Andorra has become an attractive destination for entrepreneurs, international professionals, investors and families looking to establish a new personal or business project.
However, before beginning the relocation process, one essential question should be addressed: which type of residency is best suited to your circumstances?
In 2026, understanding the differences between active and passive residency in Andorra is particularly important due to regulatory developments, financial requirements and immigration quotas.
Choosing the appropriate residency category from the outset can help avoid unnecessary expenses, administrative delays and decisions that may be difficult to reverse.
What is active residency in Andorra?
Active residency allows eligible foreign nationals to live in Andorra and carry out professional activities in the country, subject to the conditions of their specific authorisation.
There are two main categories.
Residence and work as an employee
This authorisation is intended for individuals who wish to work for a company established in Andorra.
It generally requires a job offer or employment contract, compliance with immigration requirements and the availability of a permit under the applicable immigration quota.
It is a common option for professionals seeking employment opportunities in the Andorran labour market.
Self-employed residence and work
This category is designed for entrepreneurs, business owners and certain independent professionals who wish to establish or develop an economic activity in Andorra.
For business projects involving an Andorran company, the requirements may include:
Incorporating or holding a qualifying interest in a company that meets the applicable legal conditions.
Taking an active role in the company's management and administration.
Carrying out genuine economic activity in Andorra.
Obtaining any necessary foreign investment authorisations.
Meeting the applicable financial and immigration requirements.
An important development in 2026: certain new self-employed residence and work authorisations linked to foreign investment may require a non-refundable contribution of €50,000, in addition to other eligibility conditions.
This amount should not be confused with the company's share capital or professional service fees.
What is passive residency in Andorra?
Passive residency, legally referred to as residence without gainful activity, is intended for individuals wishing to establish their residence in Andorra without undertaking active professional activity in the country under this authorisation.
It may be suitable for certain investors, retirees and individuals with sufficient financial resources.
Unlike active residency, this category is not based on an employment contract or the direct operation of a local professional activity.
What are the financial requirements in 2026?
Regulatory developments in 2026 have introduced significant changes to the financial conditions applicable to new applicants.
For new applications for residence without gainful activity, the framework provides for a minimum total investment of €1,000,000, together with a non-refundable contribution of €50,000 for the principal applicant and €12,000 for each dependant, subject to the applicable legal conditions.
Applicants must also demonstrate sufficient financial resources, have suitable accommodation and appropriate health insurance coverage, and comply with the remaining immigration requirements.
Passive residency generally requires a minimum physical presence of 90 days per year in Andorra.
Before submitting an application, it is important to assess the nature of the proposed investment, the applicable holding requirements and the supporting documentation.
Active vs. passive residency: key differences
CriteriaActive residencyPassive residencyProfessional activityPermitted according to the authorisationLocal gainful activity is not permitted under this categoryTypical applicantsEmployees, entrepreneurs and professionalsInvestors, retirees and financially independent individualsFinancial requirementsDepend on the permit categoryMinimum investment and specific contributionsPhysical presenceActual residence according to the applicable rulesGenerally at least 90 days per yearImmigration quotasSubject to the relevant categorySubject to applicable quotasDocumentationEmployment, business or professional recordsFinancial, investment and personal documentation
The distinction is therefore not simply a question of how much money an applicant intends to invest.
It depends primarily on the activities they wish to undertake and how they intend to organise their personal and professional life in Andorra.
Do you need to establish a company to obtain residency?
Not necessarily.
Establishing an Andorran company may form part of a self-employed residency application, but company incorporation is not a universal requirement for obtaining residence in Andorra.
Similarly, incorporating a company does not automatically grant its shareholders or directors the right to reside in the country.
Foreign investment authorisation, company incorporation and immigration authorisation are separate legal procedures that must be properly coordinated.
Before establishing a company, applicants should determine whether that structure is genuinely necessary and appropriate for their intended activities.
What if you work remotely for a foreign company?
This is one of the most frequently misunderstood situations.
An individual working remotely from Andorra for a company based in Spain, France or another country should not automatically assume that passive residency is the appropriate option.
Andorra offers specific residence categories, including digital nomad residency and residency for professionals with international projection.
Depending on the nature of the professional activity, these arrangements may be more suitable.
However, each category has its own eligibility criteria and requires an individual assessment.
Having an employment contract with a foreign company does not, by itself, determine which residency authorisation is appropriate.
Does obtaining residency automatically make you an Andorran tax resident?
No. This is a particularly important distinction.
Immigration residency and tax residency are two different legal concepts.
An immigration authorisation determines an individual's right to reside in Andorra under a particular category.
Tax residency depends on the criteria established under Andorran tax legislation, including physical presence and the location of the principal centre of activities or economic interests.
Where an individual maintains connections with another country, applicable double taxation agreements may also need to be considered.
Consequently, holding a passive residence permit with a minimum presence requirement of 90 days per year does not automatically establish Andorran tax residency.
An effective relocation strategy should therefore include a tax assessment whenever appropriate.
Which residency option should you choose in Andorra in 2026?
The answer depends on your personal and professional objectives.
If you wish to work for an Andorran employer, employment-based active residency may be appropriate.
If you plan to establish and manage a business in Andorra, self-employed residency and its specific requirements should be examined.
If you have sufficient financial resources and wish to live in Andorra without carrying out local professional activities, passive residency may be an option.
If you work remotely for international companies or clients, it is important to explore the specific residence categories available before starting an application.
In every case, immigration quotas, financial requirements and supporting documentation should be verified before submitting an application.
Why personalised relocation planning matters
Moving to Andorra involves much more than obtaining a residence permit.
Taxation, wealth management, accommodation, healthcare coverage, family circumstances and, where relevant, corporate structures all deserve careful consideration.
At NEXORY GROUP, we assist individuals, entrepreneurs and international professionals in assessing and preparing their relocation and establishment projects in Andorra.
Our approach begins with understanding each client's circumstances and objectives, allowing us to identify suitable options and coordinate the necessary administrative procedures.
Considering residency in Andorra?
Before making a decision, it is important to understand which residency category best suits your personal, professional and financial circumstances.
Contact NEXORY GROUP to discuss your residency plans in Andorra and explore the options available for your project.
NEXORY GROUP — Your Vision. Our Expertise.
Informational article updated in October 2026. Eligibility conditions, financial amounts and permit availability should be verified against current legislation and each applicant's individual circumstances.