How to buy a house in Andorra in 2026: steps, taxes and requirements for foreigners

Buying a house or flat in Andorra is a safe and relatively quick process, but it has its own rules: if you are not a resident you need prior authorisation from the Govern (Andorran Government), there are limits on the number of homes a foreigner can buy and, since February 2026, a specific tax of 6% or 10%. This guide takes you through the full process step by step, the real costs and the mistakes we see most often, whether you already live in Andorra or are buying from Spain, France or any other country.

Can a foreigner buy property in Andorra?

Yes. Andorra allows foreigners to buy, but since Llei 5/2025 there are two important conditions:

• Prior foreign investment authorisation for non-residents, residents who cannot prove 3 years of effective residence in the last 10, foreign companies and Andorran companies with 50% or more foreign capital.
• Limit on units: each foreign investor can buy a maximum of 2 homes (with their parking spaces and storage rooms), or 1 detached house or plot of land. The limits apply for 10 years.

In addition, foreign investment intended for tourist flats is not authorised: if your plan is to buy and let to tourists, that model is no longer viable. Letting as a main residence, however, is (and comes with tax advantages if the rent is affordable).

Step by step: how to buy a house in Andorra

1. Set your budget and area. Prices vary widely between parishes: from around €3,200/m² in Encamp to more than €6,000/m² in Escaldes-Engordany (actual completion prices in 2025). See our page on property prices in Andorra and the guides to each parish, such as Escaldes-Engordany, Andorra la Vella or Ordino.
2. Open an account with an Andorran bank. Andbank, Creand or MoraBanc. Prepare your source-of-funds documentation (payslips, sale of another property, inheritances, dividends…): banks carry out thorough checks, and this is what most often lengthens the process.
3. Choose the property and sign the reservation. You sign a reservation or deposit contract and pay a deposit. If you need foreign investment authorisation, the reservation must be conditional on obtaining it.
4. Apply for foreign investment authorisation (if applicable). It is processed online. The decision period is 2 months, extendable by 1 more, and if the authorities do not respond the application is deemed refused. Once authorised, you have 6 months to complete the deed (extendable once by 3 months).
5. Apply for a mortgage, if you need one. Only banks authorised in Andorra can grant a mortgage on an Andorran property. In 2025 the average home loan was around €400,000 and the average rate on the outstanding loan book was 3.78%. Work out your repayments with our mortgage calculator.
6. Pay the taxes due beforehand. If you are a foreign investor, the foreign property investment tax is paid before the deed is signed, and the notary checks it.
7. Sign before a notary. The notary verifies ownership, charges and taxes, and formalises the sale. The rest of the price is paid on that day.
8. After completion: transfer the utilities, register as a resident with the comú (parish council) if it is your main residence (required for the income tax deduction) and register for parish taxes.

How much does buying cost: taxes and fees

Example: a €600,000 flat bought by a non-resident

• ITP (4%): €24,000
• Foreign investment tax (6%, first home): €36,000
• Notary and administration: as quoted
• Total taxes: around €60,000, 10% of the price, which you need to have available on top of the deposit if you take out a mortgage.

A resident with more than 3 years of residence who buys their first main residence for the same price does not pay the foreign investment tax and, if they meet the requirements for the first-home exemption, does not pay ITP either. The difference is huge. All the details are in our guide to taxes in Andorra 2026.

Documents you will be asked for

• Passport or ID document (and NRT, the Andorran tax registration number).
• Proof of source of funds: tax returns, bank statements, deeds of sale, etc.
• For the foreign investment authorisation: details of the property, price, purpose (own home or rental) and personal documentation.
• If you are buying through a company: incorporation deeds, beneficial ownership and accounts.

Buying as a Spanish or French national? What changes

In 2025, non-resident buyers doubled their purchases in Andorra (+100%), with Spanish buyers the leading nationality (+56%), followed by the French (+44%). If you buy a second home without relocating, bear in mind that you are still taxed in your own country on your worldwide income. A property in Andorra may affect your tax return (for example, deemed income from property in Spain) and does not in itself give you Andorran residency. If you want to live in Andorra, the purchase must be coordinated with your residence permit: we explain this in our guide to residency in Andorra and, for the investment route, in our guide to passive residency.

Common mistakes when buying in Andorra

• Signing a reservation without making it conditional on the foreign investment authorisation or the mortgage.
• Working out the budget without the 6–10% foreign investment tax.
• Comparing with asking prices. Listings are around €8,100/m², whereas the actual price recorded in the deeds for flats was around €4,570/m² in Q2 2026. Negotiating with real data makes all the difference.
• Underestimating bank compliance: without well-documented source of funds, the transaction is delayed by weeks.
• Buying a tourist flat with a view to letting it out: new licences are no longer being granted.

Frequently asked questions

Can a foreigner buy a house in Andorra?

Yes, with prior foreign investment authorisation and a limit of 2 homes, or 1 detached house or plot of land, per investor.

How long does it take to buy a property in Andorra?

A resident can complete in a few weeks. A foreign buyer has to add the foreign investment authorisation (around 2 months, extendable by 1). In total, 2 to 4 months is typical.

What taxes do you pay when buying property in Andorra?

4% ITP on resale homes or 4.5% IGI on new builds sold by a developer. Foreign investors also pay the foreign property investment tax of 6% (first home) or 10% (subsequent homes).

Does buying property in Andorra give you residency?

Not automatically. The property can form part of the passive residency investment (€1M in total, with properties worth more than €800,000 each) or serve as your address for work-based residency, but residency must be applied for separately.

Do Andorran banks give mortgages to non-residents?

Yes, although with stricter documentation requirements and a larger deposit. In 2025, close to 10% of mortgage loans went to non-residents.

Sources: Llei 5/2025 and Llei 2/2026; Decret 137/2025 (Reglament d'inversió estrangera, BOPA 16/04/2025); Departament d'Estadística (property transactions 2025 and Q2 2026; mortgages 2025). For information only: this article is not a substitute for legal or tax advice on your specific case.

Updated on 18/10/2026