Buying property in Andorra as a non-resident: step by step requires careful planning, because purchasing a home does not automatically give you the right to live in the Principality. From choosing a parish and checking your eligibility to obtaining foreign-investment approval and signing before a notary, each stage has practical legal and tax requirements.
1. Decide why you are buying
First clarify whether the property will be a holiday home, an investment, a future residence or a base for a business. Non-residents can generally purchase property in Andorra, subject to the applicable foreign-investment rules. However, ownership alone does not create either active residency, based on employment or business activity, or passive residency, based mainly on investment and sufficient financial means.
Your objective affects the type of property, financing, tax planning and documents you will need. A buyer considering relocation should also compare the requirements for residency with the rules for property ownership before making an offer.
2. Choose the right parish and property
Andorra is divided into seven parishes, and location has a major effect on price, accessibility and lifestyle. Andorra la Vella and Escaldes-Engordany offer shops, offices, schools and services. La Massana and Ordino are popular with buyers seeking mountain surroundings and access to Vallnord. Canillo and Encamp provide access to ski areas, while Sant Julià de Lòria is often attractive for its southern location and road connection.
Check more than the view. Ask about winter access, parking, storage, sunlight, heating, community charges, renovation needs and the property’s energy performance. Confirm whether the building has a lift and whether roads, water, electricity and telecommunications are properly connected.
3. Appoint an Andorran professional
Before signing anything, use an Andorran lawyer, gestor or property professional who can explain the current rules for non-resident buyers. A local adviser can review the title, identify outstanding charges, coordinate with the notary and explain the tax treatment. If you do not speak Catalan, ask how contracts and official documents will be translated or explained.
You should also contact a bank early if you need finance. Banks will normally request identification, proof of the lawful origin of funds, income evidence, tax information and details of the proposed purchase. Approval can take time, particularly for an overseas buyer.
4. Make an offer and arrange due diligence
An accepted offer should clearly state the property, price, included fixtures, deadlines and the consequences if either party withdraws. Many transactions use a reservation or deposit agreement. Do not transfer a substantial amount until your adviser has checked the contract and confirmed who will hold the money.
Due diligence should verify the seller’s ownership, mortgages, liens, planning status and any restrictions recorded in the property information. Ask the comú of the relevant parish about planning matters, licences, local charges and possible works affecting the building or surrounding area. For an apartment, request community meeting minutes, budgets and evidence that fees are paid.
5. Apply for foreign-investment authorisation
Non-resident foreign buyers may need authorisation for foreign real-estate investment before completing the purchase. The application is handled through the procedures established by the Govern d’Andorra and normally requires identity documents, information about the property, the transaction and the source of funds. Requirements can change, so confirm the current application route, documents and applicable charges with the Govern or your adviser.
Approval is not the same as residency approval. If your longer-term plan is to move to Andorra, separately examine active or passive residency conditions, registration with the relevant authorities and, where applicable, health coverage through CASS.
6. Calculate the full cost and taxes
Budget for more than the agreed price. Possible costs include legal or advisory fees, notary charges, bank fees, registration expenses, insurance, community charges and renovation work. The tax treatment depends on whether you are buying a new property or a resale, the structure of the transaction and your status as a foreign investor.
IGI, Andorra’s indirect general tax, can be relevant to certain supplies and new-build transactions. A resale may involve property-transfer taxation or other charges. Andorra also applies rules and, in some circumstances, a tax connected with foreign real-estate investment. Rates and exemptions can change, so obtain a written calculation from an Andorran tax professional before committing funds.
7. Complete the purchase before a notary
Once authorisation, financing and due diligence are complete, the parties sign the public deed before an Andorran notary. The notary verifies the transaction and records the transfer. Bring your passport or accepted identity document, authorisation paperwork, payment evidence and any power of attorney required. If you cannot attend, arrange a properly prepared and notarised power of attorney in advance.
8. Set up the property after completion
After signing, register ownership, arrange insurance and transfer utilities. FEDA manages electricity services, while Andorra Telecom provides telecommunications. Confirm billing arrangements with the community and the comú, and keep all deeds, tax receipts and maintenance records. If you plan to rent the property, check licensing, tax and tourist-accommodation rules before advertising it.
For help comparing agents, legal advisers, tradespeople, relocation services and other local providers, browse the businesses listed in our Andorra directory.
