Andorra Raises Passive Residency Investment to €1M in Omnibus Law

Andorra's Economy Commission has finalized the omnibus law 2, known as the Law of Continuity and Consolidation of Measures for Sustainable Growth, raising the minimum investment for passive residency to €1 million in Andorran assets. This marks a €200,000 increase from the government's original €800,000 proposal. Real estate used to meet the threshold must now be valued at a minimum of €800,000—up €200,000 from the previous €600,000 limit—and must serve as a residence without profit-generating activity.

Negotiations concluded on Friday, with a final session on Monday, January 19, to approve the rapporteur's report on five technical articles and finalize the text. The law is now set for a full Consell General vote on Thursday, January 22, alongside the national budget, ahead of the session's end on January 31.

Additional measures double the non-refundable deposit for self-employed workers with the Andorran Financial Authority (AFA) to €50,000 from €30,000, despite Partit Socialdemòcrata (PS) calls for full refundability. Family reunification rules, advanced by Andorra Endavant, revoke all family permits upon detection of irregularities, forcing the entire household to leave. Penalties also target fraudulent reunifications or falsified personal conditions, potentially classifying them as fraud offenses.

Labour provisions offer more flexibility for temporary workers, permitting transfers within a company's activity centres or corporate group without sector changes, as sought by Andorra Endavant. Renewal periods for these permits, once fixed at five months, will now follow government regulations, per Demòcrates. Authorizations for workers from foreign firms extend from six to 12 months, responding to construction sector needs.

A majority-backed amendment from Demòcrates and Ciutadans Compromesos exempts Andorrans and residents abroad for studies from the foreign real estate investment tax, provided they demonstrate temporary absence for education. This applies equally regardless of nationality to comply with international conventions, pending final executive review.

Opposition parties Concòrdia and PS argue the real estate provisions fail to address housing shortages, advocating bans on property investments. PS leader Pere Baró noted improved dialogue compared to the budget law but warned the text remains insufficient. Andorra Endavant praised parliamentary progress while regretting omissions, such as automatic residency revocation for new residents with criminal convictions involving minors.