ANDORRA MORTGAGE FOR FOREIGNER AND NON-RESIDENT

ANDORRA MORTGAGE FOR FOREIGNERS WITHOUT RESIDENCY

In Andorra, a mortgage, for a foreigner not living in the principality, is a long-term financial agreement between a non-resident borrower and an Andorran lending institution in which the lender provides a sum of money to finance the acquisition of real estate, while the Andorran property itself serves as collateral to secure the repayment of the loan.

In Andorra, the mortgage functions as a common financial tool that facilitates access to Andorran property ownership, as it allows individuals without residency to purchase real estate without having to provide the full purchase price upfront, thereby spreading the financial burden across many years.

In Andorra, foreigners are particularly drawn to investing in property because of the country’s combination of political stability, favorable tax regime, high quality of life, and the attractiveness of owning real estate in a secure and strategically located microstate in the heart of the Pyrenees.

How can I obtain a mortgage in Andorra without residing in the principality ?

Yes ✅ — it is possible to obtain a mortgage in Andorra without residing in the principality, but the process is more restrictive than for residents.

Here’s how it generally works:

🟢 1. Bank Availability

Most Andorran banks — such as MoraBanc, Andbank, Crèdit Andorrà, and Banc Sabadell d’Andorra — do provide mortgages to non-residents who wish to purchase property in Andorra, especially for investment or holiday homes.

🟢 2. Loan-to-Value (LTV)

While residents may get higher financing, non-residents are usually offered lower LTV ratios, meaning you’ll need a larger down payment (often around 30–40%).

🟢 3. Documentation & Proof of Income

You’ll need to provide proof of stable income abroad, recent tax declarations, bank statements, and valid ID/passport.
Some banks also request that part of the borrower’s assets or savings be deposited in Andorra.

🟢 4. Legal & Practical Steps

You must obtain an Andorran tax identification number (NRT) to buy property.
All property purchases are subject to notary and registration procedures in Andorra.
Many foreigners hire a local lawyer or financial advisor to help manage the mortgage application and property transaction.