Real estate investment in Andorra

To buy property in Andorra, a foreigner needs to obtain government permission.

Statistics confirm the liquidity of investments: every quarter, residential real estate prices grow by an average of 1.5%. Five years ago, an apartment of 100 m² cost an average of €273,000, and today it is sold for €358,000.

€3,584 Average price per 1 m²
of housing in Andorra

€400,000 Minimum investment amount
to get a residence permit

4,5—5% Buyers’ related expenses,
of the transaction amount

How the residential property price index is growing in Andorra

Cost of a 3-bedroom apartment in Andorra

€2.5 million

Penthouse with a terrace
in Andorra la Vella,
next to Avenue Carlemany

€1.8 million

Apartment in Andorra la Vella,
next to Avenue Carlemany

€400,000

Apartment in Encamp

What do investors buy?

Properties in the capital, Andorra la Vella, are in high demand.

Apartments

penthouses
apartments

Houses

villas
chalets

Andorra residence permit or citizenship by real estate investment

Property buyers can get an Andorra residence permit. The minimum investment amount for obtaining a residence permit is €400,000. Learn more about the Andorra residence permit by investment.

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Taxes and associated costs

Purchase

Ownership

Sale

Buyers pay a property purchase tax and a notary fee.

Associated costs range between 4.5% and 5% of the purchase agreement value. When buying an apartment for €500,000, the investor will spend €525,000, including additional costs.

4.5—5% Of the contract value are related costs for the purchase of housing in Andorra

Purchase expenses

Property purchase tax

4%

Notary fee

0.5—1%

Depends on the transaction amount

Taxes

Andorra has no annual property tax and no wealth tax.

If the owner leases the property, they pay a 10% tax on rental income.

€1,100 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection

€60—127

per month

Internet, TV and telephone

€35—40

per month

If the real estate seller has owned a property for less than 15 years, they pay a capital gains tax of 1% to 15% on the difference between the sale and purchase prices.

0—15% Capital gains tax on the sale of
real estate in Andorra

Expenses on the sale

Capital gains tax

Paid on the difference between the sale and
purchase prices

0—15%

Depends on the ownership period

Agency fee

The law requires transactions to be made through a realtor

5—10%

Of the transaction amount

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.

Igor Buglo

Prepared a guide on investing in real estate in Andorra