Property investment in Andorra
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New opportunities on the property market
in the Principality of Andorra
There are three main reasons why the Principality of Andorra is a great place to invest in property: low taxation, no inheritance tax and a particularly efficient Andorran banking system.
Andorra is divided into seven parishes, each with its own specific interests: Andorra la Vella, Canillo, Ordino, La Massana, Encamp, Sant Julià de Lòrià and Escaldes-Engordany. There are many investment opportunities here, and here is a non-exhaustive list of possible property purchases:
- Flats
- Houses
- Apartment blocks
- Chalets (equivalent to villas)
- Borda
- Hotels
- Restaurants
- Commercial premises
- Parking spaces
- Land
Everything you need to know about buying property
Over the years, the Principality of Andorra has taken steps to attract foreign investment and promote property transactions. By reforming its tax system and signing an agreement with France, the Andorran property market has become very attractive.
Unlike in France, real estate agents in Andorra have government-recognised training. This training is essential for working as an estate agent.
What is the ideal location?
The most affordable properties include chalets and traditional houses of charm (which are rare and exceptional because they are owned by Andorran families). The native Andorran population favours the capital, while tourists and foreigners prefer other parishes such as La Massana.
In fact, La Massana is an ideal location for property investment in Andorra, thanks to its proximity to Andorra la Vella and the Pal ski resort. Property prices in Andorra remain reasonable when compared to the capital. There are seven parishes in Andorra, each with its own charm.
Property price trends
As a result of the increase in tourism and the economic reforms introduced in 2012 to attract international capital, the Andorran property market has undergone major changes.
The housing stock is mainly collective, with recent construction: property developers have pulled out all the stops to meet the pressing demand for housing.
Property prices in Andorra fall within a very wide price range. In Andorra, there is no legal ceiling on rental prices, as there is in France. Property prices in the Principality can also fluctuate during the high and low seasons.
Each parish has its own charm and different social and cultural attractions. There are many opportunities to suit your budget in all the Principality’s parishes.
Gestoria la Peguera can advise and support you in your property project: by putting you in touch with our partner agencies, we can help you to be more efficient.
Property investment
Conditions relating to Andorran property
For non-resident foreign nationals
It is possible for non-resident foreigners to buy property in Andorra without any restrictions: no matter how many flats, parking spaces, commercial premises, plots of land or chalets. You simply need to obtain an administrative authorisation to buy from the government.
However, all the formalities are carried out in Catalan, so if you would like to invest in Andorra, we can accompany you and be by your side every step of the way with our partner estate agencies.
FOR TAX RESIDENTS
Article 4 of the convention signed between France and Andorra stipulates that a resident can only have one tax residence.
Property prices in Andorra are stable and rising, with significant savings on administrative costs and commissions. In fact, Andorran law guarantees lower notary fees and acquisition costs than in other European countries.
Don’t hesitate to contact Gestoria la Peguera if you have any questions about tax residency.
FAQ
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Why invest in Andorran property?
Investing in Andorran property offers a number of advantages that make it an attractive option for many investors. Here are some of the reasons why some people choose to invest in property in Andorra:
- Economic stability: Andorra enjoys a stable economy with low unemployment and steady economic growth.
- Tax advantages: Andorra offers a competitive tax system with relatively low rates of tax, particularly income tax, corporation tax and capital gains tax. Find out more about tax advantages on our dedicated page.
- Attractive natural environment : Andorra is a country located in the heart of the Pyrenees, offering a magnificent natural setting with mountains, lakes and unspoilt landscapes. This can attract investors looking for a pleasant living environment or opportunities in the tourism sector.
- Safety and quality of life: Andorra is reputed to be one of the safest countries in the world, with an excellent quality of life. This is an important factor for investors looking to secure their assets or settle in a safe and pleasant environment.
- Investment opportunities: Andorra has seen an increase in property demand in recent years, not least due to growing interest from foreign investors.
- Tax residence: For investors looking to establish their tax residence in Andorra, property investment can be a way of meeting the criteria required to obtain Andorran tax resident status.
However, it is important to note that any investment involves risk, and it is essential to carry out thorough research, understand the rules and regulations in force, and consult qualified professionals before making a decision. Every situation is unique, and investors should consider their objectives, risk profile and personal needs before embarking on a property investment in Andorra or any other country.
Where to invest in Andorra?
The choice of where to invest in Andorra will depend on your investment objectives, your budget, your personal preferences and the opportunities available on the market. Each parish in Andorra has its own particularities and charm:
- Andorra la Vella: Andorra’s capital offers a lively city life with plenty of shops, restaurants and services. It’s a central location with easy access to all amenities.
- Escaldes-Engordany: This neighbouring town to Andorra la Vella is renowned for its hot springs, shopping centres and quiet residential areas.
- La Massana: A picturesque mountain region, ideal for winter sports, hiking and outdoor enthusiasts. It is also the departure point for the cable car to the Vallnord ski resort.
- Canillo: A popular area for tourism and outdoor activities, including skiing at Grandvalira, the largest ski resort in the Pyrenees.
- Encamp: A town surrounded by mountains, with investment opportunities in the property and tourism sectors.
- Ordino: This region is appreciated for its rural charm, natural landscapes and tranquil atmosphere.
What is the property market situation in Andorra?
The property market in Andorra, as in any other country, can be influenced by economic factors that can change rapidly. Many variables can have an impact on the property market. We recommend that you make use of our services to advise you on your investment projects. You can also subscribe to our newsletter to receive information about Andorra.
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