Adopted on 22 January 2026 and in force since 13 February, Law 2/2026 — known as "Omnibus 2" — adjusts several parameters of Andorra's appeal as a jurisdiction. Nothing has been overturned: the tax advantage remains fully intact. Entry thresholds have risen, however, and knowing them before you act is essential.
Passive Residence: the entry investment raised to €1M
This is the most visible change. The minimum investment for passive residence rises to 1,000,000 € in Andorran assets (previously 600,000 €), with alternative routes: 800,000 € in real estate or 400,000 € through the Housing Fund. Importantly, the deposit held with the AFA (50,000 €, plus 12,000 € per dependent) becomes non-refundable. The required income threshold remains at least 300% of the Andorran minimum wage.
Real Estate: a foreign investment tax
For non-residents, property purchases now carry a foreign investment tax: 6% on a first property, 10% beyond that. This is a parameter to factor in from the outset of your financing plan — something we systematically address in our advisory work for clients looking to invest in Andorran real estate.
Companies: an effective minimum taxation
On the corporate side, the corporate tax rate remains at 10%, but an effective minimum tax (in the region of 3%) now applies to certain structures. Andorra remains one of Europe's most business-friendly tax environments; setting up a company here continues to offer outstanding advantages.
Law 2/2026 at a glance
- In force since 13 February 2026
- Passive residence: investment raised to €1M (or €800,000 in real estate)
- AFA deposit of €50,000 (+€12,000 per dependent), non-refundable
- Foreign real estate investment tax: 6% (1st property) up to 10%
- Corporate tax: 10%, with an effective minimum tax (~3%)
Should you be concerned? No — you should plan ahead
These adjustments are designed to manage growth, not to close the door. By European standards, Andorra remains unrivalled: no wealth tax, no inheritance tax, IRPF capped at 10%, and IGI at 4.5%. Explore the full picture of our tax advantages.
The real challenge is not reconsidering — it is calibrating your project to the current framework. That is precisely our role: turning a reform into a strategy, and a threshold into an action plan.
