What is worth buying in Andorra? Profitable properties and those to avoid
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The short answer
The property worth buying depends on your goal: a well-located apartment to live in, a long-term rental property for a steady yield. Tourist apartments are prohibited for foreign investors, and non-residents are limited to one individual home or two apartments.
Depending on your goal
| Goal | Properties to consider | Points of attention |
|---|---|---|
| Living on site | Apartment in a central parish, house in a valley | Schools, commuting, charges |
| Rental yield | Home let long term | The rent for "affordable" housing is capped; reduced foreign investment tax for long-term letting |
| Long-term appreciation | Rare, well-located properties | Limited liquidity |
| Seasonal use | Studio or apartment in a resort | Prohibited for a foreign investor if intended for tourist letting |
What the law says for foreigners
- A non-resident is limited: one single-family dwelling or two apartments (or studios) with their outbuildings, and a maximum of six parking spacesverified on 09/10/2026.
- Tourist apartments and properties with a tourist accommodation authorisation are prohibited to them.
- A tax bonus exists for properties let as a habitual residence for at least ten years: the foreign investment tax is then sharply reduced, with anti-abuse clauses.
How to judge profitability
- Expected annual rent, minus charges, insurance, management and vacancy.
- Minus taxes on the rent.
- Divided by the total price (costs included). See purchase costs.
What to avoid
- Buying without having visited or checked the charges.
- Counting on tourist letting when it is prohibited for a foreign investor.
- Ignoring liquidity: reselling can take time.
The figures to decide
| Criterion | Benchmark |
|---|---|
| Average transaction price | 4,569.70 €/m²verified on 09/10/2026 per m² |
| Trend | 0.2 %verified on 09/10/2026 over one year: no automatic rise |
| Non-resident entry cost | Tax of 6 %verified on 09/10/2026 + transfer tax of 4 %verified on 09/10/2026 |
| Rental income | Taxation of rents: see taxation of rents |
| Exit | 10 %verified on 09/10/2026 for a non-resident after two years |
Properties to consider by goal
- Living on site: apartment in a central parish, controlled charges.
- Letting year-round: well-located home, consistent rent: see yield.
- Passive residency: acquisition of more than 800,000 €verified on 09/10/2026 per home if the investment is in real estate.
To avoid
Tourist apartments closed to the foreign investor, purchases without checking the condominium, projects whose yield does not survive the acquisition costs. See investor mistakes.
Work out your own case
Free simulators, built on the official values of this page.
Frequently asked questions
Which property is profitable in Andorra?
A home let long term as a habitual residence, bought at a price consistent with rents, can offer a steady yield. Calculate it net of charges and taxes.
Can you buy to let to tourists?
A foreign investor cannot acquire tourist apartments or properties with a tourist accommodation authorisation.
Is Andorran real estate a good investment?
It depends on the property, the price, liquidity and your status. The rules for non-residents limit accumulation strategies.
Going further
Official sources
This information is general and is not personalised legal, tax or financial advice. It is verified as of the date shown and may change.