Andorra Overtakes Dubai as Top Relocation Spot for Wealthy French

Andorra has overtaken Dubai as the top destination for wealthy French nationals seeking to relocate, according to a long-time resident who manages residency applications.

Virginie Hergel, who has lived in Andorra for 26 years, runs a firm that handles the full relocation process for prospective residents. She reports a surge in interest from affluent French people—entrepreneurs, business owners and retirees—driving the Principality's appeal beyond its traditional Spanish expat base.

Around 6,000 French nationals now reside in Andorra, up 1,000 from 2021 figures. This influx represents a significant shift for a country of 90,000 people, where roughly 10,000 residents are expatriates, most long-established. Nearly all new arrivals are from high-net-worth backgrounds.

Demand remains strong despite government restrictions. Quotas for new residencies have been paused for months as authorities review the model, including a recent hike in the minimum investment for passive residents to €1 million. Hergel, who has processed hundreds of cases over the past quarter-century, says she receives 10 to 13 inquiries daily from France but can only manage 25 to 30 successful relocations annually.

French clients cite insecurity, a lack of political vision and burdensome taxes back home as key factors, rather than Andorra's lower rates alone. "They are not moving here just to pay less tax," Hergel emphasises. Both young entrepreneurs and retirees prioritise safety and fairer taxation, while insisting Andorra is no tax haven. Residency requires spending at least 183 days a year in the country.

Applicants hail from cities including Paris, Lyon, Aix-en-Provence, Bordeaux and Toulouse, as well as Belgium and even Perpignan. Many are switching from Dubai, where cultural differences, extreme heat and distance from Europe have disillusioned them after about five years. Andorra's proximity allows easier family ties, Hergel notes.