Published on and written by Cyril Jarnias
Moving to the Pyrenees, buying a pied-à-terre in the mountains, or preparing a second home in Andorra is attracting more and more French people. Favorable tax treatment, natural surroundings, proximity to France, safety… there is no shortage of arguments. But in 2026, the legal framework has become considerably stricter for foreigners, and especially for non‑residents.
This guide summarizes the journey of a French buyer looking to purchase an apartment or chalet in Andorra: legal rules, overall budget, administrative steps, pitfalls to avoid, and how the market works — all in plain language.
Understanding the new Andorran framework before you start
Before even looking at listings, it is essential to understand that Andorra is neither in the European Union nor in the Schengen Area. A French person therefore remains a foreigner under Andorran law, whether coming to invest or to live there.
The rules have changed dramatically between 2023 and 2026. Real estate remains open to non‑residents, but within a much more selective framework.
Who can buy a home in Andorra?
In principle, any adult can acquire property in Andorra, regardless of passport or residency status. In practice, however, several profiles must be distinguished:
French non‑residents or residents of less than three years out of ten face the strictest rules (prior authorization, additional taxes, property caps). Residents of more than three years benefit from flexible conditions without surcharge or property limit. Foreign companies or those controlled by foreigners are treated as foreign investors with mandatory authorization.
For a French person still living in France, or recently settled in Andorra, it must be accepted from the outset that the purchase will not be made “freely” as in an EU country.
New limits for non‑residents
Since the entry into force of the so-called “Omnibus” reform and the law on sustainable growth and the right to housing, non‑residents can no longer buy as many properties as they wish.
A French non‑resident or resident of less than three years is now limited to 3.
– a maximum of two housing units (apartments or studios), with their annexes,
– or a single-family home (chalet, villa) or land intended to build a single house,
– up to six parking spaces total, with a cap of three per unit,
– up to six storage rooms/boxes, maximum three per unit.
Beyond that, punitive tax rates (16% then 20% of the price) apply when exceeding a certain number of properties, effectively making any strategy of a collector or large investor nearly impossible.
Quick overview of the Andorran real estate market
Before diving into the administrative machinery, it is important to gauge the actual price level of the market in 2026. The image of an affordable little paradise fades quickly when you look at the data.
Price per square meter
Official and professional figures converge: Andorra has entered a phase of rapid increase.
At the end of 2025, the average price of apartments was around €4,547/m², up 8% year-on-year. In the first quarter of 2026, it stood at around €4,416/m², a 3% increase year-on-year. Over five years, prices have risen by more than 80%.
In practice, different zones must be distinguished:
| Zone / Parish | Average purchase price (apartments) | Market comment |
|---|---|---|
| Andorra la Vella | €4,500 – €6,500/m² (or more) | Administrative center, scarce supply, high demand |
| Escaldes-Engordany | €4,500 – €6,500/m², sometimes > €8,000/m² | Most expensive parish, highly sought after |
| La Massana / Ordino | €4,000 – €5,500/m² | High demand, proximity to ski resorts |
| Encamp | ~€4,200/m² | More affordable than the center |
| Sant Julià de Lòria | ~€4,400/m² but historically the most affordable | Sharp recent increase (+32% over certain periods) |
| National average (end 2025) | ~€4,547/m² | All parishes combined |
On the specific segment of houses and chalets, statistics by parish give a very telling order of magnitude:
| Parish | Average apartment price | Average house/chalet price |
|---|---|---|
| Ordino | ~€1,605,000 | ~€3,567,000 |
| Escaldes-Engordany | ~€1,353,000 | ~€2,493,000 |
| Andorra la Vella | ~€830,000 | ~€1,798,000 |
| La Massana | ~€851,000 | ~€2,803,000 |
| Canillo | ~€716,000 | ~€2,180,000 |
| Sant Julià de Lòria | ~€663,000 | ~€2,186,000 |
| Encamp | ~€473,000 | ~€1,708,000 |
A “real” chalet close to ski areas or with an open view quickly goes beyond a million euros, often by a wide margin, especially in Ordino, La Massana, Escaldes‑Engordany, or Canillo.
Typical budget by project
Observed price ranges on the ground in 2026 help outline a few purchase profiles:
| Type of property | Usual purchase budget (excluding fees) |
|---|---|
| Very basic old studio | from ~€100,000 |
| 1 bedroom | ~€200,000 to €850,000 |
| 2 bedrooms (standard to good quality) | ~€250,000 to €950,000 |
| 3 bedrooms / large recent apartment | up to ~€1,400,000 (and more) |
| Chalet or single-family home in a sought-after area | often > €1,500,000 |
Keep in mind that for a French non‑resident, the actual cost is not limited to the listed price: between specific taxes, notary fees, and agency margins, the total bill increases by an additional 10 to 12%.
Step 1: Clarify your project and status (residence or simple investment)
Everything else depends on this: choice of property type, taxation, limits on the number of homes, income requirements… Andorra treats very differently someone who simply wants to own a vacation property and someone who wants to establish their residence there.
Active or passive residence: what it changes for the purchase
For a French person, there are two main paths to permanent residence that interfere with real estate:
To obtain active residence in Andorra (employee or self-employed/business owner), you must stay at least 183 days per year, contribute to the local social security system, and carry out an economic activity there. After more than three years of residence, you are exempt from the foreign investment surcharge for real estate purchases and are no longer limited to two homes.
– Passive residence (without local professional activity) Intended for retirees, investors, rentiers. In 2026, the minimum investment required for this type of residence reaches €1,000,000 in Andorran assets, of which at least €800,000 in real estate if you choose the “real estate” route. You must spend at least 90 days per year there. The tax treatment is attractive (income tax capped at 10%, no wealth tax or inheritance tax for descendants), but the financial effort is considerable.
Buying an apartment or chalet does not automatically grant a residence permit. However, owning a home and investing significant amounts there is a near-essential prerequisite if you are aiming for passive residence.
Non‑resident: a status that costs a lot in taxes
A French person who remains a tax resident in France and does not apply for Andorran residence is considered a non‑resident. This profile is directly targeted by the enhanced foreign investment tax since 2026 and by the limits on the number of properties.
Specifically, if you buy a single apartment as a second home, you will be:
– subject to a specific 6% foreign investment tax on the price,
– in addition to the property transfer tax (4%),
– with the impossibility of owning more than two homes in the country.
For a purely long-term asset purchase, this may remain acceptable; for a large-scale rental investment project, the model quickly collapses.
Step 2: Calculate your overall budget (and not just the purchase price)
In Andorra, the most common mistake foreign buyers make is to look only at the price listed by the agency. However, between taxes, notary fees, agency commissions, and bank costs, you often need to add 10 to 12% of the price per square meter.
The main cost categories
For a French non‑resident buying their first property, the cost structure looks like this: notary fees, taxes, and ancillary costs.
| Cost item | Order of magnitude / Rule |
|---|---|
| Property price | Basis of calculation |
| Transfer tax (ITP/ITPI) | 4% of the price |
| Foreign investment tax (first property) | 6% of the price |
| Notary fees + registration | ~0.5 to 1.5% of the price (in practice €600–1,300 + approx. 0.1%) |
| Agency fees (generally included in the listed price) | 5 to 10% of the price (paid by the seller in most cases, but factored into the market) |
| Possible IGI VAT (if new property sold by developer instead of ITP) | in principle 4.5% (or 3.5% if intended for permanent rental) |
| Foreign investment authorization fees | €300 |
| Bank fees (application, appraisal, etc.) | often 0.25% of the loan (+ possible insurance) |
A typical calculation for an apartment purchased for €800,000 by a French non‑resident, as a first property, gives a very concrete idea:
| Item | Approximate amount |
|---|---|
| Purchase price | €800,000 |
| ITP (4%) | €32,000 |
| Foreign investment tax (6%) | €48,000 |
| Notary and registration fees | ~€3,000 – €5,000 |
| Foreign investment authorization | €300 |
| Total taxes + fees (excluding agency) | ≈ €83,000 – €85,000 |
| Overall cost | Approximately €880,000 – €885,000 |
This results in an overall extra cost of about 10% of the purchase price for a non‑resident, excluding any attorney or advisory fees.
Financing logic for a French person
Andorran banks (there are three main ones, plus a subsidiary of a Spanish bank) finance foreigners, but cautiously:
For a non‑resident, the loan is capped at 50‑60% of the property’s value (rarely 70%). The loan term is reduced to 15‑20 years, with variable rates indexed to Euribor + 1 to 1.5% margin. The application must be very thorough (income, assets, banking history).
In short, a French person must plan for a personal contribution of 40 to 50% of the price, plus the 10–12% in fees and taxes to be paid in cash. A 100% loan from an Andorran bank is, in practice, nearly non-existent for a simple non‑resident.
Once the budget is set, the trickiest part begins: administrative procedures. For a French non‑resident, three elements are essential: foreign investment authorization, an Andorran tax number, and a local bank account.
Before signing a final deed, a French non‑resident must obtain the Autorització d’inversió estrangera en immobles. This is a real filter, even if most European applications are approved.
This authorization:
The permit is issued by the Andorran government and requires several documents and information.
A form in Catalan must be completed, stating the buyer’s identity, property description, price and payment method, and intended use.
Provide a legalized or apostilled copy of the passport or ID card, as well as an apostilled criminal record extract from the country of origin and any country of recent residence.
Provide proof of financial resources and source of funds, as well as precise information about the property being purchased.
Stated processing times vary by source: practice often shows two to three weeks, sometimes longer (up to two to three months for complex cases). To avoid delays, many French people delegate the filing to a lawyer or real estate agency, for around €300 in administrative fees.
The authorities mainly reject applications in cases of doubt about the source of funds or security issues (money laundering, sanctions, etc.). For a French person with a clean banking history, authorization is practically automatic.
NRT: The Andorran tax number
Before opening a bank account or signing a deed, a non‑resident must obtain a tax registration number (NRT) from the Andorran tax administration.
This number identifies the taxpayer in all tax procedures, such as paying transfer duties or declaring rental income. The application process is generally quick, but it should be factored into the purchase timeline.
Opening an Andorran bank account
Anti‑money laundering law requires that any real estate transaction go through an account in an Andorran bank. Cash payments are strictly regulated and, for real estate amounts, completely excluded.
For a French non‑resident, opening an account requires:
– identity documents,
– proof of address,
– proof of source of funds (bank statements, asset sales, inheritances…),
– sometimes bank solvency certificates.
Andorran banks apply very thorough compliance checks. Opening an account can take several weeks. It is therefore advisable to start this process in parallel with the foreign investment authorization application.
Step 4: Search for your apartment or chalet and build your team
With a clear framework and budget, the visible part of the iceberg finally begins: the property search.
Where to search?
The main platforms used for Andorran real estate are well known to French people:
– Idealista,
– Habitaclia,
– Indomio,
plus the websites of local agencies (Andorra Sotheby’s International Realty, Andorra Realty, many small agencies per parish…).
Andorra also has a dense network of physical agencies. The important thing for a French person is to verify that the agent is properly registered with AGIA (Col·legi Professional d’Agents i Gestors Immobiliaris d’Andorra). Only duly registered agents can legally practice.
Choosing your local contact well
Two profiles are particularly useful in a cross-border project:
To succeed in your acquisition project, two professionals are essential: the real estate agent for operational and commercial aspects, and the specialized lawyer for legal and regulatory matters.
Arranges viewings, negotiates the price, prepares the reservation contract and deposit clauses, and liaises with the seller.
Checks property titles, ensures there are no mortgages or disputes, assists with the foreign investment authorization application, reviews and corrects contracts, and coordinates with the notary.
Lawyer’s fees add to the budget, but for a cross-border case with high financial stakes, they secure points that a French person cannot easily verify remotely (property registry, local case law, peculiarities like “cens enfitéutics,” etc.).
Step 5: Negotiate and sign the reservation contract (10% deposit)
Once the ideal property is found, the contractual phase begins. The most common scheme unfolds in three stages: offer, reservation, final deed.
The offer and negotiation
As in France, you can make a written offer, usually through the agency, specifying:
– the proposed price,
– the timeline (deadline for signing the promise and the deed),
– any suspensive conditions (obtaining financing, obtaining the foreign investment authorization, results of a diagnostic or survey…).
Sellers dominate in central areas (Andorra la Vella, Escaldes‑Engordany, sought-after valleys), while negotiation is more flexible in outlying parishes.
The reservation contract / promise of sale
When the price and conditions are accepted, a reservation contract is usually signed, locally called Contracte de Reserva, “promesa de compra‑venda,” or sometimes an arras contract.
This contract:
– describes the property precisely (surface area, cadastral references, annexes, parking, storage…),
– identifies the seller and buyer,
– sets the total price and the deposit amount,
– provides a completion timeline (deadline for signing the notarial deed),
– details cancellation conditions and financial consequences.
The deposit amounts to 10% of the price, is non‑refundable if the buyer withdraws without a valid reason, and protects against another buyer’s overbid subject to appropriate clauses.
For a French person, it is strongly recommended:
– to include a clause making the sale conditional on obtaining financing (if applicable),
– to add a condition of obtaining the foreign investment authorization, so that the deposit is returned if the administration refuses authorization.
The time between the promise and the signing of the notarial deed is often around 3 months, allowing time to finalize the bank, authorization, and technical checks.
Step 6: Due diligence, certificate of habitability, and preliminary checks
While the administrative machine is running, the lawyer and/or notary prepare the legal groundwork for the sale.
Check the legal status of the property
In Andorra, there is no unified “cadastre” and “land registry” as in France. Each municipality manages its own register for local taxes, and notaries keep the register of deeds.
Essential checks cover:
The chain of ownership, the existence of mortgages, seizures or liens, third-party rights (tenants, usufructuaries, easements), absence of condominium debts for an apartment, and compliance with planning and technical regulations (especially for recent constructions).
For “special” properties (mountain chalets, land, projects under construction), you also need to examine permits, any concessions, and verify that the project complies with parish rules (maximum capacity, protected areas, etc.).
Certificate of habitability
The seller must provide the buyer with a Certificat d’Habitabilitat issued by a locally registered architect. This document certifies that the dwelling meets minimum standards to be habitable (surface area, ceiling height, safety, basic amenities…).
Without this certificate, the transaction is legally fragile. For a French person, this is a fundamental point of vigilance, especially in the case of major renovations or small spaces.
Technical inspection (optional but recommended)
Beyond the certificate, it is prudent to hire an expert or architect for a detailed visit:
– structure, roofs, waterproofing (crucial in the mountains),
– thermal and acoustic insulation,
– compliance of installations (electricity, gas, ventilation…),
– construction quality for wooden chalets or old houses.
If major defects are identified, the buyer can try to renegotiate the price, request prior repairs, or withdraw if the contract allows it.
Step 7: Finalize financing and prepare for the notary signing
In parallel with the checks, the French buyer must lock in financing (if taking a loan) and arrange the financial flows.
Mortgage or equity?
For non‑residents, several financing options exist:
– mortgage loan from an Andorran bank: LTV around 50–60%, term 15–20 years, rate Euribor + margin. Requires opening an account, domiciling income or assets, taking out certain insurance (life, home), and sometimes savings products. The setup can take 2–3 months.
For an equity contribution from France, you can use a property sale, financial savings, or a real estate loan (mortgage on main residence, home equity loan, Lombard loan). Funds must be transferred to an Andorran account early enough to pass compliance checks.
– wealth financing via international private bank: Some wealthy French people use Lombard loans or lines backed by a portfolio, taken out with wealth management banks that have links to Andorra.
Andorran regulations prohibit direct financing of the property by a foreign bank acting locally as a mortgage lender. However, it is possible to borrow from a French bank and then invest in Andorra through your own accounts.
Preparing for the signing
Once financing is secured and foreign investment authorization obtained:
– taxes (ITP, foreign investment tax) must be calculated and provisioned,
– funds (balance of price + taxes + notary fees) must be available in the Andorran account,
– the notary drafts the escriptura pública (notarial deed), in coordination with lawyers or the agency.
In Andorra, the buyer’s personal presence is normally required at the signing, but powers of attorney may be considered in some cases, subject to cumbersome formalities (apostille, translation…).
Step 8: Signing the deed, payment, and registration
The final step takes place at one of the rare notaries in the country (the number is limited). This is where ownership is officially transferred.
Role of the notary
The Andorran notary:
The notary in Andorra verifies the identity of the parties, checks the rules (foreign investment authorization, tax payment, legal status of the property), reads and comments on the deed in Catalan (with explanations in French or Spanish if needed), arranges the transfer of funds to the seller, changes the name on the title deed, and files the deed with the notary register and the property register.
At this point:
– the buyer pays the balance of the price (minus the 10% deposit already paid),
– the taxes (ITP + IIEI) are collected,
– the notary fees are paid by the buyer,
– the keys are handed over and possession is immediate, unless otherwise agreed.
Formalization in the register then takes a few weeks. In practice, the buyer often leaves with a copy, the original remaining with the notary until full registration.
Step 9: Post-purchase procedures and daily life
Once an owner, several administrative and practical steps remain.
Registration with the parish (Comú)
The new owner must declare themselves as such to the relevant municipality (Comú). This is essential for:
– local tax registration,
– any future residence procedures (if you decide to settle),
– managing services (roads, parking, etc.).
If the property becomes your primary residence, you will also need to register as a resident of the parish, which conditions many local procedures.
Energy contracts and insurance
Andorra requires at least building insurance for dwellings, taken out with an insurer authorized in the country. You also need:
Transfer or open electricity contracts (FEDA or local utilities depending on the parish), arrange water contracts and, if applicable, gas contracts, and consider other insurance (contents, liability, landlord insurance if renting out).
Subsequent taxation
Andorra does not levy an annual property tax in the French sense, nor wealth tax, nor inheritance tax between parents and children. However, several tax aspects remain:
In the event of a quick resale (less than 2 years), an anti‑speculation surcharge may increase the capital gains tax. Rental income is taxable in Andorra with a capped rate of 10% and an allowance on the first tranche. Tax treaties with France may apply for French tax residents receiving rental income in Andorra.
For a French person who remains a tax resident in France, the key issue is potential double taxation of rental income. At this stage, cross-border tax advice is strongly recommended.
Special case: Buying to prepare for passive residence
For many French people, buying an apartment or chalet in Andorra is not only about assets: it is also a prelude to passive residence.
In 2026, the requirements have been significantly raised:
The minimum investment required in Andorra to obtain residence, of which at least €800,000 in real estate if that route is chosen, with a non‑refundable deposit of €50,000 for the main applicant and €12,000 per dependent, plus proof of annual income exceeding 300% of the Andorran minimum wage (approximately €54,000 in 2026) plus 100% per dependent.
The apartment or chalet you buy must therefore represent a major part of this one-million-euro investment. In practice:
– a property worth €800,000 serves as the foundation,
– the remaining €200,000 is allocated to other Andorran instruments (bank deposit, regulated funds, etc.).
This setup requires careful planning: you don’t “switch” to passive residence just by buying a two-room apartment. You must be prepared to immobilize more than one million euros in the country over the long term, in addition to the cost of living.
Buying to rent: what a French investor should know
Despite rising prices and stricter regulations, the idea of buying to rent has not completely disappeared. But the playing field is narrower.
Yields and rental tensions
The rental market is extremely tight: supply does not meet demand. Rent increases since 2021, especially in central areas, exceed 35 to 50%. In some neighborhoods of Andorra la Vella or Escaldes‑Engordany, it is becoming nearly impossible to find an apartment for less than €1,000 per month, even for a small unit.
Gross rental yields, depending on the area and type of property, often fall within a range of 4 to 6%. However:
The entry cost (price + taxes) is very high, rules on tourist rentals (like HUTG) have been restricted, and obligations for long-term rental (e.g., 10 years at affordable rent) may be required to obtain a 90% reduction on the foreign investment tax.
For a French person aiming for long-term rental (local residents), the equation can remain interesting provided:
– you target properties suitable for local households (2–3 rooms, good location but not necessarily ultra-luxury),
– you accept a long-term immobilization of your capital,
– you comply with future legal developments on the rental market.
How long does the whole process really take?
Timelines vary greatly depending on the complexity of the file (financing, authorization, type of property). The major steps break down as follows:
| Step | Indicative timeline |
|---|---|
| Property search + team selection (agent, lawyer) | 2 to 6 weeks |
| Negotiation + reservation contract (10% deposit) | 1 to 2 weeks |
| Bank procedures and foreign investment authorization | 4 to 12 weeks (often 2–3 months) |
| Deed drafting and notary signing | 1 day (once everything is validated) |
| Registration and obtaining the final title | 2 to 4 weeks |
In practice, between the first visit and the final handover of keys with a registered title, a French person should expect 3 to 6 months. More optimistic estimates (4 to 6 weeks) assume a cash purchase, a very simple file, and perfect administrative availability.
In summary: what a French buyer in Andorra should keep in mind
Buying an apartment or chalet in Andorra in 2026 is still possible for a French person, but it is no longer a “free and simple” market. The country has shifted to a logic of selectivity:
– selectivity by amount (high price per m², heavy taxation for non‑residents),
– selectivity by number (limit of two homes for non‑residents),
– selectivity by profile (strict control of fund origin, prior authorization, apostilled documents, clean criminal record).
In return, the buyer benefits from:
This environment offers a very favorable long-term tax framework: no wealth tax, no heavy annual property tax, and income tax capped at 10%. It also benefits from a structurally tight real estate market, supported by local and international demand, as well as remarkable quality of life and safety, just a few hours’ drive from France.
For a French person, the key is to treat this purchase not as a simple extension of their domestic market, but as a structured international transaction, with:
– a realistic overall budget (price + 10–12% in fees minimum),
– professional support (lawyer, AGIA agent, possibly a tax advisor),
– anticipation of medium-term implications (active or passive residence project, wealth strategy, possible rental).
By following this sequence — clarify the project, set the budget, obtain authorizations, build a local team, secure the reservation contract, finalize checks, then sign before a notary — a French person can, even in 2026, become a property owner in Andorra under good conditions, whether it be an apartment in the heart of the valley or a chalet perched in the mountains.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
