Llei 2/2026, of 22 January, on the continuity and consolidation of measures for sustainable growth (Omnibus 2), is now a reality. Published in BOPA No. 15 on 12 February 2026 and in force from the day after its publication, this legislation introduces cross-cutting amendments that directly impact four fundamental pillars: immigration, foreign real estate investment, commerce and taxation.
This new legal framework requires an immediate review to identify impacts, compliance risks and legal planning opportunities in the Principality of Andorra.
At Carlota Pastora Business Law Firm & Wealth Planning, we have analyzed the law in a clear, structured and comprehensive manner. Below, we explain the main changes it introduces, who is affected, and which points you should review particularly carefully to ensure regulatory compliance and sound legal planning.
1. Immigration: New rules of the game
The amendment to Llei 9/2012 on immigration turns financial obligations that were previously refundable into definitive payments to the State and strengthens oversight of the work activity carried out by permit holders among new residents.
1.1. Residence without gainful activity and residence and self-employment
- €50,000 (and €12,000) non-refundable payment (“at a loss”): undoubtedly one of the most discussed measures. For self-employed residence and work permits and for residence without gainful activity (passive residence), the €50,000 amount ceases to be a “deposit” and becomes a definitive, non-refundable payment to the State, channelled through the Andorran Financial Authority (AFA). The same applies to the €12,000 amount for each dependent under passive residence.
- Refund (exception): once the authorization is granted, the AFA transfers the money to the Ministry of Finance and it becomes State revenue to finance public policies, with any right to a later refund lost—except where the initial authorization is denied.
- Exemption for value-generating projects: in self-employed residence and work permits, the exemption from paying the €50,000 remains for companies incorporated for digital economy, entrepreneurship or innovation projects. For these purposes, the law introduces for the first time the definition of a “high value-added technological activity”: (i) based on the development or integration of proprietary advanced technology; (ii) generating substantial knowledge or innovation compared to the state of the art; (iii) producing significant economic impact through the creation of highly qualified jobs.
- Stronger grounds for refusal: the simulation of family relationships, contractual relationships or any legal transaction, regardless of form, is now an explicit ground for initial refusal. In addition, circumventing the €50,000 or €12,000 payments through deception is classified as a very serious infringement.
- New grounds for revoking permits: new grounds are introduced for revoking temporary authorizations, such as working more than 52 hours per week or more than 12 hours per week outside the authorized sector. Student permits may also be cancelled due to lack of attendance or failure to follow courses.
2. Real estate investment for residence without gainful activity (passive)
For those interested in a residence permit without gainful activity (passive residence), the investment threshold (and its nature) has increased significantly.
- Passive residence and the €1,000,000 investment threshold: investment requirements are increased to ensure a genuine link between the resident and the country. The minimum investment in Andorran assets (debt, financial instruments or equity participations in Andorran companies) for passive residents increases from €600,000 to €1,000,000.
- Minimum per real estate unit: if the investment is made in real estate, each unit (apartment or house) must have a value exceeding €800,000.
- Strategic investment alternative (reminder): although the investment requirement to obtain residence without gainful activity has risen to €1,000,000, the law maintains an alternative: reducing the required investment to €400,000, provided the capital is allocated—directly or indirectly, on a permanent and effective basis—to the Fons d’Habitatge.
- Expiry of financial investment: investing in Andorran debt or Andorran investment funds is permitted for a maximum of 36 months. After this period, the resident has a legal obligation to reinvest that capital in permanent assets (such as real estate or public debt) to keep the permit.
- Residence for studies: it is added that time spent abroad for studies will now count as effective residence for the purpose of calculating the 3 years required not to be considered a foreign investor.
- Subsequent foreign investment (“inversió estrangera sobrevinguda”): the nationality distinction is removed. Now, any natural person who ceases to reside in Andorra will see their investment automatically classified as “subsequent” foreign investment.
3. Commerce
The role of the Comuns is strengthened, along with the requirements for large establishments.
- Commercial policy for sustainability: the Government assumes powers to set commercial policy in order to “guarantee sustainable and orderly urban and demographic growth.” This allows it to establish, by regulation, limitations or requirements of all kinds for commercial authorizations that could negatively impact such growth.
- Large establishments: for large individual commercial establishments, a new assessment criterion is introduced: “the impact on the labor market and the recruitment policies the company will apply.” These requirements are added to the existing ones relating to mobility, environmental protection and mandatory parking spaces.
4. Taxation (Tax on foreign real estate investment, IEI)
Finally, in the area of real estate taxation (IEI), the tax rate is increased to discourage speculation and promote long-term residential use.
- New tax rates: the IEI rate increases from 3% to 6% on the real value of the investment for the first real estate unit or plot intended for a single-family dwelling. A 10% rate applies to other investments exceeding those limits. Finally, the 5% rate is removed.
- Reset of progressivity: the count of the number of units used to determine the applicable tax bracket (6% or 10%) starts again from zero for transactions authorized after the law’s entry into force.
- Protection for ongoing transactions: the previous regime is maintained for: (i) applications submitted before the law was approved; and (ii) cases where there is an agreement with a prior economic transaction, duly evidenced, carried out within the six months following the entry into force of the regulation—which, it is worth recalling, has applied since 13 February 2026.
Do you need specialized legal advice?
At Carlota Pastora Business Law Firm & Wealth Planning, we provide comprehensive legal advice in the four areas directly affected by Llei 2/2026, with a strategic, preventive approach tailored to each client.
If you need to assess the impact of the new legislation on your personal, wealth or business situation, we will be pleased to support you with a rigorous analysis and solutions tailored to your case.
Contact us and we will design with you the best legal strategy under this new regulatory framework.
