Foreign property investment in Andorra 2026: 6-10% tax, limits and authorisation

In three years, Andorra has completely overhauled the rules for foreign property buyers. Llei 3/2024 created a specific tax, Llei 5/2025 (the "Òmnibus" law) capped the number of homes per investor, and Llei 2/2026 ("Òmnibus 2") has doubled that tax since 13 February 2026. If you are thinking of investing in Andorra, these are the rules in force and what they mean in euros.

Who counts as a "foreign investor"?

For property purposes, the following need authorisation and pay the tax:

• Individuals who are not resident in Andorra.
• Residents who cannot prove 3 years of effective residence in the last 10 (periods of study abroad count as residence).
• Foreign companies and entities.
• Andorran companies with 50% or more foreign capital, or financed by foreign investors.

Foreign investment authorisation

The procedure is governed by Decret 137/2025 (Reglament d'inversió estrangera, the foreign investment regulations):

1. Online application with details of the buyer, the property, the price and the purpose.
2. If any documentation is missing, you have 10 working days to provide it.
3. The Govern decides within 2 months, extendable by 1. Silence means refusal: with no response, the application is deemed refused.
4. Once authorised, the purchase must be completed within 6 months (a single 3-month extension is possible). Otherwise, the authorisation lapses.

Practical tip: always sign the reservation conditional on obtaining the authorisation, and submit a complete application from the outset so you do not lose weeks.

Purchase limits since Llei 5/2025

• Each foreign investor may own a maximum of 2 homes (with their annexes), or 1 detached house or plot of land, or up to 6 parking spaces.
• The limits apply for 10 years.
• Property development for sale is closed to foreigners, except for projects intended entirely for residential rental for at least 10 years, with a minimum of 50% of the floor area at an affordable rent.
• Foreign investment in tourist accommodation is not authorised, and no new tourist licences are being granted.

The foreign property investment tax

• It is calculated on the actual value of the property and paid before the deed is signed: the notary checks it.
• 90% reduction if the home is let as a main residence at an affordable rent for 10 years.
• Since February 2026, those who are exempt no longer file a return with Tributs (the Andorran tax department): they prove they meet the requirements before the notary.
• Applications submitted before the law came into force keep the previous rates.

How much does it add up to on a real purchase?

First home, resale, bought by a non-resident. On new builds sold by a developer, ITP (property transfer tax) is replaced by IGI (Andorra's VAT) at 4.5%.

Has this slowed investment down?

Partly. 2025 was a record year: 2,175 transactions (+35%), and purchases by non-residents doubled (+100%), partly due to a "buy before it goes up" effect. In 2026 the pace has eased: foreign investment applications fell by 20% between January and May, and in Q2 non-residents accounted for 22.6% of the properties bought by private individuals. Prices, however, remain stable, at around €4,570/m² for flats. We analyse this in 15 years of the Andorran property market.

How to plan a purchase as a foreign investor

• Include the tax in your budget from day one: 6% on the price is no small detail.
• If you are going to live here, consider whether it suits you better to buy after obtaining residency or as part of a passive residency application (see passive residency through property investment).
• If it is to let, look into the 90% reduction for affordable rentals and the new rental law.
• Every step of the purchase is covered in our guide how to buy a house in Andorra.

Frequently asked questions

What is the foreign investment property tax in Andorra in 2026?

6% of the value of the first unit (a flat with its annexes, or a detached house or plot of land) and 10% from the second onwards, since 13 February 2026.

How many properties can a foreigner buy in Andorra?

A maximum of 2 homes, or 1 detached house or plot of land, over a 10-year period.

How long does foreign investment authorisation take in Andorra?

The legal deadline is 2 months, extendable by 1. If there is no response, it is deemed refused. You then have 6 months to complete the purchase.

Do Andorran residents pay the foreign investment tax?

Only if they cannot prove 3 years of effective residence in the last 10 years.

Sources: Llei 3/2024; Llei 5/2025; Llei 2/2026 (report by the Economy Committee of the Consell General, 19/01/2026); Decret 137/2025 (BOPA 16/04/2025); Departament d'Estadística (2025 and Q2 2026). For information only: this article does not constitute legal advice.

Updated on 18/10/2026