COLDWELL BANKER ANDORRA
Why invest in Andorra?
In recent years Andorra has been experiencing years of expansion and growth, especially after the pandemic. Specifically, during 2021, the amount of investments in real estate in Andorra by foreign buyers increased by 77%. In addition, the country is constantly receiving applications for residency and there is a problem of limited space for building in the territory. However, the government is working to implement some measures to curb the escalation of prices.
One of Andorra's main advantages is its economic model. On the one hand, VAT is 4.5% and corporation tax has a maximum value of 10%. This means a very large increase in profits for the entrepreneur compared to Spain or other countries.
On the other hand, the interest in moving to the Principality is very high, although there are some requirements to be fulfilled in order to get a permit. First of all one must be of legal age and at least consolidate a stay of at least 90 to 183 days (varies according to the type of residence applied for). On the other hand, a medical report, a criminal record certificate and a valid passport are absolutely necessary. It is also important to remember that you need to have a home, either rented or owned, as well as a deposit that varies between €15,000-50,000.
If you want to buy a property, you must not have a criminal record, you must be of legal age, you must be able to prove a financial contribution of at least €350,000 and you must be resident in the Principality for at least 90 days per year.
The Principality has 90% of its territory in natural landscapes and thanks to its mountains it is the ideal place to practice all kinds of winter sports. Due to the new airport in La Seu d'Urgell, one hour away from Andorra, with new direct flights from Madrid, among others, communication with the rest of Spain is facilitated. As for the CASS health care system, it is at the top of the world ranking of health care systems, as it works with a system of co-payments. On the one hand, 75% of the price of medical visits is covered by the government and in the case of admissions or interventions, the government covers up to 90%.
Finally, it is worth mentioning the quality of life factor that can be acquired by living in Andorra. Thanks to its natural landscape, the Principality has excellent air quality 90% of the time and is also the world leader in life expectancy, with an average life expectancy of 84.5 years.
Our agency in Andorra, Coldwell Banker Andorra - Galí Properties has answered some of the most frequently asked questions for people who are interested in moving to or investing in the Principality.
- Andorra is fashionable, from your point of view, what are the main advantages of living in Andorra?
The main advantages of living in Andorra are the 4 educational systems (Andorran, French, Spanish and English), our mountains which are a paradise for skiing, randonee and others, optimal health system, good food and healthy life with a high longevity rate, competitive taxation and very important, low crime due to a lot of surveillance.
- What are the best areas to buy a property?
If you want a property at the foot of the slopes, we highly recommend the Grandvalira area, such as El Tarter, Soldeu, Canillo at a more competitive price (see Forest development) and finally Ordino, an idyllic location (see Vermont development).
On the other hand, in Andorra La Vella, we recommend Avinguda Meritxell with the good fortune of having mountain and city in the same place (see Everest promotion). All of them can be found on the website: see Andorra properties.
- What is the price range for properties in the Principality?
For luxury properties the prices range from 6,500€ to 10,000€/m2 and for properties in a lower range the price is between 3,500€ and 4,500€/m2 approximately.
- What is the forecast for the real estate market in Andorra?
We have to be optimistic, Andorra is a fantastic little country. The quality of the ski slopes is great, the hotels offer services for everyone and it is being built very well. I think Andorra is becoming known internationally and the response from customers in general is very good, they repeat and end up buying to settle here. Therefore, I believe that if we take care of the quality of service and improve the services we already offer, the market will do well.
- What facilities does Andorra offer to a foreign buyer who wants to purchase a property there?
First of all, once you have found your property, you will need to apply for the Andorran Government's authorisation for foreign investment in real estate. This is a simple procedure for which you will need a maximum of three weeks.
You will also need to open a non-resident bank account with one of the country's banks. You will then need to deposit the capital for the purchase of the property, either in full or at least 50% (as long as it exceeds 50% of the value of the property).
Once you have obtained the authorisation to invest and you have a non-resident bank account, you can proceed with the purchase.
Regarding the costs and taxes arising from the purchase: On the one hand the notary fees ranging from €600 to €1,200 + 0.1% of the sale price of the property. On the other hand, 4% of the purchase value of the property; tax paid between the corresponding Comú to which the purchased property belongs and the MI Govern d'Andorra, which corresponds to the property transfer tax (ITP).
Julia Oliveras |
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