Andorra offers an exceptional quality of life, attracting individuals from around the world for its
low taxes,
stunning landscapes, and
political stability. If you are considering relocating to Andorra and purchasing property, it is essential to understand both the
residency requirements and the
legal process of buying real estate. With the help of
Axior Global, you can navigate these steps with ease, ensuring that you comply with local regulations and make the most of Andorra’s attractive financial incentives.
Why Buy Property in Andorra?
Buying property in Andorra is a great investment for those seeking
permanent residency, a second home, or a sound investment in a stable and attractive location. Key benefits of owning property in Andorra include:
- Tax advantages: There is no wealth tax or inheritance tax, and corporate tax rates are highly competitive.
- High quality of life: Andorra offers a safe environment, excellent healthcare, and abundant outdoor activities like skiing and hiking.
- Strategic location: Nestled between Spain and France, Andorra offers access to European markets and is a short distance from major cities like Barcelona and Toulouse.
Steps to Buy Property in Andorra
While the process of purchasing property in Andorra is relatively straightforward, it’s important to follow the necessary steps to ensure a smooth transaction. Here’s an overview:
| Step |
Description |
| 1. Determine Residency Type |
Residents can buy property in Andorra, but you must first establish your residency status, whether active or passive. |
| 2. Search for Property |
Choose a property within your budget and requirements. You can buy apartments, houses, or land. |
| 3. Open an Andorran Bank Account |
A local bank account is necessary for the transaction and to transfer the required deposit for the property. |
| 4. Make a Deposit |
A reservation fee (around €3,000) is typically required to secure the property while completing the legal formalities. |
| 5. Sign a Contract |
Once everything is in order, you’ll sign a purchase contract ( Escritura de Compraventa ). |
| 6. Pay Taxes and Fees |
Property taxes, registration fees, and notary fees must be paid to complete the purchase. |
| 7. Register the Property |
The property must be registered in the Andorran Land Registry to confirm ownership. |
Residency Requirements for Property Buyers
To buy property in Andorra, you generally need to
establish residency. There are two main types of residency:
- Active Residency: For those who plan to work or operate a business in Andorra.
- Passive Residency: For those who are retired or have sufficient financial means to support themselves without employment in Andorra.
The
minimum financial requirements for both types of residency vary but typically require a
€40,000–€50,000 annual income or significant
savings. You must also provide proof of accommodation (i.e., property purchase or rental agreement), health insurance, and a clean criminal record.
Property Taxes in Andorra
When buying property in Andorra, there are several taxes and fees to consider:
| Tax or Fee |
Amount |
| VAT (IGI) |
4.5% for property purchases (higher for new developments) |
| Property Registration Fee |
|
| Notary and Legal Fees |
Typically 1–1.5% of the property purchase price |
| Annual Property Taxes |
Varies, but usually a small municipal tax based on the property value and location. |
| Capital Gains Tax (CGT) |
0% if the property is held for over two years; if sold within two years, capital gains are taxed at 10%. |
How Axior Global Can Help
Axior Global can provide invaluable assistance throughout the process of relocating and buying property in Andorra. Our expert team can help you with:
- Residency Applications: We guide you through the different residency options and ensure you meet the requirements to live and purchase property in Andorra.
- Tax Advisory: With Andorra’s favorable tax regime, we help you optimize your tax situation by advising on property-related taxes, income tax, and the best way to structure your finances.
- Legal and Notary Support: We can assist you in selecting a property, reviewing contracts, and ensuring all legal processes are completed accurately.
- Bank Account and Registration: We can help you open an Andorran bank account and ensure the proper registration of your property with the Land Registry.
Conclusion
Relocating and purchasing property in Andorra is a highly attractive option for those seeking a
low-tax environment, a
high quality of life, and a
strategic location within Europe. By working with
Axior Global, you can ensure a seamless transition, from residency applications to property purchases and tax optimization.
Axior Global offers the expertise and support needed to navigate Andorra’s unique legal and tax landscape. Whether you are purchasing property for personal use or investment purposes, we ensure that you comply with all regulations and make the most of Andorra’s tax benefits.
