The essentials for an investor
This page starts from your wealth and investment goals, not just the passive residency permit. You can invest in Andorra without living there, or invest with a residency application in mind — the two routes follow different rules and different timelines. The main difficulty lies in choosing the right combination of assets (real estate, shareholdings, investments) and the right holding structure (personal, asset-holding company, or holding company) based on your actual goals — return, succession planning, or simple diversification.
Your situation in one minute
| Topic | Answer |
|---|---|
| Possible residency route | Residency without gainful activity if the investment reaches €600,000 in Andorran assets — and, where it relies on real estate, if each unit acquired exceeds that amount. None if the investment is made without an immigration application. |
| Business structure | Personal ownership, asset-holding company, or holding company depending on the assets |
| Income to analyse | Rent, dividends, capital gains, interest, income from other countries |
| Main risk | Foreign investment authorisation, traceability of funds, taxation in the country of departure |
| ProGestió services | Passive residency, asset-holding company, holding, taxation |
Investing without residing, or investing to reside
An investment in Andorra — real estate, shareholdings in an Andorran company, financial investments — doesn't require living there. It's only once the investment reaches the legal threshold of €600,000 and comes with an AFA deposit and a minimum presence, that residency without gainful activity becomes available. These two logics — investing, and investing to gain residency — need to be distinguished from the outset, since they involve different amounts and different constraints.
Personal ownership, an asset-holding company, or a holding company
Owning a property or portfolio in a personal capacity remains the simplest set-up, but directly exposes personal wealth and can complicate a later transfer. An Andorran asset-holding company allows investments, real estate, and cash to be grouped under a dedicated structure. A holding company suits holding shareholdings in other companies better than direct real estate ownership. The choice depends on the nature of the assets, succession goals, and the number of beneficiaries involved — not a general rule.
Origin of funds, taxation of income, and succession
Any significant investment in Andorra requires the origin and traceability of funds to be documented — something checked by banks and the authorities alike as part of the foreign investment authorisation. Rent and capital gains follow specific tax rules depending on whether they're received by an individual or a company, and income from other countries generally remains subject to its own rules, regardless of where the Andorran investment is made. The question of succession — inheritance, gifts — and of concentrating wealth in a single jurisdiction deserve to be raised before structuring the investment, not afterwards.
A concrete example
A family with financial wealth, two foreign properties, and shareholdings in several SMEs wants to compare passive residency, an asset-holding company, and direct ownership. The analysis generally covers: whether the Andorran investment threshold can be reached by combining several eligible asset categories, the value of an asset-holding company for grouping new Andorran investments without necessarily transferring existing foreign assets, and whether the whole arrangement is consistent with the family's current tax residency before any passive residency application.