Who can buy real estate in Andorra?
Any individual, whether or not he/she is a resident of Andorra, can buy a property in the Principality of Andorra. They must be of legal age and foreigners must also present proof that they do not have a previous criminal record. With any new tenants looking to buy/rent homes or apartments, there is always the chance that a landlord will do a tenant screening and background check for a criminal record (see this to learn more) so that they are fully covered. This applies across the globe from Andorra to America, so any foreign nationals looking to move to a country like America will more than likely go through the same process that is happening here.
However, individuals not resident in Andorra and who do not have Andorran nationality, individuals with effective and permanent residence in Andorra without economic rights and legal entities domiciled abroad must apply for a foreign investment authorization (Autorització d’inversió estrangera en immobles), which is obtained within 15 days.
Prices and taxes related to the purchase of real estate and housing in Andorra do not distinguish between Andorran and foreign persons. Non-residents in Andorra can buy the properties they wish, either for enjoyment or as an investment. But, it’s not the only way you might end up being an owner of a new property in someplace like Andorra. Another way can be through inheritance, which might make things complicated. To resolve such problems, you might have to contact some law firm to gain assistance and legal advice about inheritance tax. There can be other aspects to it that you can learn through a quick google search.
How has the price of renting and buying real estate in Andorra has changed?
Prices vary considerably depending on the parish you look at. In general, the trend in recent months has been upward. In February 2020, the average purchase price per square meter in the country was 3,500 euros and last January 2021 it was around 3,650 euros. Below you can see, on average, the approximate purchase prices per parish:
|Escaldes d’Engordany||4.700 euros per square meter|
|Andorra la Vella||4.200 euros per square meter|
|Canillo||3.700 euros per square meter|
|Ordino||3.500 euros per square meter|
|La Massana||3.200 euros per square meter|
|Encamp||3.160 euros per square meter|
|Sant Juli de Lòria||3.000 euros per square meter|
Regarding rents, prices can be, on average, around 14 euros per square meter. There are more expensive parishes, such as Canillo, where the square meter can reach 16 euros. Take into account that in recent months, end of 2020 and beginning of 2021, the availability of rental housing has decreased in Andorra causing a rise in prices. If you’re truly looking to purchase a property in Andorra when you’re living elsewhere, then it will always be advantageous to look into overseas mortgage consultants that can help you from the researching to the purchase of the property. If you’d like to learn more, the likes of this source: Simon Conn, or other similar international mortgage consultant companies.
What are the steps to follow for the purchase of a property?
The process is not very different from any other country. The responsibility of looking for the property falls on the interested party. No matter where you’re looking to buy, there is an important network of real estate agents Greensboro to which you can turn to. It is important to verify that the real estate agent is registered with the AGIA (Col legi Professional d’Agents i Gestors Immobiliaris d’Andorra) as only duly registered agents can carry out this work in the Principality.
An application for foreign investment in Andorra must be completed. The official languages to complete this document are Catalan, French or Spanish. To have a bank account in an Andorran bank before the purchase of the property is essential since the payments to be made will have to be done from your bank.
For the paperwork in Andorra related to the government, tax and banking, you can turn to a consultant like Andorra Solutions that will guide you in each of the steps to be taken in a clear, efficient and professional manner. We have personalized assistance in several languages to facilitate foreign clients their procedures in Andorra.
The following is a summary of the steps to follow:
|Residents in Andorra||Non-residents in Andorra|
|Buying a property||OK||Authorization from the “Govern”: Easy to obtain and takes about 15 days|
|Purchase process||10% to hold the purchase||10% to hold the purchase|
|Opening a bank account||OK||Anti-money laundering compliance, justifying origin of funds|
|Notary||Transfer of property
Changing the name on the title deeds
|Transfer of property
Changing the name on the title deeds
|Paying taxes||Local taxes + Property Transfer Tax||Local taxes + Property Transfer Tax|
Can non-Andorran residents rent a property in Andorra?
The country allows citizens residing outside Andorra to rent a property. It is sufficient to identify yourself properly with your ID card or passport. It should be noted that the opening of a bank account in Andorra will be essential. The registration and payment of services such as electricity, water, home insurance, Internet, etc. must be done by direct debit.
As a minimum, you must take out a housing insurance policy. You must also have the amount equivalent to 4 months of rent where 1 month is taken by the real estate agency as commission, the current month’s rent and 2 months of deposit. The contract is usually for a minimum of 5 years. You are obliged to pay local taxes for the maintenance of infrastructures, lighting, cleaning, etc.
Notary fees and taxes when buying a property in Andorra
The mediation of a notary is mandatory in the purchase and sale of real estate in Andorra. He will impartially supervise the purchase of the property for the guarantee of both parties. The buyer is responsible for the total payment of the notary fees, and also for the taxes involved in the purchase, which must be paid through an Andorran bank.
Notary fees are 0.1% of the sale price of the property. To this must be added between 600 and 1,300 euros, depending on the sale price of the property. The total taxes amount to 4% of the sale value of the property, divided between the “Comú” and the central government.