During this week the Congress of the Federation of Real Estate Professionals (FIABCI), one of the most important organizations of the real estate sector in the world, is celebrated in Andorra. An event that brings together experts from more than 45 different countries and in which, in addition to sharing information, it provides the right framework for doing business at the international level. And is that the principality has become in the last years in a country for which there is a real interest in real estate, since since 2012 to buy a house in Andorra has been greatly simplified.
What steps should be followed to buy a flat in Andorra?
Both residents and non-residents can purchase properties unlimited in Andorran. These last ones will have to obtain the authorization of the government (Autorització d'inversió extrangera en inmobles) and from here they will be able to continue with the process of purchase. The rest of the procedures are similar to those that would be followed in other countries like Spain:
1. It is agreed a payment to reserve the house (10% of the agreed purchase amount)
2. The purchase is made before a notary where: the seller will present the Certificate of habitability, the buyer will demonstrate that he has made the payment of the remaining amount for the property and will be delivered the Public Deed with the corresponding name change.
What taxes must the buyer pay?
1. Notary fees: This is a fixed amount (between € 600 and € 1,300) + 0.1% of the sale value of the property.
2. Property purchase tax: The Andorran government charges 4% on the final sale value of the property. A 2% in Tax of Patrimonial Transmissions and the remaining 2% that goes to the local "Comú" (city council).
All payments must be made through Andorran banks, specifically the taxes must be paid with a bank check.
It is important to emphasize that the appraisal in Andorra is private, that is to say, the government does not intervene and therefore the taxes are paid on this value that always coincides with the purchase price. While in other countries such as Spain, there is an official valuation and if the purchase price is lower than this, the taxes are paid on the value that appears in the appraisal.
Thus, in addition to being simple, buying a home in Andorra also has interesting tax advantages.