Real Estate Financing in Andorra: A Practical Guide

Published on October 3, 2025 and written by Cyril Jarnias

Andorra, this small paradise nestled in the heart of the Pyrenees, is attracting more and more foreign investors drawn by its exceptional quality of life and advantageous tax regime. If you’re considering purchasing property in this principality, you’re probably wondering how to secure financing. This article will guide you through the intricacies of real estate financing in Andorra, revealing the opportunities available to foreigners, the essential documents, and the conditions to meet to bring your project to fruition.

Do the doors of financing open to foreigners: myth or reality?

Good news for international investors: obtaining real estate financing in Andorra is not a privilege reserved for local residents. Andorran banks, aware of the country’s growing appeal to foreigners, have adapted their offerings to meet this demand.

A banking system open to the world

The Andorran banking system, known for its strength and discretion, has significantly modernized in recent years. The country’s main financial institutions – Andbank, Crèdit Andorrà (Creand) and Morabanc – now offer attractive financing solutions for non-residents wishing to invest in local real estate.

Favorable conditions to attract investors

Andorran banks stand out with particularly competitive interest rates, among the lowest in Europe. This aggressive pricing policy aims to attract foreign capital and stimulate the local real estate market. Additionally, flexible repayment terms, extending up to 30 years, offer great flexibility to borrowers.

A substantial personal contribution, a mark of seriousness

While Andorran banks welcome applications from foreigners, they remain vigilant. A substantial personal contribution, typically between 20% and 30% of the property value, is often required. This requirement allows financial institutions to ensure the borrower’s financial strength and limit risks.

The perfect file: documents that will make the difference

To maximize your chances of obtaining real estate financing in Andorra, preparing a strong file is crucial. Here are the essential documents to gather:

Identification and proof of address

– A copy of your valid passport or identity card – Recent proof of address (electricity, gas or water bill dated within the last 3 months)

Proof of income and professional situation

– Your last three pay slips – Your employment contract or, for self-employed individuals, balance sheets and income statements from the last two years – Your latest tax notice

Banking and asset situation

– Bank statements from the last 6 to 12 months – A detailed statement of your assets (real estate, financial investments, etc.)

Documents related to the desired property

– The sales agreement or purchase promise for the property – Property value estimate by a certified expert

Additional guarantees

– A life insurance certificate (if you have one) – Any document that can attest to your ability to repay the loan (rental income, financial investments, etc.)

• Don’t hesitate to provide certified translations of your documents if they are not written in Catalan, Spanish or French.
• Presenting a complete and well-organized file will demonstrate your seriousness and facilitate the processing of your application by the bank.

Keys to success: decoding the approval conditions

Beyond the documents to provide, several criteria come into play in the evaluation of your real estate financing application in Andorra. Here are the main points banks will base their decision on:

Controlled debt capacity

Andorran banks are particularly attentive to borrowers’ debt-to-income ratio. As a general rule, they require that loan installments do not exceed 35% of household net income. This caution aims to ensure that the borrower can meet their payments without difficulty.

Impeccable banking history

Financial stability is a crucial criterion for Andorran banks. A solid banking history, demonstrating sound management of your personal finances, will work in your favor. Bank statements from recent months will be closely examined to assess your financial behavior.

Stable and sufficient income

To obtain financing, you’ll need to justify regular and sufficient income to cover loan installments. Andorran banks particularly appreciate stable professional situations, whether salaried employment or well-established independent activity.

A substantial personal contribution

As mentioned earlier, a significant personal contribution is often required, especially for non-residents. This contribution, typically between 20% and 30% of the property value, reassures the bank of your financial commitment to the project.

Solid guarantees

In addition to the mortgage on the financed property, Andorran banks may request additional guarantees, particularly for non-resident borrowers. This could be a personal guarantee, pledging of financial investments, or life insurance.

A coherent real estate project

The nature and location of the property you wish to acquire will also be taken into account. Andorran banks generally prefer primary or secondary residence acquisition projects, as well as rental investments in attractive areas.

• Don’t hesitate to highlight your knowledge of the Andorran real estate market and your motivation for this investment during your exchanges with the bank.
• If you plan to settle in Andorra, explain your life project and the reasons driving you to choose this destination.

Winning strategies to optimize your chances

To maximize your chances of obtaining real estate financing in Andorra, here are some strategies to implement:

Anticipate and prepare

Start preparing your file well in advance of your purchase project. Gather all necessary documents, ensure their validity and consistency. The more complete and well-prepared your file is, the more you’ll demonstrate your seriousness in the eyes of banks.

Polish your financial profile

In the months preceding your financing application, ensure impeccable management of your bank accounts. Avoid overdrafts, excessive spending, or suspicious financial movements that could arouse bankers’ suspicion.

Bet on transparency

Be completely transparent about your financial and professional situation. Andorran banks appreciate honesty and clarity. Don’t hesitate to explain your project and motivations in detail.

Compare offers

Don’t hesitate to approach several Andorran banks to compare their offers. Conditions can vary significantly from one institution to another, both in terms of rates, repayment periods, and additional fees.

Get assistance

Using a broker specialized in real estate financing in Andorra can be wise, especially if you’re unfamiliar with the local banking system. A professional can guide you through the process, optimize your file, and negotiate the best conditions on your behalf.

Consider alternative guarantees

If your profile doesn’t exactly match the standard criteria of Andorran banks, think about alternative guarantees you could offer. For example, pledging a life insurance contract or stock portfolio can sometimes compensate for an insufficient personal contribution.

Conclusion: An achievable dream with proper preparation

Obtaining real estate financing in Andorra as a foreigner is entirely possible, provided you prepare well and understand the specifics of the local market. Andorran banks, aware of the country’s growing appeal to international investors, have adapted their offerings to meet this demand.

The key to success lies in meticulous preparation of your file, transparency in your approach, and the strength of your project. By following the advice provided in this article and demonstrating patience and determination, you’ll maximize your chances of realizing your real estate dream in this small Pyrenean paradise.

Remember that each situation is unique and that Andorran banks examine files case by case. So don’t hesitate to highlight your strengths and explain your motivations in detail. With a professional and well-prepared approach, the doors to real estate financing in Andorra will open for you, allowing you to fully enjoy the benefits of this exceptional country.