Car imports to Andorra have boomed in recent years, with a steady flow of new residents choosing the country as their home and arriving with their vehicles. The process to import a car to Andorra is primarily supported by the amendments introduced to the Highway Code in 2014, which allowed the re-registration of cars more than 3 years old, provided they comply with Euro Class 5 or higher emissions standards. Below, we talk about the particularities of this process.
What is the difference between importing a car to Andorra and buying one?
The choice between buying a car in Andorra or importing it from Spain presents different factors to consider, particularly for those who obtain residency in Andorra. Upon becoming residents, there is an obligation to homologate the driver’s license and register the vehicles in Andorra within six months, which includes the option to import a car to Andorra. This raises an important question: is it more convenient to import a car to Andorra or to sell it in Spain and purchase one with Andorran registration?
For Andorran residents, it is evident that buying a vehicle in Andorra has significant advantages. When registering and using the car, the applicable taxes are those of Andorra, significantly reducing the acquisition cost.
The general IGI rate (similar to VAT) is 4.5%, compared to 21% in Spain. In addition, registration and circulation taxes are considerably lower, which makes the purchase of an Andorran vehicle more affordable and avoids import formalities.
However, it is relevant to note that many Andorrans or residents choose to import new vehicles from abroad, often customized and tailor-made. The complication arises when you want to import a second-hand car.
In the case of importing second-hand vehicles, an appraisal of the current value of the vehicle is required, on which the Spanish taxes to be deducted and the Andorran taxes to be paid are calculated.
This process can become costly in terms of time and money due to the appraisal that must be performed in a manner consistent with current regulations. Moreover, these appraisals often value the car unfavorably, reducing or eliminating the benefits derived from the tax difference.
Finally, all original vehicle documentation is required, and the process can be complicated if modifications have been made to the car.
However, it is understandable to import a car to Andorra when you have invested effort and money and do not want another car model. That is why, from MCA Assessors, we can help you clear all your questions on the purchase and the import of cars to make this process simple, fast, and worry-free.
What is needed to import a car to Andorra?
It’s crucial to recognize that the importation of motor vehicles is a lawful activity in Andorra, often referred to simply as “import a car to Andorra”. Here is an outline of the steps involved in this process. Annually, approximately 3,000 vehicles are newly registered in Andorra, and about 10% of these are re-registrations of vehicles brought from abroad, which is a testament to the prevalence of choosing to import a car to Andorra.
This figure of 10% predominantly consists of individuals who relocate to Andorra and opt to keep their vehicles initially registered in their previous country of residence instead of selling them. Additionally, vehicles that are over 25 years old qualify for importation into Andorra as vintage collector’s cars.
Requirements to import a car to Andorra
To import your car to Andorra, it is necessary to meet several fundamental requirements. First of all, you must have an Andorran residence permit, in addition to being registered and registered in the Comú of the parish where you have your residence. The vehicle you wish to import must be registered in your name at least six months before the import process, guaranteeing a solid link with the owner. The import must be completed within six months of obtaining the residence permit.
It is crucial that the vehicle was purchased in a member country of the European Union and that it complies with European emission standards, being at least Class EURO 5.
Documentation required to import a car to Andorra
Regarding the necessary paperwork to import a car to Andorra, one must prepare several key documents: the vehicle owner’s identification, which can be either a DNI or a passport; the certificate of residence, whose details may differ based on the residence type; the original vehicle purchase invoice; documentation confirming the latest technical inspection or ITV conducted in the originating country; the vehicle’s technical certificate and approval certificate; a current insurance policy from an Andorran insurance company; the export and import declaration completed during the process; and lastly, the certificate of deregistration from the vehicle registry in the country of origin.
This involves certain associated costs, such as the vehicle registration process in Andorra, which consists of an outlay of approximately 250 €, although this amount may vary. In addition, to carry out the import, a payment in euros equivalent to 4.5% of the current value, which corresponds to the General Indirect Tax (IGI), is required. The most affordable license plates, issued by the Automobile Club of Andorra, are priced at 60 €.
In conclusion, the frequency of decisions to import a car to Andorra is increasing, particularly among new residents with cars registered in their country of origin. The choice between buying a vehicle in Andorra or importing it poses challenges, especially when they are used cars. Nonetheless, at MCA Assessors, we have a team of expert advisors to simplify the purchase or import process, offering guidance to meet the requirements and ensure a smooth process.
