---
title: "Investors in Andorra: living on private income and tax (2026)"
url: https://andorrefiscal.fr/en/profiles/investor
description: "Living on private income in Andorra: €1,000,000 invested, savings taxed at 10% above €3,000, no wealth tax, and what France still taxes."
updated: 2026-10-11
language: en
publisher: Andorre Fiscal (https://andorrefiscal.fr)
---

# Living on private income in Andorra: investor or person of independent means

> Markdown version of the page https://andorrefiscal.fr/en/profiles/investor (Andorre Fiscal), up to date as of 11 October 2026. To cite this page, use its address: https://andorrefiscal.fr/en/profiles/investor

Living on your assets in Andorra means passive residency: €1,000,000 invested in the country, €50,000 paid for good and 90 days of presence a year. In return, the savings of someone living on private income in Andorra are taxed at 10% at most, with no wealth tax or inheritance tax; but France keeps its hold on your French assets, and sometimes on your heirs.

By [the Andorre Fiscal editorial team](https://andorrefiscal.fr/en/about#redaction) · Verified on 11 October 2026 · [8 official sources](https://andorrefiscal.fr/en/profiles/investor#sources)

- **€1,000,000** to invest in Andorra
- **€50,000** paid to the AFA, non-refundable
- **10%** on savings above €3,000
- **90 days** minimum presence a year

## Key points

- Passive residency requires you to invest €1,000,000 in Andorra (€400,000 in the public Housing Fund), to pay a non-refundable €50,000 to the AFA and to have resources of more than three times the annual minimum wage, about €56,500.
- No professional activity is allowed: only the management of your own assets is, with unpaid directorships.
- As an Andorran tax resident, you pay 10% on your interest, foreign dividends and taxable capital gains above €3,000 a year; dividends from Andorran companies are exempt, as are most capital gains on listed securities.
- Andorra has neither wealth tax nor inheritance tax, but France continues to tax your French property and heirs domiciled in France.
- Before leaving, check the exit tax: from €800,000 of securities, your unrealised capital gains are taxed, with no automatic deferral for Andorra according to the official notes published in 2026.

## Is this pathway for you?

This pathway is for **people living on private income in Andorra**, and more broadly for investors who will live on their assets without working there. It applies to you:

- if your income comes from dividends, interest, rents or capital gains;
- if you can tie up €1,000,000 in Andorra and prove annual resources of at least about €56,500;
- if you do not intend to carry on any paid activity in Andorra, nor remotely for other countries.

If you are retired, also read the [retiree](https://andorrefiscal.fr/en/profiles/retiree) pathway, which deals with pensions. If you want to keep running a company and paying yourself, the [entrepreneur](https://andorrefiscal.fr/en/profiles/entrepreneur) pathway applies.

## Passive residency: the conditions for someone living on private income

The status is governed by the qualified law on immigration (Llei 9/2012), amended by [Llei 2/2026](https://andorrefiscal.fr/en/news/llei-2-2026-passive-residency), which came into force on 13 February 2026, and by Decree 407/2025. Here are the essentials; the details are in our guide to [passive residency conditions](https://andorrefiscal.fr/en/residency/passive-residency#conditions).

**Passive residency: the main conditions**

| Requirement | Rule at 10 October 2026 |
| --- | --- |
| Investment | **€1,000,000** in Andorran assets, or €400,000 in the Fons d’Habitatge, the public Housing Fund |
| Payment to the AFA | **€50,000**, plus €12,000 per dependant, non-refundable |
| Resources | More than 300% of the annual minimum wage, i.e. about **€56,500**, plus about €18,800 per dependant |
| Health insurance | Cover for 100% of medical costs in Andorra, plus incapacity and old age |
| Presence | At least **90 days** per calendar year, main residence in Andorra |
| Activity | None, except managing your own assets and unpaid directorships in companies of which you hold at least 50% |
| Quota | 200 authorisations for residence without work in 2026, including 163 without gainful activity (Decree 74/2026) |

The [AFA](https://andorrefiscal.fr/en/glossary#afa), the Andorran Financial Authority (formerly INAF), receives the payment, which is returned only if the initial authorisation is refused. Resources are proven in particular by bank certificates and your last tax return. In 2025, according to the press, the quota was used up as early as 22 January: prepare your application so that you can file it at the very start of the year.

Managing your own assets remains permitted, including as an unpaid director of companies of which you hold at least 50%: this is what makes it possible to manage a personal holding company, presented in our guide [holding company in Andorra](https://andorrefiscal.fr/en/business/holding-company).

## Investing €1,000,000 in Andorra: which assets are eligible?

The sum must be invested within 6 months, on a permanent basis, in Andorran assets:

- **real estate**, provided that each property exceeds €800,000;
- **shares in Andorran companies**, whose dividends will be exempt from income tax;
- securities or funds of Andorran issuers, for **36 months at most**, then reallocated to another eligible asset;
- **Andorran public debt**, the interest on which is exempt;
- life insurance with an Andorran insurer, or non-interest-bearing deposits with the AFA.

Property adds costs. As a new resident, you pay the foreign property investment tax, then property transfer tax, or IGI at 4.5% on a new build. For a single person who buys a home for €850,000, about **€135,000** is spent for good on arrival:

**Home costing €850,000, single person**

| Sum | Rate | Amount |
| --- | --- | --- |
| Foreign property investment tax | 6% | €51,000 |
| Property transfer tax 1% for the State and 0.5 to 3% for the comú | about 4% | about €34,000 |
| Payment to the AFA, non-refundable | — | €50,000 |
| **Total on arrival** | — | **about €135,000** |

Indicative calculation: property transfer tax estimated at about 4% according to practitioners; on a new build, IGI at 4.5% replaces it. See [Buying property](https://andorrefiscal.fr/en/living-in-andorra/buying-property).

> **Caution: The €400,000 option remains unclear**
>
> The law allows you to invest €400,000 in the Fons d’Habitatge instead of €1,000,000, but the practical arrangements for this investment (product, duration, liquidity) are not publicly documented. Check with the Govern before counting on it.

## Dividends, interest, capital gains: how the savings of someone living on private income are taxed

Your savings are taxed at 10% above €3,000 a year, with broad exemptions, if you become an Andorran tax resident: more than 183 days there in the year, or the centre of your activities or economic interests in Andorra. The 90 days required for the residence permit are not enough for this. You are then taxed under [IRPF](https://andorrefiscal.fr/en/glossary#irpf), the income tax, on your worldwide income.

**Andorran taxation of a resident living on private income, at 10 October 2026**

| Income | Taxation in Andorra |
| --- | --- |
| Interest, coupons, foreign dividends | **10%** above an allowance of €3,000 a year, with no 5% band; tax paid abroad is deductible up to the amount of the Andorran tax |
| Dividends from Andorran companies | **Exempt** |
| Interest on Andorran public debt | **Exempt** |
| Capital gains on securities and funds | **Exempt** if you have not held more than 25% of the company over the last 12 months, or if you have held the securities for at least 10 years (except companies whose assets consist mainly of property in Andorra); otherwise 10% |
| Capital gain on a property located in Andorra | 10%, plus a surcharge of 10% within 2 years and of 5% from 2 to 5 years; tapering from 6 to 10 years; nil after 10 years |
| Capital gain on a property located outside Andorra | Exempt in Andorra after 10 years of ownership |
| Wealth, inheritances, gifts | **No tax**; a gift of real property to an unrelated third party does, however, bear property transfer tax |

The details of each rule are in our guide to the [taxation of dividends and capital gains in Andorra](https://andorrefiscal.fr/en/tax/dividends-capital-gains).

## How much tax when you live on private income in Andorra? An example at €99,500

A single person living on private income, an Andorran tax resident, has invested €850,000 in their home and €150,000 in Andorran public debt. They also hold, outside Andorra, a portfolio of listed securities.

**Example: single person living on private income, Andorran tax resident**

| Annual income | Amount | Treatment |
| --- | --- | --- |
| Interest on Andorran public debt | €4,500 | Exempt (assumed yield of 3%) |
| Interest and coupons on foreign securities | €30,000 | Savings tax base |
| Dividends from foreign companies, excluding France | €25,000 | Savings tax base; assumption: no foreign withholding tax |
| Capital gains on listed securities, holdings below 25% | €40,000 | Exempt |
| Taxable savings base | €52,000 | 30,000 + 25,000 − 3,000 allowance |
| **Income tax** | **€5,200** | 10% × 52,000, i.e. about 5.2% of the €99,500 received |
| Wealth tax | €0 | Does not exist in Andorra |

Indicative calculation, excluding management fees and French-source income. The yields used are assumptions.

If these dividends came from French companies, France would levy a withholding tax, capped at 15% by the [tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty#placements). Andorra deducts it from its own tax, but only up to the amount of the Andorran tax on this income: the total burden would therefore not fall below the rate of the French withholding tax.

> Where a resident of Andorra derives income which, in accordance with the provisions of this Convention, is also taxable in France, Andorra shall allow as a deduction from the tax it levies on that resident an amount equal to the income tax paid in France. Such deduction shall not, however, exceed that part of the Andorran tax, as computed before the deduction is given, which is attributable to the income taxable in France.
>
> — [France–Andorra tax treaty, Article 21, paragraph 2, a) (free translation)](https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000030907404)

## What France continues to tax: property, IFI, exit tax

Leaving France does not cut all tax ties. As long as your household, your main activity or the centre of your economic interests remain there, you remain taxable in France on all your income (Article 4 B of the French General Tax Code, the CGI). Even once you have settled in Andorra, several French taxes follow you:

- **Your French property**: rents and capital gains remain taxable in France (Articles 6 and 13 of the treaty). The tax on real estate wealth (IFI) also covers your French properties if their value exceeds €1,300,000 (Article 964 of the CGI).
- **Inheritances and gifts**: France taxes assets located in France, even if the deceased lived in Andorra, and all assets received by an heir or a donee domiciled in France for at least six of the previous ten years (Article 750 ter of the CGI); see [France–Andorra inheritance](https://andorrefiscal.fr/en/tax/inheritance-tax-france-andorra).
- **The exit tax**: if you have been domiciled in France for at least 6 of the last 10 years and hold at least €800,000 of securities, or at least 50% of a company, your unrealised capital gains are taxed on departure, at 31.4% for a departure in 2026 (12.8% tax and 18.6% social levies). In the official notes to return 2074-ETD published in 2026, Andorra is not among the States giving entitlement to automatic deferral: the deferral must be requested no later than 90 days before departure, with a tax representative and guarantees. Securities in a PEA are outside its scope.

Finally, Andorra has automatically exchanged information on financial accounts with France since 2018: an Andorran account is anything but discreet. Banking formalities are presented in our guide [opening an account in Andorra](https://andorrefiscal.fr/en/living-in-andorra/bank-account); for the departure itself, see [leaving France for tax purposes](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency) and the [France–Andorra tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty).

## What can make the plan fail

- **The quota.** It was used up as early as 22 January in 2025, and around sixty applications were refused on that ground, according to the press.
- **Poorly evidenced resources.** Below three times the annual minimum wage, plus one per dependant, the application fails.
- **A non-compliant investment.** A property of €800,000 or less does not count; Andorran securities held for more than 36 months must be reallocated.
- **Tax residency not established.** With 90 days there and interests that have remained in France, France taxes you on all your income.
- **An unanticipated exit tax.** Without a deferral request filed in time, the tax on your unrealised capital gains is payable.
- **A disguised activity.** A paid directorship or consulting for third parties falls outside the scope of passive residency.

## Your action plan, step by step

1. Carry out the France–Andorra review

   Exit tax, French assets, your heirs’ situation, income that will remain taxed in France: put figures on them with a professional before taking any steps.
2. Prepare the application at the end of the year

   Proof of resources, health insurance at 100%, criminal record certificates, housing: aim to file at the very start of the year. See [Procedures and timescales](https://andorrefiscal.fr/en/residency/application-process).
3. File the application and pay €50,000

   Plus €12,000 per dependant. The guide [Costs and AFA deposit](https://andorrefiscal.fr/en/residency/costs-afa-deposit) details the amounts.
4. Invest €1,000,000 within 6 months

   Real estate of more than €800,000 per property, shares in Andorran companies, public debt or other eligible assets; a property purchase requires [prior authorisation](https://andorrefiscal.fr/en/business/foreign-investment#immobilier).
5. Organise your tax departure

   Exit tax deferral request no later than 90 days before departure, tax returns for the year of departure, informing your banks and your payers.
6. Live there and renew

   At least 90 days a year for the permit, more than 183 days for tax residency. For a French national: a 2-year authorisation, then 3 years, then 10 years after 5 years.

> **Key point: Your next step**
>
> Start with the France–Andorra review, with a professional: our guide presents [the exit tax and the stages of departure](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency#exit-tax). The [passive residency procedure](https://andorrefiscal.fr/en/residency/passive-residency#procedure) is then detailed step by step.

## Frequently asked questions

### How much do you need to live on private income in Andorra?

For passive residency, allow for €1,000,000 invested in Andorra (or €400,000 in the public Housing Fund) and €50,000 paid to the AFA for good, plus €12,000 per dependant. You must also prove resources of more than three times the annual minimum wage, i.e. about €56,500 a year, plus about €18,800 per dependant, and health insurance covering 100% of medical costs in Andorra.

[Read: Passive residency: the conditions for someone living on private income](https://andorrefiscal.fr/en/profiles/investor#conditions)

### Does a passive resident pay Andorran tax on their foreign income?

Yes, if they are an Andorran tax resident, that is, if they spend more than 183 days in Andorra or have the centre of their economic interests there. Their worldwide income is then taxed, with a [deduction for tax paid abroad](https://andorrefiscal.fr/en/tax/andorra-income-tax#etranger), limited to the corresponding Andorran tax. If they remain a tax resident of another country, it is that country that taxes them.

### Are capital gains on a share portfolio taxed?

Most often not: they are exempt if you have not held more than 25% of the company during the 12 months preceding the sale, or if you have held the securities for at least 10 years. Fund units follow the same rule. Exception: companies at least half of whose assets consist of real property located in Andorra.

### Is my French rental income taxed in Andorra?

It remains taxable in France, where the property is located (Article 6 of the [treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty#immobilier)). As an Andorran tax resident, you also declare it in Andorra, which deducts the French tax up to the amount of its own tax on this rent: in practice, you therefore bear the higher of the two.

### Do you need to keep the €1,000,000 throughout your residence?

Yes: the investment must be maintained on a permanent and effective basis. Securities and funds of Andorran issuers can be held for only 36 months at most, then must be reallocated to another eligible asset.

### Does the exit tax apply with less than €800,000 of securities?

Yes if your household holds at least [50% of the profits of a company](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency#exit-tax), whatever its value; no in other cases. You must also have been domiciled in France for at least 6 of the 10 years preceding departure. Securities held in a PEA (French equity savings plan) are outside its scope.

### Will my children who have stayed in France pay inheritance tax?

Possibly: France taxes assets located in France and everything received by an heir domiciled in France for at least six of the previous ten years, wherever the assets are (Article 750 ter of the CGI).

[Read: France–Andorra inheritance: what France can tax](https://andorrefiscal.fr/en/tax/inheritance-tax-france-andorra)

## Sources

1. [Llei 2/2026 of 22 January 2026, BOPA No. 15 of 12 February 2026](https://bopadocuments.blob.core.windows.net/bopa-documents/038015/pdf/CGL_2026_02_12_10_11_12.pdf) — €1,000,000 threshold, non-refundable payment of €50,000 and of €12,000 per dependant.
2. [Llei 9/2012, qualified law on immigration, consolidated version](https://www.portaljuridicandorra.ad/L2012009) — Articles 90, 95 and 96: conditions, presence, permitted activities, eligible assets.
3. [Decree 407/2025 on residence without gainful activity](https://www.portaljuridicandorra.ad/R20251112A) — Resources of more than 300% of the minimum wage and supporting documents (Article 2).
4. [Llei 5/2014 on personal income tax (IRPF), consolidated version](https://www.portaljuridicandorra.ad/L2014005) — Exemptions (art. 5), savings tax base (art. 37), deduction for foreign tax (art. 48).
5. [France–Andorra tax treaty (Decree No. 2015-878)](https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000030907404) — Real property (art. 6), dividends (art. 10), capital gains (art. 13), elimination of double taxation (art. 21).
6. [impots.gouv.fr: official notes to return 2074-ETD (exit tax), 2026 edition](https://www.impots.gouv.fr/sites/default/files/formulaires/2074-etd/2026/2074-etd_5518.pdf) — Thresholds, rates, States giving entitlement to automatic deferral, and deferral on request.
7. [French General Tax Code, Article 750 ter](https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000024453202) — Territorial scope of inheritance and gift tax.
8. [French General Tax Code, Article 964](https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000036384999) — Tax on real estate wealth payable by non-residents on their French properties.

Consolidated texts on the Portal jurídic d’Andorra have no official value: only the version published in the BOPA is authentic. [How we verify](https://andorrefiscal.fr/en/methodology).

**General information, not advice.** This guide sets out the rules in force on 11 October 2026, based on official texts. It is no substitute for a professional review of your situation (lawyer, tax adviser, gestoria). Spotted an error or a change? [Write to us](https://andorrefiscal.fr/en/contact).

## Further reading

- [Passive residency](https://andorrefiscal.fr/en/residency/passive-residency): No gainful activity in Andorra
- [Dividends and capital gains](https://andorrefiscal.fr/en/tax/dividends-capital-gains): Savings, shares, property
- [Leaving France for tax purposes](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency): Year of departure, tax returns, exit tax
- [Buying property](https://andorrefiscal.fr/en/living-in-andorra/buying-property): Authorisation and taxes for foreigners
- [Costs and AFA deposit](https://andorrefiscal.fr/en/residency/costs-afa-deposit): What each status really costs
- [Retiree](https://andorrefiscal.fr/en/profiles/retiree): State and private pensions