Legal framework for foreign real-estate investment
The IEI is Andorra's tax on foreign real-estate investment, created by Llei 3/2024.
It is paid by anyone buying property in Andorra without being resident there, by residents who cannot prove three years of effective residence, and by companies with foreign participation of 50% or more: 6% of the real value of the first property unit and 10% from the second. But the tax does not come alone — the transaction needs prior authorisation, is measured against acquisition caps, and has a timetable of its own. These six pages explain each piece, and every rule cites the law and the article it comes from.
Who counts as a foreign investor
The IEI turns on neither nationality alone nor residence alone. The law defines four categories of foreign investor; anyone outside them is not liable for the tax.
The IEI rate: 6% and 10%
The tax on foreign real-estate investment is computed in bands by how many property units the investor has accumulated, not by the value of the deal.
Prior authorisation
No foreign real-estate investment can be executed before a notary without prior administrative authorisation. It is the step that sets the timetable for the whole transaction.
The acquisition caps
Since Llei 5/2025 there is a ceiling on how many units a foreign investor may acquire. Exceeding it does not make the deal more expensive: it blocks it.
Documents and steps
What to gather, and the order in which the steps follow one another. The list is exactly the one a simulation produces, tailored to the buyer's profile.
The total cost of the transaction
The IEI is not the only cost, but it is the only one the law fixes. The rest are market references, and this page keeps them apart rather than blending them.
Informational content, prepared from the legal texts consulted in July 2026. Rates and thresholds may be changed by the annual budget law.