Andorra is a very attractive country to visit, to practice sports or shopping, but it is also a very attractive country to live in.
If you are in love with the Principality, you have probably wondered if there is a possibility of buying a property in Andorra if you do not live in the country.
Have you succumbed to the charms of Andorra? Do you want to invest in a property? Do you know how to do it? Many of our customers are the first thing they ask us when they contact us.
You should know that the legislative changes in Andorra in recent decades have made investing in a property in the Principality without being a resident much easier and simpler than years ago, as well as entailing lower tax burdens than in other countries .
Andorra is a perfect country to live in. Some people decide to move to the Principality to develop their work or start a new business, others, on the other hand, prefer to acquire a property as a second home, to rent it or to go there seasonally.
Buying a property is a high investment and before making a final decision you should be clear about a number of issues. For this reason, from WIT, we tell you everything you should consider before buying a property in Andorra.
Resident buyer or non-resident buyer?
Buying a property if you already live in Andorra requires a different procedure than if you do not reside in the country. For this reason, we will distinguish the requirements according to these two circumstances:
Buying a property if you do not reside in Andorra
As we have indicated above, the current legislation allows non-residents to buy a property in Andorra. Only a series of requirements have to be fulfilled:
Authorization of foreign investment in real estate
This is a document that you must request from the Andorran government, and is essential to be able to purchase property in the Principality.
It is called authorization for foreign investment in real estate, and the process takes between 15 and 20 days. Both for non-resident individuals and legal entities domiciled outside Andorra, it is an obligation to obtain it. In addition, Law 10/2021 of June 21 on foreign investment in Andorra does not limit the number of acquisitions.
2. Certificate of absence of criminal record
This certificate will reliably corroborate that you have no criminal record or criminal conduct outside Andorra. This information, reflected in the document, as well as the rest of the information presented, must be apostilled.
3. Be an account holder in an Andorran bank.
This bank account is also an indispensable requirement, as it provides the transparency required by the following regulations: “Law 14/2017, of June 22, on the prevention and fight against the laundering of money or securities and the financing of terrorism”.
This account will serve as a bank guarantee of your solvency and the transparency of the origin of your resources. From here, you will have to manage all the payments that are produced in the operation of purchase and sale of the property.
4. Provision of personal documents
You must also present your updated passport , be at least 18 years old and present these two additional documents:
- Certificate reflecting your marital status.
- Medical certificate issued by a health authority of the Principality.
Remember, again, that the documents presented, being from other countries, must be apostilled.
Buying a property if you live in Andorra
In this case it is less demanding, since if you are residing in the country, many of the above mentioned data have already been previously submitted at the time of applying for residency.
Obviously, it will be necessary to have an Andorran bank account, but you will obviously have one if you live in the country .
It will not be necessary to present the criminal record certificate, since if you are registered in Andorra, the authorities will already have it.
As soon as all these requirements are met, the procedure for buying a property in Andorra is the same for everyone, whether they are residents or not.
Procedure for the purchase of a property in Andorra
Once all of the above requirements have been met, the procedure for both residents and non-residents is the same:
1. Reserve the property
Once the government’s authorization to purchase a property has been granted, in order to reserve the property it will be necessary to pay 10% of the total amount of the property as a deposit. This economic operation will be carried out transparently through the bank account mentioned above.
It is essential that you make sure it is the property you want to purchase, as this amount is non-refundable. This is a measure designed to prevent the sale from being cancelled without a well-justified cause.
2. Purchase and sale of the property
At this point, the buyer and seller will meet before a notary for the transition, signature, documents and handing over of the keys of the property. In the five working days prior to the signing, you must have made the payment of the property, subtracting the amount of the down payment.
3. Drafting of the documents by the notary public
In this step, the notary must draw up the documents to attest the transfer of the property and the change of name in the deeds of the property. In this way, all the steps involved in the purchase and sale of the property will be duly registered.
Andorran legislation establishes, as notary fees, 0.1% of the value of the property plus a fixed amount ranging from 500 to 1,500 euros. This is an amount to be paid by you.
4. Certificate of habitability
The delivery of the certificate of occupancy by the seller will also be recorded in the notarial documents.
This document must be reviewed, corroborated and signed by an architect registered in Andorra.
At this point it should be noted that the commission of the real estate agency, responsible for the sale, must be paid by the seller of the property .
5. Expenses and taxes
The property is already yours, but you will have to pay the expenses and taxes originated from the purchase, in the case of Andorra, they are lower than in other countries .
6. Home Insurance
In Andorra, it is compulsory to insure at least the building of your home. Therefore, it is essential to take out a good policy to cover all your property. This is very interesting to know, so that you can choose, beforehand, an insurance company you trust.
By following these steps, you will already own a property in Andorra and you will be able to enjoy all the wonders of this country as long as you want. If you are interested in buying a property in the Principality and you live in Spain, please contact us. From WIT we will be happy to help you in everything you need.
