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 favourable 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 — 3 to 10% per annum, depending on the type and location of the property.

• How much does an apartment cost in Andorra?

  Real estate prices in Andorra are lower than in neighbouring France. The average cost of 1 m² of housing is €4,600. 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.

• Is rent cheap in Andorra?

  Rent in Andorra is not particularly cheap, but it’s generally more affordable than in major European cities. Rental prices depend on the location, size, and condition of the property.

  For a one-bedroom apartment in Andorra la Vella, rents typically range between €800 to 1,200 per month. In smaller towns or rural areas, rents can be lower, around €600 to 900 per month. Larger apartments, especially in popular areas, can cost between €1,500 and 2,500 per month or more.