Mortgage in Andorra if you are not a resident: what the banks do not publish on their website

Andorran banks finance non-residents. But the conditions that appear on their website and those that apply in practice do not always coincide. The percentage of financing is low, the documentation required is more extensive than for a resident, and some profiles are directly excluded without anyone saying so in the first contact.

Knowing this before starting the search for a property avoids the most common mistake: finding the right property and discovering later that the financing does not cover what is necessary to close the operation.

Which banks operate in Andorra and finance non-residents

The Andorran banking system is made up of five main entities regulated by the Andorran Financial Authority (AFA). Of these, those that usually work with non-resident profiles in mortgage operations are:

Credit Andorrà

One of the entities with the greatest presence in the Principality's mortgage market. It works with non-residents on a regular basis, although the risk analysis is more exhaustive than for residents. Requires prior banking connection with the entity before approving the mortgage.

MoraBanc

Active in the segment of international clients and medium-high net worth. Their conditions for non-residents usually require a demonstrable financial relationship with the bank before granting.

Andbank

Specialized in private banking and wealth management. Its mortgage profile for non-residents is aimed at high-value transactions, usually linked to clients with assets managed by the entity.

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Information on mortgage products and updated conditions can be consulted through theAndorran Financial Authority, supervisory body of the Principality's banking system.

What really changes if you are not a resident

Here is the specific difference that no bank details on its website until the process begins:

Funding percentageResidents in Andorra can access financing of up to 80% of the appraisal value under standard conditions. For non-residents, the usual ceiling is between60% and 70%of the appraised value, not the purchase price. If the appraisal is below the agreed price — something common in stressed markets — the percentage is applied to the appraised value, not to what you have agreed to pay.

→Practical implication in numbers:In a transaction of €500,000, a non-resident with 65% financing on an appraisal of €480,000 obtains €312,000. The difference up to the purchase price — €188,000 — must be contributed in your own funds, plus the purchase costs of 4–7% of the total price.

Maximum termMortgage terms for non-residents are usually shorter than for residents. The usual maximum ranges between15 and 20 years, compared to the 25–30 years that resident profiles with Andorran payroll can access.

Rate of interestAndorra does not belong to the euro zone but its rates are referenced to Euribor or fixed rates agreed with each entity. For non-residents, the differential applied on the reference index is usually higher than that for residents, reflecting the greater risk perceived by the entity.

Documentation they require: the actual list

This is the documentation that Andorran banks request from non-residents in the mortgage analysis phase. Having it prepared before starting the process speeds up the deadlines between 3 and 6 weeks:

Personal documentation

• Valid passport or ID of all holders
• Certificate of tax residence in the country of origin
• Declaration of origin of funds — usually underestimated document that may require documentary justification for the last 2–3 years

Financial documentation

• Last three personal income tax returns or equivalent in the country of origin
• Bank statements for the last 6–12 months for all accounts
• Documentation of other real estate or investment assets if claimed as additional collateral
• Current employment contract or, if self-employed, accounting documentation from the last 2 years

Property documentation

• Simple note from the Andorran Property Registry
• Appraisal commissioned by the bank (not the seller)
• Purchase and sale commitment or deposit contract — in this phase theformalized reservationbefore starting the full analysis

→Warning sign:If an Andorran bank begins the mortgage process without requesting the declaration of origin of funds from the first contact, it is likely that this requirement will appear at an advanced stage of the process and generate delays. It is advisable to anticipate it from the beginning.

Three mistakes that block the mortgage before it starts

1. Search for property before having bank pre-approvalIn Andorra, the market for quality properties moves fast. Starting the search without a written banking agreement in principle means negotiating without knowing the actual budget. Pre-approval does not guarantee the final mortgage, but it delimits the range of viable operation.

2. Calculate the budget on the purchase price, not on the appraised valueThe bank appraisal may differ from the price agreed with the seller. In markets likeEscaldes-EngordanyeitherAndorra la Vella, where demand exceeds supply, sales prices frequently exceed bank valuations. That difference is assumed by the buyer.

3. Opening an Andorran bank account too lateMost entities require that the buyer have an account opened with them before granting the mortgage, and the opening process for non-residents can take between 4 and 8 weeks due to regulatory compliance requirements. Starting this process in parallel with the search for the property, not after finding it, saves that time.

Mortgage and residence: the most common combination among international buyers

Many non-resident buyers seeking bank financing in Andorra do so in the context of apassive residence for real estate investment. It is worth keeping in mind that the minimum investment required for passive residence — €400,000 free of charges according to the regulations of theDepartment of Immigration of the Government of Andorra— refers to the mortgage-free value, not the total purchase price.

This means that a property purchased for €600,000 with a pending mortgage of €250,000 counts as an investment of €350,000 for the purposes of the residency process, below the minimum required threshold.

The next step

With the total budget available — own funds plus estimated financing — and the defined area of ​​​​interest, the team of thepurchasing servicefilters only viable properties within the actual operating range, including the expenses associated with the purchase. Sharing the maximum amount of own funds, the priority area and three essential property criteria, the selection that is returned is already adjusted to what the bank can finance.