Andorra is a relocate-and-live story, not a property-investment one, and the rules changed three times between 2024 and 2026 to make sure of it. Foreign buyers are now capped at one home, taxed on entry, and rewarded only if they actually move in and stay. Get that framing right and the appeal is real: no wealth tax, no inheritance tax, income tax topping out at 10%. Get it wrong and you are reading pre-2024 advice that no longer holds. This guide is for the buyer spending EUR 2M and up who is weighing a genuine move.
Buyer focus, serious purchasers
Data-driven market analysis
Every figure cited to primary sources
Current law, not pre-2024 advice
Last updated: 22 July 2026
By: Alexander Thornbury
Can a foreigner buy property in Andorra?
Yes, but with a cap that surprises anyone reading older guides. 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. Buying to build a portfolio, to develop for resale, or to run tourist-let property is no longer open to foreign buyers. Every purchase also needs prior foreign investment authorisation before it can complete.
So the door is open to the person moving to Andorra to live, and largely closed to the investor treating it as a market to accumulate in. That is a deliberate policy choice, and it is the single fact that dates most of what is still written about buying here. Read the foreign-ownership rules in full in our guide to Andorra’s foreign-buyer rules.
What does it cost to buy?
Budget for roughly 7% to 11% of the price on top of the price, and the variable that moves the total most is the Foreign Investment Tax. A resale carries a property transfer tax (ITP) of around 4%; a new-build is charged 4.5% IGI instead. On top sits the Foreign Investment Tax introduced in 2024, and how much it costs depends entirely on what you are buying and why.
That tax is progressive by the number of units you hold, and the 90% rebate that gets quoted applies only to affordable rental housing let for ten years. So a single home you move into is taxed lightly. A portfolio is taxed hard. The headline “Andorra charges foreigners up to 10%” is true only at the top of the scale, and it is not the number a relocating buyer pays.
| Foreign Investment Tax (Llei 3/2024, as amended by Llei 2/2026) | Rate | Who it applies to |
|---|---|---|
| A single home | 6% | The relocating buyer. One single-family home, or one unit with up to three parking spaces and three storage rooms. |
| Anything beyond that | 10% | Second and subsequent units, portfolios and developments. |
| Rates apply progressively, in tranches, by the total number of units you hold. Raised from 3% and 5% by Llei 2/2026, in force 13 February 2026. The 90% rebate that circulates online applies only to affordable rental housing let for at least ten years, not to a home you move into. | ||
Notary, registry and legal fees sit on top, and the exact split of the transfer tax between the national government and the parish (comu) varies by parish. Confirm the precise figures with your notary before you commit. For the full tax picture beyond the purchase itself, see our Andorra tax guide.
How much tax will you actually pay?
This is where Andorra earns its reputation, and the clean part of the story is genuinely clean. Andorra levies no wealth tax, no inheritance tax and no gift tax. Income tax is low and simple: nothing on the first EUR 24,000, a middle band, and a top rate of just 10% above roughly EUR 40,000. The general consumption tax, IGI, is 4.5%, among the lowest in Europe.
The catch is the one already covered: the entry tax on foreign purchases and the ownership cap. Andorra is not a place to shelter a property portfolio. It is a place to move your life and your tax residency to, and to hold one home while you do. Tax residency turns on spending more than 183 days a year in the country or having your centre of economic interest there, so the low rates reward a real move, not a paper one.
| Andorra tax at a glance | Rate |
|---|---|
| Wealth tax | None |
| Inheritance and gift tax | None |
| Income tax (top rate) | 10%, nothing on the first EUR 24,000 |
| IGI (consumption tax) | 4.5% |
Can you get residency by buying?
Not automatically, and the residency route was reformed as recently as January 2026. The headline option for this audience is passive residency, which now requires either EUR 1,000,000 invested in Andorran assets, or EUR 400,000 through the Housing Fund. Your home can form part of the investment, but the property purchase and the residency application are two separate steps.
There is also a government deposit that many older guides get wrong. It is now EUR 50,000 for the main applicant plus EUR 12,000 per dependant, and it is a non-refundable state contribution, not a returnable bond. Passive residency also asks for private health cover, proof of income, and a minimum physical presence of 90 days a year. The full detail, including the active-residency alternative for those setting up a business, is in our Andorra residency guide.
Where do buyers actually buy?
The prestige parishes are Escaldes-Engordany, the most established prime address, along with Andorra la Vella, La Massana and Ordino. Buyers who want ski-in, ski-out access look to Canillo, El Tarter and Soldeu, within the Grandvalira domain. Supply at the top of the market is genuinely tight, which has supported strong price growth in recent years.
Specific per-square-metre figures move quickly and the reliable ones come from official statistics rather than portals, so treat any single number as indicative and dated. Prime parish prices carry a clear premium over the national average, and the luxury new-build segment sits well above it. Our prime parishes guide breaks down each area and what drives its premium.
How do you get there?
Honestly, this is Andorra’s one real friction, and it is better to say so plainly. Andorra has no commercial airport of its own. The practical routes in are a drive of roughly two and three-quarter to three hours from Barcelona-El Prat, a similar drive from Toulouse-Blagnac, or the small La Seu d’Urgell airport just over the Spanish border, around 30 to 40 minutes away, which handles limited domestic Spanish flights.
For a UHNWI used to a private jet to the door, that means flying into Barcelona or Toulouse and transferring by road or helicopter. It is a genuine consideration for anyone weighing Andorra against Monaco or a Swiss resort with an airport nearby, and it belongs in the decision from the start rather than as a surprise afterwards.
How does the buying process work?
The sequence is orderly and notary-led. It begins with the prior foreign investment authorisation, without which a foreign buyer cannot proceed. From there you sign a private purchase contract (the Promesa de Compra-Venda), typically with a 10% deposit, complete before a notary with the public deed (escriptura), and register the property at the Property Registry.
The due diligence that matters most is confirming clean, registered title and checking that the property carries no charges or restrictions before the deposit is paid. Because the Foreign Investment Tax and the ownership cap turn on your circumstances, take Andorran legal and tax advice early, so the structure of the purchase and your residency plan are lined up before you sign rather than after.
Key takeaways
- Andorra is a relocate-and-live market, not an investment one. Foreign buyers are capped at one home or two units since the 2025 Omnibus Law.
- The tax story is clean: no wealth, inheritance or gift tax, income tax topping out at 10%, IGI at 4.5%. The benefit rewards genuine tax residency.
- The Foreign Investment Tax is progressive by number of units, 6% on a single home and 10% above that. A single home is taxed lightly; a portfolio is taxed hard.
- Passive residency now needs EUR 1M in Andorran assets, or EUR 400k via the Housing Fund, plus a non-refundable deposit of EUR 50k plus EUR 12k per dependant.
- There is no airport. Access is by road or helicopter from Barcelona or Toulouse. Factor it in early.
- Every purchase needs prior foreign investment authorisation and completes before a notary. Take Andorran advice before signing.
Frequently asked questions
Can foreigners buy property in Andorra?
Yes, but capped. Since the 2025 Omnibus Law a foreign individual may own one single-family home or up to two housing units, and every purchase needs prior foreign investment authorisation. Buying to develop or run tourist lets is not open to foreign buyers.
How much are the total costs of buying in Andorra?
Roughly 7% to 11% of the price. The main variable is the Foreign Investment Tax; on top sit the transfer tax (around 4% on a resale, or 4.5% IGI on a new-build), plus notary, registry and legal fees.
Does Andorra really have no wealth or inheritance tax?
Yes. Andorra levies no wealth tax, no inheritance tax and no gift tax. Income tax tops out at 10% above roughly EUR 40,000, and the general consumption tax, IGI, is 4.5%.
Is buying property in Andorra a good investment?
Andorra is designed as a relocate-and-live destination, not a portfolio market. Foreign buyers are capped at one home or two units and taxed on entry at 6%, rising to 10% beyond a single home. The appeal is the low-tax lifestyle, not property accumulation.
Does buying a home give me residency in Andorra?
No, not automatically. Residency is a separate application. Passive residency requires EUR 1,000,000 in Andorran assets or EUR 400,000 via the Housing Fund, plus a non-refundable deposit, health cover, proof of income and 90 days a year of presence.
What is the Foreign Investment Tax?
A tax on foreign-capital property purchases introduced in 2024 and raised in February 2026, progressive 6% on a single home and 10% above that, applied progressively by the number of units you hold. The 90% rebate is not for your own home: it applies only where the investment supplies affordable rental housing let for at least ten years.
How do you get to Andorra?
By road or helicopter. Andorra has no commercial airport. It is about two and three-quarter to three hours by road from Barcelona or Toulouse, or 30 to 40 minutes from the small La Seu d’Urgell airport across the Spanish border.
How long does buying take, and what is the process?
It starts with prior foreign investment authorisation, then a private purchase contract with a 10% deposit, completion before a notary with the public deed, and registration at the Property Registry. Take Andorran legal and tax advice before signing.
Do I have to live in Andorra to get the tax benefit?
Effectively yes. The low-tax benefit follows tax residency, which means spending more than 183 days a year in Andorra or having your centre of economic interest there. Owning a home without moving does not deliver it.
Sources
- Govern d’Andorra – Departament de Tributs i Fronteres (income tax, IGI, property taxes, Foreign Investment Tax)
- Butlleti Oficial del Principat d’Andorra – Llei 3/2024 (Foreign Investment Tax), Llei 5/2025 (Omnibus Law), Llei 2/2026 (residency)
- Estadistica d’Andorra – official transaction and price data
- Grandvalira – ski domain
Figures current at July 2026. Andorran tax, residency and foreign-ownership rules changed in 2024, 2025 and 2026 and should be confirmed with an Andorran lawyer at the point of 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.