New non-refundable €50,000 fee and €1M investment requirement for passive residency are causing high-value

**Title:** Andorra's €50K Residency Fee Deters Entrepreneurs, Experts Warn **Summary:** Tax advisors report that the new non-refundable €50,000 contribution for foreign entrepreneurs is causing prospective high-value professionals in.

**Body:** Andorra has suspended new applications for passive residency after exhausting a quota of 600 permits opened in March 2023, as the government awaits the entry into force of a new law imposing stricter requirements, including a non-refundable €50,000 payment to the Andorran Financial Authority (AFA).

The government has instructed advisors not to submit further requests, as they will be denied. Officials indicated no new quota will open until the Law on Consolidation and Continuity of Measures for Sustainable Growth—approved Thursday by the General Council—takes effect, likely in about three weeks pending sanction by the Co-Princes. A fresh quota is expected, but with tougher rules: a minimum €1 million investment in Andorran assets plus the €50,000 non-refundable contribution. The exhausted quota included 490 permits for residency without gainful activity, 30 for professionals with international projection, 50 for scientific, cultural or sports reasons, and 30 for private geriatric or medical care facilities.

Tax advisors and legal experts warn these changes, alongside similar hikes for self-employed workers, content creators and entrepreneurs, are already damaging Andorra's appeal. The €50,000 fee for foreign entrepreneurs is prompting high-value professionals in entrepreneurship, the digital economy and innovation to abandon relocation plans amid regulatory uncertainty.

Albert Barroso, a partner at Grup Abast, highlighted client concerns over legal insecurity, saying it harms the country's reputation. Pere Augé, managing director of Augé Holding Group, noted that individuals with strong projects are reconsidering, with some opting out entirely. Both described the measures as populist, offering short-term political gain but risking long-term economic harm, especially if incompatible with a future EU association agreement.

Experts foresee medium-term impacts, blocking innovators short on capital who previously contributed easily to the economy. Advisors call for a review to preserve Andorra's status as a business and innovation hub.