Buying Property in Andorra in 2026: Costs, Taxes & the Process for Foreign Buyers

Written and reviewed by the Axior Global Advisory Team — Andorra-based tax, corporate and residency advisors.

Buying Property in Andorra in 2026: Costs, Taxes & the Process for Foreign Buyers

TL;DR: Foreigners can buy property in Andorra, but a non-resident purchase generally requires prior foreign-investment authorisation from the Government. On top of the price, budget for the foreign real-estate investment tax (IEI): 6% on your first property and 10% on any additional property, created by Llei 3/2024 and doubled to these rates by Law 2/2026 (Llei Òmnibus 2) and Decret 58/2026. New-build sold by a developer carries IGI (VAT) at 4.5%; resale transfers fall under the property transfer tax (ITP) instead. Once you own, there is no annual wealth tax and no property wealth tax, and capital gains reach 0% after a 10-year holding period. A property worth at least €800,000 can also count toward the €1,000,000 investment required for passive residency. Legal basis: Law 2/2026, Decret 58/2026, Llei 11/2012 (IGI) — published in the BOPA.

Key Facts: Buying Property in Andorra (2026)

Item 2026 figure Legal basis
Foreign real-estate investment tax (IEI) — first property 6% Law 2/2026 + Decret 58/2026
Foreign real-estate investment tax (IEI) — additional properties 10% Law 2/2026 + Decret 58/2026
IGI (VAT) on new-build sold by a developer 4.5% Llei 11/2012
Resale transfer tax (ITP) Applies to second-hand transfers (confirm rate) Andorran transfer-tax framework
Capital gains after 10-year holding 0% Andorran tax framework
Annual wealth / property wealth tax 0% Andorran tax framework
Inheritance / gift / exit tax 0% Andorran tax framework
Minimum property value to count toward investor residency €800,000 Law 2/2026 (Òmnibus 2)
Passive-residency minimum investment €1,000,000 (or €400,000 to the Housing Fund) Law 2/2026 (Òmnibus 2)
Non-refundable state contribution (passive residency) €50,000 Law 2/2026 (Òmnibus 2)
Foreign-investment authorisation Required before a non-resident purchase Andorran foreign-investment law

Can Foreigners Buy Property in Andorra?

Yes — foreigners can buy property in Andorra, but a non-resident purchase generally requires prior foreign-investment authorisation from the Andorran Government before the deed is signed. Andorra opened its real-estate market to foreign investors and today welcomes non-resident buyers, provided they clear the authorisation step. The process is administrative rather than discretionary in most ordinary cases, but it is a mandatory gate: signing a purchase without it is not an option.

Andorran residents typically buy on the same footing as nationals and are not subject to the foreign-investment authorisation regime once their residency is established. This is one reason many buyers sequence their move so that residency and property purchase are planned together rather than in isolation — the tax and procedural treatment differs depending on your status at the moment of purchase.

How Much Does It Cost to Buy Property in Andorra in 2026?

Beyond the purchase price, the single largest add-on for a foreign buyer in 2026 is the foreign real-estate investment tax (IEI): 6% on a first property and 10% on any additional property. Created by Llei 3/2024 and doubled (from 3%/5%) by Law 2/2026 (Llei Òmnibus 2) and its implementing Decret 58/2026, this tax is designed to moderate speculative foreign demand and channel it toward primary, long-term ownership rather than portfolio accumulation.

Layered on top of the price and the IEI, the transaction also attracts an indirect tax depending on whether the property is new or resale. A new-build sold by a developer is generally subject to IGI (Andorra’s VAT) at 4.5% under Llei 11/2012. A second-hand (resale) property is instead subject to the property transfer tax (ITP). Buyers should confirm the exact resale transfer rate applicable to their transaction with a local advisor, as it is set within the Andorran transfer-tax framework and split between state and communal (parish) components. Expect, in addition, the usual transaction costs: notary fees, land-registry costs and professional fees. Because the IEI alone adds 6%–10%, the total acquisition cost premium over the headline price is material and should be modelled before you commit.

What Taxes Do You Pay When You Own Property in Andorra?

Very few — and that is the point. Once you own, Andorra levies no annual wealth tax and no separate property wealth tax, so simply holding real estate does not generate a recurring national tax bill of the kind seen in Spain (IP/IPatrimonio) or France (IFI). Ongoing costs are largely limited to local communal charges and any community fees, plus income tax only if you actually earn rental income.

If you rent the property out, the net rental income is taxed within Andorra’s personal income tax (IRPF), which runs on a 0–10% scale — the first €24,000 of taxable income is exempt, 5% applies up to €40,000, and 10% applies above that. This is dramatically lower than the marginal rental-income rates in most of Western Europe. For a fuller treatment of the income-tax mechanics, see our guide Andorra Income Tax (IRPF) 2026: Rates, Brackets & Exemptions — /andorra-income-tax-irpf-2026.

When Is Capital Gains Tax on Andorran Property 0%?

After a 10-year holding period. According to Andorra’s tax framework, gains on the sale of real estate are taxed on a sliding scale that decreases with each year of ownership, and once you have held the property for more than 10 years the rate reaches 0%. Sell early and a higher rate applies; hold for the long term and the gain becomes entirely tax-free.

This long-hold exemption reinforces the same policy signal as the IEI: Andorra rewards durable, primary ownership over rapid flipping. For buyers approaching a home as a place to live and a long-term store of value — rather than a trading asset — the effective tax on the eventual sale can be zero. We cover the mechanics, the year-by-year taper and the interaction with share sales in Andorra Capital Gains Tax 2026: When It’s 0% — /andorra-capital-gains-tax-zero-percent.

Can Buying Property Get You Residency in Andorra?

It can contribute to it, but property alone is not a “golden visa.” Under Law 2/2026 (Llei Òmnibus 2), the main investor route — passive (non-lucrative) residency — requires a minimum investment of €1,000,000 in Andorran assets, of which real estate can form part, or €400,000 directed to the Housing Fund as an alternative. For a property to count toward the investment test, it must be worth at least €800,000.

Two further figures matter. The applicant must also pay a €50,000 non-refundable state contribution — under Law 2/2026 this is a definitive contribution, no longer a returnable deposit — plus €12,000 per dependent (also non-refundable). Passive residency does not, by itself, make you an Andorran tax resident; that depends on physical presence and your centre of economic interests. The full requirements, timelines and costs are set out in Andorra Passive Residency 2026: Requirements, Costs & Process — /andorra-passive-residency.

What Is the Step-by-Step Process for Buying Property in Andorra?

The process follows a clear sequence, and the foreign-investment authorisation is the step that sets Andorra apart from an ordinary EU purchase:

  1. Define your objective and status. Decide whether you are buying as a non-resident investor, as a future resident, or as part of a residency application — this determines both the authorisation path and the IEI treatment.
  2. Search and reserve. Identify the property and sign a reservation/preliminary agreement, usually with a deposit, subject to obtaining authorisation.
  3. Apply for foreign-investment authorisation. A non-resident buyer files the foreign real-estate investment request with the Government before completion. This is the mandatory gate.
  4. Due diligence. Verify title, charges and land-registry status, and confirm the applicable indirect tax (IGI at 4.5% for new-build from a developer, or the resale transfer tax for second-hand).
  5. Sign the public deed before a notary and register the transfer.
  6. Settle the taxes, including the IEI (6% first property / 10% additional) and the applicable indirect tax, plus notary and registry costs.

Because several of these steps are time-sensitive and the tax figures are substantial, most foreign buyers run the purchase and (where relevant) the residency application in parallel with professional guidance rather than sequentially.

How Does Andorran Property Compare on Tax to Spain or France?

Favourably, and the gap widens the longer you hold. Andorra has no annual wealth or property-wealth tax, no inheritance, gift or exit tax, and 0% capital gains after 10 years — a combination that neither Spain nor France offers. Spain applies wealth tax (and, in some periods, the solidarity levy) plus regional inheritance rules; France applies the IFI real-estate wealth tax above €1.3 million and taxes property gains for many years before any full exemption.

The trade-off for a foreign buyer in Andorra is the up-front IEI of 6%–10% and the authorisation step — costs that are concentrated at acquisition rather than spread across every year of ownership. For long-term owners, front-loaded acquisition cost plus near-zero holding and exit tax usually compares very well against jurisdictions that tax the asset annually. For the full picture on the wealth-tax angle, see Andorra Wealth, Inheritance & Gift Tax 2026: Why It’s 0% — /andorra-wealth-inheritance-gift-tax-zero, and for the wider 2026 legal backdrop, our pillar guide Andorra Law & Tax Changes in 2026 — /andorra-law-tax-changes-2026.

Frequently Asked Questions

Can a non-resident buy a house in Andorra in 2026?

Yes. A non-resident can buy property in Andorra, but must generally obtain prior foreign-investment authorisation from the Government before completing the purchase. The purchase then attracts the foreign real-estate investment tax (IEI) of 6% on a first property and 10% on additional properties under Law 2/2026 and Decret 58/2026.

How much is the property tax when buying in Andorra?

For a foreign buyer, the headline acquisition tax is the IEI: 6% on your first property, 10% on further properties. On top of that, a new-build from a developer carries IGI (VAT) at 4.5%, while a resale is subject to the property transfer tax (ITP). Notary and land-registry costs apply in all cases.

Is there an annual property or wealth tax in Andorra?

No. Andorra has no annual wealth tax and no property-wealth tax. Simply owning a home does not create a recurring national tax liability; you are taxed only if the property generates income (rental income falls within IRPF at 0–10%).

When is the sale of Andorran property tax-free?

After more than 10 years of ownership, capital gains on real estate reach 0%. Gains on property sold earlier are taxed on a sliding scale that decreases each year until the 10-year exemption is reached.

How much property do I need to buy to qualify for Andorran residency?

To count toward the €1,000,000 investment required for passive residency under Law 2/2026, a property must be worth at least €800,000. There is also an alternative of €400,000 directed to the Housing Fund, plus a €50,000 non-refundable state contribution and €12,000 per dependent. Property alone does not automatically grant residency.

Do I have to live in Andorra if I buy property there?

No — owning property does not require you to live in Andorra, and it does not by itself make you an Andorran tax resident. Tax residency depends on spending more than 183 days a year in the country or having your centre of economic interests there.

How Much Could You Save?

Between the annual wealth taxes, high transfer taxes and taxable property gains of neighbouring countries and Andorra’s 0% wealth tax, 0% capital gains after 10 years and low IRPF, the long-term difference for a property owner can be substantial. Use our Andorra Tax Savings Calculator to model your acquisition costs and long-term holding position.

If you are planning to buy in Andorra — as an investor, a future resident, or both — book a free consultation with our advisory team. Axior Global has guided high-net-worth individuals and families through Andorran property, residency and tax planning since 2018.

Related Reading

Sources

Author: Josep Fusté Badana — Senior Tax & Residency Advisor, Axior Global, SLU. ICLG Contributing Author — Private Client Laws and Regulations (Andorra). Licensed Tax Advisor — Principality of Andorra. Member, Andorran Association of Tax Advisors.

This article is for general information only and does not constitute tax or legal advice. Tax outcomes depend on individual circumstances. Always seek personalised advice before acting.

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