Costs paid by buyer
Notary fees
Notary fees in Andorra are always paid by the buyer. They typically range between €600 and €1300, plus 0.1% of the property selling price.
Property acquisition tax
This tax is split into two:
- Impost de Transmissions Patrimonials: 2.5 % of the selling price goes to the Andorran government.
- Fixed tax: 1.5% of the selling price goes to the local Comú (local council).
When you own the property, you will also need to pay an annual property ownership tax and, if you decide to rent out the property, rental tax.
Property ownership tax
This is levied on each individual property at an average of €100 a year.
Rental tax
If you rent out your property as a non-resident, you will have to pay income tax at 10%.
Costs paid by seller
Agency fees
Estate agent fees are paid by the seller and typically range from 5 to 10% of the property selling price.
Certificate of Habitability
The seller needs to get a Certificat d’habitabilitat (Certificate of Habitability) to confirm the property meets all legal requirements to be lived in. This costs 0.07% of the property selling price.
Capital gains tax
When you sell a property, you are subject to capital gains tax on the profit you earn. Your profit refers to the amount you sell the property for compared to the value of the property. The amount of capital gains tax you are charged depends on how long you have owned the property:
Owned for 1 year - 15% of profit
Owned for 2 years - 13% of profit
Owned for 3 years - 10% of profit
After the first three years, the rate goes down 1% per year until it reaches 0%. Regardless of the years of ownership, if the property is your main residence and you buy another property in Andorra within 6 months, you do not need to pay capital gains tax.
Remember: all fees and taxes must be paid through an Andorran bank.