How to buy a house in Andorra as an expat in 2026

Andorra has the size of a small county and the tax complexity of a fully sovereign country. Nestled between Spain and France, in the heart of the Pyrenees, this small principality has evolved beyond skiing and duty-free shopping. Today, it ranks among the most sought-after destinations for people seeking low taxation and a high quality of life. Consequently, property prices have followed their own path: Upwards, with no clear signs of slowing down.

Foreigners can buy a house in Andorra, although the process includes several specific requirements. Regulations changed significantly between 2023 and 2026. Authorities introduced temporary restrictions, new taxes for foreign investors, limits on property purchases, and annual authorisation quotas that disappear within hours. Therefore, buyers who don’t understand these rules may face an expensive surprise.

This guide explains everything you should know before taking the next step. You’ll find updated legal requirements, real parish prices, taxes, payment methods, buying steps, and the most common mistakes to avoid.

What Are The Requirements For Foreigners Who Want to Buy a House in Andorra?

The first thing you should know as a foreigner is simple: You can buy property in Andorra, although certain conditions apply. Any adult can purchase property in Andorra regardless of nationality or residency status.

However, if you aren’t an Andorran resident with more than three years of effective residence during the last ten years, you must meet additional requirements that local residents don’t face.

These rules affect three groups:

• Individuals who don’t reside in Andorra.
• Residents in Andorra with fewer than three years of effective residence during the last decade.
• Companies registered outside Andorra.

Foreign investment authorisation for property purchases

The first and most important step involves obtaining the Autorització d’inversió estrangera en immobles, the permit issued by the Govern d’Andorra that allows non-residents to purchase property in the Principality.

To apply, you’ll need:

• A valid ID card or passport (legalised copy before an Andorran notary, or apostilled abroad).
• A criminal record certificate from your country of origin, with a Hague Apostille. In Spain, this certificate expires after three months. Therefore, request it carefully to avoid expiration before completing the process.
• Detailed information about the property you want to buy.
• Processing fee: €300 ($453).

The Andorran administration usually responds within 15 to 20 working days. The authorisation works almost automatically for EU buyers, Spaniards, and French citizens. Authorities only reject applications in exceptional cases involving national security or money laundering concerns.

Property limits since April 2025

Many buyers still don’t know about this important legal change. Since the Omnibus Law entered into force in April 2025, non-resident foreigners can only purchase a maximum of two homes in Andorra, or one detached property. Before this law, no numerical limit existed. Therefore, if you’re considering multiple properties, you can’t ignore this restriction.

Foreign property investment tax

Another major change has become permanent. Since February 2024, Andorra applies a specific tax on property purchases by foreigners or residents with fewer than three years in the country. Following the Sustainable Growth and Housing Rights reform approved in April 2025, the current 2026 rates are:

• First property: 6% of the purchase price.
• Second property: 10% of the purchase price.

This amount isn’t refundable under any circumstances, even if you later complete three years of effective residence in Andorra. Therefore, you should include this entry cost in your total budget from the beginning.

However, authorities offer a 90% tax reduction if you rent the property as affordable long-term housing for at least ten years. Consequently, this exception matters for investors willing to commit to that timeframe.

Bank account in Andorra

Andorra’s anti-money laundering law (Law 14/2017) requires that all transactions linked to property purchases in Andorra pass through an Andorran bank account. This requirement isn’t optional. The country’s three main options include Andbank, Creand (Credit Andorrà), and MoraBanc. However, you can learn more in our guide about the best banks in Andorra for foreigners. Sabadell Andorra also operates for clients connected to the Spanish banking group.

Non-residents can open a bank account in Andorra, although the banking compliance process remains demanding: You’ll need detailed documents proving the origin of your funds. Consequently, this step often takes the longest, so start early.

Additionally, the law requires at least 50% of the property’s value to remain deposited in the Andorran bank account before purchase completion.

Mandatory home insurance

Andorran regulations require, at minimum, building insurance coverage for the property. The policy must come from an insurer authorised in the Principality. Moreover, you can arrange it anytime before signing the deed.

How Much Does a House Cost in Andorra?

Andorra’s property market has experienced years of continuous price growth without clear signs of slowing down soon. According to the Andorran Association of Estate Agents and Property Managers (AGIA) report for the first half of 2025, the average square metre price reached €4,295/m² ($4,681/m²), the highest level ever recorded, after a yearly increase of 16.4%. Apartment prices specifically reached €4,498/m² ($4,902/m²).

The latest RID Analytics figures suggest average prices already exceed €5,400/m² ($5,886/m²). Furthermore, new developments may climb to €6,200/m² ($6,758/m²). Meanwhile, new-build properties can rise to €8,500/m² ($9,265/m²).

Prices by parish

The Principality includes seven parishes, each with a very different property market:

• Andorra la Vella, the capital: Average prices recently ranged between €5,607/m² ($6,111/m²) and €6,671/m² ($7,271/m²). The area offers the best services, shopping, and public transport. Consequently, demand remains extremely high, making it the most expensive option.
• Escaldes-Engordany: The Principality’s most expensive parish sits directly beside the capital. Prices range between €5,689/m² ($6,200/m²) and €7,135/m² ($7,777/m²) for resale homes, while new developments exceed those figures.
• La Massana: A mountainous area with excellent access to the capital. Prices remain slightly lower than Escaldes, although quality housing remains widely available.
• Encamp: This parish offers access to ski slopes and the capital. Prices remain moderate and attractive for buyers who don’t need city-centre living.
• Sant Julià de Lòria: The southernmost parish borders Spain directly. According to November 2025 figures, it offers the Principality’s lowest prices, averaging €4,491/m² ($4,895/m²).
• Ordino and Canillo: These parishes sit furthest from the urban centre and offer more rural mountain surroundings. Supply remains lower, although demand also stays moderate, creating relatively affordable prices.

Estimated examples

For a 45 m² apartment: Prices start around €180,000 ($196,200) in cheaper parishes and exceed €280,000 ($305,200) in high-demand areas.

For an 80 m² apartment: Prices begin near €320,000 ($348,800) and exceed €500,000 ($545,000) in premium locations with quality finishes.

Annual maintenance costs

Beyond the purchase price, you should consider recurring expenses. Community fees vary according to the building and shared facilities. Mandatory home insurance also depends on property value. Additionally, if you won’t live there permanently, you’ll need to budget for management and maintenance costs.

What Taxes Apply to Properties in Andorra?

Andorra’s tax system remains significantly lighter than Spain’s. However, recent years introduced new taxes specifically targeting foreign property buyers, changing the total cost calculation. Therefore, understanding every tax before negotiating the price becomes essential.

When buying

• Foreign Property Investment Tax: As explained earlier, this tax applies to non-residents and residents with fewer than three years in Andorra. The rate reaches 6% for the first property and 10% for the second. Authorities never refund it. Therefore, this tax represents the biggest cost for foreign buyers.
• Property Transfer Tax (ITP): Paid directly to the Govern d’Andorra. The rate equals 2% of the purchase value. This tax applies when a private individual sells the property.
• Comú tax (local council tax): An additional 2% of the purchase value, payable to the local council of the parish where the property sits.
• IGI (Impost General Indirecte): The Andorran equivalent of VAT, with a general rate of 4,5%. It applies when a professional seller handles the transaction, such as developers, construction companies, or property traders. Private sales don’t include IGI.
• Notary fees: Between €600 ($654) and €1,200 ($1,308), plus 0,1% of the property’s sale price.

For non-resident foreign buyers purchasing from private sellers, the total tax burden usually ranges between 10% and 12% of the purchase price. This figure includes foreign investment tax, ITP, Comú tax, and notary fees.

Annual and recurring taxes

Unlike Spain, Andorra doesn’t apply a direct equivalent to IBI (Property Ownership Tax) under the same system. Municipal property taxes remain significantly lower than in most European countries.

If the property generates rental income, non-residents may pay IRNR (Non-Resident Income Tax) on those earnings.

When selling

Capital gains from property sales in Andorra may fall under IRNR for non-residents or Andorran income tax for tax residents. Rates depend on ownership duration and profit levels. For Andorran tax residents, the maximum income tax rate reaches 10%, which remains far below Spain’s rates.

Andorra has signed double taxation agreements with Spain and several other countries. Therefore, these agreements may help you plan taxation efficiently if you hold tax residency elsewhere.

What Are the Steps to Buy a House in Andorra?

Buying a house in Andorra follows a defined structure with several mandatory steps. Therefore, this roadmap will help you avoid missing anything important:

1- Define your total budget, including taxes and expenses

Before searching for properties, calculate your full budget by adding the purchase price and an extra 10-12% in additional costs (foreign investment tax, ITP, Comú, and notary fees). Many non-resident buyers reach the signing stage without considering the specific foreign investor tax. Consequently, the entire deal may collapse at the last moment.

2- Search for the property

The main platforms for finding property in Andorra include Idealista, Habitaclia, and Indomio. Local estate agencies also operate throughout the Principality, including Andorra Sotheby’s International Realty, Andorra Realty, and several independent agencies in each parish.

However, visiting your preferred areas in person before deciding remains highly recommended. Each parish offers a different lifestyle. Additionally, places that appear close on the map may require daily mountain-road journeys.

3- Apply for foreign investment authorisation

Once you’ve identified the property, submit the application to the Govern d’Andorra together with the required documents and the €300 ($327) fee. Authorities usually respond within 15 to 20 working days. This step remains essential because you can’t sign any binding agreement beforehand.

4- Obtain the Tax Registration Number (NRT)

Foreigners must obtain a local tax identification number before completing any financial operation in the country. Therefore, before opening a bank account or signing the deed, you must request the non-resident NRT. Applications go through the Departament de Tributs i Fronteres of the Govern d’Andorra. The process remains simple, free of charge, and usually finishes immediately or within 24-48 hours.

To simplify it, think of the NRT as a local “tax ID card”. Consequently, you’ll use it for taxes, insurance, and utility contracts.

5- Open a bank account in Andorra

The next step involves opening a bank account in Andorra. You can start this process while waiting for authorisation approval because it also takes time. Andorran banks such as Andbank, Creand, and MoraBanc apply detailed verification procedures regarding fund origins.

Therefore, prepare detailed evidence covering your income, recent bank statements, and all documents proving the source of your purchasing capital.

6- Verify the property’s legal status

Before committing, confirm that the property remains free from debts, mortgages, and legal charges in Andorra’s Property Registry. You should also verify that it includes the Certificat d’Habitabilitat (Certificate of Habitability), the mandatory document proving the home meets legal living standards.

Without this certificate, the notary can’t formalise the deed.

7- Negotiate and sign the reservation or deposit agreement

Once authorisation arrives and legal checks finish, both parties agree on the price and sign the reservation or deposit agreement. Buyers usually pay between 10% and 20% of the agreed price as a deposit. This contract defines the sale conditions and the deed-signing deadline.

8- Sign the deed before a notary

The transaction becomes official before an Andorran notary through the ownership transfer within the public deeds. The seller delivers the Certificat d’Habitabilitat. Additionally, if applicable, both parties formalise the mortgage. All taxes and transaction fees get settled during this stage.

9- Register the property and arrange insurance

After signing the deed, the notary manages the ownership registration in Andorra’s Property Registry. Meanwhile, you must arrange mandatory home insurance covering at least the building structure.

10- Utilities and the Bolleta d’Enginyer (Engineering Certificate)

Once you receive the keys, the final administrative step involves transferring electricity (FEDA or local mutual providers depending on the parish) and water contracts.

New-build developers usually handle this process. However, if the property is second-hand and the previous certificate expired, or the installation remains outdated, you’ll need an engineer’s inspection. This service usually costs between €150 ($164) and €300 ($327).

Unlike many countries, Andorra frequently requires a Bolleta d’Enginyer (Engineering Certificate). This document, signed by a local engineer, confirms the electrical installation complies with current regulations.

How Do You Pay For a House in Andorra?

Another common question during the buying process concerns payment methods.

First, you should know that all transactions must pass through the Andorran bank account you’ve already opened. Authorities don’t allow cash payments above legal anti-money laundering limits. Additionally, foreign funds must arrive in the Andorran account early enough before the signing date.

Can non-residents get a mortgage? Yes, although conditions remain stricter than for residents. Andorran banks finance up to 80% of the property’s value for residents, while non-residents usually receive only 50-60%. Consequently, you’ll need personal capital covering at least 40-50% of the purchase price, plus taxes and fees.

The average mortgage interest rate in Andorra sits near 3,79% (2024 data), with repayment terms often exceeding 14 years. Banks offer fixed and variable options. Moreover, rates may improve if you transfer your salary or purchase additional banking products.

The mortgage approval process remains strict: Banks request detailed information regarding income, financial position, existing loans, and intended property use. Furthermore, the Principality only includes three main banks, limiting offer comparisons. Therefore, working with a local financial adviser may help.

Finally, buyers with sufficient savings often choose cash purchases because they simplify the process considerably and remove mortgage approval uncertainty. Consequently, this remains the most common option among non-resident foreign buyers.

Tips Before Buying a House in Andorra

Investing in the Principality represents a strategic decision that goes beyond purchasing property. Instead, you’re choosing one of Europe’s safest and most tax-efficient environments. However, the legal framework and recent foreign investment changes require proper guidance. Therefore, we’ve gathered these essential tips to help you navigate Andorra’s property market confidently and without last-minute surprises.

1- Work with a local adviser from the beginning

Andorra’s property market follows its own rules, and regulations changed significantly during the last two years. A lawyer or adviser specialising in Andorran property law can save you from expensive mistakes, especially regarding foreign investment tax and purchase limits introduced in 2025.

2- Connectivity before, during, and after the purchase

Managing an international property purchase requires constant availability. With the Holafly eSIM for Andorra, you’ll activate mobile data immediately after arriving in the Principality without changing SIM cards or searching for WiFi.

For longer stays or your first months living in the Principality, we recommend Holafly monthly plans. Besides unlimited data in Andorra, you’ll also enjoy coverage across more than 160 countries worldwide.

Your monthly subscription also includes the Always On benefit, which automatically provides 1 GB monthly in more than 70 countries whenever you need backup connectivity most.

3- Authorisation quotas disappear quickly

Since 2025, the Govern d’Andorra has managed an annual quota system for foreign investment authorisations. During recent application rounds, available slots disappeared within hours. Therefore, if you’ve already identified a property and only need approval, don’t wait.

4- Review every legal document before signing the deposit agreement

Check the Property Registry carefully to confirm the property remains free from debts and legal charges, while ensuring the Certificat d’Habitabilitat remains valid. Additionally, verify that no unpaid community fees or local council debts exist. Problems in any of these areas may freeze the transaction after you’ve already paid the deposit.

5- Consider renting before buying

Although Andorra looks small, each parish offers different lifestyles and living conditions. Renting for six or twelve months before buying allows you to understand the area properly, learn the local market, and make a more informed purchase decision. Andorra’s rental market remains demanding.

Average prices exceed €25/m² monthly ($27/m²), while full properties average nearly €3,000 monthly ($3,270 monthly). Nevertheless, gaining local knowledge makes sense when such a major purchase stands ahead.

If you decide to take this step, we recommend reading our guide about where to stay in Andorra during a long-term visit.

6- Warning signs you should know

Be cautious with sellers who pressure you to close the deal before obtaining foreign investment authorisation, advertise unrealistically low prices without explanation, or can’t provide the Certificat d’Habitabilitat. Any payment made before government approval carries legal risks you shouldn’t accept.

Buying a house in Andorra marks the beginning of a new chapter surrounded by nature and excellent quality of life. We hope this guide helps you make the best decision for your finances.

Frequently Asked Questions About Buying a House in Andorra

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