How to Buy a House in Andorra: Everything You Need to Know
Andorra, that small country located in the Pyrenees between France and Spain, is known for its ski resorts and its advantageous tax system. If you are thinking of buying a house in Andorra, here is everything you need to know:
Requirements to Buy a House in Andorra
1. Non-Residents or Residents with Less than 3 Years in the Country:
Authorization for Foreign Investment in Real Estate and Additional Tax: If you are not a resident or have been living in the country for less than three years, you must request a foreign investment authorization to buy a property in Andorra. In addition, you will have to pay an additional tax (IGI or ITP) which, for the first home, is 3%.
Investment in Real Estate as a Way to Passive Residence: Investment in real estate in Andorra is one of the assets that allows you to apply for passive residence in the country.
2. Residents for More than 3 Years:
Tax Advantages: If you are a resident and plan to buy a house to rent out, rental income is considered “general income” and is taxed at a favorable scale.
Payment of Taxes and Fees
Buying a property in Andorra involves paying taxes and fees.
The Property Transfer Tax (ITP) is one of the main taxes that you must pay. Also, take into account other costs such as notary fees and registration fees.
