Andorra Property Guide. Where should I buy or rent?
Introduction to Andorra
March 28th 2025.
This page should be read in conjunction with the new Llei Omnibus which has a direct impact on property investments in Andorra.
October 2024 The passive resident nightmare on property purchases for the Investment requirement....A case study....
A recent case has highlighted the need for extreme caution when it comes to a property purchase. Most estate agents are unaware of the specific requirements other then mentioning the 600.000 EUR requirement which itself is not exactly correct, and who are under pressure to sell a property and may skirt around the issues.
Recently a married couple looking towards passive residency Category A jointly purchased a new property to the value of 760,000 EUR. Unfortunately NONE of this investment is eligible to satisfy the permissible having been told in general terms that the requirement is 600,000 EUR.
The problem is that when a property is purchased in joint names only HALF of the equity value is attributable to the principal applicant, so in this case 380,000 EUR only is the amount attributable. This now falls below the new requirement for a property investment minimum threshold of 400,000 EUR, so in other words regardless of the total value of the property not a single euro is permissible in this case for category A causing a rather devastating halt to the couple`s retirement plans.
Please read this in conjunction with the guide on property investment.
Feb 2024. The new Foreign investment law is passed, but read carefully below
The new law on foreign investment finally was published in the Gazette and the moratorium on foreign investment has been lifted. The new purchase taxes are as follows:-
- A 3% tax on the purchase of the first or main home and up to two parking spaces,
- A 5% tax on second and subsequent purchases up to five properties,
- An 8% tax on six to nine properties, and
- A 10% tax on 10 or more properties.
This will affect all foreign companies and effectively close any loophole by attempting to form an Andorran company with non resident shareholdings in order to buy property. Importantly, it will affect residents with less than 3 years residency ( in any category). This in effect puts an end to just getting residency to avoid the new taxes, or as has been mentioned before using a promise to purchase at a later date unless completion is due over 3 years after a new residency application ( presumably - but not practical).
Those residents with more than 3 years residency are not affected on purchasing new or second properties.
Please note that residents classified as non residents for the purpose of this law, those with less than 3 years residency, will also need to apply for foreign investment approval with all of the required certificates as if they were non residents. Also to note is that the current obligation for the Government to issue the resolution with 21 days has been extended to 2 months.
How can I help You ? Updated October 2024
The property market is currently very difficult both for rentals and purchases. There are very little properties available, and whilst there are many construction projects in process they are high-end xalets and premium apartments.
There are many internet based lists of properties out there, many which are just databases, some out of date and some overvalued. Identifying the suitable primary agent for your needs can be a minefield for the unprepared. As part of my services I can act for you in finding the right property. I am partnered with some reliable and trusted registered agents. If you are interested in viewing apartments or xalets I would suggest that you let me know in advance what exactly are your requirements and then I can have the right agents prepare on your behalf a short list of properties to view without you wasting time viewing unsuitable or overvalued properties.
Also, as in the case at the top of the page, there is a potential minefield arising from recent changes in requirements for property investments, so again I can advise....
Please note I do not charge for this service, so in effect you have the advantage of my local knowledge and I can act on your behalf and in your interests. To be clear, I am not a registered property agent but I do know the local market very well !!
Please contact me if I can assist or represent your interests in any purchase or rental, whether in support of your passive residency application, investment or that holiday home.
The current state of the property market in Andorra (2025)
The government and some Parishes continue to limit the number of licences for construction. There is currently a moratorium on new construction permits in varying parishes so be aware if you are buying a plot of land ! This also What effect the cost of living, inflationary increases, and the state of the European market has in store for the winter may well mean that construction itself reacts to market demand as it did in the 2008 crisis.
The dynamics of the Andorra property market have continued to largely on the same course during 2024, the market continues to be dominated by off plan developments, high-rise towers and top end xalets and this seems to be keeping construction companies in Andorra very busy. What are not so forthcoming are new developments at the middle and lower end of the market, an issue with which the Government is struggling to solve.
Any form of rental is very hard to come by, if at all. This is now the most challenging part of the residency application process for those looking for an apartment to rent.
If you can now find a one-bedroom apartment furnished the asking rental price can start at about EUR 850, a steep increase from one or two years ago. There has in the past few years been a noticeable increase in the number of property agents in Andorra or trying to cash in on a buoyant market, but you can expect many of these to disappear in the next year or two as a simply are not the properties for them to rent nor to sell.
If you are looking to buy property in Andorra currently then choice is very limited, not so limited as rentals, but buyers are finding it tough with what is available.
The lockdown and subsequent effects of the pandemic did not appear to have had any effect on the market in terms of slowing things down, if anything it has speeded the market up.
As always beware of the Internet databases and what is marketed there is certainly with the current state of the market they will be woefully out of date. Both rentals and properties for purchase are being snapped up before they make it to the Internet in most cases.
The above is my opinion and experience in Andorra, I am not a registered agent just a realist!!
Look no further, ROC Properties will guide you...
A Price Guide for Purchasing Property in Andorra
Please firstly familiarise yourself with the latest new taxes and regulations here.... They will affect your purchase plans if you have not been a resident for more than 3 years.
The purchase of property is relatively easy normally with the payment of a deposit and after a few weeks of legal work a visit to a notary to obtain title to the property. In addition to the new taxes and regulations on the link above, there is a stamp duty tax payable to the Comú (local parish) and which is fixed in all parishes at 1.5% of the purchase price. Also payable to the Government is the ITP at 2.5% (Impost de Transmissions Patrimonial). The buyer pays no commission to the agent for purchases, the commission paid by the seller is generally 5%. The Notary normally acts for both parties, it is not common for lawyers to be involved, nor for surveys. On the latter point this can be advisable under certain circumstances and I can get independent surveys for you if required.
Some years ago a capital gains tax was introduced to prevent speculation. In simplistic terms there is a sliding percentage scale over a twelve year period which reduces from 15% to % 0 on the increase in sale value over purchase value if you have owned the property for less that 10 years. If however you have owned the property for a minimum of 10 years then there is no capital gains tax. Since there has been recent changes and CGT is now a very complicated issue I advise to seek the guidance of a lawyer/accountant who is familiar with this area, and I can introduce you to my partner lawyer for professional advice.
Prices for purchases in 2025 ( If any property is indeed available) now start at around € 100,000 which may buy a very basic studio apartment up to € 240,000, one beds can be from € 200,000 to € 850,000, and two bedroom apartments vary from € 250,000 to € 950,000 for a new quality finish, three beds are on the market up to a price of up to € 1,200,000 or even more in a new build. There is as you can see an enormous spread of asking prices depending on the type and age of the building.
The average guide for an older three bedroom apartment would be in the region of € 450,000 - 700,000. For detached xalets generally you can now expect to pay well over € 1.5 million , and a lot higher for a new build. Top of the range Xalets may now be asking over € 15 million.
As always in Andorra there continues to be wide discrepancies in advertised and asking prices and that is due to a number of factors that are not often explained, especially whether the owner selling is Andorran or whether it is a second home that needs to be sold.
ROC Properties known in Catalan as ROC Propietats will be delighted to guide you through the mine field without losing that arm and a leg.
A Price Guide for Renting Property in Andorra
Through 2024 and into 2025 the rental market continues to be difficult with now very limited choice available and this will continue with rental prices already being forced up.
One thing to note in renting a property is the up front payment of four months rent, this can be unexpected if you are not prepared for it. You are required to pay at the time of signing two months refundable security deposit, one month's rent in advance and also one month's rent for the Agency commission ( plus local tax of 4.5%).
Historically the rental yield has been around the 2-2.5% yield, so property has not been as attractive as a rental investment compared to hot spots such as London and major financial centres. However with the squeeze on property rentals quite significant yields can be obtained but only if you can find the properties to buy. Those who purchased mid or lower range properties during the slump from 2009 until the market perked up just several years later are now reaping the benefits.
Rental contracts are by law for five years and are heavily weighted in favour of the tenant. To evict the tenant the landlord has to provide evidence of maltreatment of his property or non-payment of rent or a breach of the conditions of contract. He cannot decide in the five years that he wishes to sell the property and get you to leave. Also, the annual rental increase can be no more than the annual inflation rate, so again the landlord cannot unilaterally decide to raise the rent.
A tenant is now only required to give ONE month's notice to end the contract.
Rental prices can start at about € 650 for a very basic studio or one bedroom, rising to about € 800- € 1,500 for a larger one bedroom, from € 1,100 up to € 2,800 for a good size two bedroom apartment and from € 2,800 to € 6,500 for the range of three beds and duplexes. There are some xalets and terraced houses for rent and you would expect to pay from € 3,500 to € 12,500 per month for the top of the range house.
Once again, ROC Properties known in Catalan as ROC Propietats will be delighted to guide you through the rental market.