What are the advantages of buying a car in Andorra?
Buy vs import car in Andorra? Andorra is popular in neighboring countries due to the lower tax burden compared to that of France or Spain. This led people from all over the world to visit to buy products, including second hand cars or new cars in Andorra.
One of the advantages of buying a car in Andorra or being a resident in Andorra, is that the VAT, known as IGI in Andorra, has a maximum rate of 4.5%.
This means that one of the advantages of buying a car in Andorra is that the indirect taxes are cheaper than for example in Spain or France.
Advantages of buying a car in Andorra
As we have said, one of the advantages of buying a car in Andorra instead of buying a car in Spain or in another country, lies mainly in the VAT.
It is therefore a fiscal issue since the registration process and formalities are also cheaper.
Disadvantages and problems of buying a car in Andorra
Now, buying a car in Andorra means that there is a smaller market for cars in Andorra.
This is because there are obviously fewer cars in Andorra than in Spain, as the population is much smaller. Therefore, the second hand market is somewhat smaller and therefore more complex.
That is why many people in Andorra, with residence in Andorra, prefer to import a car either new, zero kilometer or second hand to Andorra.
Here we explain everything related to importing a vehicle in Andorra.
What do I have to do to buy a car in Andorra?
To buy a car in Andorra and have it registered in Andorra, you need to be a resident of Andorra and you will also have to get your driving license approved.
If you want to buy the car in Andorra and then register it in other countries such as Spain or France, you have to take into account that you do not need any documentation in Andorra, you will only have to export the vehicle in Andorra and import the vehicle in Spain.
This is a bit complex, but we can also help you to import a car in Andorra and import a car in Spain.
How to choose a car dealer in Andorra?
There are different car dealerships in Andorra that will be able to help you buy a car in the country.
However, be careful to get a good warranty, as all dealers must give you the warranty and full documentation of the vehicle.
The vehicle papers are essential, so if you want to export the vehicle to Spain or outside the Principality, you will need the vehicle’s technical data sheet, the yellow letter («carta groga») and to have the ITV passed as well as any extras that have gone through the homologation process.
At this point, if you have bought the car in Andorra, you will have all the necessary documentation and information to have the car’s permit.
How a new resident can bring his car or motorcycle to Andorra.
Importing any car to Andorra can take place, but vehicles must meet certain requirements such as the following:
- Cars older than 25 years can be allowed here and are considered classics. It has a different import system and each import process has different procedures. The age of a vehicle must be 25 years old in order to import a car as a classic car.
- Import taxes are mainly calculated based on the market prices of almost all types of vehicles. If a vehicle cannot be purchased outside the European Union, it will incur heavy duties.
- It must have the environmental consideration of EURO V or higher.
Buying a car in Andorra or importing it from Spain
The other concern relates to Andorrans living here.
By obtaining residency in Andorra, citizens can register their cars and licenses in the country for a maximum of one year.
Why import cars from Spain to Andorra? Well, it turns out that, when buying vs. importing a car in Andorra, if we take into account that we buy a car with a Spanish license plate, despite having to do some paperwork (in this paperwork we can help you), you will be able to deduct 21% of the Spanish VAT when importing a car, and when importing it in the Principality, residents must pay 4.5% of the market valuation of those vehicles.
Therefore, the tax saving is very important, but check the formalities with the Andorran tax office (or if you prefer, leave it in our hands).
Types of vehicles that can be imported into Andorra
As far as automobile imports are concerned, all types of vehicles can be imported, including all automobiles (provided they meet certain conditions) – motorcycles, boats, yachts, etc.
These automobiles must satisfy the import requirements and the required documentation.
Importing a car from Andorra to Spain
Tourists visiting this Principality who are foreigners, often consider buying a car in Andorra and exporting the car as Spanish citizens to Spain.
Andorra offers very low taxes that are attractive and it is tempting to think about a car that can be taken to the country.
However, you should keep in mind that when importing a car in Spain, you will have to pay the Spanish tax and this tax is higher than the tax of the Andorran country.
Import Process
For the process of importing a vehicle to Andorra, it is very important that you have all the documentation and that the same documentation is in order.
Keep in mind that in order to import a car you will need to have the specific permit and also pay the relevant tax and fees.
You have more information here.
Necessary requirements
However, the import process is subject to certain regulations regarding the condition of the vehicle, manufacture, name of the vehicle, required permit, etc.
Specifically, it is necessary that the vehicle in Andorra complies with the regulations in question. If you need more information on this point, do not hesitate to contact us.
As for the problem of license plates and the change of license plates from one country to another, please note that it is not done at the border physically, but at the border you will only import from one country and export from another.
The license plate will be given to you by the RACC in Andorra.
Car registration form already homologated
This administrative management in ITV is crucial as you will need it when passing the ITV in Andorra.
This is a document that must be taken to the government for the corresponding homologation and later the declaration of the car as an Andorran car.
You need a certificate that the car is homologated and thus have everything in order before gathering the necessary documents to import a car in Andorra.
If you need advice on this point, we can help you throughout the process, as we have extensive experience in the import and export of vehicles in Andorra and in Spain and France.
Personalized license plates in Andorra for your vehicle
In Andorra you can customize the registration of a vehicle.
Our team will help with the registration in Andorra. This requires residence in Andorra for all persons interested in this procedure.
The process takes about 15 days. Vehicle owners must exchange their old license plates for the new personalized plates. In case the car is sold, you can continue to use your personalized license plates.
In addition you will also have to modify the yellow letter (certificate of circulation) and the insurance of your car, you will have to have all the documents up to date.
Driving license and car in Andorra
Residents of Andorra, once they finish with the residency paperwork, must proceed to change their Spanish driving license (or their nationality in any case) for the Andorran driving license.
In our web page you have a lot of information about this change of document. If you need help in this procedure, you can consult us without obligation, we will help you to obtain the medical certificate if you need it to make the change of driving license.
Andorra’s tax system
The advantages are obvious in Andorra, where taxes are very low.
VAT in Spain is 21%, while VAT rates in Andorra have a maximum of 4.5%. In France, the rate is close to 20%. The minimum price for products in the health or cultural services categories is 1%.
Even corporate taxes, which can exceed 40% in Spain, rarely reach 10% in Andorra.
Compared to the Spanish or French tax authorities the Andorran state has a more competitive offer when it comes to tax assessment. That is why many people in recent years have changed their registration from one country to another, looking to save money through tax savings by obtaining a residence card in Andorra. It is also possible to obtain the residence card through the purchase of a real estate in the country.
Contact with us
If you have any questions, just contact us. Tell us your name and your query and one of our expert lawyers will make an initial assessment of your specific case.
We help you to import your car and to comply with all the procedures for the homologation of the driving license.
Do not hesitate to contact us if you have any questions.
