PROPERTY BUYING GUIDE IN ANDORRA

Since the property purchase laws for both residents and non-residents got relaxed in 2012, buying property in Andorra has got simpler. Now international non-residents and companies have the right to buy real estate in Andorra without any limits. For non-residents, certain conditions apply for commercial property investors. All real estate transactions should only be conducted via agencies accredited by AGIA (Association of Real Estate Agencies of Andorra). This assures the buyer that the property price is in-line with the market prices and that professional conduct has been undertaken throughout the whole process.

NON-RESIDENT COMMERCIAL & RESIDENTIAL ANDORRAN PROPERTY BUYERS

Non-residents may buy property without any limitation however, they will need to get an authorisation from the Andorran Government. Properties may be reserved verbally with the seller ‘in good faith’, until the buyer gets this document.

The ‘Autorització d’inversio estrangera en immobles’ is relatively simple to acquire and normally takes a fortnight or less to turn around. It must be completed in either French, Spanish or Catalan (or filled out with a certified translation).

Note: For non-residents, commercial properties need to be used for their own commercial activity.

THE PROPERTY BUYING PROCESS IN ANDORRA

Once non-residents have received their ‘Autorització d’inversio estrangera en immobles’, they may then continue with the sale process.

The buyer pays 10% of the agreed purchase price of the property as a deposit. This is a non-refundable deposit to avoid withdrawal from the property sale transaction on unreasonable grounds.

A notary will oversee the property purchase and on the day of signing, the buyer shows that the remaining payment of price of the property has been made. The transfer of the title deed ‘Escriptura Pública’ is given to the buyer.

At the same time, the property seller must provide a ‘Certificat d’habitabilitat’ from a local registered architect. It states that the property meets all legal requirements for property to be classified as ‘habitable’.

PROPERTY TAXES & NOTARY FEES IN ANDORRA

The property buyer must cover the notary fees for the purchase.

These typically cover a fee based on the selling price of the property as a fixed sum. Typically, they range from 600 – 1,300€ + 0.1% of the selling price of the property.

The property buyer must pay a property purchase tax of 4% of the final agreed selling price to the Andorran Government.

This is comprised of two taxes: 3% goes to the local ‘Comu’ and the remaining 1% as an "Impost de Transmissions Patrimonials" to the Government.

Property buyers in Andorra have to pay taxes via banks in Andorra, where they have enough available funds. This tax is paid via a banker’s cheque from a bank in Andorra.

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