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Complete Guide to Buying Property in Andorra

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Andorra, the small principality located between France and Spain, has become an attractive destination for those seeking a peaceful life in a mountainous and picturesque environment. Buying property in Andorra, whether as a foreign investor or resident, involves following a series of specific steps that we will address in this guide.


1. Research and Property Selection

Before diving into the purchasing process, it is essential to conduct thorough research on the properties available in Andorra. There is a wide variety of options, ranging from apartments in the centers of each of the Parish capitals, to chalets and detached single-family homes away from the center.

Consulting with local real estate agents and exploring specialized online platforms can provide a comprehensive view of the market.


2. Legal Requirements and Documentation

The legal requirements and necessary documentation for purchasing properties in Andorra vary slightly between individuals and companies.

In any case, the real estate agency, as a subject obliged by the Anti-Money Laundering Law, must apply due diligence measures, depending on the complexity of the client and the operation, requiring more or less information prior to the purchase of a property. We detail both scenarios here:

For Individuals:

•    Passport and Identification Documents: A copy of the buyer's valid passport is required.
•    For foreign residents, a residence permit.

For Companies:

•    Company Documentation: In the case of the purchase being made on behalf of a company, the company's legal documentation will be required.
•    Legal Representative: The person acting as the legal representative of the company in the transaction must present their personal documentation, such as passport and identification document or residence permit if necessary.

3. Purchasing Process and Preliminary Contract

Once the property is selected, the preliminary contract is signed. This preliminary contract is binding and is generally accompanied by a deposit of 10% of the purchase price.

Generally, a clause is introduced linking the obtaining of financing and/or in the case of non-resident foreigners, the foreign investment authorization.

4. Application for Foreign Investment Authorization

Both foreign companies and non-resident foreign individuals must submit a foreign investment authorization to the Government. This requirement may involve the submission of additional documents, such as the employment contract or evidence of investment in the country.

In 2023, Law 16/2023 was approved, temporarily suspending foreign investment in real estate in the Principality of Andorra as a transitional measure pending the creation of a tax on foreign investment in real estate, aimed at moderating the problem of the lack of affordable rental housing.

5. Taxes and Fees Related to Purchase

Andorra is known for its attractive tax regime, but it is essential to understand the taxes associated with property purchase. Currently, the property transfer tax is 4%.

6. Financing and Mortgage Loans

Financing for property purchase in Andorra is available for both foreigners and residents. Local and international banks offer mortgage loan options with competitive interest rates.

It is essential to consider that banks generally finance up to 70% of the property value, and the financial solvency and origin of the buyer's funds will be key factors in loan approval. Buyers must provide evidence of their financial solvency, which may include recent bank statements, income proofs, or any other documentation supporting their ability to make the purchase.

In the case of a company, it may be necessary to include accounting balances and statements. An appraisal of the property by a professional is usually requested.

7. Notary

The intervention of a notary is crucial in purchase transactions. This professional will verify the legality of the transaction, review the documents, and draft the deed of sale.

8. Estimated Time for Each Part of the Process

The total time to purchase a property in Andorra may vary, but a general estimate would be three to six months. The research and selection phase may take several weeks or even months, depending on market availability and demand. Once the property is selected, the legal and documentary phase generally takes about a month, while obtaining financing can extend from 30 to 60 days.

The actual purchase process, from signing the preliminary contract to the deed of sale, typically takes between 30 and 60 days. However, these timelines are approximate and may vary depending on the complexity of the transaction and the efficiency of the parties involved.


Buying property in Andorra is an exciting experience, but it is essential to carefully plan and understand all the legal and financial aspects of the process. The advice of local professionals, such as real estate agents and tax advisors, can greatly facilitate the path to acquiring your new home in this beautiful principality. With meticulous focus and due diligence, Andorra can offer a unique and welcoming refuge for those seeking a lifestyle change.