Andorra financing guideAnyone looking for a mortgage in Andorra for foreigners meets two gatekeepers: the government, which decides whether a non-resident may buy, and the principality's small group of banks, which decide how much to lend. Here is how both work, what pushes the price of credit up or down, and what to do if you prefer not to borrow locally.
Permission first, loan second
Andorra uses the euro without belonging to the EU, and its rules on foreign property buyers differ from anything in Spain or France next door. Non-residents wishing to buy typically need government authorisation, and the framework and any limits on numbers have shifted over the years. A bank will not complete a loan until that is settled.
That is why most successful buyers speak to an Andorran lawyer before they speak to a lender. Our Andorra consultation guide walks through who can buy, and the Andorra property page shows what is available.
In Andorra, your residency status shapes the loan: decide whether you are buying as a resident or not before you sit down with a bank.
How much will an Andorran bank lend?
Residents with an Andorran work or passive-residency permit can usually borrow more than visitors. A non-resident should plan for around 60-70% of the valuation, with the remainder as cash that the bank will want traced back to its source. Terms rarely run beyond 20 to 25 years.
Rates are built from a euro benchmark, typically Euribor, plus the bank's margin. With few lenders there is less competition than in Spain or Portugal, so a lawyer or broker who knows the local desks can save real money. Many loans are variable; ask whether a fixed period is on offer and what the bank charges if you repay early. Life insurance is commonly demanded and should be counted in the cost.
| Point | Typical position for non-residents |
|---|---|
| Share of value lent | About 60-70% |
| Term | Up to roughly 20-25 years |
| Benchmark | Euribor-linked, margin set by the bank |
| Currency | Euro |
What goes in your application
Andorran banks are strict about money laundering and ask more questions about the origin of funds than lenders in many larger countries. Prepare:
- Passport and proof of where you live.
- Tax returns, payslips or company accounts, translated if not in Catalan, Spanish, French or English.
- Several months of bank statements, plus evidence of the deposit's origin (sale of a home, inheritance, savings).
- The purchase authorisation application or approval.
- The draft deed and a valuation arranged by the bank.
Banks sometimes offer improved terms if you also place investments or accounts with them, so ask what a relationship would be worth.
Residency routes and what they do for borrowing
If you intend to move, the residency options change your borrowing power. Passive residency carries investment and deposit conditions, while work permits tie you to an employer. Banks like to see how long you plan to stay. Weigh this against the principality's low personal taxes: the money you save may exceed the extra cost of a non-resident loan, but only a tax adviser can say.
Costs that sit outside the loan
Andorran purchase costs are modest compared with Spain or France.
| Item | Indication |
|---|---|
| Transfer taxes | Around 4% of price in total |
| Notary and registry | About 1% |
| Estate agent | 3-5%, normally paid by the seller |
| Bank set-up and valuation | Roughly 0.5-1% of the loan |
Alternatives to an Andorran loan
Cash is common. Another route that Andorran banks know well is a Lombard loan, which is credit secured on an investment portfolio rather than the property. A mortgage on a home in your own country may be cheaper than Andorran credit but puts that home at risk. For new-build apartments, ask the developer how deposits are protected before agreeing to staged payments.
Prices are high for the size of the country, so the deposit you can fund yourself decides how realistic your plans are. If you want to talk options, use our contact page, or see cheaper properties in Andorra.
Last updated 8 October 2026
Frequently asked questions
Do I need to live in Andorra to buy a home there?
No, but non-residents generally need government authorisation to complete a purchase. Residents face fewer hurdles and can borrow more.
Which currency would an Andorran mortgage be in?
Euro. That removes exchange risk if you earn in euro, but not if your income is in sterling or dollars.
Is an Andorran mortgage cheaper than one in Spain or France?
Not necessarily. There is less competition among lenders, so margins can be higher. Compare with a loan from your home country before you decide.
Can I borrow against my investments instead of the property?
Yes, many Andorran banks offer Lombard lending, where your portfolio is the security. Rates and conditions depend on what you hold and the bank.
How long does the process take?
Several weeks for the loan, longer when purchase authorisation is also pending. Build in time for the notary and registry.
What do Andorran banks look for in the deposit?
Evidence of where it came from. Be ready to document savings, a property sale or an inheritance in detail.