The rise of teleworking has caused many digital nomads and people who make technology their economic activity, to move to other countries. One of them is Andorra, which offers great scenic beauty, as well as low taxes. Andorra is one of the favorite countries for Spaniards to live.
What do you need to buy a home in Andorra?
If you are thinking about moving to the Principality, you are probably wondering what you need to buy a home in Andorra. If you are not yet an administrative resident of the Principality at the time of buying a house in Andorra, then you must follow a series of procedures for which it is necessary to provide several documents. Yes, as a Spanish citizen you can invest in a property, whether you want to move soon, for vacation or for retirement.
Authorization of foreign investment in real estate
This is an essential document if you want to buy a home in Andorra, being Spanish. You must request it directly from the Andorran government and their response time is between 15 and 20 days. This document is mandatory if you are a non-resident natural or legal person. On the other hand, you should know that there is no acquisition limit within the Principality, according to law 10/2021 of June 21.
Criminal record
The criminal record certificate allows the government of the Principality to verify that the interested person does not have a criminal and delinquent record outside of Andorra. You can request this document online at website of the Ministry of Justice. You should know that, in order to be able to use it abroad, this document must be legalized to be valid. Legalization is also done from Spain.
Have a bank account in Andorra
If you want to buy a home in Andorra, it will be necessary to have an account in an Andorran bank. You should know that anyone can open a bank account in Andorra, but as long as a series of requirements are met. One of these requirements, which is the most difficult, consists of approving banking compliance which allows proving the origin of the funds, as well as the nature of your economic activity.
The account is important to be able to present a bank guarantee for the purchase and sale, as well as to provide transparency to the origin of the funds. But it also serves to be able to make all the payments derived from the sale. Finally, at least more than 50% of the funds intended for the home purchase operation must be deposited into the account.
Identity documents
To buy a home in Andorra you will need to present the current official identification from the country of origin. Additionally, of course, you must be of legal age. The Andorran authorities also require a certificate reflecting the marital status, as well as a medical certificate that must be issued by a health professional in Andorra.
Home insurance
One of the main requirements to buy a house in Andorra consists of paying for home insurance. You can approach any of the insurance companies in the country. According to Andorran regulations, it is essential to insure, at least, the continent of the property.
What is the process of buying a home in Andorra?
Once you have all the aforementioned documentation, you can get to work to find the house of your dreams. You can visit any of the real estate agencies in Andorra and check the situation of the real estate market in Andorra. The Principality is constantly growing and there is a great demand for housing.
When you have found the house you want to buy, you can close the sale with the owner, construction company or real estate company. It is very important that the seller provides the Certificat d’habitabilitat, a document that proves that the home meets all the necessary requirements to be inhabited.
Once an agreement is reached with the owner or seller, the purchase of the house is signed before a notary.
Expenses associated with the sale
You should know that when it comes tobuying a home in Andorra it is not only necessary to pay the total amount of the property. Other expenses associated with the commercial operation must also be settled. The rates are lower than in other countries in the European Union and are:
- Expenses before a notary. They range between 600 and 1,200 euros. 0.1% of the sale price of the home is applied to this.
- 2% of the purchase value of the property. This is a tax that must be settled before the town hall where the purchased house is located.
- 2% of the purchase value and is paid directly to the Andorran government. This is the Property Transfer Tax.
Why buy a house in Andorra?
Now that you know all the requirements to buy a home in Andorra, we tell you that it is an excellent option if you want to improve your quality of life and that of your family. Andorra is a country that not only has excellent scenic beauty, but also enjoys excellent health and educational services.
In addition, as we already mentioned, the Principality is becoming thepreferred destination for digital nomads, content creatorsand other companies. The Principality’s low taxes also make it a very attractive option.
