Andorra Foreign Investment Surges 219% to €968M in 2025

Foreign investment declared in Andorra surged 219% in 2025 to €967.9 million, according to data released by the Department of Statistics. The figure compares to €303.2 million the previous year, driven largely by a handful of large-scale operations—four approvals alone accounted for nearly €444 million.

The number of investment applications rose more modestly by 4.3%, reaching 1,352. Of these, 1,218 received favourable responses, 89 were rejected and 22 expired. Approved investments totalled €779.8 million in declared value, up 158% from 2024. The patrimonial sector dominated declared volumes at €641.2 million, a 526% increase, though services led in application numbers with 801 filings.

Formalised investments—those notarised after approval—grew in volume at 36.2% to 703 operations, but their total value fell 21.6% to €118.3 million. Average deal size dropped to €168,232 from €292,417. Patrimonial investments led at €77.1 million (65% of the total), followed by services at €33.2 million. Services also topped operation counts with 469, ahead of 160 in patrimonial.

Real estate stood out, with 843 authorised purchases—a 55.5% rise from 542 in 2024 and a record since tracking began in 2012. Their value climbed 35.6% to €514.3 million, or 12.9% of Andorra's GDP, up from 379.2 million the year before. Spain topped origins with 400 operations worth €197 million, followed by France with 146 operations at €108.4 million. Overall formalised investments saw France leading in value at €85.9 million, while Spain had the most operations at 232.

The uptick follows regulatory shifts, including the end of a temporary moratorium on foreign property investment from late 2023 to early 2024 under Law 16/2023, and the introduction of a foreign real estate investment tax via Law 3/2024 in February 2024. The new tax applies to residents with under three years in the country, potentially affecting comparisons with prior years.

Opposition party Concòrdia criticised the trends, arguing government measures have failed to curb foreign property buying amid a housing crisis. The party called for bolder limits on non-resident purchases to protect local access to affordable homes.

Since 2012, cumulative foreign real estate operations total 6,342 worth €2.281 billion. Formalised foreign investment now stands at 3% of GDP, down from 4% in 2024.