Foreign Ownership Restrictions & Authorisation
RestrictiveForeigners may buy property in Andorra, but must first obtain Prior Authorisation for Foreign Investment, and the 2025 Omnibus Law imposes meaningful limits on what non-residents can acquire.
- Foreign buyers must obtain Prior Authorisation for Foreign Investment from the Ministry of Economy before purchasing (typically 2-3 months, around EUR 300)
- Under the 2025 Omnibus Law (Law 5/2025, in force from April 2025), non-residents are limited to a single single-family home OR two apartments
- Foreign-led real estate development is largely prohibited, with limited exceptions
- A foreign real estate investment tax (IEI) applies on top of the standard transfer tax - 6% for a single-family home or flat, 10% for other foreign real estate investments
- Property ownership does NOT grant residency; passive residency is a separate process with its own investment, income, accommodation and 90-day presence requirements
- The measures were introduced to address a housing-affordability crisis after sharp price rises, and rules continue to evolve (amended by Law 2/2026)
