Buying an apartment in Andorra is one of the best real estate investment decisions you can make in
Europe. With attractive taxation, high quality of life and a stable market, the Principality attracts every year
more buyers from Spain, France and other countries.
But the process has particularities that you should know. Foreigners need authorization
government, there are specific residency requirements and prices vary greatly depending on the
parish. In this guide we explain everything you need to know to successfully buy your apartment in Andorra.
Table of contents
- Can foreigners buy an apartment in Andorra?
- Requirements to buy an apartment in Andorra
- Apartment prices in Andorra by area
- Step-by-step purchasing process
- Taxes and purchase costs
- Best areas to buy an apartment in Andorra
- Financing: mortgages in Andorra
- Common mistakes when buying
- Frequently asked questions
- Conclusion
Can foreigners buy an apartment in Andorra?
Yes, foreigners can buy properties in Andorra, but they need prior authorization from the Government.
This is one of the points that generates the most confusion, so let's clarify it.
Foreign investment authorization
Any natural or legal person not resident in Andorra who wants to acquire a property must apply for a
authorization to the Government of Andorra. This procedure:
- It is done before the purchase
- It takes approximately 2 months (can be extended by 1 more month)
- It has an administrative fee of €300
- Approved in the vast majority of cases
Authorization is practically automatic for buyers from the European Union, Spain, France and others
countries with normalized relations with Andorra. It is only denied in exceptional cases related to
national security or money laundering.
Exceptions to authorization
They do not need authorization:
- Residents in Andorra (already have implicit permission)
- Andorran nationals
- Andorran companies (even if the partners are foreigners)
Can I buy without being a resident?
Yes, you can buy an apartment in Andorra without being a resident. You simply need the investment authorization
foreigner mentioned. Many buyers purchase properties as a second home or as
rental investment.
However, if your intention is to live in Andorra, you will need to process the residency in parallel or
after purchase.
Requirements to buy an apartment in Andorra
Requirements vary depending on your personal situation. Here we break down each case:
If you are a resident of Andorra
The process is simple and similar to buying in any other country:
Necessary documentation:
- Valid passport or ID
- Andorran residence permit
- Proof of funds (bank statements)
- NRT (Andorran Tax Registration Number)
Process:Without the need for special authorization. You can buy directly.
If you are a non-resident foreigner
Necessary documentation for non-resident foreigners:
- Valid passport
- Foreign investment authorization (previously processed)
- Proof of origin of funds
- Criminal record certificate (in some cases)
- Powers of attorney if you cannot be present at the signing
Process
- Request foreign investment authorization (fee €300)
- Wait for approval (2 months, extendable for 1 more month)
- Pay the foreign investment tax (3-10% depending on the number of properties)
- Proceed with the purchase
Important:From April 2025, foreigners can only buy a maximum of 2 homes (or 1 single-family home). See “Taxes and expenses” section for more details.
If you are an EU citizen
The process is the same as for other foreigners, but authorization is granted almost automatically.
Spain and France have specific agreements that speed up the process.
Financial requirements
There is no minimum investment requirement to buy an apartment. However, you must demonstrate:
- Legal origin of funds
- Ability to pay the agreed price
- Solvency to cover taxes and associated expenses
Andorran banks are especially rigorous with regulatory compliance, so
Be prepared to provide detailed documentation about the origin of the money.
Apartment prices in Andorra by area
The price of apartments in Andorra varies significantly depending on the parish and specific location. These
These are the average prices updated to 2026:
Price table by parish
| Parish | Average price €/m² | 80m² apartment | 120m² apartment | Trend |
| Escaldes-Engordany | 5,689 - 7,135€ | €455,000 – €570,000 | €683,000 – €856,000 | ↑ Uploading |
| Andorra la Vella | 5,600 - 6,200€ | €448,000 – €496,000 | €672,000 – €744,000 | ↑ Uploading |
| Ordino | 4,200 – 4,500€ | €336,000 – €360,000 | €504,000 – €540,000 | → Stable |
| La Massana | €4,221 | €338,000 | €507,000 | ↑ Uploading |
| Encamp | €4,090 | €327,000 | €491,000 | ↑ Uploading |
| Canillo | €4,100 | €328,000 | €492,000 | → Stable |
| Sant Julia de Lòria | 3,694 – 4,223€ | €296,000 – €338,000 | €443,000 – €507,000 | → Stable |
Prices according to Idealista and Indomio (2024-2025). They vary depending on the specific characteristics of each property.
Factors affecting price
They increase the price:
- Mountain or valley views
- Large terrace or balcony
- Parking space included
- New construction or recently renovated
- Proximity to services and shops
- Upper floors with elevator
They reduce the price:
- Old unrenovated apartments
- Ground floors without terrace
- No parking
- Areas far from the center
- North orientation
- Buildings without elevator
Price evolution
The Andorran real estate market has experienced sustained growth:
| Year | Average price €/m² | Annual variation | Fountain |
| 2019 | €3,112 | – | Idealistic |
| 2020 | €3,400 | +9.3% | Idealistic |
| 2021 | €3,600 | +5.9% | Idealistic |
| 2022 | €3,850 | +6.9% | Idealistic |
| 2023 | €4,005 | +4.0% | Idealistic |
| 2024 | €4,898 | +22.3% | Idealistic |
| Oct 2024 | €5,400 | All-time high | Luis Alberto Fabra |
The accumulated increase since 2019 is 47.2%. The trend indicates that prices will continue to rise, making the current purchase a good long-term investment.
See apartments for sale in Andorra →
Step-by-step purchasing process
The process of purchasing an apartment in Andorra follows these steps:
Step 1: Search and selection (2-8 weeks)
To do:
- Define budget, area and desired characteristics
- Contact 2-3 trusted real estate agencies
- Visit properties that fit your criteria
- Compare options and negotiate prices
Advice:Don't rush. It is better to see 15-20 apartments and choose calmly than to buy the first one you like.
Step 2: Reservation and deposit contract (1-2 weeks)
Once the apartment has been chosen, a deposit contract is signed that reserves the property.
Elements of the deposit contract:
- Identification of buyer and seller
- Property Description
- Agreed price
- Amount delivered as a deposit (usually 10%)
- Deadline for final signature
- Cancellation conditions
Deposit amount:Normally 10% of the price. If the buyer backs out, he loses the deposit. If he
seller cancels, must return double.
Step 3: Due diligence (2-4 weeks)
Period to verify that everything is in order before the final purchase.
Important checks:
- Simple note from the Property Registry (charges, mortgages)
- Certificate of being up to date with the community
- Latest supply receipts
- Certificate of habitability
- ITE (Technical Building Inspection) if applicable
- Verification of real meters vs. deeded
Important:A good real estate agency carries out these verifications for you before you sign the deposit.
Step 4: Foreign investment authorization (1-2 months)
If you are not a resident, this step is carried out in parallel to the due diligence.
Documents required:
- Official application form
- Passport
- Justification of the origin of funds
- Description of the property to be acquired
- Payment of the administrative fee
Step 5: Signature Preparation (1-2 weeks)
Tasks:
- Coordinate date with notary
- Prepare transfer of the remaining money
- Gather final documentation
- Check latest conditions of the apartment
Step 6: Signature before a notary (1 day)
The sale is formalized before a notary public in Andorra.
In the signature:
- The public deed of sale is read
- The identity of the parties is verified
- Payment is made (transfer or bank check)
- The keys are handed over
- All documents are signed
Notarial cost:Between 0.1% and 0.3% of the sale price.
Step 7: Property Registration (2-4 weeks)
After signing, the notary sends the deed to the Property Registry.
Important:Until it is registered in the Registry, the property is not legally in your name against
third parties.
Step 8: Change of ownership of supplies (1 week)
Post-purchase procedures:
- Change of electricity owner (FEDA)
- Change of water holder
- Registration in the community of owners
- Communication to the corresponding town hall (Comú)
Taxes and purchase costs
When buying an apartment in Andorra, costs vary significantly depending on whether you are a resident or a foreigner.
Base taxes
Property Transfer Tax (ITP): 4%
It applies to second-hand homes. 3% corresponds to the Comú (city council) and 1% to the Government.
General Indirect Tax (IGI):4.5% Applies to new construction homes (when the seller is a developer or company).
| Apartment price | ITP (4%) | IGI (4.5%) |
| €300,000 | €12,000 | €13,500 |
| €400,000 | €16,000 | €18,000 |
| €500,000 | €20,000 | €22,500 |
| €700,000 | €28,000 | €31,500 |
| €1,000,000 | €40,000 | €45,000 |
Other expenses
| Concept | Approximate cost |
| Notary | 0.1% – 0.3% |
| Property Registry | ~0.1% |
| Management (optional) | €500 – €1,500 |
| Foreign investment authorization | €300 |
ITP exemption for residents (new April 2025)
If you are a resident of Andorra and buy your first habitual residence for a value of up to €600,000, you may be EXEMPT from the ITP (savings of up to €24,000).
Requirements:
- First home owned
- Destination: habitual and permanent residence
- Keep it for at least 4 years
- Income below the established threshold
Source: Law 5/2025, art. 81
Foreign investment tax (mandatory for foreigners)
If you are a foreigner or a resident who does not prove at least 3 years of effective residence in Andorra during the last 10 years, you must ADDITIONALLY pay the Tax on Foreign Real Estate Investment (Law 3/2024, modified by Omnibus Law 2025):
| Acquisition type | Tax rate |
| 1st home | 3% |
| 2nd home | 5% |
| Real estate promotions | 10% |
Purchase limits for foreigners (from April 2025):
– Maximum 2 flats/apartments (with up to 3 parking spaces and 3 storage rooms each), OR – 1 single-family home or plot to build it
Prohibitions:Foreign investors CANNOT purchase properties for tourist/vacation use or for speculative resale.
90% Bonus:Applies if the property is intended for rental as a primary residence at an AFFORDABLE PRICE for at least 10 years. Renting at market rate does NOT entitle you to this bonus.
Source: Law 3/2024, Law 5/2025 (Omnibus)
Total Expense Summary
FOR RESIDENTS (purchase of €500,000):
| Concept | Amount |
| Apartment price | €500,000 |
| ITP (4%) | €20,000 (or €0 if first home) |
| Notary | €1,000 |
| Record | €500 |
| Management | €800 |
| Total to pay | €522,300(or €502,300 with exemption) |
Additional percentage of residents: 4.5% (or ~0.5% if first home with exemption)
FOR FOREIGNERS (purchase of €500,000):
| Concept | Amount |
| Apartment price | €500,000 |
| ITP (4%) | €20,000 |
| Foreign investment tax (3%) | €15,000 |
| Authorization fee | €300 |
| Notary | €1,000 |
| Record | €500 |
| Management | €800 |
| Total to pay | €537,600 |
Additional percentage of foreigners: 7.5% – 8%
Best areas to buy an apartment in Andorra
Each parish has its personality. We help you choose according to your profile:
Andorra la Vella: for those seeking comfort
The capital offers all services on foot: shops, restaurants, schools and transportation. Ideal for those who
They work in Andorra or are looking for urban life.
Ideal profile:Professionals, families who value comfort, investors in long-term rentals.
Average price:5,600 – 6,200€/m²
See apartments in Andorra la Vella →
Escaldes-Engordany: for those looking for premium
The most exclusive area, with high-end properties, the Caldea spa and the best restaurants. Atmosphere
more sophisticated.
Ideal profile:High-net-worth buyers, luxury second homes, premium investors.
Average price:5,689 – 7,135€/m²
See apartments in Escaldes-Engordany →
La Massana: for nature lovers
Direct access to Vallnord, a greener and quieter environment. Good combination of services and nature.
Ideal profile:Families with children, skiers, those seeking balance between countryside and city.
Average price: €4,221/m²
Encamp: the accessible option with potential
More moderate prices with good connections. Direct cable car to Grandvalira. Developing area with
revaluation potential.
Ideal profile:First buyers, investors looking for profitability, frequent skiers.
Average price:€4,090/m²
Canillo: ski paradise
The heart of Grandvalira. Fewer urban services but unbeatable access to the slopes. Popular for rental
vacation.
Ideal profile:Investors in tourist rentals, passionate skiers, second homes.
Average price:€4,100/m²
Important note:From April 2025, foreign investors CANNOT purchase for tourist/vacation use.
Sant Julià de Lòria: the door to Spain
The southernmost parish, 10 minutes from La Seu d'Urgell. Cheaper prices and easy access to
Spanish services.
Ideal profile:Buyers with a tight budget, who work between Andorra and Spain.
Average price:€3,694/m²
Financing: mortgages in Andorra
Andorran banks offer mortgages to both residents and non-residents, although with conditions
different.
General conditions
| Concept | Residents | Non-residents |
| Maximum funding | 80% of the value | 60-70% of the value |
| Maximum term | 25-30 years | 15-20 years |
| Rate of interest | 2.5% – 4% | 3% – 4.5% |
| Maximum age at completion | 70-75 years | 65-70 years |
Major banks
The main banks that offer mortgages in Andorra are:
- Credit Andorrà
- MoraBanc
- Andbank
- Banc Sabadell d'Andorra
Documentation to apply for a mortgage
Residents:
- Last 3 payrolls
- Income tax return (Andorran personal income tax)
- Bank statements from the last 6 months
- Employment contract
- Work life
Non-residents:
- Income tax return from the country of origin
- Proof of income
- Documented net worth
- Bank references
- Property use plan
Is it worth applying for a mortgage in Andorra?
It depends on your situation. The advantages are:
- Competitive rates
- Relatively agile process
- No Documented Legal Acts tax on the mortgage
The disadvantages:
- Strict documentation requirements
- Lower financing for non-residents
- Need to open an account in an Andorran bank
Common mistakes when buying
After 20 years advising buyers, these are the mistakes we see repeatedly:
Error 1: Not verifying the legal status of the apartment
The problem:Buying an apartment with hidden charges, liens or unresolved inheritance problems.
Solution:Always request a simple updated Registry note and verify that the seller can sell
freely.
Mistake 2: Trusting ad meters
The problem:The advertised meters sometimes include terraces, storage rooms or do not match reality.
Solution:Verify the actual useful meters and compare them with the writing.
Mistake 3: Not considering all expenses
The problem:Calculate only the purchase price and find yourself with an additional €20,000-€30,000 in taxes and
bills.
Solution:Budget an additional 5% on the price for expenses.
Mistake 4: Rushing for fear of losing the opportunity
The problem:Buy the first apartment you like without comparing other options.
Solution:View at least 10-15 properties before deciding. The Andorran market is not as fast as
seems.
Mistake 5: Ignoring the community of owners
The problem:Entering a conflictive community, with pending or poorly managed spills.
Solution:Ask for the latest community minutes and verify that there are no approved spills or conflicts.
Mistake 6: Not planning residency
The problem:Buy thinking about living in Andorra and discover that you do not meet the residency requirements.
Solution:If you want to reside, first find out about the residency requirements before buying.
Error 7: Not knowing the current legislation for foreigners
The problem:Many foreign buyers are unaware of the 2024-2025 changes and find themselves with an additional tax of 3-10% that they had not considered, or discover that they cannot buy more than 2 homes.
Solution:Find out about Law 3/2024 (foreign investment tax) and the Omnibus Law 2025 (purchase limits) before starting the process. A foreigner pays 7-8% in expenses, not 4.5%.
Frequently asked questions
How much does a flat in Andorra cost?
The average price of an apartment in Andorra is approximately €4,898/m² (December 2024), with a historical maximum of €5,400/m² in October 2024. An 80m² apartment costs between €296,000 and €570,000 depending on the area. In Escaldes-Engordany, the most expensive area, prices range between €5,689 and €7,135/m².
What taxes are paid when buying an apartment in Andorra?
Taxes vary depending on your situation:
For residents (+3 years): ITP of 4% (second hand) or IGI 4.5% (new construction), plus notary and registration. Approximate total: 4.5%. Residents who buy their first home up to €600,000 may be exempt from the ITP.
For foreigners: In addition to the ITP/IGI, they must pay the Foreign Investment Tax (3% first home, 5% second home). Approximate total: 7.5% – 8% of the purchase price.
Source: Law 3/2024, Law 5/2025
How long does the purchasing process take?
The entire process usually takes between 2 and 4 months. If you are a non-resident foreigner, the authorization
Government may add additional 1-2 months. An urgent purchase can be closed in 6-8 weeks.
Do I need residency to buy an apartment in Andorra?
No, you do not need to be a resident to purchase. Foreigners only need an investment authorization
foreigner, which is granted routinely. However, if your intention is to live in Andorra, you will need
process residency independently.
Is it profitable to buy to rent in Andorra?
Yes, the rental profitability in Andorra ranges between 3% and 5% gross per year. Rental demand is
high due to the constant arrival of new residents. The most profitable areas are Andorra la Vella and
Escaldes-Engordany for long-term rentals, and Canillo/Soldeu for vacation rentals.
How many properties can a foreigner buy in Andorra?
Since April 2025 (Omnibus Law), foreign investors have strict limits:
– Maximum 2 flats/apartments (with up to 3 parking spaces and 3 storage rooms each), OR
– 1 single-family home or plot to build it
Exception:There is no limit if the investment is used to rent a primary residence at an affordable price for at least 10 years.
Prohibition:Foreigners CANNOT purchase for tourist/vacation use or for speculative resale.
Can I buy an apartment in Andorra with a Spanish mortgage?
Not directly. Spanish banks do not finance properties in Andorra. You will need to apply for the mortgage at an Andorran bank, which is possible for both residents and non-residents.
What is the real estate foreign investment tax?
Since February 2024 (Law 3/2024), foreigners and residents with less than 3 years of effective residence in the last 10 years must pay an additional tax:
- 3% for the first home
- 5% for the second home
- 10% for real estate developments
This tax is ADDITIONAL to the ITP (4%) or IGI (4.5%), so the total cost for a foreigner is approximately 7-8% of the purchase price.
90% Bonus:It only applies if it is rented at an affordable price for at least 10 years.
Source: Law 3/2024, Law 5/2025, Government of Andorra
Conclusion
Buying an apartment in Andorra is a solid investment with clear tax advantages, a stable market and a
exceptional quality of life. The process, although it has its particularities, is perfectly accessible with the
appropriate advice.
The most important thing is:
- Verify your situation regarding foreign investment authorization and the 3-10% tax
- Know the purchase limits if you are a foreigner (maximum 2 homes from April 2025)
- Choose the area that best suits your needs
- Have professionals updated on the 2024-2025 legislation
- Budget correctly: 4.5% for residents, 7-8% for foreigners
The Andorran market will continue to grow. Those who buy today are ensuring an investment with potential
of revaluation and, for many, a new way of life.
Sources consulted
– Idealista: idealista.com/news (prices and market evolution)
– Indomio: indomio.es/mercado-inmobiliario/andorra (prices updated 2025)
– Summit Advisors: summitadvisors.ad (ITP and IGI taxes)
– Andorra Solutions: andorra-solutions.com (Law 3/2024, foreign investment tax)
– Advantia: advantia.ad (Omnibus Law 2025)
– Govern d’Andorra: govern.ad (official legislation)
– Luis Alberto Fabra: Study October 2024 (historical maximum prices)
Legal notice:This article is for informational purposes only and does not constitute legal, tax or financial advice. Price data is indicative and may vary. Andorran legislation is subject to frequent changes. We recommend consulting with specialized professionals before making real estate investment decisions in Andorra.
Last update: December 2025
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Last updated: 5 December 2025
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