What to buy in Andorra? And why not, invest money in the Andorran real estate market
It is known that the Principality of Andorra is an extremely attractive country for investors and individuals due to its beautiful natural landscapes, its quality of life and, above all, because it is a sector of high tourist demand in winter season thanks to its renowned ski slopes. At present, the low tax burden and greater transparency in economic relations are more than enough arguments to favor the investment of new foreign capital interested in the Andorran real estate market.
Andorra has a high quality of life: a gross domestic product (GDP) of 80%, an almost non-existent level of unemployment below 4%, a very low crime rate, a life expectancy of the highest in the world, a developed health system, among other things.
On a commercial level, the Pyrenean country enjoys low taxes and favorable investment taxation, social charges for the employer of 20% and a multilingual workforce with a high level of training. For these reasons, the principality offers great attraction for foreign investors who think of capitalizing themselves by investing their money in the Andorran real estate market.
But ... why buy in Andorra?
If after these explanations you are still wondering why invest your money in the Andorran real estate market, GESTIM offers you some compelling reasons:
A small country that competes in the big leagues
Andorra has a much more favorable tax burden than that of its European peers, which seduces foreign investors to put their money, among other things, in the real estate market. As we have already mentioned, internationally famous ski resorts attract thousands of tourists per year during the winter season.
Double taxation? ... Never again!
Thanks to a network of agreements between the Principality and other countries of the European Community, it has been agreed that citizens and residents of Andorra do not pay taxes twice for the same concept in two different countries: both real estate investments and purchases they make tourists in Andorra take advantage of this benefit.
An advantageous taxation for all!
The 80,000 people who live in the Principality have been able to perceive an increase in foreign investment after in 2012 the Government made changes to the country’s legislation. But despite this new tax system, Andorra remains one of the most attractive countries in the world to buy and invest. This phenomenon is explained by a very low personal income tax or personal income tax, equally low local taxes, a VAT (in Andorra it is called IGI) of only 4.5% and inheritance rights and other taxes on fortune that directly do not exist in this small country.
Promotion of the investment of money in the Andorran real estate market
As of 2012, non-resident foreign investors can buy several apartments in Andorra and obtain real rights such as a lease on real estate. They can also acquire administrative concessions for private use. The only condition is to request an authorization for foreign investment from the Andorran administration.
To clarify what the leasehold consists of, we will say that it allows the tenant (the beneficiary) to enjoy a property that belongs to another (leaseholder) if this one regularly pays a royalty. This system encourages the purchase of real estate in Andorra and also in other parishes of the Principality, such as Encamp.
These benefits relating to the acquisition of goods obviously also apply to Andorran citizens themselves. But if you are a foreigner, you do not have a police or judicial record and you can make a financial contribution of € 400,000, you can easily buy houses, apartments, chalets, among other real estate, in Andorra la Vella and other Andorran parishes.
A seductive job market
Andorra has a very low unemployment rate that does not exceed 4%, a labor market made up of highly qualified and multilingual staff, and social charges for employers that do not exceed 20%. These laws and the particularities of the labor market favor the establishment of companies in Andorran territory.
I am already determined to invest my money in Andorra, how do I do?
If you have already decided and want to know how to proceed, at GESTIM Immobiliària we have a team of experts who can advise you based on your interests and your situation. However, below you will find a summary of the requirements and the procedures to follow:
To buy an apartment in Andorra it is important to follow certain steps:
- Signature of a real estate reservation contract between the owner and the buyer. The advance is used to validate the purchase intention.
- The seller removes the property from the market.
- Preparation and management of the deed with one of the four notaries currently in Andorra, the only ones authorized to initiate a sale process.
- Notaries establish the contract and prepare the sale signature. Both parties, buyer and seller, must sign it.
- The buyer pays the balance of the property and is in a position to take possession.
- The notary public deposits the deed of sale in the corresponding registry.
Conditions to buy real estate in Andorra
For several years now, the Andorran real estate market has attracted investors from Spain and France, countries bordering the Principality, and from the rest of the world. Although it already had many attractions, the tax and legal measures established by the Andorran government have given new excuses to foreign businessmen to bring their capital and put them on the real estate market.
If you are a foreign investor, the GESTIM Immobiliària team can explain in detail the documents you must gather to start the paperwork and help you with the bureaucratic procedure. Meanwhile, here you will find a preview of the documentation that will prove to the Andorran State your financial solvency and your ability to reside in the country.
Do you invest in real estate in Andorra? Here are the documents to gather
- Have no criminal or judicial record
- Being over 18 years
- Reside more than 90 days a year in the Principality
- Make a deposit of € 30,000 and € 7,000 for each of the family members
- Pass a thorough medical check
- Demonstrate that you have sufficient financial resources (4 times the Andorran average salary)
- Invest € 400,000
- Passport and certificate of civil status
- Original of the purchase or rental contract of a residence on Andorran land
- If applicable, documents that justify disability or illness
- Property title or have a bank guarantee that justifies your financial support
- The certificates must be apostilled and translated into the official language of the country, which is Catalan.
GESTIM Real Estate
The Andorran real estate company GESTIM is a leader in the purchase, sale and rental of flats, apartments and houses in Andorra la Vella and other parishes of the Principality. It offers its services in four languages: Spanish, Catalan, French and English.
More than 40 years of satisfied clients guarantee the professionalism and prestige of a team of experts.