Investing in Andorra: foreign investment authorisation

Investing in Andorra begins with knowing which requirements apply to your transaction. Setting up a company, acquiring a stake in a business or buying a property may require foreign investment authorisation before the investment is formalised.

Preparing for this step in advance allows you to organise the paperwork, work out the costs and coordinate the next stages of the project.

When do you need foreign investment authorisation?

The rules distinguish between foreign direct investment, linked to holdings in businesses, and foreign property investment.

As a general rule, direct investment requires prior authorisation. There is an exception for certain holdings of 10% or less, provided the legal conditions on total foreign ownership of the company are also met.

In property, the regime can apply both to non-residents and to residents who cannot prove at least three years of effective and permanent residence within the ten years preceding the application. It also covers certain cases of investment through companies. Holding residence in Andorra is therefore not enough, on its own, to rule out this procedure. See the foreign investment legislation.

How to prepare the application

1. Define the transaction

Before opening the file, be clear about what you want to do: set up a company, buy into an existing company or acquire a property.

It is worth identifying who is investing, the planned amount, the ownership structure and the purpose of the investment. These decisions will help determine which procedure applies.

2. Gather the documentation

The Administration checks the investor’s identity, the business activity and the source of funds. The documentation must follow the official form and reflect the specifics of each transaction.

To prepare, organise the personal or corporate information, the project description and the relevant financial evidence. A consistent file makes it easier to respond to any requests for further information. Foreign Investment Regulation.

3. Submit the file and pay the fee

The Government’s e-administration portal has a dedicated procedure for applying for authorisation. It currently lists a fee of €300 for both direct and property investment.

This fee covers the authorisation only: the budget for the transaction must also allow for any applicable taxes and costs. Official foreign investment procedure.

How long does a decision take?

The general maximum period is two months, which may be extended by one month. If additional documents are requested, the clock stops until they are provided.

Administrative silence counts as a refusal: no response does not amount to authorisation. These timescales should be factored in when planning the signing and the commitments of the transaction. Foreign Investment Regulation.

What happens once you have authorisation

A favourable decision clears the way to formalise the investment. This must be done within the period stated in the authorisation or, if none is stated, within the general period of six months. The relevant declaration and registration obligations must then be met. Foreign Investment Regulation.

For business projects, the requirement of genuine economic activity set out in the law must also be met. Obtaining authorisation is one part of the process of establishing the business. Applicable legislation.

If you are buying property, review the tax position

Property investment has its own limits and conditions. In addition, since the 2026 reform, the rates of the tax on foreign property investment have risen to 6% for the first property and 10% for a second home, in the cases concerned.

Before working out the final cost, any possible exemptions and the applicable transitional arrangements should be checked. Official Andorran Government information on the reform.

Take the first step with K Level

A well-prepared investment begins with understanding which requirements affect your project. Reviewing the transaction before committing to dates or amounts lets you move forward with greater clarity.

Considering investing in Andorra? Contact K Level and tell us about your project.