Steps to acquire a real estate in Andorra
Many people when visiting Andorra fall in love with the place and decide to make it their second home. When the buyer is not a resident of the country, it is easy to acquire real estate; following some steps required by law.
- Obtain authorization for foreign investment in real estate. This authorization is issued by the Andorran government and can take up to two weeks.
- Have a bank account in the principality. An account in any bank in Andorra , for non-residents of the country. At the time of having the account, the future buyer of the real estate must deposit a percentage of the price of the property. Usually more than 50% of the value, but you can deposit it all.
- The buyer of the property must make the payment of 10% of the value of the property of the final agreed value. This amount is as a payment and signal; and it is not refundable. This is done to prevent the prospective buyer from giving up on the purchase without reasonable cause. This 10% payment must be made before the procedures outlined above, but after obtaining the Authorization for foreign investment in real estate.
- Formalize the purchase of real estate at the notary. The notary will be in charge of supervising the purchase of the real estate. Also, on that same day, it must be shown that the remaining value of the property was paid.
- On the other hand, the seller of the property must deliver the “Certificate of habitability”. This document is a way to certify that the immovable property can be perfectly inhabited; and must be issued by an architect. The architect must be registered.
- The next step is to proceed to the payment of taxes and general expenses of the purchase of the real estate. In Andorra, these taxes are very low, comparing them with other countries in Europe.
Property taxes in Andorra
People who decide to buy real estate in Andorra, must cover the expenses arising from the notary’s management. That is, everything that is related to the purchase of the property.
Expenses are normally a fixed rate. Notary fees are between € 600 and € 1,200. In addition, 1% of the value of the property is added. That value is the final sale price.
The buyer is responsible for paying the property tax to Andorra, which is divided into two. Half to the town hall of the town where the property is located and the other half to some government. This part received by the government of the Principality is a “Property transfer tax”.
The total tax value is 4% of the property value. Then it splits in two.
Advantages of comparing a property in Andorra
Buying a property in Andorra is an easy decision to make. The vast majority of non-residents want to live in the Principality of Andorra .
This beautiful country located in the middle of the Pyrenees (a mountain range) has many advantages. It is an irresistible place for future buyers.
Some of the advantages are:
- Andorra is a place that offers many possibilities to invest. One of those options is the purchase of real estate.
- It offers a wide variety of recreational activities and cultural events that attract new buyers.
- It offers a good and great quality of life.
- It has a thriving economy.
- It is an interesting tourist attraction.
- It is surrounded by an incredible natural environment.
- Andorra’s geographical location is unique. It is in the eastern Pyrenees mountain range. And it borders Spain and France; to the south and north respectively.
- For several years the purchase of real estate in Andorra has grown considerably. There is increasing interest.
- There are quality real estate. What the future buyer wants, he finds in Andorra. It offers infinity of options.
- Good property prices. There are very good and irresistible offers.
- Andorra is a very safe place.
