay to become a fiscal resident is 183 days per year. So, a passive resident who stays in Andorra for less than 183 days per year can maintain his residency and not necessarily become a fiscal resident. For those passive residents who need to become a fiscal resident but who cannot in practise stay for 183 days per year can simply opt to declare tax (or by stating that Andorra is their principal base of economic activity regardless of the number of days spent here), but again be aware of recent (October 2025) rulings from the tax office especially if you own property or you require a fiscal certificate for foreign institutions.
Residents under category A are also allowed to form an Andorran holding company which can be useful to receive dividends (under most circumstances) tax free from companies based elsewhere.
Category A is a paper exercise and remains the most straightforward category of residency to apply for. It takes 2-4 weeks for the card to be issued. If the investment requirement is not a concern for you then this category can be the most straightforward and quickest route.
Category B Passive Residency
Residency dependent on the viability of a business plan, a passive category that allows a company, residency and flexibility of living in Andorra.
Please note that this category is complicated and renewals in this category especially have become quite onerous and in general I only recommend this category as an extreme last resort, in all cases, category D active residency should be considered.
The refundable (Please be aware of current discussions for the government to partially forfeit permanently part of this deposit) but non-interest-bearing deposit payable to the government is € 50,000 for the head of household and € 12,000 for each dependent. In this category you are not required to prove any extra investment as in Category A. However, you must within seven months of approval have formed an Andorran company. This category is subjective, and approval is granted on the basis of a viable business plan at the residency application stage. I have guides on this to assist you.
On approval of the residency, the card will then cost 3,000 EUR for the principal applicant and 1,000 EUR for each dependent and these fees are non refundable.
As with Category A, the minimum required stay is 90 days per year. Of course, the company itself will be liable to Company tax in Andorra at 10% on profits but for the individual shareholders unless they stay here for more than 183 days will not necessarily become a fiscal resident. In effect category B allows residency, an Andorran company, and flexibility of living and working in Andorra as a principal base. One point of the tax law is that dividend distribution from an Andorran company is exempt from personal income tax in Andorra (once the company tax is declared).
Category B provides that a minimum of 85% of business activity must be conducted outside of Andorra, and there is a provision for the company to be able to exercise an option to employ a maximum of one employee in Andorra.
Category B can take longer to approve, maybe 1 to 3 months, as the business plan has to be studied by various government departments. Once approval is granted the residency card is issued within 3 to 6 weeks and the formation of the Andorran company can commence. Family dependants can be included in the application at the same time as the main applicant (but NOT always in Category D, please see below) or can be added at any time after approval of the head of household.
Category B does NOT allow you to contribute to the local social security system (CASS) and you will require private medical insurance.
There is now a new Category B (Digital Entrepreneur) however for reasons stated on that web page, there are too many complications, especially at renewal that I cannot recommend it, nor am I agreeing to process any applications. Instead, I recommend Category D active residency below with the bond exemption.
Category C Passive Residency
This passive residence Category is designed to attract the professional sportsmen, writers, entertainers, and famous people to Andorra.
In essence this is exactly the same as category A but the applicant is required to show that he is a professional and famous sportsman, scientist, sculptor, author, or famous person in his own right. If this can be proven by means of a professional contract, CV and proof of achievements then the applicant will be required to pay € 50,000 deposit to the government plus € 12,000 for each family dependent but will be exempt from having to invest a further amount up to € 600,000 as in Category A.
On approval of the residency, the card will then cost 3,000 EUR for the principal applicant and 1,000 EUR for each dependent and these fees are non refundable.
Again, the minimum required stay is 90 days per year and therefore the resident is not necessarily a fiscal resident as in Categories A and B above. Be aware of the new fiscal and tax interpretations in 2025 which affects all passive residents and which you should read carefully.
As in Category B there is a subjective element in determining whether the applicant is of sufficient fame or standing to be approved under this category but approval does come through a lot quicker than Category B and generally the paperwork is not too complicated to put together in most circumstances.
Category D Active Residency
Category D (known locally as "Compte Propi").
This category is closed temporarily pending a review of the law and the issue of a new quota in which there will be new requirements for applicants in this category, stay tuned
There is a requirement for bond/deposit of €50,000 per shareholder/Director who must also hold a minimum of 34% of the share capital in order to apply for residency, unless the branch of Professional Liberal is taken ( see below).
For digital entrepreneurs there is an option to apply after company formation to the Ministry of the Economy for exemption from the €50,000 bond/deposit. This is explained later.
An active work permit in Andorra but is limited and only allows you to work for an Andorran company with which you must stay for the first 12 months. After 12 months it may be possible to form your own commerce, but it can be complicated, at least in the first part of that process.
If you wish to trade in Andorra, for example import goods, employ local people, have a shop or restaurant, manufacture here etc. then Category D is the only real option. Category D´s intention is for you to develop the business within Andorra as your principle economic base. Please note there is no restriction as to whether actual trade takes place in Andorra, there is no requirement to invoice locally.
Category D does not require a business plan other than the application for foreign investment approval but there are two branches to this category (known as "Compte Propi"):-
- The most common is formation of an Andorran Company with the foreign investment approval first. This category is not applicable to those seeking employment from any other existing company, nor are you able to work for another company.
- "Professional Liberal" is a "comerç" (sole proprietorship not a limited company) for self-employment in certain professions such as architects, doctors and so on where the qualifications must be approved by the local relevant Institute or Department. These institutes will decide whether qualifications can be reciprocal and the qualifications held are applicable to Andorra. This route can be more difficult for approval and depends on qualifications and experience. There is however NO bond required as the comerç is not a company.
Please note that you can start along the lines of company formation, but when it comes to asking for the local trading license and after the residency is approved problems can arise. This is because the trading license is issued by the relevant Comú and as is happening more and more the Comú approval requires the recognition of "Professional Liberal" and that then in some cases can be denied resulting in problems and a revamping of the company objectives. For some reason this is not picked up on by Government in the foreign investment approval process and really should be! We can advise on this during the company formation process.
The minimum time required to be spent here is 183 days per year rather than the 90 days for passive residents. For this reason in Category D you will become a full fiscal resident but note that the personal income tax law means that dividend distributions from an Andorran company are exempt from personal taxation (once the corporation tax is declared).
In this process the Andorran company can take up to 5- 9 weeks to complete. Once the company documents are available an application can be then made to immigration for active residency. The processing time for active residency is a matter of days but does include an undertaking to prove to immigration that all of the company formation and local licensing procedure will be completed within 3 months of residency approval.
For a spouse to become a non-working dependent, Immigration require a 12 month wait between the main application and the family grouping (unlike Category B). However, if the spouse can be included as a joint minimum 34% shareholder then applications can then be at the same time. This will incur extra contributions though to CASS (Social security) as the spouse will be deemed to be working. Category D is the only category where you are obliged to contribute to CASS, the other categories require private health insurance.
Once you have an idea of what category you may be interested in please go back and click now on the appropriate Category heading and discover in more detail what is involved. I fully understand that each individual case is different and that very relevant questions arise. Please do email me if you have specific questions.
What are these Immigration quotas that are issued from time to time?
No mortal has any indication when a new quota will or is about to be issued by the Andorran Government. Let me first assure people that historically a quota has never been exhausted, there is no apparent rush before the door shuts under whatever current quota is in effect.
A quota of ONE includes a family unit not the individual. As explained above it is not an annual quota nor is it linked to any time frame. It seems the "topping up" of these quotas is regular, let me explain based on historical research:-
For example on 30th May 2019 The Government issued a "new" quota of 250 places for Active residency Category D. Historical research indicates 250 authorisations were issued on 20.11.2013, 02.04.2014, 22.10.2014, 20.05.2015, 11.11.2015 18.05.2016, 11.01.2017, 28.06.2017, 20.12.2017, 06.06.2018 and finally 30.05.2019. That adds up to 2,750 family units in this category alone!
Clearly the issue of quotas can be determined to be just regular replenishment whether used or not. Let`s examine the historic figures for Categories A, B and C. (No longer updated as the quota system continues as it is).
Category A
2012 - 300 ( when the new law came in)
2013 - 390
2016 - 490
2017 - 490
Category B
2012 - 100 ( when the new law came in)
2013 - 30
2016 - 30
2017 - 30
Category C
2012 - 100 ( when the new law came in)
2013 - 50
2016 - 50
2017 - 50
We can conclude dear Watson that Cat B is the most unpopular, then Cat C and finally A. But when you compare the quotas issued under Cat D amounting to 2,750 families as opposed to 1,670 under A it is clear the "D" s have it !
Logically if Andorra does start bulging with any influx then the powers to be may well delay an issue and as from October 2025 this has now become a reality, certainly with active categories. Also what the figures do not take into account is those cancelling their residency for one reason or another, I am processing a sizeable portion every year but the arrivals are outnumbering the departures !
The bank certificate explained, a percentage of the minimum wage.
At application for Categories, A, B and C only you will be required to present a bank certificate to show your account has been funded to the amount as required by law. This amount represents an x00 % of the minimum wage of Andorra which is to show you have sufficient means to live in Andorra. As per the table below, the bank certificate is different from the bond/deposit requirement BUT at application the bank certificate amount can be used to pay part of the bond/deposit (Be aware though of the renewal obligations).
Proof of annual income requirements for passive residency applications as at January 2025
2025 Russian applications update...
There have been enquiries concerning the effect of sanctions and current policy for Russian and Belarusian applicants.
In summary for Russian and Belarusian nationals the Government policy, is that they are not processing the foreign investment applications for company formation, consequently Cat B of passive and Cat D of active are not possible.
Immigration say they themselves are not affected by any policy regarding Russian and Belarusian applications for Category A of passive residency. As before there are extra documentary requirements but in principle, applications will be processed and where the documents are correct the residencies will be approved subject to routine extra police checks.
The main problem is the banks here that are not processing new account applications for Russian or Belarusian nationals UNLESS there are very persuasive reasons, such as having left those countries many years ago, perhaps a new nationality, no funds coming from those countries OR any high risk country.
Each may be considered on a case by case business but it is not easy at all.
