New Foreign Real Estate Investment Tax in Andorra 2026
The Andorran real estate market is experiencing a significant change of direction. With the approval of the so-called Omnibus 2 Law and the publication of Decree 58/2026 in the BOPA on February 26, the Government has updated the regulations governing the Foreign Real Estate Investment Tax (IEI).
The main objective of this modification is to protect the Principality’s housing stock and promote sustainable growth. From now on, non-resident individuals (or those with less than three years of effective residency in the last decade) and foreign entities will face a higher tax burden when acquiring properties.
What changes? The new IEI tax rates
The most notable news for foreign investors is that the rates have doubled compared to previous legislation. Specifically, the new tax framework establishes the following quotas for property purchases:
- ✓ First property: The tax rate goes from 3% to 6%.
- ✓ Second home and subsequent: The rate rises from 5% to 10%.
- ✓ Destination of the collection: All extra income generated by the State will be allocated to policies promoting affordable renting and economic diversification projects.
Simplification of procedures and exemptions
Despite the tax increase, the new decree also seeks to streamline bureaucracy. The obligation to submit the declaration to the Department of Taxes and Borders for operations that meet the exemption requirements has been eliminated. Now, it will be enough to accredit it directly before a notary at the time of signing the sale.
However, there is an important exception: if the property is acquired for a commercial activity, it will be essential to obtain a prior resolution from the Tax Department validating the corresponding exemption.
📄 Official Documentation: You can consult the full texts of this regulatory modification directly in the official BOPA documents:
Do you have doubts about how this new tax affects you?
Triple A’s team of tax experts is at your disposal to analyze your real estate operation and guarantee compliance with all tax obligations with maximum agility.
