The Andorran Department of Statistics has released its report on foreign investment in 2025, and it shows a clear trend: property investment is continuing to gather momentum in the country. While the total number of applications for foreign direct investment rose by 4.3%, the volume of completed transactions actually dropped compared to the previous year. However, property investment still grew in terms of both the number of transactions and the overall investment volume.
This article breaks down the key figures and trends.
Table of contents:
- The landscape of foreign direct investment in 2025
Approved and completed investments by sector and origin
Investment in foreign property acquisitions grew in 2025
Spain and France lead the way in foreign property acquisitions
Legislative changes impacting foreign investment
A new era for foreign investment
Are you interested in investing in Andorra?
The landscape of foreign direct investment in 2025
There was a total of 1,352 applications for foreign direct investment in 2025, with 1,218 being approved, 89 rejected, 23 still pending or suspended, and 22 that lapsed.
2025 had more applications than any other year, but also the most rejections – 30 more than in 2024. On the other hand, it saw the fewest lapsed cases.
Of the approved investments, 703 were completed, with a total value of around €118 million. Although the number of finalised deals rose by 36.2%, the total investment value dropped by 21.6% compared to the roughly €150 million recorded in the previous year.
Approved and completed investments by sector and origin
France overtook Spain as the leading investor
Our neighbouring countries continued to dominate foreign investment in Andorra, with France leading the way at 318 investments, followed by Spain with 232. This means that 2025 marked a notable shift in the trend, as it was the first time in recent years that France has surpassed Spain in terms of the number of transactions.
Next in line were the United Kingdom with 23 investments, Belgium with 19, and Germany with 11.
When it comes to investment volume, France topped the list once again at nearly €85 million, followed by Spain at €17 million. Notably, Germany invested €4.4 million, despite recording fewer transactions than countries such as the United Kingdom (€1.5 million) and Belgium (€1.1 million).
The property sector led the growth
Breaking it down by sector, property and services once again accounted for the largest share of foreign investment, although the order was reversed in 2024.
Wholesale and retail trade was the third most active sector, despite experiencing a decline of 53.4% compared to the previous period.
By contrast, the property sector was the fastest-growing, with a 120.5% increase.
Investment in foreign property acquisitions grew in 2025
A total of 843 applications for foreign property investment were recorded in 2025, generating a volume of €514,338,352. This represented a 55.5% increase in the number of transactions and a 35.6% increase in volume compared to the previous year.
The average value of acquisitions was €610,129, which is slightly below the €699,606 reported in 2024. Based on these figures, 2025 was the year with the highest level of foreign property investment since 2019.
Spain and France lead the way in foreign property acquisitions
In terms of country of origin, Spain and France continue to dominate this type of transaction, with 400 and 146 applications respectively.
As for investment volume, Spain accounted for €197,159,080, while France totalled €108,462,068. It is also noteworthy that around €74 million corresponded to residents who have lived in Andorra for less than three years. The remaining countries collectively accounted for €134,488,307.
Legislative changes impacting foreign investment
When it comes to foreign investment, especially in property, the Andorran government has rolled out stricter regulations to curb its impact and encourage more sustainable growth, while also protecting the local housing market.
New tax and conditions for those with less than 3 years of residence
From August 2023 to February 2024, foreign property investment was temporarily suspended until the new tax on foreign investment in property came into force. The new legislation also introduced a requirement for individuals who have been resident in Andorra for less than three years to apply for authorisation to purchase property in the country.
Higher investment requirements from 2025
Subsequently, in April 2025, the omnibus law on sustainable growth measures raised the minimum purchase threshold per property from €400,000 to €600,000. Then, in 2026, this amount rose to €800,000, a change that will be reflected in next year’s report.
These changes have contributed to an increase in foreign investment since 2024.
For more insight into how foreign investment has evolved during this time, you can read the relevant articles here.
A new era for foreign investment
2025 confirmed that foreign investment still plays a major role in Andorra’s economy, especially when it comes to the property market. However, stricter regulations and higher minimum requirements mark a turning point that could influence investor behaviour in the coming years.
Future reports will reveal whether these changes impede the flow of foreign capital or if Andorra continues to attract investors under the new rules.
Are you interested in investing in Andorra?
Foreign investment in Andorra continues to offer attractive opportunities. However, before making any decisions, it is essential to have a solid grasp of the current requirements and new legal restrictions.
If you would like to explore your investment options, understand the impact of the new legislative changes or receive personalised advice, our team can guide you through the entire process. Contact us and we’ll help you find the best investment strategy based on your needs and objectives.