Real estate investment
Investing in Andorran real estate: choose the right transaction and manage its execution
Real estate investment in Andorra can take three very different forms: buying a property outright, participating in a development or investing in a company that owns or develops assets. Each option comes with different rights, risks and ways to exit.
SOL Fiscal looks at the property project alongside its financing, tax treatment and the investor’s circumstances. We work with the notary, bank, legal and tax advisers, estate agent and, where needed, technical professionals. The aim is to carry out the relevant checks, clarify responsibilities and see the transaction through to completion.
Legal and tax framework checked on 16 October 2026. The applicable rules depend on factors including the investor’s profile, the property, the ownership structure and the transaction date.
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Ways to invest
Purchase, development or participation: what kind of investment is it?
Buy a property directly
You become the owner of an apartment, house, plot of land, commercial premises or building. The review covers title, encumbrances, planning status, property condition, existing contracts, financing, intended use and resale terms.
The decision depends on whether the property will be your home, a rental, business premises or an asset held as part of your wealth. Private use of a company-owned property must be treated as such. Company ownership does not turn private use into a business expense.
Participate in a property development
Check at the outset whether the project is eligible. Foreign investment in property development is generally prohibited, subject to exceptions that depend, among other factors, on intended rental use and the parish’s planning situation. Restrictions on tourist apartments and dwellings authorised for tourist use must also be checked. Review these rules before funding or taking a stake in the project (Law 5/2025, Article 9, current version incorporating the 2026 amendments).
You fund a project that still needs to be designed, approved, built or marketed. Its value depends on the land, development rights, approvals, budget, construction contracts, financing, sales and the operator’s ability to complete the project.
The contract must specify which milestones trigger payments, what information investors receive, which decisions are reserved, how overruns are handled, what security and distributions apply, and the exit terms. Commercial projections cannot take the place of these rights or ongoing oversight.
Invest in a real estate company or vehicle
You hold shares, other securities or a claim against a company, and may have no direct ownership of the property. Review the articles of association, shareholders’ agreement, debt terms, agreements with shareholders or the operator, information rights, capital calls, distribution policy and transfer mechanisms.
Acquiring shares in a property company may also be subject to specific tax and foreign investment rules. Establish the legal classification before signing, looking beyond the name given to the vehicle.
Clarify the nature of the transaction before I commitBefore signing
Organise the checks before
committing
Before you commit, we arrange a review of rights over the property, contracts, permits, financing and tax within the scope of our engagement. The terms must say what happens to funds if the transaction is refused, delayed or changed. We coordinate technical checks and legal instruments with the relevant professionals.
A purchase subject to the foreign real estate investment regime generally requires prior authorisation. Assess the buyer’s profile, previous acquisitions, ownership structure and intended use. Even after obtaining authorisation and paying tax, check the restrictions specific to the transaction.
Transfer taxation — ITP or IGI depending on the seller and the transaction — and any foreign investment tax are assessed separately. The budget also includes completion, financing, holding and exit costs.
2026 reference point. The main rates of foreign real estate investment tax have been 6% and 10% since 13 February 2026. Check the statutory bands, previous investments, any relief and transitional provisions. For older cases, the application date, commitments, payments and evidence submitted on time all matter. The approval date alone cannot determine which rules apply.
To prepare your case: checks to make before signing and purchase taxes and costs.
Financing and ownership
Financing and ownership: choose a
structure that works over time
Funds · Bank · Security
project
Use · Rights · Governance
Prepare the funding and banking arrangements
Funding can combine personal funds, bank credit, an equity contribution or a shareholder advance. Each source must be available at the right time, traceable and consistent with the contracts. The bank will look at matters such as the source of funds, income, any interposed companies, the project and the security offered.
When a French company funds an Andorran subsidiary or project, agree on the benefit to each entity, the corporate resolution, financing agreement, any remuneration, repayment and accounting and tax treatment before transferring funds. Funding the project and making company funds available for personal use are separate matters.
Buy personally or through a company?
Whether you need a company depends on the property’s use, the shareholders, financing, income, governance, any planned transfer and the cost of running the structure.
Direct ownership may be the clearest option for a home you use yourself. A separate structure can suit a rental business, a joint investment, a development or assets that need formal governance. It must serve a real purpose and remain manageable.
Living in Andorra does not remove the consequences in France. The investor’s tax position, assets retained in France, companies providing financing, previous gifts and succession plans may need to be assessed in both countries.
Set up a company or a structure that serves a purpose in Andorra
Assess returns through cash flow
An advertised return does not show what the investor actually keeps. Compare expected rents or distributions with the price actually paid, taxes, charges, vacancy periods, maintenance, management, financing and works.
For a development or participation, the duration, capital calls, repayment priority, fees, decision-making rights and exit terms matter as much as the projected result. SOL Fiscal does not guarantee returns or resale. The firm helps you understand the assumptions, rights and commitments before you decide.
Further reading: prepare for banking in Andorra and decide how real estate fits into your wealth.
Completion and follow-up
See the transaction through and follow up
on what was signed
Once the decision has been made, we organise the work assigned to the firm and communication with the other parties involved. Depending on the case, this may include:
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classify the purchase, development or participation and identify the permits and taxes to address;
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gather documents on the property, companies, financing and source of funds;
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arrange for the appropriate professional to review the contracts and record the terms to amend or accept;
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coordinate corporate decisions and work with the bank, notary, French and Andorran advisers and technical professionals;
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check that the agreed conditions are met before payments are made and documents are signed;
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assemble the legal instruments, supporting records and filings after completion.
Follow-up continues for obligations under the contract
After the purchase or investment, there may still be rents and charges to account for, returns to file, agreements to comply with, information to receive, works to monitor or shareholder decisions to prepare.
For a stake in a project, follow-up also covers the vehicle’s accounts, debt, capital calls, budget variances, sales, distributions and exit terms. For a directly owned property, it covers rental, works, financing, use and changes in the family’s plans.
Written responsibilities for each professional
The notary, architect, estate agent, bank, lawyer and technical expert retain their respective roles. We clarify who checks what, which decisions need your approval and which documents must be delivered. Your existing advisers in France can remain involved in the reviews relevant to them.
The engagement and fees distinguish SOL Fiscal’s work, administrative expenses, third-party fees and recurring follow-up. If the transaction changes, we review the scope before starting any additional work.
FAQ
Frequently asked questions about
real estate investment in Andorra
Do I need to set up a company to buy?
No. A company should serve a specific purpose: renting out property, investing jointly, developing a project, organising governance or separating an asset from a business. For a home you use yourself, a structure can add costs and obligations without a practical benefit.
Can a French company fund an Andorran investment?
Taking a stake, making a contribution or advancing funds to a subsidiary can be considered. Review the benefit to the company, resolutions, agreement, financial terms, accounting, taxation and the bank’s requirements. Financing a director’s private asset requires a different assessment.
Does buying property automatically grant residence?
No. Property can be part of some relocation plans or residence categories, but residence permits have their own requirements. Check the residence category, required presence, eligible investments and family circumstances separately as of the date of the application.
What documents should I provide for an initial review?
Tell us what you want to use the property for and provide the listing or project file, draft reservation agreement or contract, the identity of the parties, price, requested payments and proposed financing. If a company is involved, include its organisation chart, articles of association and latest accounts. We then complete the list based on the case.
How are follow-up and fees arranged?
The proposal sets out the analyses, documents, procedures and coordination assigned to the firm. Notarial, banking and administrative costs and other advisers’ fees are listed separately. Post-signing follow-up is included in the engagement when needed.
A property decision should remain easy to understand
The right project may be straightforward. Depending on your objective, we may recommend buying directly, keeping an existing structure, setting up a vehicle that serves a clear purpose or declining the transaction on the proposed terms.
SOL Fiscal combines legal and tax analysis with implementation and follow-up. Matthieu Bech works as a legal specialist in French tax law and cross-border procedures and as an economist registered with the COEA under number 297. Work that falls within another profession’s remit is arranged with the relevant professionals.
Contact
Tell us about your property project
Tell us whether you plan to buy a property, take part in a development or acquire a stake. Include the intended use, the people or companies involved, the proposed financing and the documents you have already received.
A few lines are enough to prepare for the first discussion. We’ll then let you know which documents are useful.
Official references
- Law 5/2025, Title I, current version incorporating the 2026 amendments; Law 2/2026, in particular Article 29 and the first transitional provision; Law 11/2012 on IGI.
- Andorran regulations of 9 April 2025 on foreign investment, covering authorisation, reporting and registration procedures.
- Law 3/2024 on the foreign real estate investment tax, consolidated text incorporating the 2025 and 2026 amendments.
- Decree 58/2026 of 25 February 2026, amending the regulations for this tax.
- Andorran law on real estate transfer tax, consolidated text.