A How-to Guide to Buying Property in Andorra
- elizabethhelenpier
- Jan 11
- 4 min read
Updated: Mar 7
When buying property in Andorra there are certain requirements to keep in mind that differ quite substantially to other countries. Not only is our tax system different, but the real estate market also lacks resemblance to any market seen in Northern Europe, America or Australasia. In this blog post we will try and guide you through the process of buying property in Andorra by answering the most common questions regarding taxes to pay on purchase and what is involved when buying property in Andorra as a foreigner, as well as going over the steps of any Andorran property sale.
What are the steps when buying property in Andorra?
Open a bank account and if needed and begin negotiating mortgage deals here
Search, find and negotiate the price on a property
Sign the promise to buy-sell contract and pay 10% of the agreed sale price as a deposit to reserve the property and stop other viewings.
This deposit is non-refundable unless the seller has not abided by conditions within the contract or by law. This differs to places like the UK or USA where no deposit is required when reserving a property or to stop viewings.
The general rule is a 3 month grace period from the signing of the ‘promise to buy’, until the signing of the deeds with the Notary and actual purchase.
If you are buying a new-build still in construction, the rules differ, please see our blog post "A guide to buying a new build in Andorra" for more information
If you have been a resident for more than 3 years, skip to step 5. If you are a non-resident or have resided in Andorra for less than 3 years, you will have to complete a foreign investment application. This is submitted at the government by the realtors on your behalf, has a cost of 300€ if you do by yourself, and takes 2-3 months currently to be approved
If you need a mortgage, agree to the conditions with your bank
Pay your taxes (ITP)
Go to your Notary appointment, the date will have been prearranged. You will sign both the mortgage (if needed) and property deeds while there. The official purchase is complete with the handing over of the keys at the notarial office
Pick up your property deeds 4-6 weeks after purchase, approximately
Complete the paperwork trail at the local parish level to register you as the new property owner
Are there taxes to pay when buying property in Andorra?
Yes, there are taxes to pay when buying Andorra property. Firstly, there is a tax called ITP (stamp duty) to be paid by the buyer that equates to 4% of the agreed sale price. If you are buying a new-build you will be charged instead IGI (VAT) at 4.5% and you can bypass the payment of the ITP.
Secondly, the government have recently brought in (2024) a new tax for foreign investment on property. This affects both non-residents and residents who have lived in Andorra for up to 3 years. This a scaled tax, and is an additional tax to pay on top of the ITP:
- 3% on your first Andorran property.
- 5% on the following property purchases up to a limit of 5 properties.
- 8% on your sixth to ninth property purchase.
- 10% on all purchases over the 10 property limit or on any commercial sale
There are significant reductions to consider when the property is a buy-to-rent in Andorra.
Lastly, there are notary fees are to be paid - the calculation of these fees is dependent on the cost of the property but approximately they will come to 0.7-1% of the purchase price. It is exclusively the buyer’s responsibility to pay these fees.
Can non-residents in Andorra buy property?
Residents, non-residents and foreign investors can buy Andorra property. The taxes on purchase are different depending on which of the categories of resident or non-resident you fall into, however. The Andorran government allows foreign investment from almost anywhere although there are some rules concerning nationality, specifically Russian citizenship that currently blocks these non-resident nationals from purchasing property. Another potential issue that may arise has to do with the Andorran banks as they have a long register of blacklisted countries, which means that any money used to purchase property may possibly be blocked coming into Andorra, depending on where the source of these funds is based. However, there is always an element of flexibility with the banks or other ways around this issue, as long as all is above board.
Is There a Zoopla, Rightmove, or Andorra Zillow to Check Property Prices?
No there is not. In Andorra we have no public record of Andorra property sales, but there are ways to check official price fluctuations and trends in Andorra as a whole, looking at the sold price per meter squared.
Can any realtor in Andorra help me find a property?
This is a key question. The simple answer is yes.
The long answer is that they will always be working on behalf of the person who is selling, and have little motivation for honesty, transparency or positive price negotiations in your favor. The less you are told, the higher the price, the better deal for them. Read more in our blog post Working with the Andorra real estate agent, what to watch out for?
