Real estate investment in Andorra

Frequently asked questions

• Can foreigners buy property in Andorra?

  

  Yes. But they need to obtain a permit from the Andorra government.

  By buying real estate, foreigners have the right to obtain an Andorra residence permit and move to a country with a favorable tax climate.

  Andorra’s real estate is a liquid asset: on average, prices grow by 5% per year. When an investor decides to sell their real estate, they will not only return the investment but also make a profit.

  Investors can also receive additional income when renting out their real estate — from 3 to 10% per annum, depending on the type and location of the property.

• Is property in Andorra expensive?

  

  Real estate prices in Andorra are lower than in neighbouring France or Spain. The average cost of 1 m² of housing is €3,584. Real estate prices in Andorra grow by 1,5% every quarter.

  Foreigners commonly buy property in the capital of Andorra la Vella. An apartment next to the main shopping street — Carlemani Avenue — will cost the investor 1,8 million euros, and a penthouse — 2,5 million euros.

  In the small town of Encamp, prices are lower: you can find an apartment worth about €400,000.

• Where is the best place to live in Andorra?

  

  There are seven regions in Andorra, which are called parishes or “parrocchie”. The capital city of Andorra la Vella is the most popular parish with developed infrastructure and busy life. It’s also the most popular region among real estate buyers.

• Are there property taxes in Andorra?

  

  There’s a 4% transfer tax for purchasing real estate. Landlords pay a 10% tax on rental income.