Are you considering buying property as an investment or are you looking for a place to settle down and start enjoying the Andorran lifestyle?
Understanding the real estate purchasing process and the country’s standard real estate regulations will give you a distinct advantage when making this important decision.
Although the Andorran real estate market is quite small, the ever-increasing number of tourists and immigrants coming to the country creates demand.
New properties are starting to appear, although prices are still reasonable compared to the European market.
If you are looking for a way to invest in Andorran real estate, your time is excellent as prices are still within affordable limits.
With this short guide, you will learn the most important aspects of buying property in Andorra and can start searching for a place that suits your needs.
Legal requirements when purchasing property in Andorra
There are few realistic requirements for buying property in Andorra as a foreigner. However, having a residence permit in Andorra will facilitate the process and bypass the restrictions applicable to non-resident foreigners:
- To purchase real estate you need permission from the Andorran government.
- Commercial real estate can only be purchased for use in your own business.
One thing you should always remember when conducting official and legal transactions in Andorra is that the language used is Catalan.
If your language skills are poor, consider hiring someone or a close friend who can translate documents and help you fill out forms and read legal texts.
The buying process in Andorra
Unlike other countries where real estate transactions vary depending on the circumstances, in Andorra there is a standardized process that must be followed. The process of buying property in Andorra can take between four and six weeks.
The process of buying property in Andorra is as follows:
- A “Commitment to Sale” agreement is signed between the seller and the buyer, in which they determine the price of the property and any additional conditions.
- The buyer must then pay a non-refundable deposit of 10% to proceed with the purchase process. This protects the seller in the event that the buyer decides to walk away during the sales process, and also protects the buyer from gazing (where the seller tries to break the contract and pay the deposit when receiving a higher offer) if there is a clause in the contract. contract
- If you are a foreigner, you need to apply to official government agencies and obtain foreign investment permission. This is a simple form (in Catalan) containing all the information about the property and the sales process. This resolution may take one or two weeks.
- If you already have a residence permit or you already have government permission. The seller hires a local architect to inspect the property and provide a Certificate of Habitability (certificat d’habitabilitat), which ensures that the property meets all legal requirements for decent habitation.
- It is necessary to contact a notary so that he can control the final stage of the sale and impartially guarantee the interests of both parties.
- The notary signs the public deed of title (escriptura publica), which must be signed in his office between the seller and the buyer to complete the sale. You must provide a receipt with the final price of the property and notary fees.
The buyer must pay notary fees, which range from 600 to 1300 euros plus 0.1% of the value of the property.
What to look for when buying real estate
There are several factors to consider when looking for property in Andorra, especially if you are looking for an investment property. All of these can have a negative or positive impact on how easy it will be to sell your property in the future.
Likewise, if you are looking for a property to live in, you should also consider these factors. What may seem like an idyllic home tucked away in the mountains in the summer can turn into a secluded nightmare in the winter.
Sun Ray
You may be surprised to learn that depending on the region, some properties do not receive much sunshine in the winter due to Andorran geography.
Sunshine will help you cut your heating bills, clear snow naturally, and give you a healthy dose of winter optimism.
Weather changes
Andorra’s weather can vary greatly from one district to another. Depending on the site’s location, the microclimate may change gradually over the course of a season or dramatically from season to season.
Ease of Access
Andorra’s terrain can be quite challenging. There are many mountains and beautiful valleys scattered throughout the country. These slopes make some roads difficult to drive on, especially in winter.
Please be aware that some roads may take a long time to clear after a snow storm.
Heating and quality of construction
There are various heating options to keep you warm in winter. Having proper insulation and access to sunlight will directly help your heating system. Try checking out the property at the beginning of winter to see how the building copes with the cold.
Proximity to services and entertainment
There is an old saying in real estate: location is everything, and in Andorra this is completely true.
Although everything is relatively close, the closer you are to ski resorts, major roads, town centers and schools, the higher the property value will be.
Buying property in Andorra
The process of purchasing property in Andorra is relatively strict, but this simple procedure makes the system trustworthy and helps ensure that there are no surprises when purchasing a new property.
There are practically no restrictions on the purchase of real estate by foreigners, and these are more likely legal formalities that must be observed than real obstacles.
If you’re looking to settle down and start living in Andorra, you’ll find that this wonderful country has a little bit of everything for everyone and you’ll immediately feel at home.