Investing in Andorran Real Estate: Yield, Risks and Rules
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- La rédaction
The short answer
Investing in Andorra can target long-term letting, seasonal letting in a resort or long-term appreciation. The yield depends on the purchase price, costs, the rules applying to non-residents and the taxation of rent and capital gains.
The strategies
| Strategy | Strength | Point of attention |
|---|---|---|
| Long-term letting | Sustained demand | Net yield after costs |
| Seasonal letting in a resort | Income potential | Authorisations, management, seasonality |
| Long-term appreciation | Scarcity of land | Liquidity, market cycle |
| Investment tied to residency | Coherent project | Conditions of the status. See passive residency |
Calculating a yield
- Expected annual rental income.
- Minus service charges, maintenance, insurance, management.
- Minus tax on rent.
- Divided by the total acquisition price (see costs and taxes).
An example of net yield
For an apartment bought for 300,000 euros with 15,000 euros of acquisition costs, let at 1,400 euros a month for 11 months a year, with 2,400 euros of annual costs and no delegated management, gross income is 15,400 euros and pre-tax income is 13,000 euros, or about 4.1% of the total cost of 315,000 euros.
The real yield depends on rents and vacancy periods: test your assumptions with the rental yield simulator.
The steps of an investment project
- Define the objective: income, appreciation, or consistency with a residency status.
- Check what you are entitled to buy: limit one single-family dwelling or two apartments (or studios) with their outbuildings, and a maximum of six parking spacesverified on 09/10/2026 for a non-resident.
- Work out the total cost: ITP or IGI, non-resident tax of 6 %verified on 09/10/2026 for the first property: see costs and taxes.
- Estimate net income: see taxation of rent.
- Plan the exit: capital gain depending on the holding period and status: see selling.
Investing to obtain residency
Residency without gainful activity requires a minimum investment of 1,000,000 €verified on 09/10/2026 in Andorran assets, reduced to 400,000 €verified on 09/10/2026 if it goes through the Fons d'Habitatge, with a threshold of 800,000 €verified on 09/10/2026 per property: see passive residency.
Work out your own case
Free simulators, built on the official values of this page.
Frequently asked questions
What rental yield can I expect?
It depends on the price, costs and occupancy rate. Calculate it property by property, net of costs, taxes and vacancy.
Is seasonal letting unrestricted?
It is subject to authorisations and to tourist accommodation rules. Check before buying for this project.
Does a property investment give residency?
The investment can count towards the conditions of passive residency, without granting it automatically. Reference threshold: the dated value shown on this page.
What are the risks?
Limited liquidity, changing regulation, concentration in a small market, rental vacancy.
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.