Yes, foreigners can buy property in Andorra, but the process requires obtaining prior government authorization. While Andorra welcomes international real estate investment, new regulations introduced in 2025 have established clear limits on the number and types of properties foreign buyers can acquire.
The Principality offers an attractive property market with no wealth tax, low property taxes, and prices that remain competitive compared to neighboring France and Spain. However, navigating the purchase process requires understanding authorization requirements, recent regulatory changes, and the connection between property ownership and residency options.
Foreign Property Ownership Rules in Andorra
Foreigners must obtain Prior Authorization for Foreign Investment (Autorització Prèvia d'Inversió Estrangera) from the Ministry of Economy before purchasing property in Andorra. This authorization typically takes two to four weeks and requires submitting documentation on the buyer's identity, property details, and source of funds.
The application process is relatively straightforward for eligible buyers. Applicants must demonstrate the property will be used as a primary residence rather than for speculation or short-term vacation rentals. The government reviews each application to ensure compliance with Andorra's foreign investment regulations.
2025 Regulatory Changes: New Purchase Limits
In March 2025, the Andorran Parliament approved the Omnibus Law (Llei 5/2025), which significantly tightened restrictions on foreign property purchases. These changes took effect in April 2025 and fundamentally altered what foreign investors can acquire.
Under the new regulations, foreign investors face strict quantity limits. They can purchase either one single-family home OR a maximum of two apartments or studios. Along with residential units, buyers may acquire up to six parking spaces total (maximum three per apartment) and up to six storage units (maximum three per apartment).
The law also prohibits certain types of purchases entirely. Foreign investors cannot purchase properties for tourist or vacation use, nor can they acquire property for speculative resale purposes. Additionally, vacant land purchases face stricter conditions, with most non-residents unable to buy undeveloped plots unless for specific uses like approved development or agricultural projects.
Foreign legal entities face additional restrictions. Companies cannot directly purchase property in Andorra and must instead use an Andorran special purpose vehicle (SPV). Even the SPV requires foreign investment authorization if the foreign entity owns more than 10% of the share capital or controls more than 10% of voting rights.
Nationality Restrictions
While Andorra allows foreign investment from most countries, certain nationality-based restrictions apply. Currently, Russian citizens face limitations on purchasing property in Andorra. Prospective buyers should verify their eligibility before beginning the property search process.
The Property Purchase Process Step by Step
Buying property in Andorra follows a structured process that typically takes four to six weeks from initial offer to final transfer. Understanding each step helps buyers prepare the necessary documentation and avoid delays.
Step 1: Property Search and Initial Offer
Begin by working with a licensed real estate agent to identify suitable properties. Agents provide access to listings, arrange viewings, and guide buyers through local market conditions. Once you identify a property, submit a written offer that includes the proposed purchase price and any conditions.
The seller may accept, reject, or counter your offer. Negotiation is common in the Andorran property market. Real estate agents facilitate communication between parties and help structure acceptable terms for both buyer and seller.
Step 2: Applying for Foreign Investment Authorization
Before signing a purchase agreement, apply for Prior Authorization for Foreign Investment through the Ministry of Economy. Submit required documents including a valid passport or national ID, proof of financial means to complete the purchase, property details, and a declaration of intended use. Processing takes approximately two weeks, though complex applications may require additional time.
The government evaluates whether the purchase complies with foreign investment regulations. Approval confirms you meet eligibility requirements and the property type falls within permitted categories. Without this authorization, you cannot proceed to finalize the purchase.
Step 3: Private Purchase Agreement
Once you receive authorization, sign a private purchase agreement (contrato de reserva) with the seller. This contract outlines all sale terms including the agreed price, payment schedule, property condition, and completion date. Both parties negotiate specific clauses such as penalties for delays or conditions for contract termination.
At this stage, the buyer pays a deposit of 10% of the purchase price. This deposit demonstrates commitment and secures the property. The deposit is held by the notary or real estate agent until final completion. If the buyer withdraws without valid reason, they typically forfeit this deposit.
Step 4: Due Diligence and Property Checks
Conduct thorough due diligence before proceeding to final transfer. Review the property registry to confirm the seller holds clear title and verify no outstanding liens, mortgages, or legal claims exist against the property. Many buyers hire a lawyer to perform these checks and ensure all documentation is in order.
For new construction, verify the developer has obtained all necessary building permits and licenses. Check that the property complies with Andorran building regulations and safety standards. This step protects buyers from future legal complications or unexpected costs.
Step 5: Signing the Title Deed
The final step occurs at the notary's office where both parties sign the official title deed (escriptura pública). This legal document transfers ownership from seller to buyer and must be signed in the presence of a notary public. The notary verifies the identity of both parties, confirms all legal requirements are met, and ensures the transaction complies with Andorran law.
At the signing, the buyer pays the remaining purchase price (minus the initial deposit). The notary collects applicable taxes and fees, which they remit to the appropriate authorities. Once all payments are completed and the deed is signed, ownership officially transfers to the buyer.
