Can you rent a house in Andorra? Can I buy an apartment in Andorra, from Spain or another country? The answer is yes, if you can buy an apartment or a house in Andorra not residing in Andorra.
Andorrans are booming in terms of property. The real estate market is growing disproportionately in recent years in Andorra. However, it responds to the current supply and demand in the Principality of Andorra. Therefore, it is possible that buying an Andorran apartment is currently an ideal investment.
Current Situation
Andorra has a limited property market. However, many people continue to move their habitual residence to the Principality in order to avoid the high taxation of neighboring countries. This has meant that the market is still in demand, but there is less and less supply as the territory of the Principality no longer has so much buildable land. In other words, the land is what it is and little can be built if there is no more space left in the country.
However, improvements and solutions for this very active market have included the construction of 5 towers on 20 floors in Escaldes Engordany. The towers are intended for luxury housing and office buildings. This house will be priced between 360,000 and millions of euros. Currently, almost all the houses offered in these towers are sold. So getting a property in these towers is currently a great investment opportunity, as this type of product in this parish will not be given again.
Buying a house in Andorra being Spanish – I don’t live in Andorra, can I buy an apartment in Andorra?
Any foreign investor can invest in Andorra in real estate and other businesses. However, a procedure must be followed which can delay the purchase of the apartments in Andorra for at least one week to ten days. The process is called the real estate investment permit for foreigners. This is a new permit that allows anyone in Andorra to buy and invest in the country.
How to Buy a Flat in Andorra?
Once you have contacted the different real estate agencies in Andorra and you have found the property you are looking for either for rent, sale or construction, you will need to go through the foreign investment process we have talked about. The purpose of this process is to know the users that will make the purchase, their purposes and the link that they will have with the country, for example if it will be a single investment, if it will be a single user or more users, the interest they have in the country, etc.
Foreign Investment in Real Estate
This process, as we have said, does not take more than 15 days, but it is here where the Government of Andorra performs an analysis of the user and a comparison of the data provided by the user. These data as well as the user’s consent are very important. The Government tries to cross-check the information and thus avoid possible frauds.
What documents do I need and how long does it take?
The contents to be provided by the partner or the investor are the following:
- Apostilled criminal record certificate.
- Notarized and apostilled photocopy of the Identity Card or Passport.
- Form of investment in real estate in Andorra.
- Personal data.
- Data of the property and its characteristics.
- Purpose of the purchase in Andorra and other related information.
Will I get a mortgage in Andorra?
Currently, Andorran banks grant mortgages without problems to those who do reside in Andorra and who can prove at least 20% of the total amount requested.
These are the main Andorran banks at present:
credit andorra
mora banc
andbank
However, any person can open a bank account in Andorra despite not being a resident in the country, either to make the purchase of the apartment or to receive later, for example, the rent of the apartment.
Which is the best area to invest in real estate in Andorra?
Andorra is divided into seven parishes, each parish has its own charm and it is complicated in this sense to compare them, as each of them responds to different characteristics.
Which is the best area to live in Andorra? Depending on the characteristics you are looking for, you will be able to choose the best area for you. For example, if you need to be in the center and have services nearby, Escaldes Engordany is one of the areas that can best suit your needs.
Here we also explain in more detail which areas you should avoid.
What taxes are to be paid when buying an apartment in Andorra?
Transfer Tax
This tax must be paid by the person interested in buying an apartment or any other real estate property in Andorra.
The rate of this tax is the combination of a «state» rate and a «parish» rate. That is to say, it is to set up a 1% on the total value that will go directly to the Government with a rate ranging between 0.5% and 3% depending on the Comú.
Therefore, the party interested in buying a real estate in the Principality will have to pay this tax which will range between 1.5% and 4%.
Capital Gains Tax
Buying an apartment in Andorra implies that the seller must pay a capital gains tax if he has made a profit between the purchase and the sale of the flat. In some cases, this implies having to pay this tax and in some cases this tax does not apply, for example in the case of not having made a profit on it.
The rate contained in the following table is the applicable rate depending on the case:
| NUMBER OF YEARS OWNED BY SELLER |
APPLICABLE TAX RATE |
| 1 Year | 15% |
| 1 year and 1 day – 2 Years | 14% |
| 2 years and 1 day – 3 Years | 13% |
| 3 years and 1 day – 4 Years | 12% |
| 4 years and 1 day – 5 Years | 10% |
| 5 years and 1 day – 6 Years | 8% |
| 6 years and 1 day – 7 Years | 6% |
| 7 years and 1 day – 8 Years | 4% |
| 8 years and 1 day – 9 Years | 2% |
| 9 years and 1 day – 10 Years | 1% |
| More than 10 years | 0% |
However, if the buyer is a non-resident, the Notary will apply a 5% withholding of the total value.
Contact us
If you have any doubts about this, about different ads that you can find in third party Andorran websites or about privacy or how to manage privacy in this type of transactions, we are at your disposal both through our email and through our direct whatsapp.
