Buying property in Andorra as a foreigner

Can you buy a flat in Andorra as a foreigner?

Yes, but the purchase of a property by a foreign investor is a regulated transaction: it requires prior authorisation (Llei 5/2025, Article 8). The regime has been tightened in stages: a temporary suspension of foreign property investment in 2023, the creation of a specific tax in 2024, a purchase cap in 2025, then the doubling of this tax in February 2026.

The following are liable for the foreign property investment tax (IEI):

• non-resident individuals;
• residents who cannot show at least 3 years of actual and permanent residence in the 10 years preceding the application, periods of study abroad counting as residence;
• companies of foreign nationality;
• Andorran companies owned 50% or more by foreigners or by residents of less than 3 years’ standing.

How much does a flat cost in Andorra? Official prices per m²

On average, a flat sold for €4,569.7/m² in the second quarter of 2026, according to the Departament d’Estadística, which uses the tax returns for sales completed before a notary. That is 0.2% more than a year earlier (€4,559.9/m²), but 77% more than in the second quarter of 2021 (indicative calculation). For all homes, including detached houses and whole buildings, the average reached €4,456.8/m², up 2.6% over one year.

Source: Departament d’Estadística, note A117 and A145 of 6 August 2026, based on the notaries’ quarterly tax settlements (property transfer tax and IGI). Earlier data were revised in 2026 and may differ from previous editions. Next note (third quarter): 9 November 2026.

The same note gives information on buyers: in the second quarter of 2026, 22.6% of the properties acquired by private individuals were bought by non-residents (184 out of 812), all types of property combined, including parking spaces and land.

To put these amounts into the context of a budget, see the cost of living in Andorra compared with France.

The cap: one house, or two flats, or six parking spaces

For a non-resident individual, or one who has been resident for less than 3 of the last 10 years, Llei 5/2025 (Article 9) limits investment to:

• one detached house, or a plot with a house;
• or two flats or studios, with at most three parking spaces and three storage rooms per home;
• or six parking spaces.

This cap applies for 10 years after the investment that reached it. Homes let at an affordable rent for 10 years are not counted. The law also prohibits foreigners from property development, with exceptions, notably for developments intended entirely for residential letting, as well as from buying tourist apartments and homes for tourist use.

What taxes do you pay on purchase?

Three taxes may apply, depending on the type of property and the buyer’s status:

ITP and IEI are payable by the buyer. The IEI must be paid before the notarial deed is signed.

The 6% rate applies to a single home: a house, or a flat with at most three parking spaces and three storage rooms. From the second flat onwards, the rate rises to 10%, and earlier purchases are taken into account in setting the rate. On top of this come notary’s fees and, where applicable, intermediaries’ fees, the amount of which is not set by any text we have been able to verify.

The foreign property investment tax (IEI): 6% or 10%

Created in 2024, the IEI was raised by Llei 2/2026, in force since 13 February 2026: 6% instead of 3% for a first home, 10% beyond that. It is calculated on the actual value of the investment and becomes payable on signature before the notary; a payment on account is requested before the authorisation decision.

Source: Llei 3/2024, as amended by Llei 5/2025 and Llei 2/2026.

The reform is presented in our news article The foreign investment tax rises to 6%.

Worked example: a €500,000 flat

Take a non-resident buyer, or one who has been settled for less than 3 years, who buys their first home in Andorra for €500,000, either an existing property or a new build, where IGI replaces property transfer tax. This amount is an assumption for the calculation, not a market price: at the average price of flats sold in the second quarter of 2026, it corresponds to about 109 m² (indicative calculation: €500,000 ÷ €4,569.7/m²). We also assume that the actual value used by the authorities is equal to the price.

Indicative calculation: each statutory rate is applied to the price, assumed to be equal to the actual value. Practitioners work on about 4% ITP in total, i.e. the top of the range. Excluding notary’s and intermediaries’ fees.

If the same buyer then bought a second flat of the same value, they would pay 10% IEI on it, i.e. €50,000 (indicative calculation). Conversely, a resident who has been settled for more than 3 years does not pay the IEI: for the existing flat, their taxes on purchase are limited to ITP, i.e. €7,500 to €20,000 (indicative calculation).

The “first home” exemption: who qualifies?

The law exempts the purchase of a first home from property transfer tax, under cumulative conditions that in practice exclude newcomers:

• being an Andorran national actually residing in Andorra, or a foreigner who can show 5 years of legal residence, permanent and continuous, during the last 10 years;
• buying your first home, which must become your habitual and permanent residence for at least 4 years;
• occupying it within 8 months; from 2027, if the home is still let, this period runs from the end of the lease, without exceeding 24 months after the purchase;
• having an income below 4 times the annualised minimum wage, or 6 times for several buyers;
• buying a home worth less than €600,000 (thresholds increased by 20% in the case of disability);
• having no debts to the authorities.

For new builds, the same conditions give entitlement to the 0% IGI rate. A newcomer is therefore not entitled to it before five years of legal residence.

Reselling: how is the capital gain taxed?

The taxation of the capital gain depends on your status at the time of the sale:

Resident: 10% IRPF, plus a surcharge of 10% within 2 years and of 5% between 2 and 5 years; from 6 to 10 years, coefficients from 0.8 to 0.2 reduce the gain. The effective rates in the table are a calculation derived from the law.

For a resident, the capital gain is exempt if it is reinvested in a new main residence in Andorra, provided that the seller is an Andorran national or can show 5 years of legal residence. The details are in our guide to capital gains tax in Andorra.

Does buying give you the right to residency?

No. Llei 5/2025 says so expressly: a direct foreign investment does not in itself give any right to residency (Article 6.6). The purchase can only count towards the investment required for passive residency (€1,000,000), provided that each property exceeds €800,000.

Each investment requires an authorisation, the procedure for which is described in Foreign investment: the prior authorisation.