The foreign investment showed two very different faces a Andorra during the 2025. While formalized investment in companies continued to lose strength and reduced its weight to 3% of gross domestic product (GDP)the operations directly linked to the purchase of real estate reached the 514.3 million euros and they represented the 12.9% of GDPthe highest level of the historical series available.
The data of theEconomic Report 2025 of the Chamber of Commerce, Industry and Services highlight this divergent evolution. Formalized foreign investment stood at 118.3 million euros and chained the fourth consecutive year of decline. His weight on him GDP has been particularly significantly reduced since the peak of 19.3% registered in 2021 and is already below pre-pandemic levels.
Foreign investment has chained together four consecutive years of decline
The decrease affects practically all activities. Foreign investment destined to the provision of services went from 71.3 million euros from 2024 to the 33.2 million in 2025. In the hotel industry, the fall was even more pronounced, from 21 million to 2.3 millionwhile real estate development and construction went from11.7 million to only 500,000 euros. The commercial sector also declined, from 11.9 to 4.6 million.
Real estate capital exceeds four times the flows destined for companies
The exception was patrimonial activity, which more than doubled the volume of investment, from 35 million to 77.1 million. This category already accounts for 65% of all foreign investment formalized during the year, well ahead of the provision of services, which represents the 28%. The rest of the activities individually have a weight lower than 5%
France led a significant change and became the main source of formalized foreign investment by contributing 86 million euros, the 73% of the totalin front ofl 9% of the previous year. Spain, traditionally the main investor, was in second place with 17 million and a weight of 14.4%.
The behavior of investment destined to companies contrasts with the evolution of foreign real estate investment. Requests went from 542 in 2024 a 843 in 2025while the total amount reached the 514.3 million eurosone 35.6% more. This amount is equal to 12.9% of Andorran GDP and represents the highest record of the series available.
Considerable difference
The difference between both magnitudes is considerable. The volume of foreign investment it was more than four times higher than that formalized in companies during the same year. The figures thus show that the attractiveness of the real estate market advanced in parallel with the setback experienced by the flows directed to a large part of the business activities.
The Chamber warns, however, that the comparison is conditioned by the regulatory changes. From the 2024residents who do not prove at least three years of effective residence in the Principality are also considered foreign investors for these purposes. In addition, between the third quarter of 2023 and the first of 2024 the temporary suspension of foreign real estate investment was in force, a circumstance that reduced operations during that period and may have influenced the subsequent upswing. Real estate dynamism is also reflected in the market as a whole. During 2025 they were carried out 2,175 transactionsone 35.3% more than the previous year and the highest number since the start of the available series in 2010. Escaldes-Engordany happened from 218 to 432 operations i Canilloof 259 to 423.
The figures thus draw a change in the composition of foreign capital flows. While business investment continues to recede and is increasingly concentrated in heritage activities, real estate purchases remain a strong attraction for foreign capital and reach unprecedented highs.
