Property purchase costs in Andorra: taxes & real fees

Property purchase costs in Andorra: taxes, notary fees and real costs explained

Buying a property in Andorra involves a series of additional costs that should be taken into account from the outset in order to calculate the true cost of the transaction.
Beyond the purchase price, buyers must consider taxes, notary fees and administrative costs that form part of the acquisition process.

In this article, we explain the real costs of buying a property in Andorra, how they are calculated and what percentage they usually represent of the purchase price.

What costs are involved when buying a property in Andorra?

In general terms, property purchase costs in Andorra can be grouped into four main categories:

1. Transfer taxes

2. Notary fees

3. Property registry fees

4. Other associated costs

Andorra’s tax system is transparent and competitive, making it easier to plan a property investment accurately.

Taxes when buying a property in Andorra

Property Transfer Tax (ITP)

For second-hand properties, the main tax is the Property Transfer Tax (Impost sobre Transmissions Patrimonials – ITP).

Tax rate:
The total rate is 4% of the declared purchase value:

• 3% payable to the Government of Andorra

• 1% payable to the corresponding local authority (Comú)

This tax is paid after signing the public deed of sale before a notary.

For new-build properties, the tax regime may differ and should be analysed on a case-by-case basis.

Notary fees in Andorra

All property purchases must be formalised before a notary in Andorra.

Notary fees are regulated and mainly depend on:

• The purchase price

• The complexity of the transaction

As a general guideline, notary fees usually range between 0.1% and 0.5% of the property value.

Property registry fees

Once the deed has been signed, the transaction must be registered at the Andorran Property Registry.

Registration costs are relatively low and typically represent around 0.1% of the purchase price.

Other costs associated with buying a property

In addition to taxes and notary fees, buyers may incur other expenses, such as:

• Administrative or legal processing fees

• Certificates and documentation

• Legal or tax advisory fees

• Property valuation, if mortgage financing is required

These costs vary depending on the transaction, but they should be included in the overall budget.

How much are the total property purchase costs in Andorra?

As a general reference, total purchase costs in Andorra usually amount to between 5% and 7% of the property price.

Example

For a property priced at €600,000:

• Taxes (4%): €24,000

• Notary and registry fees: €2,000 – €3,000

• Other costs: variable

Estimated total costs: between €26,000 and €30,000.

Why is it important to calculate purchase costs accurately?

Understanding the real costs of buying property in Andorra allows buyers to:

• Plan their investment correctly

• Avoid unexpected expenses

• Compare opportunities objectively

• Make informed decisions, especially for high-value or patrimonial assets

Conclusion

Andorra offers a clear and competitive framework for property buyers. Nevertheless, accurate cost planning is essential to ensure a smooth and secure transaction.

Analysing purchase costs in advance helps protect the investment and avoid unnecessary risks.
If you are considering buying a home in Andorra and want to analyze the real costs of the transaction, having proper advice allows you to make informed decisions from the start.