Retiring in Andorra: Residency and Taxation

Retiring in Andorra can be appealing thanks to the mountain setting, proximity to France and Spain, and moderate personal taxation. That said, the project requires significant means, suitable insurance, and a precise analysis of how pensions are taxed.

The status generally considered is residency without gainful activity, since the retiree doesn’t work in the Principality. The conditions were significantly changed in 2026, and the old figures of €600,000 or the old deposits should no longer be used for new applications.

What to check

Topic	Question
Administrative residency	Which permit and which quota?
Investment	€600,000 in Andorran assets, and per property unit?
AFA deposit	What amounts deposited, deducted and refundable?
Pension	Which country retains the right to tax it?
Healthcare	Private insurance, CASS, or treaties?
Housing	Renting or buying, compatible with the project?
Wealth	Property, investments, and succession
Presence	90 days for the permit, separate tax criteria

Residency without gainful activity in 2026

For new applications, the general regime provides, in particular, for:

• a permanent and genuine investment of at least €600,000 in eligible Andorran assets;
• an amount above €600,000 per property unit where the investment relies on real estate;
• a non-remunerated deposit of €50,000 with the AFA, deducted from that amount and refundable;
• €12,000 per dependant, under the same deducted and refundable deposit regime;
• sufficient annual means;
• private insurance;
• accommodation;
• at least 90 days’ presence per calendar year;
• an available place in the quota.

Where the investment is real estate-based, the rules on value per unit and the foreign real estate investment tax need to be factored in.

Annual means

The holder needs to demonstrate means exceeding 300% of the annual Andorran minimum wage, plus 100% for each dependant.

Pensions, annuities, rent, dividends, and investment income can count towards this evidence where they’re regular, documented, and available.

Invested capital doesn’t replace the annual income requirement.

Where is your pension taxed?

The answer depends on the type of pension and the treaty between Andorra and the paying country.

It’s necessary to distinguish, in particular:

• private sector pensions;
• civil service pensions;
• social security pensions;
• annuities from a private contract;
• pension capital lump sums;
• supplementary pensions.

Some pensions can be taxable in the state of residence; others remain taxed in the paying state, particularly depending on whether they’re public in origin or on treaty provisions.

Before leaving, it’s necessary to obtain:

• pension statements;
• the legal nature of each benefit;
• a tax certificate;
• withholding applied;
• the tax treaty;
• Andorran tax treatment.

It’s not advisable to simply multiply the pension amount by 10% without this analysis.

Tax residency and the 90-day presence rule

The passive permit requires at least 90 days’ presence, but Andorran tax residency is based, in particular, on more than 183 days or the main centre of economic interests.

A retiree who spends only three months in Andorra and keeps their main home in another country can remain a tax resident of that country.

To secure the situation, it’s necessary to examine:

• permanent accommodation;
• the number of days;
• the spouse’s residency;
• accounts and spending;
• doctors and insurance;
• associations and activities;
• assets retained;
• the treaty’s criteria.

Healthcare and insurance

A resident without an activity needs to take out private insurance meeting their permit’s requirements.

For a retiree, cover needs careful consideration:

• maximum age for enrolment;
• medical history;
• exclusions;
• hospitalisation;
• chronic treatment;
• care in Spain or France;
• assistance and repatriation;
• how premiums change over time;
• cover for a spouse.

Andorra has the Nostra Senyora de Meritxell hospital and contracted professionals. Certain specialist care is provided abroad as part of organised referral pathways.

Travel insurance isn’t necessarily sufficient for the permit or for long-term residency.

Buy or rent?

Buying can count towards the required investment if the legal conditions are met. That said, it can be useful to rent first, to choose the parish, test out travel, and understand the market.

For a purchase, it’s necessary to factor in:

• price and any minimum value;
• foreign investment authorisation;
• tax of 6% or 10% depending on category;
• notary fees;
• works;
• municipal fees;
• succession and resale.

Housing shouldn’t be chosen purely to reach an immigration threshold.

Keeping wealth abroad

An Andorran resident can keep property, accounts, or investments abroad.

Income and capital gains can remain taxable in the source country. It’s necessary to examine, in particular:

• rent;
• wealth tax or other property-related taxes;
• withholding tax on dividends;
• capital gains;
• succession;
• accounts and reporting;
• tax credits.

An asset-holding company isn’t automatically necessary. Personal ownership can be simpler depending on the assets involved.

Relocating as a couple

The spouse needs to be included in the file or have their own status. The budget needs to add:

• the contribution per dependant;
• annual means;
• insurance;
• accommodation;
• civil status documents;
• taxation of their income.

The situation also needs to plan for what happens if the main holder dies, if the couple separates, or if means change.

Preparing succession

Living in Andorra doesn’t neutralise inheritance or gift tax rights in other countries.

The analysis needs to cover:

• the residency of the donor or deceased;
• heirs’ residency;
• where any property is located;
• companies held;
• insurance contracts;
• the will;
• the marital property regime;
• future acquisition value.

Wealth restructuring needs to be prepared before assets are transferred.

Frequently asked questions

Can you retire in Andorra with €600,000? Yes: that is precisely the general investment threshold in Andorran assets required of new applications for residency without gainful activity. If the investment relies on real estate, each unit acquired must exceed that amount.

Is a pension always taxed at 10%? No. The treaty, whether it’s public or private in nature, and the paying country all need examining.

Does CASS automatically cover a foreign retiree? No. The passive permit generally requires compliant private insurance.

Do you need to live in Andorra for 183 days? The permit requires 90 days. The 183-day rule relates to one of the tax criteria. The two questions need to be kept separate.

To go further: Passive residency, Healthcare, Taxation, Asset-holding company, Andorra · France, Andorra · Switzerland, Andorra · Luxembourg.