The highest unemployment rate is among men, at 1%, while for women it stands at 0.9%. By age group, the population with the highest unemployment rate is in the 15-24 age range, representing 8.2%, followed by the 55-64 age group with 1% and then people aged 25-54 with 0.6%.

The employment rate for the second quarter of 2025 stands at 81.7% of the population aged between 15 and 64, representing 52,620 people in work. On the other hand, 518 people aged between 15 and 74 are unemployed.

Compared to neighbouring countries, Andorra has the lowest unemployment rate. For the same period, Spain has a rate of 10.3% and France 6.6%. Furthermore, Andorra is below the European Union (EU-27) unemployment rate of 5.8%.

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The recent ruling by the National Court on 28 July 2025 (SAN 3630/2025) brings a very significant change for those who reside outside the European Union and own property in Spain. Until now, a resident of Andorra who rented out their flat in Barcelona, Madrid or the Costa del Sol had to pay IRNR (Non-Resident Income Tax) on the gross rental income, without being able to deduct a single euro for maintenance, repairs, community fees or mortgage interest.

On the other hand, residents of the EU or the European Economic Area were able to deduct these expenses. The result was clearly unequal treatment, which many specialists had criticised as unfair and inconsistent.

The National Court has corrected this approach. The case that led to the change involved a US citizen who claimed to deduct her expenses related to renting a flat in Barcelona. The Tax Agency and the TEAC (Central Economic-Administrative Court) had told her no, but the court overturned those rulings and recognised her right to apply the deductions.

The key lies in the free movement of capital, a basic principle of European Union law that also applies in relations with third countries. If a property is located in Spain and generates income in Spain, there is no reason to discriminate against its owner simply because they live outside the EU. Furthermore, Spain and Andorra have an agreement to avoid double taxation, which further reinforces the argument that there is sufficient fiscal control to ensure correct taxation.

What does this mean for a tax resident in Andorra?

It’s very simple: if a tax resident in Andorra owns property in Spain, they may consider reviewing their IRNR self-assessments (form 210) for recent years and requesting a refund of any overpayments, provided they do so within the limitation period. For those who bear mortgage, insurance, renovation or management costs, the difference can be significant and considerably reduce their tax burden.

The court is also sending a clear message to Spanish lawmakers: if they do not update the law to extend this right to all non-residents, more and more claims will be filed. On a practical level, this equal treatment strengthens the competitiveness of the Spanish property market, making it more attractive to investors from Andorra and other non-EU countries.

In short, SAN 3630/2025 opens the door to a fairer system, where residents of Andorra can be on an equal footing with EU citizens when investing in property in Spain.

If you live in Andorra and own properties in Spain, you can contact us via the contact form on the website for more information.

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This DTA, an agreement between the Principality of Andorra and the United Kingdom of Great Britain and Northern Ireland to eliminate double taxation on income and wealth taxes and to prevent tax evasion and avoidance, is of particular importance for the Principality of Andorra, given the potential volume of business represented by the United Kingdom and the importance of this country on a global level.

With this new double taxation agreement sign by Andorra with the United Kingdom, the Principality of Andorra has now signed 21 DTAs with other countries such as France, Spain, Portugal, Luxembourg, Liechtenstein, Malta, Cyprus, the United Arab Emirates, San Marino and Hungary, among others.

Andorra is currently in negotiations with the governments of Germany and Austria to sign a DTA in the near future.

The General Council of the Principality of Andorra reported on 30 April 2025 the proposal for approval of the ratification of the Andorra-UK DTA, with a deadline of 22 May 2025 for the submission of the proposal.

Sources of information on the DTA between the Principality of Andorra and the United Kingdom:

Conveni CDI Andorra – UK

Proposta d’aprovació de la ratificació del Conveni entre el Principat d’Andorra i el Regne Unit de la Gran Bretanya i Irlanda del Nord

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On 6 March, the General Council of Andorra approved the Projecte de Llei per al creixement sostenible i el dret a l’habitatge, known as Llei Òmnibus, which amends Llei 9/2012 on Immigration. These changes seek to correct the misuse of certain permits and adapt the regulations to new migratory trends.

1. Residence and work as an employee

• The conditions for the first year are tightened, prohibiting self-employment during this period.
• Change of sector within the first year is allowed only in health or education and in urgent cases, with prior authorisation.
• A new ground for cancellation of the permit is introduced if the worker engages in self-employed activities in his first year.
• The worker’s shareholding in the contracting company is limited to 5%.
• Collaboration between administrations to detect irregularities is reinforced.

2. Residence and self-employed work

• Prior reservation of the permit is required and accreditation within 6 months:
  1. Foreign investment authorisation for an Andorran company with more than 34% of the capital.
  2. Exercise of effective management functions in the company.
  3. Deposit of €50,000 with the Andorran Financial Authority.
• The obligation to obtain a trading licence prior to authorisation is eliminated.
• After a voluntary leave, a similar permit may not be applied for another one for one year.
• An exceptional 10-year renewal is allowed for entrepreneurs with proven activity and who obtained their permit before the age of 60.

3. Residence without lucrative activity

• The €600,000 investment is maintained, excluding debt instruments and financial instruments issued by Andorran entities.
• If the investment includes real estate, each property must exceed €600,000.
• Deposits with the Andorran Financial Authority are increased to €50,000 for the holder and €12,000 per dependant.
• Permit issuance and renewal fees are increased.
• An extension of up to 6 months is granted for justified delays in the formalisation of the investment.

4. Family reunification

• If a breach of conditions is detected at renewal, the permit will be refused.
• The person reuniting is required to maintain his/her economic conditions for the entire duration of the permit.
• An application for reunification may be made after 3 months of effective residence instead of 1 year.

5. Refusal and cancellation of authorisations

• An application may be rejected if fraudulent use is detected.
• New grounds for cancellation are included:
  • Self-employed work in the first year on an employed permit.
  • Breach of conditions of a temporary permit or providing services in an unauthorised place.
  • Failure to comply with family reunification requirements or having family members in an irregular situation.

Entry into force

The Llei Òmnibus will enter into force 15 days after its publication in the Official Gazette of the Principality of Andorra (BOPA), except for the provisions on empty dwellings, which will take 6 months to be applied.

With these modifications, the Llei Òmnibus reinforces migratory control, avoids abuses and promotes administrative coordination to guarantee legality and transparency in residence permits in Andorra.

If you are interested in applying for Passive Residence in Andorra, Self-employed Residence in Andorra, or if you wish to set up a company in Andorra, consult the information published on our website or contact us through the contact form on the website for more information.

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Key Changes to the Legal Framework

The Llei Òmnibus repeals and fully replaces the previous Foreign Investment Law (Law 10/2012) and amends Law 3/2024 concerning the tax on foreign real estate investment. The new framework introduces significant structural and substantive changes.

Definition and Scope of the Foreign Investment in Andorra After the Approval of the Llei Òmnibus

Foreign investment now includes:

• Non-resident individuals (except Andorran nationals)
• Resident individuals who are not Andorran nationals and have not resided in Andorra for at least 3 of the past 10 years (previously required uninterrupted 3-year residence)
• Foreign legal entities and public entities
• Andorran legal entities with direct or indirect foreign ownership of 50% or more

Entities with foreign ownership between 5% and 50%, or investments financed by foreign investors, are no longer classified as foreign investments.

Foreign Investment Categories in Andorra

The law now recognizes only two types of foreign investments:

1. Direct investments
2. Real estate investments

The categories of portfolio investments and other forms are eliminated. Investments through entities holding more than 50% of assets in Andorran real estate are explicitly included.

Requirements for Direct Investment

• Prior authorization is needed for direct or indirect foreign ownership exceeding 10%, or when collective foreign ownership reaches 25%.
• Andorran companies receiving foreign investment must initiate economic activity within 18 months, comply with commercial registration, file annual accounts, and meet regulatory thresholds for business activity.
• Foreign direct investment alone does not grant residency; it is just one condition among others within a 6-month immigration application window.

Real Estate Investment Limits in Andorra

New legal limits apply to foreign individuals, who may only acquire:

• One plot with a single-family home
• Up to two housing units (apartments/studios) and associated spaces (max. 3 parking spots and 3 storage rooms)
• Up to six parking spaces

These limits apply only to acquisitions made after the law’s entry into force. Properties held prior are not counted. Properties for long-term affordable rental (10+ years) are exempt.

After 10 years, investors may reapply for authorization under the same conditions.

Special Cases and Exceptions

Foreign companies or Andorran companies with over 50% foreign ownership can invest in real estate if:

• The property is for a self-employed commercial activity
• Ownership is by a single individual or related individuals (family, partners, etc.)

These entities may invest without being subject to the commercial-use requirement, provided the ownership structure meets the criteria.

Prohibited Investments

Foreign real estate investment is prohibited for:

• Property development for resale
• Vacation or tourist housing
• Lease-to-own schemes or rentals involving related parties, deemed fraudulent

Exceptions apply if developments are 100% for long-term rentals and at least 50% are at affordable prices, or located in parishes with updated urban plans.

Monitoring and Sanctions

• Authorized investments will be monitored biannually or as requested by authorities.
• Non-compliant or fraudulent investments are void.
• New sanctions apply for non-disclosure, false reporting, or registry failures.

Real Estate Investment Tax (IEI)

• The taxable definition now aligns with the new law.
• Exemptions include inheritance and matrimonial regime liquidations.
• Tax rates:
  • 3% for first unit (house or apartment + annexes)
  • 5% for second unit (same criteria)
  • 10% for any additional properties or when exceeding legal limits

To qualify for a 90% tax reduction, the property must be rented long-term (10+ years) at affordable prices.

Transitional Regime

Three situations:

1. New investments post-law fall under the new regime.
2. Pre-agreed transactions (with proof of deposit and contract) may follow old rules if formalized within 6 months.
3. Previously authorized investments remain governed by the old law, even if executed later.

Conclusion

The Llei Òmnibus marks a shift from a liberalized to a more regulated foreign investment regime, particularly in real estate. It establishes quantitative limits, introduces strict conditions, adjusts tax rates, and imposes monitoring and penalties – all aimed at achieving sustainable growth and preserving housing access for residents.

If you would like to obtain further assistant about Llei Òmnibus and foreign investment in Andorra, you can contact us using the contact form.

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The monthly contribution is distributed as follows: 10% to the general branch and 12% to the retirement contribution.

• Overall contribution base: 2560.99 €
• General branch 10%: 256.10 €
• Retirement branch 12%: 307.32 €
• Self-employed monthly contribution 2025: 563.42 €

The self-employed quota in Andorra for 2025 has increased by approximately 5.54% compared to the previous year, from 533.87 euros in 2024 to 563.42 euros in 2025.

If you would like to obtain information about working as a self-employed person in Andorra, or if you would like to set up a company in Andorra, please consult the information published on the website or contact us using the contact form.

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Although many new residents come to Andorra initially as individuals, they often share a life project with their spouses and/or children. Therefore, one of the most frequent queries we receive is related to the process of family reunification. It is essential to understand whether the Principality allows the reunification of ascendants and descendants, as well as the requirements necessary to bring a spouse and children, including the associated benefits and drawbacks.

Evolution of the Requirements for Family Reunification in Andorra

Until 2023, the conditions for family reunification in Andorra were relatively accessible, which favoured both the arrival of families and the increase of the labour force. Those reunited could change their immigration status through a simple procedure. However, factors such as the rising cost of housing, the impact on Social Security (CASS) and the growth of the foreign population have tightened these requirements, making the process more demanding.

One notable change has been the increase in the financial capacity that the applicant must demonstrate. Until recently, 70% of the minimum wage was required for each adult applicant, but this has now been increased to 100%. In the case of minors, the requirement increased from 40% to 70%.

Documentation and Salary Requirements for 2025 in Andorra

For 2025, and considering the increase of the minimum wage by 5.2%, family reunification requires the following documents:

• Passport or DNI (original and copy).
• Apostilled marriage certificate, issued within the last three months, or certificate of stable partnership registered in Andorra.
• Apostilled birth certificate, issued within the last three months.
• Residence certificate issued by the Comú corresponding to the applicant.
• Extract of points from the CASS.
• Rental contract or deed of ownership of a property in Andorra.
• Passport photograph.
• Last three payslips (salaried) or bank solvency certificate proving income equivalent to 340% of the minimum wage in Andorra (€4,920.92 gross per month).

When only one of the parents resides in Andorra and wishes to reunite their children, it will be necessary to present a notarised authorisation from the other parent, duly apostilled, if issued outside the country.

Salary Requirements According to Family Composition

In 2025, the minimum income requirements according to family composition are as follows:

Procedure and Benefits for Regrouped Persons in Andorra

After gathering all the documentation, the application can be submitted. If the requirements are met, the process of obtaining the residence card is usually completed in approximately one week.

Benefits as Regrouped in Andorra:

• Obtaining legal resident status in Andorra.
• Health coverage through CASS as indirectly insured, with access to partial reimbursement of medical expenses.
• Possibility to change to a residence and work permit upon finding employment.
• Enrolment of minors in the Andorran, Spanish, French or private educational system.

Conclusion

Although the requirements for family reunification in Andorra have been tightened, it remains a viable option for those who meet the economic and documentary criteria. This process allows for family reunification and facilitates a more comfortable adaptation to the country.

We recommend having an experienced advisor to manage these procedures, guaranteeing an agile and efficient process that integrates all the necessary steps, including dealings with different administrations such as the Immigration Service, banks, CASS and notaries. Contact us for further information.

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The meeting took place during the Espot’s visit to Slovenia, establishing a guide that will allow the intensification of collaboration between the two States, in areas such as the economy, tourism, sport and those related to digitalisation and Artificial Intelligence (AI). In this last aspect, one of the most important agreements was to strengthen cooperation in the field of digitalisation and artificial intelligence. In 2022, a collaboration agreement was established between Andorra Recerca i Innovació (AR+I) and the International Research Centre on Artificial Intelligence (IRCAI) based in Ljubljana, capital of Slovenia.

The two leaders exchanged the challenges and objectives that both governments have ahead. The process of bringing the Principality of Andorra closer to the European Union (EU), through an Association Agreement, will allow Andorra to participate in the internal market. This is what Espot explained to Golob at their meeting, also thanking the Slovenian Prime Minister for his support during the nine years of Andorra’s negotiations with the EU.

Espot also met with the Deputy Prime Minister and Minister of Finance, Klemen Boštjančič, with whom he discussed economic and financial collaboration. The outcome of this meeting was the agreement to start negotiations for the signing of a double taxation avoidance agreement between the two countries, offering new business opportunities.

Tourism and sustainability were also topics of discussion. Espot and Golob are interested in both countries exchanging strategies for the viability of mountain resorts all year round, related to climate change. Applying sustainability policies in mountain areas, which favour tourism without impacting the environment, was one of the points on which they agreed.

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Among the objectives of this new law are to guarantee the official use of Catalan within the country and its good knowledge, to establish protection mechanisms, to preserve its use in education through social activities, to raise awareness among the population that it is essential to protect the Andorran linguistic heritage in order to preserve the country’s identity.

The Law ties the accreditation of knowledge of the Catalan language to the renewal of residence permits in the Principality of Andorra, and the entry into force of this Law will be staggered until 2029.

New bodies such as the Coordination Board for Language and Training (JCLF) and the National Council for Language will be set up to ensure the proper implementation of the language policy.

Requirements of the new Law on the own and official language in Andorra 2024

From 2026, 30 hours of Catalan language training will be required to renew an active residence and work permit in Andorra, with level A1 being required for the first renewal. Level A2 will be required for the second renewal, and from 2029, this requirement will be applicable to all immigration permits issued by the Principality of Andorra, affecting youtubers, passive residents and athletes.

Companies established in Andorra will have to guarantee customer service in Catalan, and administrations will be obliged to encourage the promotion of audiovisual productions in the Catalan language.

Mònica Bonell, Andorra’s Minister for Culture, Youth and Sport, pointed out that, after the announcement of the new law, the number of people interested in learning Catalan has tripled, with 6,800 people coming to self-learning centres, 750 people taking face-to-face courses and 300 people taking virtual courses. Bonell also commented that “language should not be seen as a barrier, but as an opportunity to share who we are and to weave a more united and more integrating society”, and claims that Catalan continues to be “a tool for cohesion and integration for the people who live in Andorra”.

Sanctioning regime of the new law

The fines provided for in the regulations of this law can range from 1,200 euros to 60,000 euros, in the most serious cases, for those companies that are shown to have repeatedly failed to provide services in Catalan, either by the company’s management or by an employee.

If you would like to learn more about the new Law, we invite you to the informative talk to be held on 6 June, with special interest for freelancers and employees. Albert Barroso, partner at Abast Global, will be in charge of this presentation.

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The aim of this visit to Lithuania is to reaffirm the collaboration between Andorra and Lithuania in financial matters and international cooperation and to share the main challenges facing both countries. First, the head of the Andorran government, Xavier Espot, met with the Prime Minister of Lithuania, Ingrida Šimonytė. At this meeting they shared different areas of bilateral cooperation, especially financial cooperation.

This new agreement, in which Andorra and Lithuania sign the double taxation agreement, will foster a more favourable environment for investment and trade between the two countries.

On Andorra’s association agreement with the European Union

As part of the working agenda, the two delegations addressed other issues, such as the process of bringing the Principality of Andorra closer to the European Union through the Association Agreement with the EU. This Agreement will allow participation in the EU’s internal market, while respecting Andorra’s particularities and specificities. Lithuania’s contribution was to share its experience during the process of adaptation to the EU, 20 years after becoming a member country. They also explained that joining the EU favoured the country’s economic development and external relations.

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