In brief: Buying property in Andorra in 2026.
- Can a foreigner buy property in Andorra? Yes. A non-resident must obtain a prior foreign investment authorisation (processing time approximately 2 months) before purchasing, within the limit of one single-family house or two apartments per investor (related parties included).
- What is the property purchase levy in 2026? Since Llei 2/2026, purchases by a foreigner are levied progressively, in bands according to the total number of units held (related parties aggregated): 6% for a first property, 10% beyond that, with a reduction of up to 90% if the property is let as a long-term primary residence.
- What are the purchase costs for property in Andorra? Excluding the foreign investment levy, expect approximately 5%: transfer duty (≈ 4% for resales, or IGI at 4.5% for new-build) and notary fees (≈ 1%).
Short answers by Andorre Gestoria, a French-speaking tax and wealth advisory firm in Canillo (RLG CAPITAL, SL). Details, figures and sources in the article — updated 15 October 2026.
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. Purchases are capped: a foreign investor may acquire one single-family house, or a maximum of two apartments (or studios), with no more than three parking spaces and three storage rooms per dwelling. Acquisitions by related parties — spouse or partner, relatives up to the third degree, controlled companies — are added together: the cap cannot be sidestepped by multiplying buyers. A resident, by contrast, purchases freely only after three years of effective residence (within the last ten); before that, they are treated as a foreign investor. We handle the entire procedure.
The foreign real estate investment levy (2026)
Created in 2024 (Llei 3/2024) and raised by Llei 2/2026 (in force from 13 February 2026), the levy applies to purchases by a foreign investor — including a resident settled for less than three years — which are subject to a progressive levy (IEI), calculated in bands according to the total number of units held — those of related parties included: 6 % for a first property (single-family house or apartment), 10 % beyond that; once the top rate is reached, all subsequent acquisitions are charged at it. 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 property for residents fall under personal income tax (IRPF, 10 % at most): a 10 % surcharge applies to resales within 2 years and 5 % between 2 and 5 years; beyond 6 years of ownership the taxable gain is reduced by 20 % a year, and it is exempt after 10 years (Law 5/2014, Art. 27 bis, as amended by Law 5/2025). 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)
- Capital gains: surcharge within 5 years, exempt after 10 years
Before buying, secure your residency and tax position. Also see the cost of living in Andorra.
