Lucas Fox guide to buying property in Andorra
Lucas Fox's guide to buying property in Andorra is intended as a general overview of the process involved in purchasing a property in Andorra.
We recommend that all of our clients are represented by an independent lawyer who can advise you fully on your purchase of your property in Andorra.
Our buying guide also includes information on tax and residency in Andorra for private individuals and corporate entities.
We hope that you find this buying guide useful please contact us by email or call one of our Sales agents on (+34) 933 562 989 if you require further information.
Buying a property in Andorra
Under the new Law for Foreign Investments that has come into force it is possible now for all Andorra residents to purchase property without any limitations.
Non residents can buy without any limitation as well, but they still have to apply for an authorization from the Andorra government.
Commercial property can only be purchased by foreigners if it is used for their own commercial activity.
A 4% Property Purchase Tax of the agreed purchase price between seller and buyer has to be paid to the Andorra Government whe purchasing a property.
Any non-Andorran citizen has to apply for a buying permit at the Andorra Government by means of an application form called 'Autoritzacio d'inversio estrangera en immobles'. In this form one has to fill in who is the buyer, the property details, the purchase price and the form of payment. Obtaining the authorisation can normally take two weeks or less.
At the moment of signing the Public Title Deed in front of the notary the tax has to be made payable to the Government by means of a bankers cheque from an Andorran banking entity.
By law the seller has to hand over a 'Certificat d'habitabilitat' to the purchaser i.e. a certificate from a locally registered architect stating that the property meets all legal requirements to live in.
When selling a property a Capital Gains Tax rate is applied according to the following scale:
- 15% if you sell your property within 1 year;
- 13% within 2 years;
- 10% within 3 years
- and after that it decreases by 1% each year.
The inflation from the moment of buying until the moment of selling will be taken into account and discounted from Capital Gains.
For those who have been residents for at least five years and have owned a property for at least four years the regulations are different.
For properties with a purchase price between 120.000 and 300.000 euros the fees are approx. 600 euros + 0.1% of the declared selling price.
For properties with a purchase price between 300.000 and 600.000 euros the fees are approx 1.000 euros + 0.1% of the declared selling price.
For properties with a purchase price over 600.000 euros the fees are approx 1.300 euros and 0.1% of the declared selling price.
The purchaser pays notary fees and eventual extra charges for e.g. Powers of Attorney or Mortgage Deeds.