Buy house or flat in Andorra la Vella

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Laws related to real estate transactions, both for residents and non-residents, became more flexible in 2012. Since then, buying a property in Andorra has been simplified. At this time, foreigners and non-resident companies have the right to buy unlimited real estate in Andorra.

However, for non-residents certain conditions must be applied to investors in commercial properties. All transactions related to real estate can only be carried out through an agency authorized by the AGIA (Andorran Real Estate Agents). In this way, the buyer can be sure that the price of the property is adjusted to the market price and that a qualified professional agent will be in charge throughout the process.

Housing Market in Andorra

Like in any other European real estate market, between 2008 and 2013 the crises played an important role in the housing market.

Regarding the Department of Statistics of Andorra, in 2013 there were only issued 30 permissions for residential area building, which is the lowest index since 2000, compering with the 223 permissions for residential area building issued in 2004 during the building boom.

Between 2004 and 2008, real estate prices in Andorra grew up to 60%. But again, in 2008 the prices felt back down due to the global economic crisis. The prices, depending on real estate objects (commercial and residential), fell down by 15-20%.
Finally, in 2013 the prices began to grow again.

Nowadays, Andorran economy is growing much more than expected a year ago. In fact, real states researches have just shown that despite the price increases recorded in recent years, in 2018 the market will continue to grow up to 15-20% at a stable and sustained pace, away from credit excesses and new bubbles.

How to Search for Real Estate in Andorra

Online

Among the most popular webpages you can find:

Newspapers

Newspapers are also an useful source when searching for real estates. For rental ads consult the print versions of the main Andorran publications (all published exclusively in Catalan)

Rental Agents in Andorra

When looking for a flat/house to rent, you might want to hire a real estate agent in order to save you a lot of time and worry.

The agent will assist you on your search regarding your criteria, accompany you to the viewings that can fit your wished, help you with all bureaucracy and necessary documents for signing the contract and, if needed, also consult on options for receiving a credit.

The price of their services can vary from one real estate agent to another. Consequently it is necessary to discuss it previously and sign a contract. The agent is paid when the rental contract has been signed between the tenant and the landlord.

All-Andorra.com published more than 280 results for Estate Agents offices in the country.

How to Purchase Property in Andorra

It is important to work together with your solicitor/lawyer when purchasing a house. The recommended procedure to look for a property and acquire it is:

  • Find out what you can afford
  • Get a solicitor/lawyer
  • Find a property you like and can afford: You can look for it online, throughout auctioneers or estate agents.
  • Get a survey regarding any defects in a property
  • Get mortgage approval
  • Sign the contract for sale

Only when acquiring the 'Authorization of foreign investment in real estate' (‘Autoritzacio d'inversio estrangera en immobles') it will be possible to continue with the sale.

The buyer must pay the 10% of the purchase price agreed by the property as a deposit. This deposit is non-refundable, and it will be taken to avoid the abandonment of the real estate sale transaction without any founded reason.

A public notary will supervise the property purchase. Moreover, on the day of the signature, the buyer will have to prove that he has made the remaining payment for the property. The deed of the property will be delivered to the buyer the same day.

At the same time, the property vendor must deliver the "Occupancy certificate" (Certificat d'habitabilitat) carried out by a registered architect. This document states that the property follows all the legal requirements to be classifiable as 'habitable'.

Non-residents can purchase properties without a limit, however, they will need to obtain an authorization from the Andorran government. Keep in mind that the properties can be reserved verbally with the seller as a good faith act until the buyer receives and presents this document.

The 'Authorization of foreign investment in real estate' (Autoritzacio d'inversio estrangera en immobles) is relatively easy to obtain and generally takes from ten to fifteen days. This document must be filled in French, Spanish or Catalan (or in another language when accompanied by a certified translation).

Note: For non-residents, all commercial properties must be used only for their authorized commercial activity specifically described in the deed.

Property Tax and Expenses when Buying Property in Andorra

The buyer must cover fully notary fees related to the purchase. Usually, the fee is based on a fixed amount plus a property sale price percentage, which usually runs between 600 and 1,300€ + 0.1% of the property sale value.

The buyer must pay the property purchase tax to the Andorran government. It consists of a 4% of the final sale price agreed. This tax is divided into two parts: 2% for the "local city hall" and the other 2% for the government as 'Patrimonial Transfers Tax' (Impost de Transmissions Patrimonial).

Property buyers in Andorra have to pay taxes through Andorran banks. They must make prove of sufficient funds in the account for this purpose. Therefore, the tax is paid with a bank check from an Andorran bank.

Property Auctions in Spain

Since 2013, the auction and property market in Andorra has been moving onward due to the crisis. However, there is no pre-established periodicity for the celebration of these public sales. They are usually calculated based on the material in stock.

Each time one property auction takes place (not only for properties but cars and other belongings) the official gazette (Butlletí Oficial) announces it. You do not need to be the same buyer as the assistant, therefore, you can send a third person to make the purchase effective.

Andorra's Batllia is the first instance jurisdiction and the judicial, civil, administrative and criminal fields instruction which organizes the public auctions.

Update 4/10/2018


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