Prices & zones
Andorra la Vella and Escaldes-Engordany for prestige and central locations; Encamp, Canillo and the Grandvalira area for ski-in/ski-out properties.
Depending on location and specifications
Real Estate · Andorra
Investing in real estate in Andorra:
Investing in real estate in Andorra:
prices, 2026 levy, taxation.
A rare and sought-after market, driven by international demand: rising prices, solid rental yields and a light real estate tax framework. We support you from property search to signed deed.
Investing in property in Andorra, in brief
- Prices: roughly €4,000 to €7,000 per m² depending on the parish and the property; tight market, scarce supply.
- Foreign buyers: foreign investment authorisation required; purchases capped at one single-family house or two apartments (related parties aggregated); progressive foreign real estate investment levy of 6 to 10% since 13 February 2026 (Law 2/2026).
- Taxation: no wealth tax, capital gains on property subject to personal income tax (10% at most), with a surcharge on resales within 5 years and exempt after 10 years of ownership, no inheritance or gift tax.
- Passive residency: property can form the required investment (threshold raised to €1M in 2026), with 90 days of presence per year.
Andorre Gestoria — French-speaking tax and wealth advisory firm, Canillo (RLG CAPITAL, SL). Up to date as of 15 October 2026.
Andorra
A rare market
Why invest in Andorran property:
Plan my purchase
Why invest in Andorran property:
a safe store of value with light taxation.
A small territory, limited supply, sustained international demand: Andorran real estate combines scarcity, steady appreciation and one of the lightest tax regimes in Europe. Buying in the right location at the right price is precisely where we come in.
A tight market, rising values
Scarce supply and strong demand underpin prices and liquidity for quality properties.
Light real estate taxation
Degressive capital gains tax down to zero, and no wealth tax on your assets.
Full end-to-end support
Investment authorisation, property search, notary, taxation: a single point of contact from start to handover.
The market in 2026
Property prices in Andorra: where to buy, at what price, and what yield.
A niche yet dynamic market. Here are the benchmarks to target the right opportunities.
Demand & scarcity
Restricted territory, limited new construction, strong international inflows: quality supply is scarce and prices have grown by around 10 % per year recently.
A safe-haven assetYield
Rental tension, boosted by skiing and demographic growth, supports attractive net yields — particularly in short-term seasonal lettings.
Seasonal & long-term
Real estate taxation
Property taxation in Andorra: the longer you hold,
Property taxation in Andorra: the longer you hold,
the less tax you pay.
Since the 2023 reform, gains on property fall under personal income tax (IRPF): a surcharge hits quick resales, coefficients reduce the gain after six years of ownership, and it is exempt after ten years.
| Holding period | Maximum rate for a resident |
|---|---|
| Less than 2 years | 20 % (IRPF 10 % + 10 % surcharge) |
| 2 to 5 years | 15 % (IRPF 10 % + 5 % surcharge) |
| 5 to 6 years | 10 % |
| 6 to 10 years | 8, 6, 4 then 2 % (gain reduced by 20 % a year) |
| Over 10 years | 0 % |
| Law 5/2014 on IRPF (Art. 27 bis and ninth additional provision, as amended by Law 5/2025): IRPF rate of 10 % at most, coefficients from 0.8 to 0.2 between six and ten years of ownership, special surcharge of 10 % within two years and 5 % between two and five years (only 5 %, and within two years, for new-build developments). Companies bear the same surcharge under corporate tax; non-residents are taxed under the non-resident income tax. | |
The foreign investment tax, planned for from day one.
Since law 2/2026, a purchase by a non-resident — or by a resident settled for less than three years — is subject to the progressive foreign real estate investment tax, created in 2024 — 6 % for a first property, 10 % for subsequent ones — and to a cap: one single-family house or a maximum of two apartments, with acquisitions by a spouse, close relatives and related companies added together. We factor this into your plan from the outset and secure the investment authorisation: no surprises, a fully controlled budget.
Buying as a non-resident
Can a foreigner buy in Andorra? Yes —
Can a foreigner buy in Andorra? Yes —
permit and 2026 levy, we handle everything.
A non-resident can absolutely purchase property in Andorra, subject to a foreign investment authorisation. We coordinate every step of the process.
You
What you bring
- Your project and your budget
- Passport and criminal record certificate (apostilled)
- Proof of source of funds
- Your criteria: location, property type, intended use
We
What we coordinate
- Foreign real estate investment authorisation
- Property search & viewings with our partners
- Notary, purchase deed and investment tax
- Optimisation: personal ownership or corporate structure
- Property management and ongoing tax compliance
Frequently asked questions
Investing in real estate: your questions answered.
Can a foreigner buy property in Andorra?
Yes. A non-resident can purchase property in Andorra after obtaining a foreign investment authorisation, which we handle on your behalf, within the limit of one single-family house or two apartments per investor (related parties included). The process is well-defined and fully secure.
What tax does a non-resident pay when buying?
The foreign real estate investment tax, created in 2024 and raised by law 2/2026, applies: 6 % for a first property, 10 % for subsequent ones — to non-residents and to residents settled for less than three years alike. We factor this into your budget from the initial study phase.
How is capital gains tax on property calculated?
For a resident, the gain is subject to 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 % for each additional year, and it is exempt after 10 years (Law 5/2014, Art. 27 bis, as amended by Law 5/2025).
What are property prices in Andorra?
The market generally ranges from €4,000 to €7,000/m², depending on the area, condition and finish of the property. Central districts and new prestige developments sit at the top of that range.
Is rental property a sound investment in Andorra?
The scarcity of supply and sustained demand — driven in large part by skiing — maintain strong rental tension and attractive net yields. Short-term seasonal lets around Grandvalira are particularly sought after.
Should I buy in my own name or through a company?
It depends on your objective. For an estate to pass on or a multi-property portfolio, a wealth-holding company may be the right structure. We compare both options based on your individual situation.
To go further: our tax advantages, the wealth-holding company or tax residency in Andorra.
