Investing in Andorra: the 10 costliest mistakes

The ten mistakes

1. Ignoring the purchase limit for a non-resident: see the checker.
2. Forgetting the foreign investment tax: see the simulator.
3. Trusting old guides: several rules changed in 2024, 2025 and 2026.
4. Mistaking asking prices for sale prices: see estimating the price.
5. Buying for a tourist furnished rental without authorisation: see rental.
6. Ignoring rental income taxation: see rental income taxation.
7. Neglecting the co-ownership: charges, works, rules.
8. Not planning for resale: see capital gain.
9. Selling within two years without calculating: see sale within two years.
10. Not having the preliminary contract reviewed by a lawyer.

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The mistakes in detail

The purchase limit. A non-resident can acquire one single-family dwelling or two apartments (or studios) with their outbuildings, and a maximum of six parking spacesverified on 09/10/2026, for 10 yearsverified on 09/10/2026 from the previous investment. A project that exceeds the limit is taxed at 10 %verified on 09/10/2026 instead of 6 %verified on 09/10/2026.

Capital gain on resale. A non-resident has no sliding scale: the rate is 10 %verified on 09/10/2026 after two years. A resident can fall to zero taxation after 10 yearsverified on 09/10/2026. See selling as a non-resident.

Yield calculated on the price alone. Acquisition costs (4 %verified on 09/10/2026 of ITP, non-resident tax, notary) reduce the real yield from the first year.

Vacancy and charges. A month without rent and high co-ownership charges weigh more than a difference of a few tenths of a point on the price.

Co-ownership rules. Some regulations forbid short-term letting: read them before making any promise.

How to avoid them

1. Run the project through the limit checker and the purchase cost simulator.
2. Calculate a net yield with the yield simulator.
3. Have the co-ownership regulations and the latest minutes reviewed.
4. Ask a local adviser in writing to validate the tax structure.