Andorra – Buying Property

Can foreign nationals legally buy and own property in Andorra?

Yes, overseas buyers can acquire property in Andorra, though doing so requires obtaining prior government authorisation. While the Principality welcomes foreign capital into its real estate sector, reforms enacted in 2025 have introduced clear limits on the volume and categories of property that non-nationals may acquire. This stands in marked contrast to markets such as France or Spain, where EU citizens typically face no formal authorisation hurdle whatsoever.

Before completing any purchase, foreigners must hold Prior Authorisation for Foreign Investment (Autorització Prèvia d’Inversió Estrangera) granted by the Ministry of Economy. Processing this authorisation generally takes two to four weeks and involves submitting documentation covering the buyer’s identity, details of the intended property, and evidence of the origin of funds.

The Omnibus Law passed in 2025 strengthens the regulatory framework considerably, capping non-resident purchases at one single-family home or two apartments, and broadly prohibiting foreign real estate development apart from a narrow set of exceptions. Residents who have not been living in Andorra for at least three of the preceding ten years also fall within these restrictions, making a careful review of residency status essential before proceeding.

Resident natural persons who are non-nationals and have not been resident in Andorra for at least three of the last ten years are captured by these rules. This requirement is more demanding than the earlier standard, which called for three years of uninterrupted residence.

Non-residents may purchase a maximum of two properties in total, and the combined floor area of those properties may not exceed 1,000 square metres. Agricultural land carries additional constraints, as it is reserved primarily for Andorran nationals.

The Andorran government retains a right of veto, allowing it to refuse authorisation where a proposed foreign investment could compromise the exercise of public authority, national sovereignty and security, public and economic order, environmental protection, public health, or the broader interests of the Principality.

All transactions are closely regulated, and both residential and commercial properties must be recorded with the Andorran Property Register. While there is no single national land registry, each parish’s town hall operates its own real estate registry for tax purposes, and transfers of title are documented through the Andorran chamber of notaries, which maintains public deeds covering all real estate transactions, including charges, encumbrances, and other changes to a property’s legal status. For the most current rules, refer to the Government of Andorra (govern.ad) and the Official Gazette of the Principality of Andorra (BOPA), where new legislation is formally published.

What are average property prices in Andorra, and how do they vary by region?

From 2019 to 2024, average residential property prices in Andorra climbed by almost 50%, moving from approximately €3,112 to €4,582 per square metre. In 2024 alone, prices jumped by 14.4%, and a further 4.86% increase was recorded in Q1 2025 relative to the previous quarter. This sustained upward trajectory has established Andorra as one of the pricier property markets anywhere in the Pyrenees.

In November 2025, the national average asking price for residential properties stood at €5,719 per square metre, representing a 16.76% rise compared with December 2024 (€4,898/m²). These figures reflect advertised asking prices; final transacted amounts may differ, so always cross-reference current listings against official government statistics for the most reliable picture.

Prices differ considerably across Andorra’s seven administrative parishes:

• Andorra la Vella: The capital recorded the highest asking price in November 2025, reaching €6,671 per square metre.
• Escaldes-Engordany: This parish has the most expensive transacted properties at €5,689/m², followed closely by Andorra la Vella at €5,032/m² and, at a greater distance, La Massana at €4,221/m².
• More affordable parishes: Sant Julià de Lòria had the lowest average prices as of January 2024 at €3,694/m², followed by Encamp (€4,090/m²) and Canillo (€4,100/m²).

To illustrate typical price ranges, an older three-bedroom apartment generally falls somewhere between €550,000 and €900,000, while detached xalets (chalets) routinely exceed €1.5 million, with new-build examples commanding considerably more. Always verify current prices through established portals such as Idealista or the Andorran Department of Statistics (estadistica.ad), which releases official transaction data three times annually.

Where are the most popular locations to buy property in Andorra?

Andorra is divided into seven parishes (parròquies), each with its own distinct character. Demand from both domestic and international buyers is strongest in the more urbanised valleys, though mountain and resort locations draw consistent seasonal interest.

Andorra la Vella is the country’s capital and its principal commercial centre. It offers the widest range of services, infrastructure, international schools, and transport connections. Along with neighbouring Escaldes-Engordany, it remains among the most expensive parishes, a reflection of the volume of new-build completions in these areas. Buyers here tend to be professionals, entrepreneurs, or those looking for a primary home with convenient access to all the Principality has to offer.

Escaldes-Engordany, which borders the capital directly, has become the most dynamically priced parish in the country. Price growth here reached €5,689/m² with a 20.1% year-on-year increase. Its famous thermal waters, the Caldea spa complex, and strong urban amenities attract lifestyle-oriented buyers as well as investors.

La Massana and Ordino appeal to those seeking a quieter, more village-like atmosphere without sacrificing reasonable proximity to the capital. Ordino in particular is characterised by unspoilt natural surroundings and a high quality of life, striking a balance between tranquillity and accessibility. Both parishes are popular with families and people drawn to outdoor activities such as skiing, hiking, and cycling.

Canillo is closely linked to ski resort access, sitting adjacent to the Grandvalira ski area — the largest in the Pyrenees. Properties here primarily attract winter sports enthusiasts and buyers seeking chalet-style homes. Sant Julià de Lòria, situated on the Spanish border, is the most affordable parish and is favoured by buyers who prioritise value for money above all else.

Are there any emerging or up-and-coming areas worth considering in Andorra?

Apartment prices rose by 15.3% across 2024 overall, but the parishes posting the sharpest per-square-metre gains were Andorra la Vella (+41.3%), Ordino (+20.7%), and Canillo (+15.0%). These figures indicate that previously secondary markets are rapidly narrowing the gap with the established leaders of Escaldes-Engordany and the capital.

Even as the total number of transactions fell, the surface area being transacted increased by 6.8%, with notable growth concentrated in Encamp (+104.4%), Ordino (+53.0%), and Sant Julià de Lòria (+16.8%). This pattern suggests a trend towards acquiring larger plots and whole buildings rather than individual units.

Encamp is drawing increasing attention. It has seen the most substantial cumulative price growth since January 2019 — a 53.3% rise taking average values from €2,668/m² to €4,090/m² by January 2024. Good road connections, entry prices below those in the capital parishes, and proximity to the Grandvalira ski area all contribute to its growing appeal.

Government investment in affordable housing across several parishes may also reshape demand patterns. New public construction projects on municipal land — most notably Borda Nova I and II in Andorra la Vella and the Cedre building in Santa Coloma — together with comparable schemes in Escaldes-Engordany, La Massana, Encamp, and Sant Julià, are intended to bring public affordable rental stock up to around 500 units by 2027. Private buyers in these parishes may benefit from the associated improvements to local infrastructure.

What are the current trends in the property market in Andorra?

After a gradual slowdown in 2023 and 2024, housing demand in Andorra staged a notable recovery in 2025. In the first quarter of 2025 alone, property sale transactions surged by 70.9% compared with the equivalent period in 2024. Several interrelated factors have driven this rebound.

Falling interest rates combined with acute pressure in the rental market revived borrowing activity across Andorra. Local experts have noted that the demand resurgence is driven substantially by younger buyers looking to finance their first home purchase, particularly as rental costs in many areas have converged with monthly mortgage repayments.

The market continues to be steered predominantly by off-plan developments, high-rise residential towers, and premium xalets, keeping the construction sector occupied. However, new development at the middle and lower price brackets remains scarce — a structural challenge the Government has yet to fully resolve.

The backdrop to recent legislation is a marked escalation in property prices, partly driven by a rising tide of foreign investment attracted by the Principality’s political stability and low-tax environment. This dynamic has made it increasingly difficult for ordinary residents to access housing and has intensified concerns about real estate speculation.

Short-term rentals have been restricted in major tourist and urban areas as a means of containing speculative activity and preserving housing availability for locals. Consequently, many investors are shifting their focus towards long-term rental strategies.

For authoritative and current market data, the Andorran Department of Statistics publishes quarterly and annual property transaction reports. The Global Property Guide’s Andorra page also compiles useful analysis drawing on official figures.

Is buying property in Andorra a good investment?

Andorra’s property market has delivered robust capital appreciation over the medium term. Between 2019 and 2024, average housing prices rose by close to 50%, climbing from around €3,000 to approximately €5,000 per square metre. This sustained growth reflects persistent demand from international investors, a limited pipeline of new construction, and the country’s growing attractiveness as a tax-efficient place of residence.

On the income side, gross rental yields averaged 5.80% as of July 2025. Property owners who let their properties are subject to rental income tax of between 1.75% and 4%, depending on the parish. These yields compare favourably with many Western European capitals, though they must be weighed carefully against Andorra’s high market entry costs.

Short-term tourist rental income is achievable but highly variable. Properties in resort locations such as El Tarter can generate meaningful income during peak periods, but annual occupancy in the short-term market averages just 32.4%, with only the top 10% of listings earning over $7,000 per month. The median monthly rental income sits at around $1,800.

The Principality offers several structural advantages as a real estate market: there is no wealth tax, property taxes are modest, and values remain competitive relative to comparable locations in neighbouring France and Spain. Andorra uses the euro without being an EU member state, which means buyers remitting funds from non-eurozone countries should factor in currency exchange costs from the outset.

That said, risks exist. Some analysts caution that the market may be experiencing bubble-like conditions that could correct if demand weakens. Others expect prices to remain elevated given constrained supply, tax advantages, and continued investor appetite. As with any property investment, historical performance provides no assurance of future returns, and obtaining independent financial advice before committing is strongly recommended.

What types of property are commonly available to buy in Andorra?

Andorra’s property market offers a variety of property categories, though overall supply is limited by the country’s small land area and stringent planning controls.

• Apartments: The most widely available property type, particularly across the urban parishes of Andorra la Vella, Escaldes-Engordany, and Encamp. Options span compact one-bedroom units through to expansive luxury penthouses in modern high-rise developments.
• Xalets (chalets/detached houses): Buyers should generally expect to pay well over €1.5 million for a detached xalet, with new-build examples considerably more expensive. These properties are most prevalent in the mountain parishes of La Massana, Ordino, Canillo, and Sant Julià de Lòria.
• Townhouses and village properties: Found in smaller settlements throughout the higher parishes. These can offer character and space at lower price points than equivalent urban or resort properties, though renovation may be necessary.
• New-build and off-plan developments: The market is currently dominated by off-plan projects and high-rise towers, keeping construction firms active. Purchasing off-plan at launch price can represent good value, but carries its own risks (see the pitfalls section below).
• Commercial and mixed-use properties: Subject to the same foreign ownership authorisation requirements as residential property, plus additional restrictions where a business purpose is intended.
• Land plots: Foreigners face stricter conditions when buying vacant land. In most circumstances, non-residents may not purchase land unless it is earmarked for specific uses such as development or agriculture.

What is the typical step-by-step process for buying property in Andorra?

The Andorran purchase process broadly resembles the notarial systems used in France or Spain, where a notary plays a central role in authenticating the transaction. Unlike the US or Australian models, which rely on conveyancing solicitors or escrow companies, Andorra depends heavily on the notary to ensure that both parties’ legal obligations are met. The key steps are outlined below.

1. Engage a local lawyer and/or agent. While engaging a real estate agent to find a property is not a legal requirement, it is strongly advisable. A specialist buying agent or broker can provide valuable insight into the local market and steer you through the process. Given the complexity of foreign investment legislation, retaining a property lawyer at this stage is equally important.
2. Obtain Prior Authorisation for Foreign Investment. Non-residents must secure Prior Authorisation (Autorització Prèvia d’Inversió Estrangera) from the Ministry of Economy before purchasing. This typically takes two to four weeks and requires documentation covering the buyer’s identity, details of the property, and evidence of the source of funds. Do not execute any binding agreement until this authorisation is in hand.
3. Open an Andorran bank account. Opening a bank account with a locally authorised institution is essential for completing a real estate purchase in Andorra. All funds must be processed through the regulated local banking system, as only banks authorised by the Andorran Financial Authority (AFA) may extend property loans, and direct lending from foreign financial institutions for Andorran real estate acquisitions is not permitted.
4. Make an offer and sign the preliminary contract (promesa de compravenda). Once an offer has been agreed, both parties execute a preliminary purchase agreement. The buyer is required to pay a non-refundable deposit of 10% upon committing to the purchase; this amount is forfeited should the buyer withdraw without legitimate justification. This is broadly comparable to the exchange deposit used in the UK system.
5. Conduct due diligence. Buyers should carry out a thorough investigation of the property, examining ownership history and key characteristics. Critical areas to verify include any third-party rights over the property, outstanding lease rights or licences, unpaid tax liabilities, foreclosure proceedings, and debts attached to the property, particularly in the case of condominiums. A structural survey is not standard practice in Andorra but is advisable for older or rural properties.
6. Pay the Foreign Investment Tax (IIEI) and standard transfer taxes. The taxable base is the property’s actual value, and the foreign investment tax must be settled prior to signing at the notary. The standard ITP transfer tax of 4% is also payable at this stage. For new-build purchases, IGI (Andorra’s VAT equivalent) at 4.5% applies in place of ITP.
7. Sign the public deed (Escriptura Pública) before a notary. In Andorra, the notary is a neutral, government-appointed official whose function is to oversee the transaction and confirm its legal validity. The instrument the notary uses to authenticate the transfer of ownership is the Escriptura Pública — an official public title deed. Full payment is made at this appointment, typically by bank draft.
8. Obtain the Habitability Certificate. Every sale must include provision of a valid Habitability Certificate for the property. This document confirms that the property complies with all applicable local standards of habitability and construction quality.
9. Register the property at the parish level. The necessary paperwork must be completed at the local parish level to formally record the new owner. Following the signing, the notary lodges the title deed with the Property Registry of Andorra. Registration creates a public record of ownership and safeguards the buyer’s legal rights. The process typically takes several weeks to finalise.

All fees and tax rates cited above reflect 2025 figures. Always confirm current amounts with a local lawyer or the official Andorran tax authority, as these are subject to legislative revision.

Do I need a lawyer to buy property in Andorra, and how do I find a reputable one?

In an Andorran property transaction, the notary typically acts on behalf of both parties; separate legal representation is not customary, nor is a formal survey ordinarily required. However, this convention does not adequately protect a foreign buyer who is unfamiliar with Andorran law, especially given the intricacy of the foreign investment legislation introduced in 2024 and 2025.

For overseas buyers in particular, retaining an independent property lawyer is strongly advisable — not a legal requirement, but a practical necessity. A lawyer will guide you through the authorisation process, review the preliminary agreement, perform title due diligence, confirm the absence of undisclosed debts or encumbrances, and advise on the most tax-efficient structure for your purchase.

Engaging qualified legal counsel is effectively an unavoidable cost of completing a secure purchase. Legal fees are not formally regulated but typically fall in the range of 1% to 1.5% of the purchase price; confirm current rates directly with any practitioner you are considering, as these can vary. Ensure that any lawyer you instruct is a member of the Col·legi d’Advocats d’Andorra (the Andorran Bar Association), the body that regulates legal practice in the Principality. Its member directory is available at advocats.ad.

For real estate agents, verify that the agent is registered with the Professional Association of Real Estate Agents (Associació Professional d’Agents Immobiliaris d’Andorra). Given the number of unregulated operators active in a buoyant market, this verification step is particularly important.

What are the most common pitfalls and problems expats encounter when buying property in Andorra?

Andorra’s property market presents some specific hazards that can catch out uninformed foreign buyers. Awareness of these in advance can save significant expense and anxiety.

• Skipping the authorisation step: Attempting to finalise a purchase without first obtaining Prior Authorisation for Foreign Investment constitutes a serious legal breach. Secure it before executing any binding agreement.
• Undisclosed debts and encumbrances: Key red flags to investigate during due diligence include third-party rights over the property, existing lease rights or licences, outstanding tax liabilities, foreclosure proceedings, and any debts associated with the property, especially in condominium situations. Always request a comprehensive notarial search before committing.
• Stale online listings: Online property databases are frequently out of date. Both rental and for-sale properties are often taken off the market before they ever appear on the internet. Rely on local agents with live market knowledge rather than portal listings alone.
• Off-plan purchase risks: The market is dominated by off-plan developments and high-rise towers, while projects at the middle and lower end of the price range are far less common. Buyers purchasing off-plan should ensure their deposit is protected and that the developer holds all necessary planning consents before exchanging contracts.
• Assuming the notary is on your side: The notary is a neutral, government-appointed official whose role is to confirm the legal validity of the transaction — not to act exclusively in your interests. You need an independent adviser working solely for you.
• Corporate structure traps: The 2025 legislation effectively closes the loophole of incorporating an Andorran company with non-resident shareholders in order to circumvent property purchase restrictions, with the new rules capturing all foreign-controlled entities. Obtain specific legal advice if you are considering a corporate acquisition structure.
• Currency transfer costs: While Andorra uses the euro, buyers remitting funds from non-euro countries should plan carefully. Using a specialist currency broker rather than a retail bank can meaningfully reduce transfer costs on large sums. Ensure you satisfy anti-money laundering requirements by clearly documenting the origin of your funds.
• Unlicensed agents: The buoyant market has attracted a noticeable increase in unregulated property agents. Always verify an agent’s credentials with the professional association before instructing them.
• Tax compliance and residency links: Purchasing property does not automatically confer any tax advantages. If you are also pursuing Andorran tax residency, the physical presence requirements must be met independently of any property acquisition. Seek specialist tax advice in both Andorra and your home country before proceeding.

Can I buy property in Andorra through a company, and is it worth doing?

It is technically possible to acquire property via a corporate structure in Andorra, and this approach has historically been used by foreign investors for tax planning, inheritance purposes, and asset protection. However, the legal landscape shifted substantially with the 2024–2025 legislation.

Andorran legal entities in which the direct or indirect foreign participation in capital or voting rights equals or exceeds 50% are now subject to the same foreign investment restrictions that apply to individual non-resident buyers. A notable modification introduced by the Omnibus Law is that entities with foreign participation falling between 5% and 50% are excluded from this category. This creates a distinction: a company with majority Andorran ownership may face fewer restrictions, while one that is majority foreign-owned is treated in essentially the same way as a direct non-resident purchase.

The 2025 legislation effectively dismantles the approach of incorporating an Andorran entity with predominantly non-resident shareholders as a means of circumventing property purchase limits, and its reach extends to all foreign-controlled companies.

The legal structure chosen for an acquisition has a direct bearing on current and future taxation, asset protection, and operational efficiency. A straightforward personal purchase is usually the simplest route, though it offers limited scope for tax optimisation. No single structure suits every buyer; each case demands tailored analysis, which is where specialist advisers add genuine value.

Where a corporate structure remains viable, potential advantages include streamlined future transfer of ownership through a share sale rather than a property sale, inheritance planning flexibility, and liability ringfencing. Disadvantages include ongoing compliance and accounting costs, as well as the risk of misunderstanding the interaction between Andorran corporate law and your home country’s tax obligations. Independent legal and tax advice from practitioners qualified in both jurisdictions is essential before pursuing this route.

What taxes and ongoing costs should I budget for when owning property in Andorra?

Total acquisition costs typically amount to between 7% and 11% of the purchase price. A breakdown of the principal items is set out below, current as of 2025. Always confirm current rates with the Andorran Tax Authority (impostos.ad) or a local tax adviser, as these are subject to change.

On an ongoing basis, owners should plan for the following costs:

• Annual property tax (Impost Comunal sobre Béns Immobles): Levied at parish level and generally low by European standards. Rates vary by parish; consult your local Comú for current figures.
• Rental income tax: Owners who let their properties pay rental income tax of between 1.75% and 4% depending on the parish.
• Capital gains tax: Andorra introduced a capital gains tax on property disposals to discourage speculative activity. Rates are linked to the period of ownership, with higher rates applying to shorter-hold sales. Confirm current rates at impostos.ad.
• Community fees: Applicable to apartments and managed developments, covering shared areas, lift maintenance, building insurance, and similar expenses. Amounts vary considerably between developments.
• Wealth tax: Andorra levies no wealth tax, which represents a notable advantage over neighbouring France and Spain.
• Utility costs: Water, electricity, and gas combined typically average around €90 per month.

What are the official sources I should consult when buying property in Andorra?

When researching a property purchase in Andorra, always prioritise official and regulatory sources over property portals or online forums. The principal bodies are listed below.

Frequently Asked Questions

Do I need to be a resident of Andorra to buy property there?

Non-residents must obtain Prior Authorisation for Foreign Investment from the Ministry of Economy and Finance before legally acquiring property. Residency is not a prerequisite, but non-residents face additional taxes and restrictions on the number of properties they may purchase. Obtaining residency — including through the passive residency programme — removes some of these constraints, though residency itself requires meeting separate qualifying criteria.

How long does it take to complete a property purchase in Andorra?

Finalisation after the preliminary contract typically takes around four weeks before keys formally change hands. This follows the prior authorisation process, which itself requires two to four weeks. In total, from initial offer to completion, buyers should allow a minimum of two to three months — and longer where mortgage financing or corporate structures are involved.

Can I get a mortgage in Andorra as a foreign national?

Andorra has a developed banking sector and it is possible to obtain a mortgage to finance a property purchase. Andorran banks offer loan products, but lending conditions are strict, requiring proof of income, stable employment, and a solid credit history. During the first half of 2025, foreign nationals accounted for only 8.1% of new mortgages issued, with Andorran nationals receiving 91.9%. Overseas buyers should not assume approval is straightforward and must build this uncertainty into their planning timelines.

Does buying property in Andorra give me the right to live there?

Property ownership and residency are legally distinct processes in Andorra. Purchasing real estate does not automatically confer residency rights. However, property investment forms a core element of Andorra’s passive residency programme. Under the 2025 Omnibus Law, the minimum real estate investment required for passive residency has been raised to €600,000 per unit, up from the previous threshold of €400,000.

Is there an annual property tax in Andorra?

Yes. An annual property tax (Impost Comunal sobre Béns Immobles) is applied at parish level. Rates differ between parishes but are generally modest in comparison with France and Spain. Andorra levies no wealth tax, and rental income tax ranges from 1.75% to 4% depending on the parish. Current parish-level rates can be confirmed via the relevant Comú’s website or the Andorran Tax Authority at impostos.ad.

Is title insurance available when buying property in Andorra?

Title insurance does not exist as a product in Andorra. Buyers are instead expected to undertake a comprehensive investigation of the property’s ownership history and legal characteristics as part of the due diligence process. The absence of any insurance safety net makes thorough independent legal due diligence especially critical, since there is no recourse policy to fall back on if a title defect comes to light after completion.

Can I rent out my property in Andorra as a short-term holiday let?

Short-term rentals are subject to restrictions in major tourist and urban zones, introduced as a measure to contain speculative pressure and protect local housing availability. As a result, investors are increasingly orienting towards long-term letting strategies. More than 60% of properties are leased for periods of 30 days or more, reflecting both seasonal constraints and the rental regulations introduced in 2023. Always confirm the permitted use and applicable licensing requirements for any specific property before purchasing.

What happens to my property in Andorra if I die — does Andorran inheritance law apply?

When a foreign national who owns property in Andorra passes away, both Andorran law and the laws of the deceased’s home country may influence how the estate is administered. It is important for property owners to ensure their wills comply with both local and international legal requirements. Andorra does not impose inheritance tax between close family members, which is advantageous for estate planning purposes. Cross-border inheritance situations can nonetheless be complex, and specialist legal advice covering both Andorran law and the law of your home jurisdiction is strongly recommended.