People often come to Andorra for the wrong reasons — a tax rate — and stay for the right ones: valleys where buildable land is scarce by geography, a well-kept housing stock, structural rental demand carried by the mountain. We work there because we know its building sites, not because its tax system would make a strategy.
The framework, without fantasy
Andorran corporate tax is 10% — 5% on the first bracket of profit for small structures. Property transfers bear a tax of about 4%, settled at the notary's. It is a simple, legible framework; it is not a framework without rules.
Because the Principality has closed the door on speculative real estate: since the 2024 law on foreign real estate investment — retouched in 2025 —, acquisitions by non-residents bear a specific, progressive tax, from a few percent for a measured first acquisition up to 10% for multiple acquisitions or large-scale projects. And any Andorran company held 50% or more by foreign interests must obtain prior government authorisation before acquiring. The era of quietly "parking" money in Andorran property is over — and in our view, that is good news for those who actually build.
A small country that protects its land also protects those who build on it seriously. The barrier to entry is a barrier to mediocrity.
Building for the mountain
Technically, Andorra is a country of granite, snow and slope. You build heavy there: thick walls, roofs sized for snow load, serious drainage — the hillside sends water toward the foundations, always. Materials are chosen for their freeze-thaw behaviour; local stone and larch age well, cheap renders age badly. The calendar belongs to the climate: structural work is set between two winters, and a site that misses its window waits a year.
What this means in an operation
For an investment vehicle, Andorra requires a double reading. The legal one: foreign investment authorisation, the specific acquisition tax, adapted local structuring — steps that lengthen the entry calendar and must appear in the cash-flow plan from day one. The operational one: a narrow market where build quality shows, where firms all know one another, and where a developer's reputation is built site after site. Our Andorran operations move slowly on purpose — the residence we are reviewing in the heart of the Pyrenees shows it: in the Principality more than elsewhere, patience is an investment policy.