What you will see in this article
- Can foreigners buy an apartment in Andorra?
- Requirements for buying a flat in Andorra
- Apartment prices in Andorra by area
- Step-by-step purchasing process
- Taxes and purchase expenses
- Best areas to buy an apartment in Andorra
- Finance: mortgages in Andorra
- Common mistakes when shopping
- Next step
- Frequently asked questions
Buying a flat in Andorra is one of the best property investment decisions you can make in Europe. With attractive taxation, a high quality of life and a stable market, the Principality attracts more buyers from Spain, France and other countries every year.
However, the process has particularities that are worth knowing about. Foreigners need government authorisation, there are specific residency requirements and prices vary enormously depending on the parish. In this guide we explain everything you need to know to successfully buy a flat in Andorra.
Can foreigners buy an apartment in Andorra?
Yes, foreigners can buy property in Andorra, but they need prior authorisation from the Government. This is one of the points that causes the most confusion, so it is worth clarifying.
Foreign investment authorisation
Any non-resident natural or legal person wishing to purchase a property must apply for authorisation from the Government of Andorra. This procedure is carried out before the purchase, takes approximately 2 months (extendable by a further 1 month), has an administrative fee of €300 and is approved in the vast majority of cases.
Authorisation is practically automatic for buyers from the European Union, Spain, France and other countries with normal relations with Andorra. It is only refused in exceptional cases related to national security or money laundering.
Exceptions to authorisation
Residents in Andorra (they already have implicit permission), Andorran nationals and Andorran companies do not need authorisation, even if the partners are foreign.
Can I buy without being a resident?
Yes. Simply the aforementioned foreign investment authorisation is required. Many buyers purchase properties as a second home or as a rental investment. However, if the intention is to live in Andorra, it will be necessary to process the residency either alongside or after the purchase.
Requirements for buying a flat in Andorra
If you are a resident in Andorra
The process is straightforward and similar to buying in any other country. You need a valid passport or ID card, an Andorran residence permit, proof of funds (bank statements) and an NRT (Andorran Tax Registration Number). No special authorisation is required.
If you are a non-resident foreigner
Required documentation
- Valid passport
- Foreign investment authorisation (processed in advance)
- Proof of origin of funds
- Criminal record certificate (in some cases)
- Powers of attorney if you cannot be present for the signing
Process
- Apply for foreign investment authorisation (€300 fee)
- Awaiting approval (2 months, extendable by 1 more month)
- Pay the foreign investment tax (see tax section)
- Proceed with the purchase
Important: From April 2025, foreigners may only purchase a maximum of 2 homes (or 1 detached house). See the “Taxes and expenses” section for more details.
If you are an EU citizen
The process is the same as for other foreigners, but the authorisation is granted almost automatically. Spain and France have specific agreements that speed up the procedure.
Financial requirements
There is no minimum investment requirement to buy an apartment, but you do have to prove the legal origin of the funds, the ability to pay the agreed price and the solvency to cover taxes and associated costs. Andorran banks are particularly rigorous regarding regulatory compliance, so it is advisable to prepare detailed documentation on the origin of the money.
Apartment prices in Andorra by area
The price of flats in Andorra varies significantly depending on the parish and the specific location.
| Parish | Average price €/m² | 80 m² flat | Trend |
|---|---|---|---|
| Escaldes-Engordany | 5,689 – 7,135 € | €455,000 – €570,000 | Uploading ↑ |
| Andorra la Vella | €5,600 – €6,200 | £448,000 – £496,000 | Uploading ↑ |
| Ordino | £4,200 – £4,500 | €336,000 – €360,000 | Stable |
| La Massana | ~4.221 € | ~338.000 € | Uploading ↑ |
| Encamp | ~4.090 € | ~327.000 € | Uploading ↑ |
| Canillo | ~4.100 € | ~328.000 € | Stable |
| Sant Julià de Lòria | 3,694 – 4,223 € | €296,000 – €338,000 | Stable |
Indicative prices from market sources (2024-2025). They vary depending on the specific characteristics of each property. You can check the details in the article about flat prices in Andorra 2026.
Factors that affect the price
They are increasing the price
- Mountain or valley views
- Large terrace or balcony
- Parking space included
- New build or recently refurbished
- Proximity to amenities and shops
- Upper floors with lift
- Unmodernised old flats
- Ground floor flats without a terrace
- No parking
- Areas away from the centre
- North-facing
- Buildings without a lift
The Andorran real estate market has experienced sustained growth in recent years, with particularly marked year-on-year increases since 2023. You can consult flats for sale in Andorra to view the current offer.
Step-by-step purchasing process
Step 1: Search and selection (2-8 weeks)
Set budget, area and desired features; contact 2-3 trusted estate agents; visit properties that fit your criteria; compare options and negotiate prices.
Advice: Don't rush. It's better to view 15-20 flats and choose calmly than to buy the first one you like.
Step 2: Reservation and deposit contract (1-2 weeks)
Once the flat has been chosen, a deposit agreement is signed to reserve the property. It must include the details of the buyer and seller, a description of the property, the agreed price, the amount paid as a deposit (usually 10%), the deadline for signing the final contract, and the cancellation terms. The article on reservation and deposit in Andorra detail these clauses in depth. If the buyer pulls out, they lose the deposit; if the seller cancels, they must return double.
Step 3: Due diligence (2–4 weeks)
Period to check that everything is in order before the final purchase: simple information note from the Property Register (charges, mortgages), certificate of being up to date with the community of owners, latest utility bills, habitation certificate, technical building inspection if applicable, and verification of actual square metres against those on the deeds.
Step 4: Foreign investment authorisation (1-2 months)
If you are not a resident, this step is carried out in parallel with the due diligence: official application form, passport, proof of source of funds, description of the property to be acquired and payment of the administrative fee.
Step 5: Contract preparation (1-2 weeks)
Coordinate date with notary, prepare the transfer of the remaining money, gather final documentation and check the final conditions of the flat.
Step 6: Notarisation (1 day)
The sale is formalised before a notary public in Andorra: the deed is read out, the parties’ identities are verified, payment is made, the keys are handed over and all the documents are signed. Notary fees range from 0.1% to 0.3% of the sale price.
Step 7: Property registration (2-4 weeks)
Following signature, the notary sends the title deed to the Land Registry. Until it is registered, the property is not legally in the buyer's name against third parties.
Step 8: Change of utility account holder (1 week)
Change of electricity (FEDA) and water account holder, registration with the owners' association and notification to the corresponding Comú.
Taxes and purchase expenses
When buying an apartment in Andorra, costs vary significantly depending on whether you are a resident or a foreigner.
Basic taxes
The Property Transfer Tax (ITP) is 4% and applies to second-hand properties (3% goes to the local authority and 1% to the regional government). The General Indirect Tax (IGI) is 4.5% and applies to new-build properties.
| Price of the flat | 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 public | 0,1% – 0,3% |
| Land Registry | ~0,1% |
| Agency (optional) | £430 – £1,290 |
| Foreign investment authorisation | 300 € |
ITP exemption for residents
Residents in Andorra who buy their first main home may be exempt from the ITP up to certain price thresholds and under specific conditions (intended for use as a main and permanent residence, minimum maintenance period, income limits). Since these specific requirements may vary, it is advisable to confirm them directly with a tax adviser or at the Government of Andorra before planning the operation.
The tax on foreign real estate investment doubled with the entry into force of the Law on the continuity and consolidation of measures for sustainable growth (“Omnibus II Law”), on 13 February 2026, amending Law 3/2024.
Foreign investment tax (mandatory for foreigners)
If you are a foreigner or a resident who cannot prove at least 3 years of effective residence in Andorra during the last 10 years, you must additionally pay the Foreign Real Estate Investment Tax (IEI):
| Type of procurement | Current tax rate |
|---|---|
| Main residence | 6% |
| Second home | 10% |
Rates in force from 13 February 2026 (previously 3% and 5% respectively). Please always refer to the most up-to-date version at the Legal Portal of Andorra, since this regulation has been amended several times since 2024.
Purchase limits for foreigners (from April 2025): a maximum of 2 floors/apartments (with up to 3 parking spaces and 3 storage rooms each), or 1 single-family home or plot to build one.
Prohibitions: Foreign investors cannot buy real estate for tourist/holiday use or for speculative resale. Bonus you can apply if the property is used for habitual residential rent at an affordable price for a minimum of 10 years; renting at market price does not entitle you to this relief.
Total expenditure summary (example based on €500,000)
| Concept | Resident (primary home, with exemption) | Foreigner (first home) |
|---|---|---|
| Price of the flat | 500.000 € | 500.000 € |
| ITP | €0 (exempt) / €20,000 if exemption does not apply | 20.000 € |
| Foreign Investment Tax (IEI) | — | 30.000 € |
| Authorisation fee | — | 300 € |
| Notary public | 1.000 € | 1.000 € |
| Register | 500 € | 500 € |
| Agency | 800 € | 800 € |
| Total additional expenses | ~0.5% – 4.5% | ~10,5% |
Indicative figures recalculated using the rates in force from February 2026. For a second home owned by a foreign national, the IEI rises to 10%, bringing the total additional charge to around 14.5%.
Best areas to buy an apartment in Andorra
Andorra la Vella: for those seeking comfort
The capital offers all amenities within walking distance: shops, restaurants, schools and transport. Ideal profile: professionals, families who value comfort, long-term rental investors. Average price: 5,600 – 6,200 €/m². The article about buy a flat in Andorra la Vella develop this parish by wards.
Escaldes-Engordany: for those looking for premium
The most exclusive area, with high-end properties, the Caldea spa and the best restaurants. Ideal profile: high-net-worth buyers, luxury second homes, premium investors. Average price: 5.689 – 7.135 €/m². You can view the offer at Escaldes-Engordany.
La Massana: for nature lovers
Direct access to Vallnord, greener and quieter surroundings. Ideal profile: families with children, skiers, those looking for a balance between countryside and city. Average price: ~€4.221/m².
Encamp: the accessible option with potential
More moderate prices with good connections and a direct gondola lift to Grandvalira. Ideal profile: first-time buyers, investors looking for a yield, frequent skiers. Average price: ~£3,510/m².
Canillo: ski paradise
The heart of Grandvalira. Fewer urban services, but unbeatable access to the slopes. Ideal profile: long-term rental investors, passionate skiers, second homes. Average price: ~€4,100/m². Remember: from April 2025 foreign investors cannot buy for tourist/holiday use.
Sant Julià de Lòria: the gateway to Spain
The southernmost parish, 10 minutes from La Seu d’Urgell. Ideal profile: buyers on a tight budget who work between Andorra and Spain. Average price: ~3.694 €/m².
Finance: mortgages in Andorra
Andorran banks offer mortgages to both residents and non-residents, albeit with different conditions.
| Concept | Residents | Non-residents |
|---|---|---|
| Maximum funding | 80% of the value | 60-70% of the value |
| Maximum deadline | 25 to 30 years old | 15-20 years |
| Interest rate | 2,5% – 4% | 3% – 4,5% |
| Maximum age upon completion | 70 to 75 years old | 65-70 years old |
The main banks offering mortgages in Andorra are Crèdit Andorrà, MoraBanc, Andbank and BancSabadell d’Andorra. The article about mortgage for non-residents in Andorra detail the documentation and the step-by-step process.
Is it worth getting a mortgage in Andorra?
The advantages are competitive interest rates, a relatively fast process and the absence of Stamp Duty on the mortgage. The disadvantages are strict documentation requirements, lower financing for non-residents and the need to open an account with an Andorran bank.
Common mistakes when shopping
Buying a flat with hidden charges, attachments or unresolved inheritance issues. Avoid this by always requesting an up-to-date Land Registry extract (nota simple).
The advertised square metres sometimes include terraces or storerooms, or do not match reality. Verify the actual usable square metres and compare them with the deeds.
Calculate only the purchase price and find yourself with thousands of euros extra in taxes and fees. Budget an additional margin on top of the price.
Buy the first flat you like without comparing other options. See at least 10-15 properties before deciding.
Entering a troubled community with pending levies or poor management. Request the latest minutes and verify that there are no approved levies or conflicts.
Buying with the intention of living in Andorra and discovering afterwards that the residency requirements are not met. Find out first if your intention is to reside.
Many foreign buyers are unaware of the 2024-2026 regulatory updates and find themselves facing an additional tax they had not factored in, or discover that they cannot buy more than 2 homes. Inform yourself about Llei 3/2024 (amended in 2026) and the Llei Òmnibus before starting the process.
Ready to find your flat in Andorra?
Here in Versus Andorra we know every area, every street and every opportunity. You can view available flats o request personalised advice No obligation.
Legal notice: This article is for information purposes only and does not constitute legal, tax or financial advice. Pricing data is indicative and may be subject to change. Andorran legislation on foreign investment has been amended several times since 2024 and is subject to further changes. We recommend consulting specialised professionals before making any property investment decisions in Andorra.
Frequently asked questions about buying an apartment in Andorra
What taxes are payable when buying a flat in Andorra?
Residents who have lived there for more than 3 years pay the ITP (4%, second-hand property) or the IGI (4.5%, new-build property), plus notary and registration fees: around an additional 4.5%. Foreigners must also add the Tax on Foreign Property Investment, at 6% for a first home and 10% for a second home (rates in force from February 2026), which brings the total additional cost to approximately 10.5%–14.5% of the purchase price.
Do I need residency to buy an apartment in Andorra?
No. Foreign nationals only need a foreign investment authorisation, which is routinely granted in the vast majority of cases. If the intention is to live in Andorra, the residency must be processed independently of the purchase.
How many properties can a foreigner buy in Andorra?
Since April 2025, foreign investors have strict limits: a maximum of 2 flats or apartments (with up to 3 parking spaces and 3 storage rooms each), or 1 detached house or plot of land to build one. Furthermore, they cannot buy for tourist or holiday use or for speculative resale.
