Frequently asked questions
Buying property in Andorra as a foreign investor, and how the simulator works.
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Who counts as a foreign investor?
Non-resident individuals; non-Andorran residents who cannot prove three years of effective residence within the last ten; foreign companies, including through a branch; and Andorran companies with 50% or more foreign participation (Llei 3/2024 art. 5).
Who does not pay the IEI?
Resident Andorran nationals, non-Andorran residents proving three years or more of effective residence within the last ten, and Andorran companies with less than 50% foreign participation. They are not foreign investors, so they need no authorisation either.
How much is the IEI?
6% of the real value for the first property unit, and 10% for the second and every later one (Llei 2/2026). Units already bought as a foreign investor count towards the band. For an Andorran company with foreign participation, the base is prorated to that share.
What do I pay besides the IEI?
A €300 fee per authorisation application; the transfer tax, which depends on who sells — 4% ITP from a private individual, 4.5% IGI from a developer or a business; and the notary's fees on the official scale. The simulator adds them up; registry and agency fees are not included.
How long does the authorisation take?
The ministry has two months to decide, extendable by one more. The clock stops while documents are missing, and silence means refusal. No deed can be signed before a favourable decision, so this period sets the signing date.
How many properties can a foreign investor buy?
Either a parcel with one single-family home, or one single-family home or two flats, or six parking spaces. Each flat may carry up to three parking spaces and three storage rooms. The limit counts every unit held since the law came into force and runs for ten years. Property development is prohibited.
Can I buy through a company?
A company may buy only a unit for its own business activity, unless it is family-owned — held by one person or by relatives up to the second degree — in which case it buys like an individual and its owners' properties count towards the cap (Llei 5/2025 art. 9).
Are there exemptions?
The IEI is nil on inheritance, the liquidation of the matrimonial property regime or divorce, gifts between close relatives, contributions to family companies and the enforcement of security. Putting the dwelling to affordable rental for ten years rebates 90% of the tax. None of these removes the duty to declare.
Does the property count towards passive residency?
A residence without gainful activity requires €1,000,000 invested in Andorran assets, and a property counts towards it only if it costs more than €800,000 (Llei 9/2012 art. 96.1, as amended in 2026). The result tells you whether the unit reaches that floor.
Is the simulator free? Why do I need an account?
Everything is free for now, the PDF report included. An account needs only an e-mail address — you sign in with a link, no password — and every simulation you run is filed on your dashboard so you can reopen it later.
Is the result legal advice?
No. It is an indicative estimate computed from the legal texts, with each rule traced to its article. It does not replace a notary, a lawyer or a tax adviser, and the final amounts are set by the administration.
What happens to my data?
We keep your e-mail address, the details you choose to add, and the simulations you file, for as long as your account exists. Server logs hold IP addresses for a short time, to stop abuse. No advertising, no analytics, nothing sold or shared. You can delete a file, or the whole account from the account page, at any time.
For the full rules, article by article: Legal guide