Who is buying property in Andorra? Foreign investors or residents?
- 1 day ago
- 3 min read
If you're curious about who is buying property in Andorra each year, you'll unfortunately be disappointed — there is no public record of sales transactions in our small nation. However, starting in 2025 and into 2026, the Andorran Government's statistics department began publishing figures on the profile of buyers in the country. These statistics make it possible to see whether foreign investment is the main driver of price increases, or whether residents themselves are behind most purchases.
What laws affect who is buying property in Andorra?
Before diving into the statistics, it's worth covering recent legal changes intended to affect the type of buyer purchasing property in Andorra.
Foreign investors subject to this tax are non-residents or — more notably — residents who have held their residency for less than three years. Once a resident reaches the three-year mark, they are no longer classified as a foreign investor and are no longer subject to the additional taxes.
Law 3/2024 (Omnibus I)
Introduced a foreign investment tax on a tiered scale, starting at 3% for a first property purchase and rising to 10% for a sixth (or subsequent) purchase.
Law 5/2025 (Omnibus I)
Limited foreign investors to a maximum of one house or two apartments.
Law 2/2026 (Omnibus II)
Raised the foreign investment tax to 6% on a property purchase, jumping immediately to 10% for a second purchase.
Tightened residency requirements for both passive and active (J1) residency — including making the €50,000 bond non-refundable and raising the required investment from €600,000 to €1M.
The goal behind these laws was to significantly curb foreign investment and slow the resulting rise in property prices. Restricting immigration and raising investment thresholds was also a deliberate move to rein in price growth, based on the view that many new J1 and passive residents were buying up housing that would otherwise be available to Andorra's working population.
Is Andorra property still attracting foreign buyers?
Yes. Foreign investment hasn't declined since the laws were introduced to curb it — if anything, it's grown, and now holds steady at around 22% of total purchasing power in Andorra's property market.
When it comes to the nationality of property buyers in Andorra, a clear pattern emerges in terms of total money spent:
Andorran nationals account for 25–30% of spending, who make up 44% of the country's population.
Spanish nationals account for another 25-30% — the largest foreign nationality in Andorra, representing 23% of residents.
French nationals account for 10–15%, representing 5% of Andorran residents.
All other nationalities combined account for 25–30%. This is likely driven mostly by the expat community rather than the South American workers who form the backbone of Andorra's manual labor force.
What's clear from these statistics is that foreign investment continues to be a major driver of purchasing power in Andorra's property market in 2026. A large share of these foreign investors are likely new residents who have held residency for less than three years, though there remains a segment of buy-to-rent investors who haven't been deterred by the foreign investment tax increases in 2024 and again in 2026.
Spanish nationals, meanwhile, represent something closer to Andorra's middle class — largely the country's executive and professional workforce. Notably, their share of property expenditure correlates almost perfectly with their share of the total population, suggesting their buying behaviour is broadly proportional rather than investment-driven.
Who will be buying property in Andorra in 2027?
We suspect 2027 will bring a slight pullback in foreign investment, based largely on the fact that rental yields in Andorra have dropped from a high of 5–6% in 2024–2025 to a more modest 4% this year. This stagnation in property prices throughout 2026 correlates directly with falling yields, which in turn correlate with slowing immigration and a population increasingly priced out of the market.
