Property in Andorra

Updated 6 October 2026

Apartments and houses in the Pyrenees. We obtain foreign investment authorisation, calculate taxes and handle the notarial deal and residence.

Andorra is a small Pyrenean principality between France and Spain, where the property market rests on ski tourism, low taxes and limited supply: there is little room to build in a mountain country. A foreigner can buy an apartment or house here, but the rules for foreign buyers have tightened considerably in recent years. Below: the permission required, the taxes a foreign buyer pays, how property relates to residence and how a purchase works.

Foreign investment authorisation

A non-resident foreigner needs prior government authorisation for a foreign investment in real estate to buy property in Andorra. The application is filed on the prescribed form with details of the property, the buyer and the source of money. Without it the notary will not execute the deal, so this step comes first in the schedule.

Foreign real estate investment tax

Law 3/2024, in force since 29 March 2024, introduced a separate tax on foreign investment in Andorran real estate. The government later doubled the rates: under current rules 6% for the first property and 10% for subsequent ones. Non-resident foreign buyers pay it on top of the usual property transfer taxes. We check the exact rate on the deal date and possible exemptions, such as property for a company's own commercial activity, before signing.

Property and residence

A purchase alone does not give the right to live in Andorra. Passive residence is for people living on income from elsewhere who do not work in the country. Law 2/2026 has been in force since 13 February 2026, and it offers three routes: at least EUR 1,000,000, about $1,121,000, in Andorran assets, meaning financial instruments and shares in local companies; at least EUR 800,000, about $896,800, in residential property; or EUR 400,000, about $448,400, paid into the national housing fund. On top of that comes a EUR 50,000 deposit, about $56,100, with the Andorran Financial Authority, which is now non-refundable with few exceptions, plus a separate contribution for each dependant. You must live in the country at least 90 days a year and may not work in Andorra. If you take the property route, we plan the purchase and the residence application together. Dollar amounts are converted at the rate of 6 October 2026 and rounded up.

How a purchase works

1. Goal. We define the goal: a home for relocation, seasonal letting or capital investment.
2. Shortlist. We select properties in Andorra la Vella, Escaldes-Engordany and the ski areas.
3. Checks. We check the owner, encumbrances, building permits and debts on the property.
4. Authorisation. We apply for the foreign investment authorisation.
5. Deal. A notary executes the purchase, payment goes through a bank and transfer taxes are paid.
6. Residence and ownership. If needed we apply for passive residence and help with letting.

Why deals fall through

• the buyer did not obtain the foreign investment authorisation;
• the foreign investment tax was not budgeted;
• the source of money was not proven to the bank and notary;
• the property has encumbrances or unregistered alterations.

What we do

We select a property, check it, obtain the foreign investment authorisation, calculate taxes, handle the notarial deal and the residence application, and help open an Andorran bank account. A manager will calculate the cost in the chat.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account

FAQ