The single fact that dates most writing about buying in Andorra is that foreign buyers are now capped, not courted. Since April 2025 a foreign individual may own one single-family home or up to two housing units, and speculative and tourist-let buying is closed to them. Add the prior authorisation every purchase needs and the entry tax on foreign capital, and the picture is clear: Andorra wants residents, not a market to accumulate in. This guide sets out exactly what a foreign buyer can and cannot do.
Or up to two units
In force 17 April 2025
Required before purchase
Cited to primary law
Last updated: 22 July 2026
By: Alexander Thornbury
What can a foreign buyer actually own?
Since the Omnibus Law came into force on 17 April 2025, a foreign individual is limited to one single-family home, or up to two housing units, together with limited parking and storage. That is the ceiling. It is enough for a person or family relocating to live in Andorra, and it is deliberately not enough to assemble a portfolio.
The cap is the headline change and the reason older guides mislead. Where pre-2024 material describes Andorra as an open investment market, the current law describes a capped residential one. For the wider buying picture, see our international buyer’s guide to Andorra property.
What is prior investment authorisation?
Every foreign purchase in Andorra needs prior foreign investment authorisation before it can complete. It is not a formality tacked on at the end; it is a condition that must be satisfied for the transaction to proceed, and it applies to foreign ownership above the relevant threshold. Your Andorran lawyer manages the application as the first step of the purchase, not the last.
For a buyer used to simply making an offer and completing, this is the structural difference. The authorisation gates the deal, so it should be started early and factored into the timeline rather than discovered late.
| Foreign buyer | Allowed? |
|---|---|
| One single-family home to live in | Yes, with prior authorisation |
| Up to two housing units | Yes, within the cap |
| A portfolio of properties | No, beyond the cap |
| Development for resale, or tourist lets | No, prohibited use |
What is now prohibited?
Three uses are closed to foreign buyers: developing property for resale, buying housing for holiday or tourist-use letting, and speculative or lease-to-own schemes. The clear exception is long-term affordable rental, held for ten years or more, which is treated as a contribution to housing supply rather than speculation and is exempt.
The logic runs right through the system. Andorra is steering foreign capital toward genuine homes and long-term housing, and away from short-term investment plays. A buyer whose plan was to acquire, let to tourists, and trade needs to know that plan no longer fits the law.
The Foreign Investment Tax in brief
Alongside the cap sits the Foreign Investment Tax, introduced in 2024, which applies to property bought with foreign capital. It is progressive by number of properties, 6% on a single-family home or one residential unit, and 10% on anything beyond that, applied progressively by the total number of units held. There is a 90% rebate, but it is narrow: it applies only where the investment puts affordable rental housing on the market for a minimum of ten years. Buying a home to live in does not qualify.
The tax and the cap work together: the cap limits how much you can buy, and the tax makes the little that is left over from a main residence uneconomic to hold speculatively. The full mechanics are in our Andorra tax guide.
| Foreign Investment Tax | Rate |
|---|---|
| A single home | 6% |
| Anything beyond that | 10% |
| Applied progressively, in tranches, by the total number of units held. Raised from 3% and 5% by Llei 2/2026, in force 13 February 2026. | |
Why the rules were tightened
Andorra reformed foreign buying to protect housing supply and steer relocation over speculation. A small country with limited land and record-low supply saw prices climb sharply, and the policy answer was to cap foreign ownership, tax foreign capital on entry, and reserve the market for people genuinely moving in. The regime changed across 2024, 2025 and 2026, and each step pushed in the same direction.
For the right buyer, none of this is a barrier. A person relocating to live in Andorra, buying one home and taking residency, fits the rules cleanly. It is only the investor treating Andorra as a market to trade who finds the door closed, and that is the outcome the law intends.
Key takeaways
- Foreign individuals may own one single-family home or up to two housing units since the 2025 Omnibus Law.
- Every foreign purchase needs prior investment authorisation, which gates the deal and should be started first.
- Development for resale, tourist letting and speculation are prohibited for foreign buyers; long-term rental (10+ years) is exempt.
- The Foreign Investment Tax runs 6% to 10%, applied progressively by the number of units held.
- The rules reward relocation and close off speculation, which is exactly their intent.
Frequently asked questions
How many properties can a foreigner own in Andorra?
One single-family home, or up to two housing units, with limited parking and storage, since the Omnibus Law of April 2025. Ownership beyond that is not open to foreign individuals.
Do I need permission to buy property in Andorra as a foreigner?
Yes. Every foreign purchase needs prior foreign investment authorisation before it can complete. Your Andorran lawyer handles it as the first step of the transaction.
Can a foreigner buy property in Andorra to rent out?
Not for holiday or tourist letting, which is prohibited. Long-term affordable rental held for ten years or more is the exception and is exempt from the prohibited-use rules.
Can foreigners develop or flip property in Andorra?
No. Development for resale and speculative or lease-to-own schemes are closed to foreign buyers. The rules steer foreign capital toward genuine homes and long-term housing.
What is the Foreign Investment Tax?
A tax on property bought with foreign capital, raised in February 2026, progressive 6% on a single home and 10% for anything beyond that, applied progressively by the number of units held. The 90% rebate applies only to affordable rental housing let for at least ten years, not to your own home.
Why did Andorra restrict foreign buyers?
To protect limited housing supply after sharp price growth, and to favour people genuinely relocating over speculative investment. The regime tightened across 2024 to 2026, all in the same direction.
Do these rules stop me relocating to Andorra?
No. A person or family moving to live in Andorra, buying one home and taking residency, fits the rules cleanly. The restrictions bite only on portfolio and speculative buying.
Sources
- Butlleti Oficial del Principat d’Andorra – Llei 5/2025 (Omnibus Law), Llei 3/2024 (Foreign Investment Tax)
- Govern d’Andorra – foreign investment authorisation and the Foreign Investment Tax
Figures current at July 2026. Andorra’s foreign-ownership rules should be confirmed with an Andorran lawyer before purchase.
About the author
Alexander Thornbury is a published author who writes on international property, tax and residency for high-net-worth buyers across Europe. His work focuses on the practical mechanics of cross-border purchase: what a buyer actually pays, owes and signs. More at alexanderthornbury.com.