An article about housing could not be missing in an information portal about Andorra specialized in establishing people and businesses in the country, and that is why we have written this article. Finding a real estate that suits one's preferences is essential to live in Andorra, either for purchase or rent and to use as a home or as a commercial premises for a business. In these cases the most common is an apartment or flat in Andorra to reside permanently in the country.
We usually say that the most expensive things to settle down creating a company in Andorra are on the one hand the share of the social Security and on the other hand the rental of the home (since as we remember, there is no self-employed legal figure or category). In the first case we are talking about € 450-500 per month and the second case is the one we are going to address here. We will focus on the floors because they are the vast majority of the Andorra real estate park (more than 90%) and the type of housing that most people demand.
Price of flats in Andorra: rent and purchase
As we will see below, Average house prices in Andorra are similar to those of an intermediate city in Spain, both in terms of purchase and rental. Not as high in general as those of Madrid, Barcelona or Valencia, but similar to those of Seville, Zaragoza, Málaga or Alicante. It should be noted, in any case, that prices are rising despite the fact that a lot of construction is being done due to the increased interest in living in the country, something that also Idealista warns with the search for housing.
Price of flats to buy in Andorra
To approximate the purchase prices of real estate properties in Andorra we can refer to multiple sources. However, surely the most truthful and the one we are going to use is the one drawn up annually and quarterly by the Andorran Statistics Department, which for the moment in 2023 is the one corresponding to 2021.
According to government data, we have that the average price per square meter of flats in Andorra It was €2,775 in 2021, 10.1%% more than in 2020 with €2,520.4. With respect to median single family home price, it was €2,836.17 in 2021 compared to €2,237.78 in 2020, which means an increase of 26.7%. They also offer us the data broken down by parishes, resulting in the following table of average apartment prices according to homes sold in recent years:
|Parish, price in € / m2||Year 2019||Year 2020||Year 2021||Variation (%)|
|Canillo||1.937,7 €||2.375,0 €||2.515,55 €||5,9%|
|Encamp||1.971,8 €||2.110,0 €||2.322,01 €||10%|
|Ordino||2.328,2 €||2.255,3 €||2.839,69 €||25,9%|
|La Massana||2.310,6 €||2.419,8 €||2.737,59 €||13,1%|
|Andorra la Vella||2.956,5 €||2.867,6 €||3.367,28 €||17,4%|
|Sant Julia de Lòria||2.030,5 €||2.181,3 €||2.310,13 €||5,9%|
|Escaldes-Engordany||3.118,5 €||3.160,4 €||3.203,74 €||1,4%|
|Average price flat Andorra||2.409,3 €||2.520,4 €||2.775,12 €||10,1%|
The variation is obviously that of 2021 with respect to 2020. We can have this same information in a more visual way with the graphs that the statistics platform also offers. For example, here we can see the evolution of the price of flats per m2 broken down by parish over the years until 2021:
As we can observe, with the real estate crisis of 2008, a downward path began until 2015, and now it has returned to an upward path since 2018. The most expensive parishes are still, of course, Andorra la Vella and Escaldes-Engordany and the most affordable are Sant Julià de L'Òria and Encamp. Right now the trend is very upward due to the growing number of people who have settled in the country, especially after the trend set by El Rubius. Here we can see quarterly the evolution of the price of flats in general throughout the country:
It should be noted that there are other sources from which to get the data. For instance, is from Habitaclia in which the calculation is made on ads for non-single-family homes published on habitaclia.com in geographic areas with a sample of more than 50 ads and that reflects some home purchase prices in Andorra that have risen from around €4,100/m2 at the beginning of 2022 to almost €4,500/m2 at the end of 2022 and the beginning of 2023. In any case, these data are from the advertisements published by Habitaclia, which are only part of the fleet of Andorran properties and usually the most expensive.
Other sources to use can be this of Hogaria.net, although the data does not seem very reliable and it does not show how it has been extracted, although we assume that it has been done through the publication of ads. Be that as it may, What is certain is that indeed the prices of flats and houses in general in Andorra have increased a lot in recent years..
Finally, note that home purchase price is a recurring theme in the country, as we have seen in numerous press articles and notes such as east of La Valira, this other, or also east of El Periòdic Y this other or in Andorra Diffused and even in the Diari d'Andorra. In fact, the Association of Real Estate Agents of Andorra (AGIA), posts on his blog posts with some concern. The Government itself has currently restricted the requirements to settle in the country precisely for this reason and with the aim of reducing prices and rentals of flats.
Rental price in Andorra
The vast majority of people in Andorra live on rent. According to statistics department data, between 60% and 70% of people live in the country renting an apartment or other home. Therefore it is obvious that this question is the most important. To find out about renting flats and housing in Andorra, we should refer to the Household Budget Survey, in this case from 2021 which is the last available.
According to these files we can find very interesting data. For example, the average occupation time of a dwelling is 12.4 years and the majority of dwellings are occupied between 10 and 19 years. Also that the bulk of rental homes are concentrated between 2 and 9 years of rent and between 50 and 124 square meters, with an average of 80 m2.
Regarding the rental prices, in the following table and graph we show the average rental price in Andorra since 2015, where we appreciate a notable increase, especially from 2017. These data correspond approximately to the rental price of a flat or home for a single person. We can see that from 2020 to 2021 it increased by 6.2%.
|Half price||581 €||578 €||579 €||603 €||621 €||632 €||671 €|
However, these average prices do not take into account the size of the rented home, which is very relevant in order to get an idea of the costs of renting in the country. In this sense, the most remarkable and visual graph of the study relates the prices according to the size of the house considered and taking the years from 2017 to 2021 as we show below. Therefore, the rental prices by size of the property would be as follows:
|Size||0-49 m2||50-74 m2||75-99 m2||100-124 m2||125-149 m2||> 150 m2|
|Price||472,0 €||581,0 €||659,9 €||774,1 €||985,1 €||1.287,4 €|
Another way to measure rental prices is measured per square meter of rented housing. In this sense, we also have a very instructive table that relates the price per square meter according to the rental years for the different years considered:
|Rental time / Year||2017||2018||2019||2020||2021|
|Less than 1 year||7,7 €||9,4 €||9,5 €||9,6 €||10,2 €|
|1 year||8,2 €||8,8 €||9,3 €||9,7 €||9,6 €|
|2 to 4 years||7,2 €||7,6 €||8,0 €||8,4 €||9,1 €|
|5 to 9 years||6,9 €||7,1 €||7,3 €||7,5 €||8,0 €|
|10 to 19 years||7,0 €||7,3 €||7,4 €||7,4 €||7,8 €|
|20 years or older||5,3 €||5,7 €||5,7 €||5,7 €||6,7 €|
|total mean||6,9 €||7,3 €||7,5 €||7,6 €||8,3 €|
As we can see, again, a marked growth especially in the lower brackets (ie, in the newest rentals, less than 1 year old). We also see that the rental price is lower the more years you have been living in rent and that it tends to decrease with respect to new contracts as the years go by.
In any case, the truth is that It is a very controversial and current issue in Andorra, as we can see inis Government press release, too in this article from the Diari d'Andorra or in this ofAndorra Diffused, where we can also read that household expenses account for approximately 34% of average family spending in Andorra.
Requirements to buy a flat or home in Andorra
First of all we would like to emphasize that no need to be resident in Andorra to buy an Andorran real estate. Any person of legal age can do it as long as they have a clean criminal record and can prove it with their proper certificate. Nor does it have any repercussions on prices or taxes, rates and expenses that must be undertaken, only in the case of leasing it, the tax treatment of the returns is different. therefore can invest in Andorra buying a home without any impediment.
Yes indeed, it is essential to have an Andorran bank account, since payments must be made within the Principality and constitutes proof of the legal origin of the funds contributed by virtue of the regulations against money laundering.
Andorran Government authorization
The Andorran government provides an authorization called Authorization of Foreign Investment in Real Estate which gives the right to invest in an Andorran real estate. This authorization It must be requested by natural persons who do not have residence or nationality in Andorra and legal entities domiciled abroad and it is obtained within a period of approximately 15 days.
This investment authorization it is the previous step to be able to invest in the country and allows you to invest in any of the seven parishes of the Principality and in any type of real estate property: flats and apartments, chalets and semi-detached houses, parking lots, commercial premises, land ...
Steps to acquire a property
The purchase process, once the authorization is approved, lasts about a month and a half to two months. It is a four-stage process to formalize the acquisition that we summarize below:
- Signature of the reservation contract of the real estate, between buyer and seller. The buyer pays a deposit of the 10% that validates the purchase option. It is a non-refundable deposit that acts as a purchase signal and prevents the buyer from backing out for no reasonable reason. The seller removes the property from the market for a specified period of time.
- Preparation and management of the deed of sale. Activation of the sale process by an Andorran notary, drafting of the contract and preparation for signing the deed.
- Signature of the deed of sale by both parties, in the presence of the notary. The buyer pays the remaining balance and takes possession of the real estate. The name is changed in the property deeds.
- Deed deposit of sale by the notary. The seller, for his part, usually must deliver the Certificate of Habitability of the property to the buyer, issued by a registered architect, which ensures the vital conditions of the home.
- Tax payment and municipal taxes.
In any case, it is best to go to a specialized advice to carry out all the formalities with the bank, the government, the agency / owner and the notary. At Andorra Insiders, for example, we can help you optimize your time and money in strict compliance with the law and carry out the procedure efficiently, clearly and professionally.
Notary fees to make the purchase
Usually the costs in notary fees are approximately 0.1% of property value immersed in the operation, plus a fixed amount between € 500 and € 1,500 approximately according to the value of the property purchased. The buyer is responsible for paying these notarial expenses and the corresponding taxes through a bank account in an Andorran bank.
In addition to these, if the procedure is carried out through a real estate agency, the fees that they apply should be taken into account.
Real estate tax on the sale
Taxes on home purchases
Transfers of all kinds of real estate as well as the constitution and transfer of real rights over real estate are subject to tax in Andorra from Property transfer tax (ITP). Thus, when a house, a flat or dwelling or other property is purchased, the buyer is liable for this tax.
The rate to be applied and paid is the one corresponding to the 4% of the real certified value of the property, divided into a 1% for the central administration of the Government of Andorra and a 3% for the local council or Comú. The section of the Comú is chosen by the comuns themselves between 0.5% and 3%, but in practice all have the maximum section. The exemptions apply to operations with kinship, marriage, public entities, corporate relations or donations to non-profit organizations, among others. Also if the property is going to be used to rent a minimum of 5 years and some more.
We recommend, again, going to a tax consultancy to study the case and see how to proceed.
Taxes on the sale of a property
The sale of a property, unlike what happens in other countries, is not subject to capital gains from taxes on capital or on savings, or by the Andorran personal income tax savings base. The capital gains obtained from the sale of a home or other property in Andorra are subject to a specific tax for this, called Tax on Capital Gains on Real Estate Asset Transmissions.
This capital gains tax that is revealed in the transfer of assets, onerous or lucrative "inter vivos", of all kinds of real estate, as well as in the constitution or transfer of real rights over real estate. The rate to apply varies between 0% and 15% depending on the years the property has been owned before proceeding to its sale. Thus, a home that has been owned for less than one year will be taxed at 15% and if it has been owned for more than 10 years, it will be taxed at 0%.
In any case, this tax is also more complicated and has its peculiarities. From exemptions and discounts to corrections with coefficients, ways to calculate the tax rate and withholdings. That is why we again urge you to seek professional advice.
Although there is no IBI in Andorra, there are certain communal taxes on owners of real estate, depending on the parish that applies them, the square meters of the property, its state of construction or the location, among others. These can be three:
- The traditional tax of foc and lloc, which taxes the fact of residing in a parish, regardless of the regime (rent or owner).
- The real estate tax that taxes the property per square meter. Each parish applies its type and its correction for the location of the property.
- The tax on rental income. It is applied to the income credited during the year, and it is settled at the end of the tax period. The rate ranges between 0.4% and 4% on rents according to the Comú.
Requirements to rent an apartment
Similar to the previous case, You don't have to be an Andorran resident to rent a home either, it is enough to identify yourself (ID, Passport, etc.) and have a bank account in an Andorran bank to be able to make payments for household expenses from there (rent, electricity, heating and water, internet, insurance, etc.). Nevertheless, it doesn't make much sense to rent a home without becoming a resident, much less if you are not going to become a tax resident because you will not be able to take advantage of the Andorran tax advantages.
Indefinite lease contracts in Andorra have a minimum duration of 5 years, during which the contract can be terminated by prior notice done as many months before as years of contract remain to be fulfilled at the time of leaving the house. For example, after two years in a 5-year rental apartment, it is required to issue a signed and written notice to the owner / real estate agency of 3 months before leaving the property permanently.
On the other hand, it must be taken into account that in general You must have the amount of 4 months of the rent to hire to start said contract. Of these, the equivalent of one month would be for the real estate agency as fees, two months would be deposited as security for the lease and the last would be to pay the first month of the contract. It is important to indicate that homeowners insurance is mandatory, as well as paying the annual municipal fees for lighting and cleaning.
Finally, it is advisable to make sure that, in case of looking for real estate through a real estate agent, that he is registered in the Association of Real Estate Managers and Agents of Andorra (AGIA). This is one profession regulated by the Real Estate Agents and Managers Law of the year 2000 and only those registered in said public entity can develop this work.
Find a flat in Andorra for rent or purchase
We finish the article with the best ways to search and find real estate of all kinds in Andorra. What people usually do is googling and they end up on platforms like Habitaclia, Idealistic o Pisos.com. However, in these Spanish portals, In addition to having only a small fraction of the total Andorran real estate fleet, they are usually more expensive than usual.
The Andorran housing and real estate market is unfortunately very local, very union. It is certainly a oligopoly with behavior and operation typical of a cartel. For example, all real estate agencies know each other and work together to share commissions and fees at the expense of the consumer. In addition, the regulation of the sector makes competition between them difficult.
That is why, although there are many different real estate agencies in the Principality of Andorra and we could name many of them, we believe that the best option to look for housing, parking area or any other type of real estate property in the country is the Pisos.ad portal o buscocasa.ad, quite local portals and little known abroad, which do not usually appear on the internet beyond the searches carried out in Andorra.
This portal, unlike those mentioned above, yes has a vast and wide range of real estate. In addition, the majority of real estate agencies in the country publish in it, very different real estate companies with different properties (or sometimes the same). Thus, although this portal does not prevent oligopolistic and abusive practices by real estate developers, allows you to search better, compare properties among many more and even compare prices of different real estate agencies. In case any of them catches your attention, you can also contact the real estate agency with the contact information published there.
That is why we believe that, although they probably charge their own commission to the agencies to serve the ads and may be more expensive, worth using.
Share a flat in Andorra
Finally, to share a flat in the Principality of Andorrawe highly recommend this telegram group, called Allotjament Andorra, since it is a group with more than 2,000 people whose objective is precisely to organize people so that they can share accommodation and housing. Also in this Facebook group with more than 15,000 people called I am looking for Pis in Andorra maybe they can find people to share a flat who have a free room or need a room.