Buying Property in Andorra: A Guide for Foreign Buyers and New Andorran Residents
Andorra offers a distinctive opportunity for property buyers, combining a high quality of life with attractive financial benefits. Ideal for those seeking a second home, a solid investment, or a permanent residence, the Principality of Andorra provides an environment of stability, security, and luxury. With its favorable tax regime, low crime rate, and modern infrastructure, Andorra continues to draw those who desire both a peaceful retreat and a strategic asset in their property portfolio.
This article outlines the key details you need to know when buying property in Andorra.
If you have not yet explored the benefits of why Andorra is an ideal destination, be sure to read our article here for all the key reasons why this fascinating country is a top choice for investors and residents alike.
Can Foreigners Buy Property in Andorra?
Yes, foreigners are allowed to purchase property in Andorra. However, it is important to note that the process is regulated and is subject to an annual quota, in accordance with Llei 10/2012, del 21 de juny, d’inversió estrangera al Principat d’Andorra (Foreign Investment Law of Andorra). Before completing the property purchase, it is required to apply for foreign investment approval from the Andorran government, Departament de Registres Jurídics I Econòmics. This administrative procedure must be approved and completed before proceeding with the purchase of a property in Andorra and the signing of the final property deed.
Steps in Buying Property in Andorra
- Foreign Investment Approval: The first step for any foreigner interested in purchasing property in Andorra is to apply for foreign investment approval through the Ministry of Economy of Andorra. This process involves submitting documentation related to the buyer’s financial status, intent to purchase, proof of sufficient resources and a background check for good character. The approval can take up to 8 weeks. It is essential to complete this step before proceeding with any further actions in the property purchase process.
- Purchase Agreement: Once you have received the approval to acquire a property in Andorra, the next step is to enter into a purchase agreement with the seller. This private contract outlines all terms of the sale, including the agreed price, payment schedule, and property details. A deposit equivalent to 10% of the purchase price will be required at this stage to secure the property and demonstrate the buyer’s commitment. This agreement is legally binding and prepares both parties for the final transaction of the property sale.
- Notary and Title Deed: The final step in the property transfer process involves signing the official title deed at the notary’s office in Andorra. This official document finalizes the sale and is the moment when ownership of the property officially transfers from the seller to the buyer. The notary will ensure that all legal requirements are met and will register the transfer of ownership with the appropriate authorities. It is also at this stage that the remaining balance of the property price is paid by the buyer.
- Property Registration: Once the title deed has been signed, the final task is to register the property with the Andorran Land Registry (Registre de la Propietat, Règim Jurídic i Organització). This step ensures that the new ownership is officially recorded and recognized under Andorran law.
Types of Properties in Andorra
- Apartments and Penthouses: Apartments are common in the center areas such as Andorra la Vella and Escaldes-Engordany. These locations, along with La Massana, feature a range of new constructions, offering modern apartments and luxurious penthouses. These properties are perfect for those seeking contemporary living spaces with convenient access to the vibrant amenities and attractions of Andorra.
- Mountain Homes: Ideal for ski lovers, especially near resorts in Ordino, Canillo, and Soldeu.
Passive Residency through investment in Andorran Assets
Owning property in Andorra can also support your application for passive residency, which is a a residence permit designed for financially independent individuals who choose to invest in the country, including through real estate.
The requirements for passive residency include:
- Investing at least €600,000 in Andorran assets, which can include the purchase of property.
- Proving sufficient income and financial means to support yourself during your stay in Andorra.
- Possessing private health insurance to cover your medical needs while living in Andorra.
- Spending at least 90 days per year in Andorra.
This immigration program offers a unique opportunity for those seeking to live in one of Europe’s safest and most picturesque countries while enjoying tax benefits as well as a high quality of life.
How Can We Help
VIP Serveis offers end-to-end support for individuals looking to purchase property in Andorra. We assist with finding the ideal property, managing all administrative steps of the procedure, and ensuring compliance with local regulations. Additionally, we provide expert guidance throughout the immigration process, helping you navigate residence permit application, and other legal requirements. Our services also extend to setting up essential needs such as bank accounts, tax registration, and more, ensuring a smooth transition and positive experience for those relocating or investing in Andorra.
You can read more here on our dedicated page about Andorra, where we offer an in-depth explanation of the program’s conditions, step-by-step application process, and the specific requirements for obtaining passive residency in Andorra.
Feel free to contact us at +376 325 487, available on WhatsApp and Telegram. We would be happy to assist you in starting your journey toward owning a home in one of Europe’s most secure and scenic countries.