Key Takeaways
- Foreigners need government foreign-investment authorisation and a non-resident tax number (NRT) to buy.
- Non-residents may buy at most two apartments, or one house, or one building plot.
- Foreign buyer tax is now 6% on a first home and 10% on a second, on top of ~4% transfer tax.
- Non-resident mortgages are available at around 60–70% loan-to-value.
- A property used for passive residency must have a unit value above €800,000.
A foreigner can buy property in Andorra, but must first obtain foreign-investment authorisation from the government and a non-resident tax number (NRT). Non-residents are limited to two apartments, or one house, or one building plot. Since the 2024–2026 housing reforms, a foreign buyer pays 6% on a first home and 10% on a second, on top of the roughly 4% transfer tax. Mortgages are available to non-residents at around 60–70% loan-to-value.
Can foreigners buy property in Andorra?
Yes. Andorra opened its real-estate market to foreign buyers, but with controls. If you are not already an Andorran resident you need foreign-investment authorisation before you can complete a purchase — a standard government procedure that also forms part of the passive-residency process. Approval typically takes a few weeks.
How much you can buy
A non-resident foreign buyer is limited to two apartments, one single-family home, or one plot on which to build a home. Residents face fewer restrictions the longer they have lived in the country.
The taxes on a foreign purchase
| Charge | Rate | Notes |
|---|---|---|
| Property transfer tax (ITP) | ~4% | Split between the government and the parish (comú) |
| Foreign real-estate investment tax — first home | 6% | On the purchase value |
| Foreign real-estate investment tax — second property | 10% | Up to 10% also applies to portfolios and developments |
| Notary fees | ~0.1–1% | Plus registration |
The foreign investment tax was doubled from 3%/5% under the 2024–2026 housing reforms. “Foreign investor” is defined widely: it includes non-residents and Andorran residents who have been effectively resident for fewer than three of the previous ten years. A newcomer buying a first home pays the 6%.
The buying process, step by step
- Get your NRT. Request a non-resident tax number before opening a bank account or signing anything.
- Open an Andorran bank account and clear source-of-funds compliance (allow 3–6 weeks).
- Find the property and agree terms; a reservation contract with a deposit (typically 10%) takes it off the market.
- Apply for foreign-investment authorisation. The purchase is conditional on approval.
- Due diligence — title, charges, planning status, community fees — via a local lawyer.
- Sign the public deed (escriptura pública) before an Andorran notary; pay the balance and the taxes.
- Register the deed and set up utilities and, if applicable, the community.
Realistic timeline: 2–4 months, driven by the bank compliance and the investment authorisation.
Mortgages for non-residents
Andorran banks lend to non-residents, but expect more paperwork and a lower loan-to-value — around 60–70%. You will need to evidence income, existing assets and the source of your deposit. Rates and terms are individually negotiated.
Prices and where to look
The market is small and supply is tight, which has pushed prices up. Escaldes-Engordany and Andorra la Vella are the central, walkable parishes; La Massana and Ordino are greener and popular with families and skiers; Encamp and Canillo put you closest to Grandvalira. For passive residency, note that a property used to support the €1,000,000 investment must have a unit value above €800,000.
Frequently asked questions
Can a non-resident buy a house in Andorra?
Yes, after obtaining foreign-investment authorisation and a non-resident tax number. Non-residents are limited to two apartments, one house, or one building plot.
How much tax does a foreigner pay to buy property in Andorra?
Around 4% transfer tax plus the foreign real-estate investment tax — 6% on a first home, 10% on a second — plus notary and registration fees.
Can I get a mortgage in Andorra as a non-resident?
Yes, typically up to 60–70% loan-to-value, with substantial documentation of income and source of funds.
How long does it take to buy property in Andorra?
Usually 2–4 months, with the bank-account compliance check and the foreign-investment authorisation being the main time factors.
Does buying property give you residency in Andorra?
Not by itself. Property can form part of the €1,000,000 investment for passive residency (unit value above €800,000), but residency is a separate application with its own requirements.
Last reviewed: 3 September 2026. General information, not legal or tax advice; property rules and taxes change and this page may become out of date. Use a local lawyer and confirm current rates. Speak to our team.
