Buying property in Andorra as a foreigner: Complete UK guide

With its stunning landscapes, high quality of life, amazing skiing and attractive tax benefits, it’s easy to see why Andorra is a popular choice for both foreign expats and investors.

If you’re considering buying property in this tiny European principality, we’re here to help.

Read on for the complete guide to buying property in Andorra as a foreigner. This includes info on mortgages, fees and taxes, property prices, where to start your search and the pitfalls to avoid.

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Can you get a mortgage from a Andorra bank as a non-resident?

The first thing you’ll need to think about is how you’ll finance your Andorra property purchase. Unless you have the cash upfront, you’re likely to need a mortgage.

The good news is that banks in Andorra do offer mortgages to foreign citizens and non-residents.

However, you may find that the process is a little more difficult if you’re not a resident. There are strict requirements to meet, and you’ll need to provide lots of paperwork - one of the most important documents being proof of a stable income.

You may also only get a loan-to-value (LTV) ratio of around 60% to 70% as a non-resident buyer.¹ This means you’ll need a larger deposit ready.

It’s a good idea to start shopping around for mortgages before starting your property search in earnest. It’s recommended to use a specialist broker, who can help you find the right mortgage for your circumstances.

📚 Banks in Andorra

Taxes and fees for owning property in Andorra

In order to set your budget for the purchase, you’ll need to factor in legal fees, property taxes and other costs.

Here are the main ones to know about when buying property in Andorra:²

Tax/fee name	Rate/fee
Property transfer tax (stamp duty)	4%
General Indirect Tax (IGI) - equivalent to VAT, for new build homes sold by a developer	4.5% (replaces transfer tax)
Notary fees	0.1% to 0.3%
Other legal fees	Varies
Property registration	Less than 0.1%
Foreign investment authorisation	€300 EUR
Foreign investment tax - if unable to prove 3 years residence in Andorra	3% for first homes 5% for second home 10% for real estate promotions
Mortgage valuation fee	Varies, around 0.25%3
Mortgage arrangement fee	Varies, around 0.25%3
Annual property tax (Foc i lloc)	Average of €0.75 EUR per sq m4

What’s the property market like in Andorra?

The property market in Andorra is experiencing a property boom at the moment, with high prices for both sales and rents making affordability a serious concern.

House prices rose 12.9% in Q3 2025, compared to the previous year.⁵
Part of the reason for this upward trajectory is the extremely limited supply of properties, a persistent problem in Andorra due to limited availability of land.

What this means for buyers is that you’ll need to have a healthy budget and be prepared to out-pay other buyers to secure your dream home.

You’ll also need to proceed with caution and do your homework as to whether property in Andorra represents a good investment, as the market is experiencing a ‘bubble’ which could potentially burst.

If you’re looking to buy a property to rent out, it could be useful to know that gross rental yields averaged 5.80% as of July 2025.⁵

Can foreigners buy property in Andorra?

Foreigners can buy property in Andorra, but there are restrictions.

For starters, you’ll need to apply for a permit from the Andorran government in order to buy property there as a foreign national who is not already a resident of the country. This process can take a few months and there’s a fee attached.²

Foreigners are also limited to buying a maximum of 2 apartments or 1 family home or a plot of land on which to build one .²

Non-residents may also have to pay an extra foreign investment tax, unless they can prove 3 years of residency in Andorra over the last 10 years.²

Can you buy property in Andorra and get residency?

Yes, you can get a 2 year renewable residency permit for Andorra by investing at least €600,000 EUR. This includes a refundable deposit of €47,500, with the rest to be invested in real estate.⁶

You’ll also need to spend at least 3 months a year living in Andorra. However, you can’t work or run a business there on this permit and all income will need to come from abroad. Other conditions apply.⁶

So if you’re looking to move abroad and settle in Andorra permanently, this could be the route to pursue.

📚 Pros and cons of living in Andorra

How much are the property prices in Andorra?

Now we come to the all important question - how much money do you need to afford your dream home in Andorra?

The price really depends on the type of home and the exact area you’re buying in.

Here’s a look at what you can expect to pay for an apartment and house in each of the main areas of Andorra:⁵

Parish	Average apartment price (EUR)	Average house price (EUR)
Ordino	€1,605,141	€3,567,202
Escaldes-Engordany	€1,352,966	€2,492,625
Andorra la Vella	€829,738	€1,798,158
Canillo	€716,141	€2,180,000
La Massana	€851,203	€2,803,377
Sant Julia de Loria	€663,200	€2,186,143
Encamp	€472,877	€1,707,500

Another thing to note when figuring out the price for property in Andorra is that international transfers could get expensive, especially if the bank or provider adds a margin to the exchange rate to convert your pounds to euros (EUR).

Consider checking out Wise to securely handle your large transfers with the mid-market exchange rate and low, transparent fees*.

Where is the cheapest place to buy property in Andorra?

If you’re house hunting on a budget, you may struggle in an expensive real estate market like Andorra - especially where competition for a limited supply of properties can be intense.

However, you’ll tend to find the lowest prices per square metre in parishes such as Encamp and Sant Julià de Lòria.

Buying property in Andorra as a foreigner - a step-by-step guide

Before you start your house hunt, it can be useful to know a little about how the process of buying property works in Andorra.

Here’s a quick overview of the steps involved:

1. Get your finances in order

The first step is to get your finances sorted. This means setting a budget, getting a mortgage offer (approval in principle) and getting all your paperwork together.

You may also want to open a Andorran bank accountto facilitate easier transactions, especially if you’ll be getting a mortgage.

📚 Opening an account in Andorra

2. Find a property and arrange viewings

Now it’s time to start searching for your dream home. You can use online property portals and/or local estate agents to find properties. We’ll run through some tips later on how and where to start your search.

If you’ve found somewhere you like, arrange a viewing as soon as you can, and start researching the area in the meantime.

3. Appoint a solicitor

While it’s not mandatory, it’s a good idea to find and appoint a property lawyer.

A personal recommendation is a good way to find a solicitor, but you can also find a list of English-speaking property solicitors on the UK Government website.

Your solicitor will act in your best interests throughout the transaction, carrying out all legal work, drafting and checking contracts, and carrying out crucial due diligence.

4. Make an offer

If you’ve found the perfect property, the next step is to submit a competitive offer to the estate agent. You can negotiate, just like in other countries.

5. Sign the deposit contract

If your offer is accepted and terms agreed, the next step is to sign a deposit contract. This outlines the terms and conditions of the sale, including:

• The description of the property
• Identity of buyer and seller
• Agreed price and deposit amount
• Deadline for completion
• Cancellation conditions.

Have your solicitor check the contract before signing, and then arrange a transfer to pay the deposit (usually around 10% of the total price).²

6. Carry out due diligence checks and apply for your authorisation permit

At this stage, it’s time for your solicitor to carry out all relevant searches and due diligence checks for the transaction.

This includes checking:

• Property ownership and the property title
• Outstanding encumbrances and debts
• Zoning and building compliance
• That the property can legally be sold.

Your solicitor will also help you to apply for your authorisation permit from the Andorran government - which you’ll need as a foreign buyer.

7. Get a survey

While legal work and due diligence checks are being carried out, you might want to book a building survey. This involves hiring a surveyor to check the property for structural or other issues.

If the survey flags anything up, you may be able to re-negotiate on price.

8. Sign the public deed of sale

If all checks are completed and you’re happy to go ahead, the next step is for both parties to sign the public deed of sale in the presence of a notary.

At this stage, a number of other pre-closing steps need to happen, such as:

• Solicitors for both parties completing all remaining legal checks and paperwork
• Transferring the remaining balance
• Paying registration fees and taxes
• Finalising the mortgage
• Registering the property title in your name with the Land Registry

After all that’s done, you’ll get the keys to your new home.

📚 How to buy and finance a house abroad

How can you find a property in Andorra?

The two main routes to find property to buy in Andorra are local real estate agencies and online property websites.

Property agencies and agents in Andorra

It isn’t necessary to use a real estate agent to find a property to buy in Andorra, but it is strongly recommended.

A specialist buying agent or broker will be able to offer helpful advice and insight into the local market, and guide you through the buying process.

It’s particularly useful considering the restrictions on foreign buyers.

However, there will usually be a fee to pay for this service, and you should make sure the agent is registered with the Professional Association of Real Estate Agents (AGIA).

Property websites in Andorra

A good way to get a headstart on finding a place to buy in Andorra is to look online. Great websites to find a house or apartment to buy include:

• Busco Casa
• Habitaclia
• Idealista
• Fotocasa
• Pisos.com.

What are some of the pitfalls of buying property in Andorra?

One of the main things to watch out for when buying property abroad are scams.

The very best way to protect yourself when buying property in Andorra is to consult an independent real estate lawyer. This is an expert who works just for you and has your interests at heart, rather than working for the seller or real estate agent at the same time.

The UK Government has a handy list of English speaking lawyers in Andorra.

Other key things to remember for a safe property purchase in Andorra:

• Check property details carefully - don’t rely on photos or descriptions of online listings along, as ‘bait’ property adverts are commonly used in Andorra to generate interest
• Make sure you only work with licensed estate agents
• Have your solicitor check restrictions relating to foreign ownership - and apply for all the relevant permits
• Be very cautious if an agent or lawyer asks you to cut corners to save time or money
• Don’t be bullied by aggressive sales or marketing tactics - take your time, do your research and complete the process carefully
• Get an inspection/survey carried out if you have any concerns about the property.

How do you choose the right property in Andorra?

Your dream home in Andorra will be the one that closest fits your search criteria. The most important factors will be location, the type of home and of course, how much you can afford to spend.

If you’re not already living there, it’s worth making a trip to the specific part of Andorra you’re interested in.

You’ll want to check out the local area and view properties, making sure to pay attention to local transport links and amenities.

Condition of the property

It’s a good idea to do as much research as possible before committing to purchase a property.

It’s not mandatory, but it is strongly recommended to commission a building survey or inspection. This will flag up any major issues and give you a better idea of what you’re buying.

Type of property

Andorra offers a variety of different property types, from modern apartments and luxury penthouses in urban areas to rustic stone chalets and converted bordas (farmhouses) out in the beautiful Andorran mountains.

You may prefer to buy a new build from a developer, but you could potentially get a better deal with an older property in a rural area. Just remember though that these homes are likely to come with high renovation costs.

If you’re buying in an urban area, an apartment is likely to be the best choice in terms of location and local amenities.

Moving into your Andorra property

Before you can get the keys to your new home, you’ll have a few key tasks to run through. These include taking out insurance and setting up your utilities.

Insurance

It’s strongly recommended to take out a buildings insurance policy starting from your completion date. In fact, you might find it's a mandatory condition of your mortgage offer.

Setting up utilities and bills in Andorra

If you know when your completion date will be, it makes sense to get some essentials set up in advance of moving in.

A prime example is utilities, such as heating, power and water. Get these sorted as early as you can, and the moving process should be a little smoother.

Renovating property in Andorra

For some properties, some building work or improvements may be needed before you can move in.

Read our guide below on building and renovating property abroad, covering everything from planning permission to finding a local builder - and some of the main costs you can expect.

📚 Building and renovating abroad

Save on currency conversion fees with Wise when buying property in Andorra

After reading this guide, you should have all the essential info you need to start your property search in Andorra. This includes those crucial first steps such as finding a broker and searching online property portals, and getting your finances in order.

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Additional FAQs about buying property in Andorra

What are the tax advantages of living in Andorra?

One of the reasons Andorra is so attractive to expats is its tax advantages. It has very low income tax (even for non-residents), low VAT, and no wealth or inheritance taxes.⁴

Is Andorra tax free?

No, Andorra does have some taxes, including income tax, corporate tax, property taxes and VAT.

How many Brits live in Andorra?

As of 2024, just less than 800 British nationals live in Andorra, out of a population of around 85,000.⁷

Is English widely spoken in Andorra?

Yes, many people in Andorra speak English, especially in tourist areas. However, Catalan is the official language of the country, and you’ll also hear French and Spanish spoken.

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Sources used:

1. Global Property Guide - mortgage info for foreigners and non-residents
2. Versus Andorra - fees, taxes and mortgage deposit information
3. Creand - mortgage fees in Andorra
4. Immigrant Invest - annual property tax
5. Global Property Guide - average prices by parish
6. Immigrant Invest - tax information
7. Pierce & Sharp - number of Brits living in Andorra and population

Sources last checked on date: 23-Jan-2026