Buy Property in Andorra: Your Complete Guide

Before you can buy property in Andorra as a non-resident, you'll need to get a government authorization for foreign investment. It's a key first step, but thankfully, the process usually only takes a few weeks. What really draws people here, though, is the combination of low taxes, incredible mountain scenery, and an unbeatable quality of life—a powerful mix for investors seeking both a smart financial move and a better lifestyle.

Getting to Know the Andorran Property Market

Exploring Andorran real estate feels like uncovering a well-kept secret nestled in the Pyrenees. It's a small country with a unique appeal that goes far beyond its famous tax advantages. People are drawn to the pristine nature, world-class ski resorts, and a level of safety that’s hard to find elsewhere.

Unlike bigger, more uniform markets, Andorra is a patchwork of distinct parishes, each with its own vibe. This means you can really dial in on a location that fits your specific goals, whether you're looking for an investment, a holiday home, or a permanent residence.

The Parishes: Finding Your Perfect Fit

Where you choose to buy in Andorra really boils down to the kind of lifestyle you're after. The country's capital, Andorra la Vella, and the neighboring Escaldes-Engordany are the urban heart. This is where you'll find modern apartments and luxury penthouses with everything at your doorstep, from high-end shops to the iconic Caldea spa. It's the place to be if you want to be in the middle of the action.

If skiing and mountain life are more your speed, parishes like La Massana, Ordino, and Canillo are fantastic options. Here, the properties are all about charm—think traditional stone chalets, converted bordas (old farmhouses), and apartments right on the slopes of Vallnord and Grandvalira. Areas like Soldeu and El Tarter are especially known for their premium ski-in/ski-out properties.

For those looking for a quieter, more residential feel, Encamp and Sant Julià de Lòria are great choices. They're popular with families and full-time residents, offering more affordable options while still being well-connected to the rest of the country.

Market Dynamics: What Keeps Demand High?

The Andorran property market is incredibly stable, and that's no accident. A few key factors are at play, and understanding them is crucial before you invest.

Limited Supply: Andorra is tiny, covering just 468 square kilometers, and a huge portion of that is protected mountain terrain. This scarcity of buildable land naturally prevents overdevelopment and helps property values hold strong.
Growing International Appeal: The country's reputation is solid. It's known for safety, great healthcare, and of course, its tax-friendly environment, which continues to attract successful entrepreneurs, remote workers, and retirees from all over the world.
Quality of Life: This is the big one. With over 300 days of sunshine a year, clean air, virtually no crime, and endless outdoor activities, life here is simply better. This isn't just a financial investment; it's an investment in your well-being.

"Andorra's appeal isn't just one thing; it's the powerful synergy of financial perks, stunning nature, and a secure, high-quality lifestyle. This combination creates a market that is both resilient and consistently attractive to international buyers."

Recent trends show a steady rise in property values across all parishes, fueled by this consistent demand. But even with significant growth, the market has remained far more stable and less volatile than other European hotspots. It makes a compelling case for anyone looking for a secure place to put their money. As you start comparing options, you'll quickly see how unique Andorra's blend of benefits is. For a wider view, take a look at our guide on the best countries to buy property to see how it stacks up globally.

Understanding Residency and Who Can Buy in Andorra

Before you start imagining yourself in a beautiful mountain chalet, let's talk about the practicalities. Who can actually buy property in Andorra, and how does it connect to your residency status? While the Principality is very welcoming to foreign investors, they have a clear, non-negotiable process you have to follow.

The first major hurdle for any non-resident is getting a government permit for foreign investment. Known locally as the 'Autorització d’inversió estrangera,' this is a mandatory step. Think of it as a background check where the government verifies that your funds are legitimate and you're in good standing.

It might sound a bit formal, but it’s a standard part of every non-resident purchase. Your lawyer or real estate agent will handle the paperwork for you, which usually involves your passport, a criminal record check, and details about the property you intend to buy. Give it about two to three weeks to get the green light.

Tying Your Property Purchase to Residency

For a lot of people, buying a home here isn't just about owning a piece of the Pyrenees—it's the first step toward becoming an Andorran resident. The country offers a few different residency options, and for property owners, passive residency is often the most popular route.

This pathway, sometimes called "residency without lucrative activity," is built for people who can support themselves financially without needing to work for a local Andorran company. To make it happen, you'll need to tick a few boxes:

A Significant Investment: Buying property can fulfill a large part of this requirement, but you'll also need to invest in other Andorran assets, like government bonds.
Proof of Income: You have to prove you have enough money to live comfortably. The official benchmark is an annual income that's over 300% of Andorra's minimum wage.
Minimum Stay: This is the best part for many. Passive residents only need to be in Andorra for at least 90 days a year. It’s a much more flexible arrangement compared to the 183-day requirement for active residents.

Putting Together a Bulletproof Application

A successful residency application comes down to meticulous preparation. I've seen plenty of applications get delayed because of simple paperwork mistakes, like a missing certification or an incomplete form. Getting it right the first time will save you a world of frustration.

Your application package will be quite comprehensive. You'll need:

Your Passport and Birth Certificate: Make sure they're apostilled or properly legalized for use in Andorra.
A Clean Criminal Record: You need official certificates from your home country and any other country you've resided in recently.
Proof of a Place to Live: This is where your property purchase comes in. The signed purchase contract or title deed will satisfy this requirement.
Financial Guarantees: On top of showing proof of income, you'll deposit a refundable bond with the Andorran National Institute of Finance (INAF).
Private Medical Insurance: You must have a private health plan that provides full coverage in Andorra.

The Andorran government is incredibly thorough with its residency checks. Your best bet for a smooth process is to have a local expert guide you and double-check every single document. Don't cut corners here.

A Look at the Investment Climate

The strong link between property and residency is a huge driver of the local market. This steady demand from international buyers has created an impressively stable investment environment.

As of July 2025, the average asking price for residential property hit €5,249 per square meter, which is a 13.25% jump from July 2024. With limited land available, strict building codes, and Andorra's famously low taxes, all signs point to the market maintaining its strong upward momentum. For a deeper dive, it's worth checking out the latest Andorran real estate trends.

Getting these legal and financial steps right is the foundation for everything that follows. With solid preparation, you can confidently move from just dreaming about an Andorran home to actually owning one.

The Property Purchase Process From Start to Finish

Once you’ve set your sights on a property in Andorra, you’ll find the buying process is refreshingly logical. It’s a well-defined path, and while it's detailed, it’s not complicated—especially when you know what’s coming next. The whole journey starts with getting the right people on your side.

Your first practical step is to find a good local real estate agent and a lawyer. You want someone who specializes in Andorran property law, particularly for foreign buyers. Think of the agent as your guide on the ground, finding properties that fit what you're looking for. Your lawyer, on the other hand, is your legal shield, making sure every document is watertight and every local regulation is followed to the letter.

Locking Down Your Chosen Property

So, you've found the perfect apartment or chalet. The negotiation is done, and you’ve shaken hands on a price. Now it’s time to make it official by signing a reservation contract, known locally as a 'Contracte de Reserva.'

This isn't just a piece of paper; it’s a serious commitment that takes the property off the market. To seal the deal, you’ll need to put down a deposit, which is typically 10% of the purchase price. Be aware that this is almost always non-refundable if you decide to walk away, so it signals you’re serious about moving forward.

The reservation contract usually gives everyone a window of about three months to get everything ready for the final sale. This is crucial time for your lawyer to do their work and for you to get your financing squared away.

Due Diligence and the Sales Agreement

That three-month period is when your lawyer really earns their keep. They’ll dive deep into the property’s history and legal standing, a process we call due diligence. It's their job to verify a few key things:

Who really owns it? They confirm the seller is the legal owner with the full right to sell.
Is the property 'clean'? They’ll check for any hidden mortgages, debts, or liens that could complicate the sale.
Is everything up to code? They make sure the property complies with local building regulations and has all the necessary permits, like the certificate of habitability.

Once your lawyer gives the green light, the next step is signing the preliminary sales agreement, or 'Contracte de Compravenda.' This is a fully binding document that lays out every detail of the sale—the final price, the payment plan, and the closing date. It essentially turns the promises of the reservation contract into a legal obligation.

Here’s a real-world example: It’s not uncommon for due diligence to uncover something small, like a balcony extension that was never officially registered. A good lawyer won't let this derail the deal. Instead, they'll negotiate a solution—perhaps the seller rectifies the issue before closing, or maybe you agree on a small price adjustment. This proactive approach saves you a massive headache down the line.

Understanding the Strong Market You're Entering

The thoroughness of Andorra’s buying process is a big reason why its property market is so stable and trusted by investors. The numbers tell the story. Between 2019 and 2024, housing prices in Andorra skyrocketed by nearly 50%, jumping from an average of €3,112 to €4,582 per square meter.

That momentum didn't stop. The market saw a 14.4% surge in 2024 and another 4.86% bump in the first quarter of 2025. This isn't a bubble; it's driven by solid fundamentals like the country's attractive tax system and a naturally limited supply of new homes. In prime locations like Escaldes-Engordany, prices hit an average of €5,689 per square meter—a 20.1% increase in just one year. You can get more detail on these rising prices and market dynamics in Andorra.

The Big Day: Closing at the Notary

Everything leads up to this final moment: closing day at the notary's office. In Andorra, the notary isn't just another lawyer; they are a neutral, government-appointed official whose job is to oversee the transaction and guarantee its legality.

On the scheduled day, you, the seller, and your respective representatives will all gather. If you have a mortgage, your bank's agent will be there too. The notary will read the public deed of sale, the 'Escriptura Pública de Compravenda,' out loud to ensure everyone is on the same page and agrees to every term.

Once all parties have signed the deed, you’ll make the final payment. The second that transfer is confirmed, the seller hands over the keys, and just like that, the property is yours. The notary handles the official registration of the sale, and you can usually pick up your official property deeds a few weeks later. That's the final step in your journey to owning a piece of Andorra.

To give you a better sense of how this all plays out, here’s a typical timeline for a foreign buyer.

Andorra Property Purchase Timeline

The timeline for buying property in Andorra can vary based on your specific situation, like whether you need financing or if there are any complexities with the property. However, this table provides a solid estimate for a standard purchase.

Stage	Description	Estimated Duration
Initial Search & Team Building	Finding a property and engaging a real estate agent and lawyer.	2-6 weeks
Negotiation & Reservation	Agreeing on a price and signing the 'Contracte de Reserva.'	1-2 weeks
Due Diligence & Financing	Lawyer conducts legal checks; buyer finalizes mortgage approval.	4-12 weeks
Signing the Sales Agreement	Signing the binding 'Contracte de Compravenda.'	1 day
Closing at the Notary	Final meeting, signing the 'Escriptura Pública,' final payment, and key handover.	1 day
Property Registration	Notary registers the sale; official deeds become available.	2-4 weeks

Keep in mind that these are averages. A straightforward cash purchase might move faster, while a deal with legal hurdles could take a bit longer. Your lawyer will be able to give you a more precise timeline once they start the due diligence process.

Financing Your Purchase and Understanding the Costs

When you're ready to buy in Andorra, the sticker price is just the beginning. To make a smart investment, you need a crystal-clear understanding of the entire financial picture, from getting your funding in order to covering all the associated fees. This is where your budget meets reality, and trust me, careful planning is everything.

One of the first things you'll have to do is open a local Andorran bank account. It’s not optional—all property transactions, including your final payment and taxes, have to go through an Andorran bank. Getting this sorted early will save you a lot of headaches down the line.

Connecting with banks like Andbank, MoraBanc, or Crèdit Andorrà is the way to go. They’ll get you set up with the required account and can also walk you through your mortgage options.

Securing a Mortgage as a Non-Resident

The good news is that financing a property in Andorra is pretty straightforward for non-residents. Andorran banks are generally happy to lend to foreign buyers, but they’re also quite cautious.

You can typically expect a loan-to-value (LTV) ratio of around 60% to 70% of the property’s official appraised value. What that means for you is a substantial down payment, usually at least 30% of the purchase price, that needs to come from your own pocket.

The application itself is thorough. You'll need to provide all the standard documentation—proof of income, tax returns, and a clear picture of your existing assets and liabilities. For a deeper dive into this, our guide on securing a mortgage for a foreign property is a great resource.

A Transparent Breakdown of Closing Costs

The final sale price isn't the final number you'll pay. To avoid any nasty surprises on closing day, you absolutely must budget for several additional costs that are part of every single transaction when you buy property in Andorra.

Here’s a quick look at the typical taxes and fees involved in a property purchase.

Breakdown of Property Purchase Costs in Andorra

Cost/Tax Item	Typical Percentage/Fee	Paid By
Property Transfer Tax (ITP)	4% of the purchase price	Buyer
Notary Fees	0.7% - 1% of the purchase price	Buyer
Real Estate Agency Commission	Typically 5%	Seller
Legal/Administrative Fees	Varies (consult your lawyer)	Buyer

As you can see, these fees can add up. The Property Transfer Tax (ITP) is the biggest one, combining a 2.5% national tax and a 1.5% local parish tax. Then you have notary fees, which are based on a sliding scale tied to the property's value.

While the seller usually covers the real estate agent's commission, it's always smart to confirm this in your agreement. And don't forget your own legal fees—hiring a good lawyer is a non-negotiable expense for a secure purchase.

My rule of thumb? Budget an extra 5% to 6% of the purchase price to cover all these taxes and fees. This gives you a realistic financial plan and ensures you’re not scrambling for cash at the last minute.

The Andorran property market is anything but quiet. It has seen some incredible activity lately, underscoring its powerful appeal to investors. In the first quarter of 2025 alone, property sale transactions shot up by a staggering 70.9% compared to the same period in 2024. This was largely driven by foreign investors rushing to buy before a new law temporarily paused foreign investment.

During that period, the average price for apartments jumped by 9.4% to €4,302.40 per square meter, which tells you everything you need to know about the current demand.

So, You've Got the Keys: What Happens Next?

That moment you get the keys is fantastic, but it’s not the finish line. It's actually where your real life in Andorra begins. The next phase is all about the practical steps that turn you from a new buyer into a true local homeowner.

First on your list should be a visit to your local parish council, the 'Comú.' Think of it as your local town hall. Getting registered here is a must for any new property owner—it officially logs you in the local census, which you'll need for everything from municipal services to handling your local taxes.

The process is refreshingly simple. Just bring your property deeds, passport, and residency card (if you have it). Getting this sorted out right away makes everything else that follows much, much smoother.

Getting Your Andorran Home Up and Running

Once the Comú knows you're there, it's time to bring your new home to life by setting up utilities.

For electricity, your go-to is FEDA (Forces Elèctriques d'Andorra), the national provider. Water is handled by your local parish, and for internet and phone, you’ll be talking to Andorra Telecom.

A good real estate agent or lawyer should give you a handy checklist with all the contact details. My advice? Start making these calls the moment the sale is finalized. There’s nothing worse than showing up with boxes to a dark, cold house with no Wi-Fi.

The Ongoing Costs of Owning Property in Andorra

Part of being a homeowner means budgeting for recurring costs. The good news is that in Andorra, these are typically far lower than what you might be used to in other European countries, but you still need to account for them.

Annual Property Tax: Every parish has a small annual property tax. It’s based on your property’s size and location, but it's famously low.
Community Fees: If your new place is an apartment or part of a shared development, you'll have community fees, known locally as 'despeses de comunitat.' These go toward maintaining shared spaces like gardens, elevators, and the building exterior.
Homeowner's Insurance: This one is non-negotiable. Proper home insurance protects your asset against fire, water damage, and other unexpected events. It’s a small price to pay for genuine peace of mind.

Here’s a pro tip: don't think of these as "extra" fees. They are part of the total cost of ownership. Smart investors factor these into their annual budget from day one to avoid any surprises down the road.

Settling in and Enjoying the Lifestyle

With all the admin out of the way, you can finally dive into the lifestyle that brought you here in the first place. This is what it's really all about when you buy property in Andorra.

You’re now part of a country with a world-class healthcare system, fantastic trilingual schools (Catalan, French, and Spanish), and one of the lowest crime rates on the planet. It’s a place where you can genuinely feel safe and secure.

And then there's the fun part. You've got the slopes of Grandvalira for winter skiing and breathtaking mountain trails for summer hikes right on your doorstep. There's always something to do outdoors. If you're curious about how Andorra stacks up against other prime locations, our breakdown of the best countries for property investment offers some interesting comparisons.

In the end, moving to Andorra isn't just about owning a piece of real estate. It's about stepping into a life that values well-being, community, and the great outdoors.

Got Questions About Buying Property in Andorra? We’ve Got Answers.

Jumping into a new property market naturally brings up a lot of questions. I get asked the same things time and again by international buyers, so let's clear up a few of the most common points right now.

We'll talk about what you can expect to pay in taxes each year, how you can make money by renting your place out, and why having a good lawyer on your side is non-negotiable.

What Are the Annual Property Taxes Like?

This is one of the best parts about owning a home in Andorra—the annual property taxes are incredibly low. If you're used to the property tax rates in other parts of Europe or North America, you're in for a pleasant surprise.

The main ongoing tax is a local one paid to your parish (comú). It’s calculated based on a few things like the property’s size and location, but it's very manageable. For most apartments and even many houses, you’re typically looking at just a few hundred euros a year, not the thousands you might be expecting. This low overhead makes holding property here very attractive long-term.

Can I Rent Out My Andorran Property?

Absolutely. Renting out your property is a great way to generate income, and the demand here is strong. You have a steady stream of people looking for places, from seasonal ski industry workers to new residents and, of course, tourists.

Be aware, though, that there are different rules for different types of rentals. If you want to put your place on sites like Airbnb for short-term holiday lets, you’ll need to get a specific tourist license from the government. They have strict standards for these to ensure quality, so it's a process you need to follow carefully.

For long-term rentals (think one-year contracts), things are a bit simpler. You'll use a standard rental agreement that follows Andorran law. Finding a good tenant is usually not a problem, making it a solid investment.

A quick tip for investors: If you aren't living in Andorra full-time, a local property management company is your best friend. They'll handle the day-to-day—finding tenants, collecting rent, fixing a leaky faucet—so you don't have to. It's the best way to keep your investment secure and hassle-free from a distance.

Is Hiring a Local Lawyer Really Necessary?

I can't stress this enough: yes, it's absolutely essential. Don't even think about skipping this step. An experienced Andorran lawyer who knows the ins and outs of real estate and foreign investment isn't a luxury; they're a crucial part of protecting your purchase.

Their job is so much more than just looking over a contract. They are your personal guard, digging deep to make sure everything is in order.

Who really owns it? They’ll confirm the seller is the true legal owner with the right to sell.
Are there hidden debts? Your lawyer will do a thorough search to ensure the property is free of old mortgages, liens, or unpaid taxes that could haunt you later.
Is it all up to code? They verify the property has its certificate of habitability (certificat d'habitabilitat) and that any construction or renovations were done with the proper permits.
Are the contracts fair? They’ll fight for your interests when negotiating the reservation and final purchase agreements, making sure the terms are crystal clear and legally sound.

Think of your lawyer as an insurance policy. Their fee is a small price to pay for the peace of mind that comes from knowing your investment is protected from day one.

Ready to find your perfect European home? Residaro offers an extensive portfolio of properties across Andorra and other prime European locations. Start your search today and connect with local experts who can guide you every step of the way. Discover your dream property with Residaro.