There has been a redefinition of the qualifications for Andorran citizenship, a major issue in a country where only 35.7% of 78,549 are legal citizens. In 1995, a law to broaden citizenship was passed but citizenship remains hard to acquire, with only Andorran nationals being able to transmit citizenship automatically to their children. Lawful residents in Andorra may obtain citizenship after 25 years of residence. Children of residents may opt for Andorran citizenship after 18 if they have resided virtually all of their lives in Andorra. Mere birth on Andorran soil does not confer citizenship. Dual nationality is not permitted. Non-citizens are allowed to own only a 33% share of a company. Only after they have resided in the country for 20 years, will they be entitled to own 100% of a company. A proposed law to reduce the necessary years from 20 to 10 is pending approval in Parliament.

By creating a modern legal framework for the country, the 1993 constitution has allowed Andorra to begin a shift from an economy based largely on tax-free shopping to one based on tourism and international banking and finance. Despite promising new changes, it is likely that Andorra will, at least for the short term, continue to confront a number of difficult issues arising from the large influx of foreign residents and the need to develop modern social and political institutions. In addition to questions of Andorran nationality and immigration policy, other priority issues will include dealing with housing scarcities and speculation in real state, developing the tourist industry, defining its relationship with the European Union, and reforming the investment law to allow up to 100% foreign ownership in activities and sectors considered strategic.