- Tax in Andorra
- Real Estate
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Moving to the tiny Principality, located between Spain and France, is the dream of many people. This country is a haven of peace for its friendly atmosphere and climate, but it is also the perfect place to do business. If you have decided to live in this idyllic country, we will tell you how to find apartments in Andorra.
Undoubtedly, Andorra is the preferred destination for many foreign investors, entrepreneurs, and workers looking to increase their quality of life. If you are unsure, we tell you that the Principality is an excellent option to settle down and have a family. To begin with, the geographical location is unbeatable, as it is very close to Barcelona and Toulouse. In addition, it is a perfect country for different activities such as hiking and skiing.
On the other hand, taxation in Andorra is very low. Not only for companies (10% tax), but the Andorran VAT, called IGI, barely reaches 4.5% in the general bracket. Finally, it should be noted that the country has an excellent health system and three educational modalities that follow the Andorran, Spanish, and French curricula.
There are several options for moving to the Principality. It is possible to establish oneself as a passive resident, i.e., without exercising any lucrative activity. It is also possible to work as an employee or self-employed person. In the first case, it is necessary to have an employment contract; in the second case, to invest in the Principality and/or to incorporate a company. Why live in Andorra? In addition to the reasons we have already given you, being a tax resident brings great benefits.
If you are about to start obtaining a work permit (either as an employee or self-employed) or setting up your business, you must look for apartments in Andorra. How to do it?
In the Principality, you can rent a property or buy it. But be careful because recently, a new regulation came into force that restricts the purchase of real estate in Andorra due to the rental price. To give you an idea, by August 2023, residential real estate for sale had an estimated price of 4,710 euros per square meter in the country’s capital. As for rent, this has an average price of 17.71 euros per square meter per month.
Housing prices in Andorra are as follows:
With this information in mind, if you are looking for apartments in Andorra, we advise you to approach the many real estate agencies you can find in the Principality. Also, be sure to seek information from the experts at MCA Assessors; we will help you with the whole process of becoming an expat in the country of the Pyrenees.
One of the common questions is whether non-residents can rent apartments in Andorra. We tell you that you can do it, and, moreover, the process is quite simple. You only need to provide the corresponding identification (valid passport or ID card). In addition, to enter into a rental contract for houses or apartments in Andorra, opening a bank account in the Principality is essential. We tell you in this article if you still do not know how to do it.
Por otra parte, los arrendatarOn the other hand, tenants must register and pay for all the services offered by the property, such as electricity, water, and the Internet. Why is a bank account essential? Because you need it not only to sign the contract but also to pay the bills by direct debit. It is obligatory to contract housing insurance in Andorra.
Before renting apartments in Andorra, we tell you you must have four months of rent. These are distributed as follows: one month for the real estate agency, payment of the current month, and two months deposit. On the other hand, you will be surprised to know that, from the outset, the lease contract is concluded for at least five years. In addition, as long as the contract is in force, the corresponding municipal taxes must be paid.
If you want to buy apartments in Andorra, although there are currently restrictions on the purchase of housing by foreigners, we tell you the process. The first thing you should know is that it is a measure known to be temporary, but it is not known for how long it will be in force. The purpose of the prohibition to buy houses and apartments in Andorra by foreigners is to increase the rent price.
When the measure is no longer in force, we tell you that you can approach any of the real estate agencies in the country. However, verifying that the real estate agent is registered with the AGIA (Col-legi Professional d’Agents i Gestors Immobiliaris d’Andorra) is essential.
Among other procedures, having a bank account and making a foreign investment application is necessary. It is essential to have the approval of the Andorran authorities, something that, as we have already mentioned, is not being done now. A 10% deposit must be paid to reserve the property and formalize the sale and purchase before a notary. In addition, the corresponding municipal taxes and the Transfer Tax are paid.