Andorra Real Estate
Are you considering investing in Andorra real estate? The purchase of a house or a property in the Principality of Andorra represents a very profitable investment as long as you have good advice. Andorra Partner, a recognized team of experts in the real estate investment sector, puts a wide professional network at the success of your property project.
We work in close collaboration with Andorra’s top real estate agencies, selected for their professionalism. If you wish to relocate or invest in Andorra, a small country renowned for a high quality of life and irresistible tax advantages, do not hesitate to count on the recognized property market consultants at Andorra Partner.
Real Estate Investing in Andorra
Requirements for the purchase of a house or a property in Andorra
- You must be of legal age
- Clean criminal record
Government authorization for foreign investment
To invest in the Andorran real estate sector, governmental authorization is required for non-residents. You are not required to apply for Andorra residency to receive that authorization. When you obtain a government permit, you can make as many real estate acquisitions in the principality as you wish.
To buy a property in Andorra, the foreign investor must present the following documents:
- Certificate attesting no criminal record (with the Apostille of the Hague).
- Certificate of marital status
- The original contract of property purchase
Andorra offers a very interesting fiscal regulation for the real estate investment in Andorra. For foreign investors and Andorran buyers, the purchase of a house or property generates notary fees representing 1% of the sale price. 4% of ITP (Property Transfer Tax) must be added to the purchase value. With help of real estate agents in most cases, the fees reach a maximum of 5%.
Andorra Property Investment Types
- Semi-detached houses
- Country houses or cottages
- Parking spaces
- Commercial premises
- Plots of land
Real Estate Investment: Steps To Follow When Buying Property in Andorra
Since 2012, Andorran legislation on the acquisition of real estate has encouraged residents and non-residents to invest in the Principality. The real estate investment in Andorra consists of a procedure of approximately two months.
There are 5 steps of real estate investment in the Principality of Andorra:
STEP 1: Reservation of the real estate or property
After the signature of the reservation contract between the buyer and the seller, the payment of the deposit validating your promise to buy will be made.
STEP 2: Request for authorization of foreign real estate investment in Andorra
The foreign investment in Andorra – real estate or of any other type – is subject to the authorization of the government.
STEP 3: Preparation and management of the deed of sale
In the process of buying a house or a property in Andorra, one of the four notaries of the country must intervene, who will supervise and take care of the steps related to the deeds of sale of the property.
STEP 4: Signing the contract
Before a notary, the contract of sale will be signed by the seller and the buyer, the latter will pay the value of the property and will become the owner of the property.
STEP 5: The deposit of the contract
To formalize the transaction, the notary public will deposit the contract of sale, duly signed, at the Chamber of Notaries.
Capital Gains Tax on Andorra Property Investment
Within the framework of the sale of real estate, the capital gains tax is levied on the price of the house or the real estate purchased in Andorra whose acquisition is less than 10 years old. The government retains 5% of the capital gains tax for the time necessary to verify that the property is not subject to administrative sanctions and to check the value of the declared property and the calculation of the ITP (Property Transfer Tax). The time invested in this procedure is generally 3 to 6 months.
Inheritance law in Andorra
One of the major advantages of Andorra in the context of real estate investments is that in Andorra, the right of succession is not subject to any tax.
Advantages of Real Estate Investment in Andorra
- More than 300 days of sunshine a year
- Solid healthcare system
- Efficient educational system
- Country among the safest in the world
- Very competitive tax rates
- Absence of inheritance tax and wealth tax
- Interesting sporting and cultural life
- The ideal geographical location between France and Spain
- Touristcly attractive all year round
Andorra Investment in Real Estate: FAQ
When is a good time to invest in real estate in Andorra?
Andorra may be the perfect opportunity for investors looking at the current rebound. Interest rates are favorable, and prices have been rising steadily over the past few years.
Why buy real estate in Andorra?
Due to the situation of the Andorran real estate market, it is most advisable for foreigners to consider purchasing a house. In addition, with a purchase of over €400,000, you can apply for passive residency and other benefits such as tax simplification via an approved company.
Is luxury real estate in Andorra a good investment?
Luxury properties have higher return rates than other types of housing and can be a great investment opportunity. Premium apartment buildings in Andorra offer excellent investments with stable opportunities for profit.