Buying in Andorra is entirely possible for non-residents, but the framework changed in 2026 (authorisation requirements, new levy). Here is the complete guide to buying with complete peace of mind.
The market : prices and 2026 trends
The market is tight (demand exceeds supply). The national average price stands at around €4,300 – €4,500/m² on official transactions, and climbs to €5,000 – €7,000/m² in central Andorra la Vella, Escaldes or for high-end new-build properties. Quality properties sell quickly.
Foreigners : can you buy ?
Yes. However, a non-resident must obtain a prior foreign investment authorisation before purchasing : an administrative procedure (fees of approximately €300), with a processing time of around 2 months; the absence of a response constitutes a refusal. Limits apply (for example, a restricted number of residential properties and parking spaces per investor). A resident, by contrast, purchases freely. We handle the entire procedure.
The foreign real estate investment levy (2026)
Since Llei 2/2026 (in force from 13 February 2026), purchases by a foreign investor are subject to a progressive levy according to the rank of acquisition : 6 % for a first property, and up to 10 % for subsequent ones. A reduction of up to 90 % applies when the property is intended for long-term letting as a primary residence — a key provision for buy-to-let investors.
Purchase costs
| Item | Indicative amount |
|---|---|
| Transfer duty — resale (ITP) | ≈ 4 % |
| New-build (IGI instead of ITP) | 4.5 % |
| Notary fees | ≈ 1 % |
| Foreign investment levy | 6 – 10 % |
| 2026 rates. Excluding the foreign investment levy, standard purchase costs are around 5 %. | |
Capital gains on resale
Capital gains on residential property for residents follow a degressive scale based on the holding period : high in the early years (around 15 % within 2 years), then decreasing until full exemption after a long holding period. Long-term ownership is therefore fiscally rewarded.
Financing your purchase
Andorran banks do finance property. For a non-resident, the required deposit is generally around 40 to 50 %, compared with a lower deposit for residents. Opening an Andorran bank account is a useful prerequisite.
Key takeaways
- Average price ≈ €4,300 – €4,500/m² (up to €7,000 in the centre)
- Non-resident : prior authorisation required (~2 months)
- 2026 investment levy : 6 % → 10 % (–90 % for long-term lettings)
- Standard purchase costs ≈ 5 % (transfer duty + notary)
- Degressive capital gains → full exemption after a long holding period
Before buying, secure your residency and tax position. Also see the cost of living in Andorra.
