What it costs to buy a home in Andorra in 2026

The standard costs every buyer pays

Whoever you are, buying a resale home in Andorra triggers the property transfer tax (ITP) at 4% of the price, split between the national government (1%) and the parish council, or comu (3%). New-build homes sold for the first time attract the 4.5% indirect tax (IGI) instead.

On top of tax, Andorran advisory firm Invico estimates notary fees of roughly 0.5% to 1.5% on a sliding scale, property registry fees of a few hundred euros, and a foreign investment authorisation fee. Agency fees are customarily paid by the seller. Before the foreign investment tax, total transaction costs typically come to around 5% to 7% of the price.

• Transfer tax (ITP): 4% on resale homes (1% state, 3% parish)
• IGI: 4.5% on first sales of new builds, instead of ITP
• Notary: roughly 0.5% to 1.5%, on a sliding scale
• Registry and authorisation fees: usually under 1,000 euros combined
• Mortgage arrangement fee, if borrowing: around 1% of the loan

The foreign investment tax: now 6% minimum

Andorra introduced a tax on foreign real estate investment with Law 3/2024, originally charged at 3% for a first home, rising through 5% and 8% to 10% for larger portfolios, according to member firm analysis published by IR Global.

Law 2/2026, approved on 22 January 2026 and in force since 13 February 2026, raised the bill significantly: the first residential unit is now taxed at 6%, and other foreign real estate investment at 10%, with the old 5% band eliminated. The property count also reset to zero for transactions authorised after the law came into force, and applications already filed kept the previous regime for a transitional period.

One important relief survives: investors who commit a property to long-term affordable rental for at least ten years can claim a 90% reduction of this tax. Selling early or changing the use triggers repayment with interest.

• 6% on a foreign buyer's first residential unit (was 3%)
• 10% on other foreign real estate investment
• 90% rebate for a ten-year affordable rental commitment
• Charged on top of ITP or IGI, not instead of them

What foreign buyers are actually allowed to purchase

Since the omnibus housing law of 6 March 2025 took effect, foreign investors are limited to either one plot of land for a single-family home, or a maximum of two residential units with their annexes (parking spaces and storage rooms). Speculative development and investment in tourist accommodation are off limits.

Every foreign purchase still needs prior authorisation through the foreign investment registry before signing. There is an administrative fee of around 300 euros, and if the government does not respond within two months the application is deemed refused, so build the authorisation step into your timeline.

• Maximum two residential units, or one plot for one house
• No buying for speculative development or tourist lets
• Prior authorisation required, with a roughly 300 euro fee
• No response within two months counts as refusal

A worked example

Take a 600,000 euro resale apartment bought by a non-resident as their first Andorran property in mid-2026. ITP adds 24,000 euros (4%). The foreign investment tax adds 36,000 euros (6%). Notary and registry fees add roughly 4,000 to 6,000 euros. All in, expect about 64,000 to 66,000 euros in costs, or close to 11% of the price.

By contrast, someone who has just taken up residence in Andorra and is buying a first primary home benefits from an ITP exemption on purchases up to 600,000 euros under the 2025 omnibus law, and residents are outside the foreign investment tax altogether once they meet the residence conditions. The gap between buying as a non-resident and buying as a resident has therefore never been wider.

Selling later: capital gains for non-residents

Exit costs matter too. The 2025 omnibus law set non-resident income tax on property sale gains on a sliding scale by holding period: 25% within two years, 20% between two and five years, and 15% between five and ten years, falling after that. Residents face surtaxes on quick resales as well.

These rates, like everything else in this guide, may change again. Check the Andorran government portal or ask a local notary or tax adviser for the position on the day you sign. Habio's Andorra buyer guides and listings can help you compare what your budget buys across the parishes.