Buying property in Andorra: prices, taxes and rules in 2026

The average asking price for an apartment in Andorra reached €6,466.3/m² in Q3 2026, according to CASAFARI Area Insights (asking prices from indexed listings), up 20.9% year on year and 55.0% above Q1 2023. Official transaction prices from the Departament d'Estadística of Andorra stood at €4,569.7/m² in Q2 2026, almost flat year on year, meaning sellers ask roughly 40% more than buyers pay. Foreign buyers require prior government authorisation and, since February 2026, face a 6% or 10% foreign real estate investment tax.

Where Andorra is, and why its property market is so tight

Drive north from Barcelona and after two and a half hours the road narrows past La Seu d'Urgell into the CG-1 river gorge. A few minutes past the border at Sant Julià de Lòria, the valley opens slightly to reveal the high-rise cranes of Escaldes-Engordany. An international buyer arriving from London or Amsterdam will often sit down with an local agent and hear an asking price per square metre that rivals prime districts in Madrid. Yet there is a quiet second number in the background: what the official land registry says flats actually sold for last quarter.

Everything in the Principality of Andorra is shaped by its geography. The country covers 468 km² across seven parishes, but almost all buildable land sits along narrow valley floors hemmed in by steep peaks. There is no airport inside the country—visitors fly into Barcelona, Toulouse, Lleida or the small regional airport at La Seu d'Urgell—and just two main roads connect the valleys to the outside world: the CG-1 south into Spain, and the CG-2 north over the Envalira pass and Pas de la Casa toward Toulouse.

Into this constrained space, the population reached 90,122 residents in September 2026, growing by 1.7% in a year, driven by Spanish, French and an increasing number of Latin American arrivals, according to the Departament d'Estadística as reported by Diari d'Andorra.

Each parish serves a distinct buyer profile. Primary residences and modern luxury towers concentrate in the central urban core of Andorra la Vella and Escaldes-Engordany. Second-home and ski buyers focus on Canillo—which gives access to Grandvalira through Soldeu and El Tarter—or the western valleys of La Massana and Ordino for Pal-Arinsal. Encamp and Sant Julià de Lòria remain the more accessible parishes for domestic buyers and long-term investors.

Throughout this guide, we distinguish strictly between two sets of figures: asking prices from CASAFARI Area Insights (measured from active market listings) and official transaction prices from the Departament d'Estadística of Andorra (recorded at the notary).

How much does an apartment cost in Andorra in 2026?

In Q3 2026, the national average asking price for an apartment for sale in Andorra reached €6,466.3/m², according to Area Insights, the source of the asking-price series in this guide (location id 2001, computed from indexed listings with outliers excluded, queried on 23 October 2026).

That figure represents a 20.9% increase over Q3 2025 (€5,349.6/m²) and a 2.7% step up from Q2 2026 (€6,296.5/m²). Looking back to the start of the CASAFARI series in Q1 2023, when the average asking price stood at €4,171/m², asking prices have climbed 55.0% over 14 quarters without a single quarterly pause.

Taking the annual averages of those quarterly asking figures shows the steady upward march: apartments averaged €4,306.9/m² across 2023, €4,710.6/m² in 2024, €5,313.7/m² in 2025, and €6,265.6/m² across the first three quarters of 2026 (CASAFARI Area Insights).

In practical terms, an 80 m² apartment priced at the Q3 2026 national asking average carries a price tag of roughly €517,000. However, the stock actually on the market skews toward much larger and higher-specification units. In its January 2026 market report, the professional association of Andorran estate agents (AGIA) placed the average price of a dwelling on the market at €1,256,770, noting that supply below €400,000 has become exceedingly scarce, as El Periòdic d'Andorra reported on the AGIA market report in January 2026.

Other listing trackers using smaller samples show an even steeper skew toward luxury new builds: a Q1 2026 report from portal Pisos.ad, based on 620 listings with a different methodology from CASAFARI, put its average apartment asking price at €7,839.97/m² nationally and €10,401/m² in Escaldes-Engordany (reported by Digital Andorra in Q1 2026). To see how Andorra's asking-price trajectory compares with major continental cities, review our overview of CASAFARI property market trends across Europe.

Why are asking prices accelerating?

Rather than cooling as prices crossed €5,000/m², the pace of asking-price growth in Andorra doubled between 2024 and 2026. On CASAFARI Area Insights data, year-on-year growth in apartment asking prices ran at 8.8% in Q1 and Q2 2024, 10.0% in Q3 2024 and 9.8% in Q4 2024. Through the first three quarters of 2025 it held between 11.0% and 12.1%, before jumping to 16.5% in Q4 2025. In 2026, year-on-year asking growth reached 19.8% in Q1, 21.6% in Q2 and 20.9% in Q3.

Several structural forces drive this persistence. Andorra caps personal income tax at 10% and levies neither an annual wealth tax nor an inheritance tax, drawing a steady flow of entrepreneurs, professionals and retirees establishing fiscal residence. Meanwhile, parish-level planning caps and sheer topography restrict new construction, while population growth (+1.7% in the year to September 2026) keeps pressure on domestic housing.

Just as striking is the policy paradox. Neither the temporary moratorium on foreign purchases in late 2023 nor the introduction of the foreign-investment tax in February 2024 curbed cross-border appetite in the following year. Authorised foreign real estate investment operations rose by 55.5% in 2025 to reach 843 operations—up from 542 in 2024—with a total volume exceeding €500 million, according to Government of Andorra data cited by Ara Andorra on authorised foreign real estate investment in 2025.

Finally, because Andorra is a compact market, composition effects matter. When developers release a handful of prime off-plan towers in Escaldes-Engordany or Andorra la Vella at €9,000/m² or €10,000/m², those listings pull the national asking average up, even if older resale flats in outlying parishes have barely moved.

What do buyers actually pay? Asking prices versus transaction prices

When we turn from property portals to the notary's desk, the picture changes markedly. According to operation A145 of the Departament d'Estadística, reported by Diari d'Andorra on Q2 2026 transaction prices and volumes, the official average transaction price for apartments in Andorra stood at €4,569.7/m² in Q2 2026. That was just 0.2% higher than the €4,559.9/m² recorded in Q2 2025, following €4,415.9/m² in Q1 2026 and a full-year average of €4,547.3/m² across 2025 (+8.2% versus 2024, with Andorra la Vella averaging €4,885.9/m² in 2025, down 3.5% on the year, per Bondia).

Period	CASAFARI average asking price (apartments)	Official average transaction price (Departament d'Estadística A145)	Implied asking-to-transaction gap
Q4 2025	€5,690.9/m²	€4,547.3/m² (2025 full-year average)	+25.1%
Q1 2026	€6,034.1/m²	€4,415.9/m²	+36.6%
Q2 2026	€6,296.5/m²	€4,569.7/m²	+37.8%

In Q2 2026, sellers on the open market were asking 37.8% more per square metre than the average price at which apartments actually changed hands. Three factors explain why this gap is so wide:

• Listing mix versus closing mix: Active listings overweight brand-new, high-specification developments in Escaldes-Engordany and prime ski chalets, whereas completed transactions include a higher share of older resale apartments in Encamp, Sant Julià de Lòria and Santa Coloma bought by local residents.
• High seller anchoring: With minimal holding costs and low mortgage stress among existing owners, sellers in Andorra rarely feel forced to cut prices quickly, leaving ambitious listings on the market for months.
• Cooling transaction volumes: After a record 2025 that saw 2,175 real estate transactions (+34% on 2024, including 2,004 apartments sold for a total market value of €1,397.9 million, per Departament d'Estadística A117 via Diari d'Andorra), deal volume fell to 473 transactions in Q2 2026. That represents an 11.8% year-on-year decline and the third consecutive quarterly drop, as documented by El Periòdic d'Andorra on the third consecutive quarterly fall in transactions.

For a buyer or wealth adviser, the lesson is straightforward: never negotiate down from an advert's headline figure without first running an online property valuation and checking parish-level comparables through Valuations, Comparables and Market Study.

Can foreigners buy property in Andorra, and what does it cost in tax?

Yes, foreigners can buy property in Andorra, but the regulatory regime tightened significantly between 2024 and 2026. Under Llei 5/2025 on sustainable growth and the right to housing (in Catalan) (passed in March 2025 and restated in January 2026), any foreign real estate investment requires prior administrative authorisation from the Government of Andorra. Processing takes several weeks, and no Andorran notary will execute a public deed without the certificate in hand.

Crucially, Andorran law defines a "foreign investor" not by passport, but by length of residence. Non-residents, as well as current Andorran residents who cannot prove at least three years of residence within the preceding ten years, fall under the foreign-investment rules.

Since 13 February 2026, following the entry into force of Llei 2/2026, which doubled the foreign-investment tax rates (in Catalan) (alongside Decret 58/2026), buyers subject to the foreign real estate investment tax pay:

• 6% of the real value of the investment for a first single-family dwelling or apartment (including up to two parking spaces and two storage rooms).
• 10% of the real value for a second or further dwelling, or for any property outside that scope.

Between 29 February 2024 and 12 February 2026, under the original Llei 3/2024 on the foreign real estate investment tax (in Catalan), those rates had started at 3% for a first dwelling and stepped up through 5%, 8% and 10%.

Buyers should be clear on one point often misstated in relocation forums: Article 1 of Llei 3/2024 explicitly provides that subsequently losing foreign-investor status—for instance, by moving to Andorra and completing three years of residence—in no case entitles the buyer to a refund of the tax already paid.

On top of the foreign-investment levy, every resale purchase in Andorra carries the standard property transfer tax (Impost sobre les Transmissions Patrimonials, or ITP). As detailed in the Government of Andorra summary of the ITP transfer tax, ITP is fixed at 4% of the real value across all seven parishes—split between 1% for the central government and 3% for the parish (comú)—and is paid by the buyer at the notary, alongside notary and registry fees.

Worked example: If a non-resident buyer agrees a purchase price of €600,000 for a resale apartment in La Massana (with one parking space and one ski locker) as their first property in the country, they will pay €36,000 in foreign real estate investment tax (6%) plus €24,000 in ITP transfer tax (4%)—a combined €60,000, or 10% of the purchase price, before notary and registration fees.

Note also that Llei 5/2025 (Articles 9 and 18) prohibits foreign investors from acquiring or constructing property in Andorra to market or sell it (property development), with narrow exceptions for projects devoted entirely to permanent rental where at least 50% of units are let at affordable rates. Breaching this ban carries fines of 25% of the investment, with a minimum penalty of €50,000.

Can you let it to tourists? The HUT freeze and what it means for investors

For years, international buyers purchased apartments in Soldeu, El Tarter or Pas de la Casa with the intention of using them for a few weeks of skiing and letting them out on short-term platforms for the rest of the winter. That route is now closed to new entrants.

Under Article 62 of Llei 5/2025, the granting of new tourist-use dwelling authorisations (Habitatges d'Ús Turístic, or HUT) for apartments and studios is suspended indefinitely. Equally important for buyers inspecting resale flats advertised as "with tourist licence": as confirmed on the Government of Andorra page on tourist-use dwellings (HUT), existing HUT licences must be renewed every three years, and any change of ownership other than by inheritance automatically cancels the registration. You cannot buy an apartment and inherit the seller's short-term rental permit.

Consequently, any investment case in 2026 rests on long-term residential letting to local residents. Because a verified national rental series is not included in the dataset for this guide, we do not quote an indicative gross yield; investors should appraise net returns case by case after accounting for the 10% combined entry taxes.

Who is buying under these conditions? Domestic residents still drive three quarters of the market. According to the Departament d'Estadística (reported by Diari d'Andorra in May 2026), non-residents accounted for 24.9% of property purchases by individuals in 2025 and 26.8% in Q1 2026. In Q2 2026, non-residents purchased 184 properties, down 14.5% year on year. Most individual buyers are aged between 30 and 59, led by Andorran, Spanish and French nationals alongside new residents from Latin America and across the European Union. Professional buyers and family offices can explore CASAFARI for investors and use Property Sourcing, the whole listed market in one search, to track inventory across all seven parishes without relying on fragmented portal adverts.

How to check any Andorran listing against real data

Because the gap between asking prices and notary closing prices approaches 40%, verifying where a specific listing sits in its micro-market is essential before making an offer.

On the CASAFARI platform, the Area Insights view for Andorra (location id 2001) tracks the quarterly progression of apartment asking prices per square metre across the Principality, automatically deduplicating multi-agency listings and stripping out statistical outliers.

For technical teams, analysts and proptech developers, the Area Insights documentation on developers.casafari.com, with the request that reproduces this series, shows the exact API call behind the numbers in this guide, while Location Lookup resolves "Andorra" directly to location id 2001. API and MCP calls are billed in tokens (distinct from OAuth access tokens). You can also review the Comparables and valuation documentation for developers, connect Casafari MCP for advisers who want the numbers inside their assistant, or draw on Data Services for bulk market series.

Before submitting an offer on any property in Andorra in 2026, run three practical checks:

1. Compare the asking price against official parish data: Check the latest quarterly A145 release from the Departament d'Estadística alongside the CASAFARI asking trend so you do not pay prime Escaldes-Engordany prices for secondary stock.
2. Pull active and withdrawn comparables in the same building or street: See how long competing apartments have been sitting on the market and whether sellers have quietly reduced their asking prices across multiple agencies.
3. Verify the legal timeline and intended use: Factor in the weeks required for Government of Andorra foreign-investment authorisation, budget the full 6% or 10% foreign-buyer tax plus 4% ITP, and disregard any marketing claim that a tourist rental licence will transfer with the sale.

Risks to weigh before you buy in Andorra

Andorra offers enduring fundamentals: personal income tax capped at 10%, high public safety, euro denomination, world-class ski domains and genuine physical scarcity. At the same time, an objective buyer in 2026 must weigh four clear risks:

• A wide bid-ask spread: Asking prices rose 20.9% year on year in Q3 2026 (CASAFARI Area Insights), whereas official transaction prices rose just 0.2% in Q2 2026 and transaction volumes fell 11.8% (Departament d'Estadística). When asking prices run far ahead of completed deals on falling volume, the adjustment typically comes through longer marketing times or price negotiations in favour of patient, cash-ready buyers.
• Rapidly evolving housing policy: In the space of three years, the Principality moved from a temporary suspension on foreign purchases to a progressive tax (Llei 3/2024), a ban on foreign development and an indefinite HUT freeze (Llei 5/2025), and a doubling of the foreign-investment tax in February 2026 (Llei 2/2026). With housing affordability remaining a central political topic in Andorra la Vella, further regulatory adjustments cannot be ruled out.
• Low market liquidity and high round-trip costs: A national market recording 473 transactions a quarter is inherently thin. Combined entry taxes of 10% for a first-time foreign buyer (6% foreign-investment tax plus 4% ITP) mean that Andorra is unsuited to short holding periods.
• National averages mask parish realities: Do not apply the €6,466.3/m² national asking average to an older apartment in Encamp or Sant Julià de Lòria; prime launches in Escaldes-Engordany pull the national series upward.

If you are planning a multi-year hold or a permanent move to the valleys, the key is to buy on verified local evidence rather than brochure headlines. You can create an account and try Area Insights for Andorra on platform.casafari.com to inspect the live series and benchmark any property against the real market.