How long does it take to get residency in Andorra?

With a well-prepared file, expect approximately 2 to 3 months for passive residence and 3 to 6 months for active residence. Aurea Gestoria Group handles the entire process.

What is the minimum investment for passive residence in Andorra?

The minimum investment is €1,000,000 in an eligible Andorran asset (real estate, financial product, life insurance). The AFA deposit of €47,500 is deducted from this amount.

What is the tax rate in Andorra?

Andorra has a progressive income tax capped at 10%. There is no wealth tax, no inheritance tax, and IGI (VAT) is only 4.5%. Corporate tax is 10% maximum. Dividends from Andorran companies are exempt.

Can foreigners create a company in Andorra?

Yes, since 2012, foreigners can hold 100% of an Andorran company. The most common forms are the SL (minimum capital €3,000) and the SA (minimum capital €60,000).

What is a gestoria in Andorra?

A gestoria is a specialized firm that handles administrative and fiscal procedures. Aurea Gestoria Group acts as a bridge between clients and Andorran institutions, managing everything from pre-audit to post-installation.

Do I have to live in Andorra full-time?

Passive residence requires 90 days minimum per year. Active residence requires 183 days. For tax residency benefits, 183+ days are recommended.

Real Estate in Andorra

Buy, rent, build: everything you need to know about the Andorran market

The 7 Parishes of Andorra

Urban parishes

Andorra la Vella

Administrative heart, shopping, services. The most urban parish, highly sought-after and therefore expensive. Ideal for walking-distance living.

Escaldes-Engordany

Natural extension of the capital, very popular (spas, shops, modern residences).

Suburban and countryside parishes

Encamp

Good balance of town and countryside, Grandvalira access, sometimes more affordable.

Canillo

Close to the French border (~20 min from the capital), cooler climate, convenient for trips to France. Soldeu/El Tarter ski resorts.

La Massana

Strong expat community, family/international/nature vibe, Pal-Arinsal ski access, ~40 min from the French border.

Ordino

Upscale/nature/tranquillity image, wide valley, open views, often premium prices.

Sant Julià de Lòria

Southernmost (towards Spain), warmer climate, sometimes better value for space.

Pas de la Case: part of Encamp, an isolated area beyond the mountain pass, very tourist-oriented, seasonal.

For open views and excellent natural light, consider Ordino, the heights of La Massana, the heights of Canillo, or certain elevated areas of Sant Julià de Lòria.

How to choose your parish?

Visit in person — photos cannot replace first-hand experience

Visit in both summer AND winter

Define your priorities: work, commute, urban lifestyle or quiet surroundings, sunshine

Frequent trips to France → Canillo. Everything on foot → Andorra la Vella/Escaldes. Space and light → Ordino

The property market

Année

Votre budget

Survolez une paroisse pour voir les détails

Classement 2025

Escaldes-Engordany5 500–9 000

Andorra la Vella5 000–8 500

Ordino4 500–7 000

La Massana3 800–6 000

Canillo3 500–5 500

Encamp3 200–5 000

Sant Julià de Lòria2 800–4 500

* Prix indicatifs estimés au m². Les prix varient selon le quartier, l'ensoleillement, l'étage, la vue et l'état du bien. Consultez Aurea pour une évaluation personnalisée.

Strong post-Covid increase (estimated +30% to +40%)

Demand exceeds supply

No official price per m² benchmark — prices depend on the parish, neighbourhood, sunlight, floor, view and condition

Two properties on the same street can have very different prices

The purchase process

Property search

Via estate agency or private seller, offer and negotiation.

Preliminary contract

Signing + earnest money deposit (~10% of the price).

Bank file preparation

File compilation, bank assessment, loan offer (if financing).

Notary signing

Balance paid, fees and taxes settled, authentic deed registered.

Key handover

Official property owner.

Timelines: without financing ~3-4 weeks, with financing ~6-8 weeks.

Foreign investment taxes

3%: 1st property

5%: 2nd to 5th property

8%: 6th to 9th property

10%: beyond / development projects

Emphyteutic leases

In certain areas (Pas de la Case, Arinsal): 99-year emphyteutic leases. The buyer owns the building but not the land (which belongs to the municipality or a private landowner). This confers a real property right for the full duration of the lease.

Rental & Property Management in Andorra

Tourist licence, property management and market overview

The tourist licence

Permits short-term rental operation (Airbnb-type)

Strictly regulated by the government

Not automatically transferable upon purchase

May be refused even if the property was previously operated

Subject to a government quota per parish

Property management

Regulated and supervised in Andorra

Above a certain volume → mandatory use of an AGIA-affiliated agent

Applies to: multi-property investors, professional operations, certain tourist rentals

Alternative: create an Andorran property holding company to own and manage the assets

The rental market

Post-Covid example: a 100 m² property went from €1,200 to ~€1,600/month

Minimum lease term of 5 years (early termination possible with 3 months' notice)

Best time to search: from May onwards

To rent → bank account opening required

Building in Andorra

Procedure, reforms and support

Who issues the permit?

The Comú (equivalent of the local council) of the relevant parish, with possible validation from the Government of Andorra. Since 2023: strengthened oversight (natural resources, densification, infrastructure).

Recent reforms (2023-2024)

Temporary freeze on certain permits, suspension or limitation of authorisations for tourist housing and some development projects. Objective: prevent property market overheating, preserve infrastructure, control population growth.

The full procedure

Land study

Verification of zoning classification and buildability.

Architectural plans

An architect registered in Andorra is mandatory; full technical plans required.

Filing with the Comú

Plans, technical studies, administrative file.

Administrative review

Compliance verification, infrastructure checks, government opinion if required.

Tax payment

Municipal taxes + administrative fees.

Permit issuance

Average timeline: 2 to 6 months depending on complexity.

Aurea supports you in finding the right property, whether to live in or to invest