living in Andorra guide on residency relocation advice

The banks are keen to lend to passive residents on arrival in Andorra and subject to the credit checks you can borrow a maximum of 80% of the value of the property at a very competitive interest rate.

The rental market can be difficult at times in Andorra for those seeking passive residency if your requirement is for luxury apartments or chalets. One reason for this is the five year rule in Andorra which is so heavily weighted in favour of the tenant. The rental contract is for 5 years, and for that reason landlords are not enthusiastic about tying up their property for five years minimum. The tenant has a right by law to enjoy 5 years in the property (except in the extreme circumstances where the court agrees that the property has been abandoned, mistreated, or the rent has not been paid amongst other reasons).

So a brand new chalet will most likely go on the sales market without much enthusiasm for the rental side. Andorran owners would rather leave the property empty for perhaps two years than risking a definite five years during which the market may take an upturn.

Choice therefore is limited. Most passive residents would prefer to rent first, a logical choice so they can settle in and see if the country is suitable for their future.

In conjuction with a local property agent, we have formulated a third way forward which in many cases may solve this problem, namely a deferred purchase agreement.

In this the applicant will agree to pay 12 months payment to the "seller" as a prepurchase deposit AND which will be equivalent to 12 months rent if the property were on the rental market. After 12 months the applicant either leaves the premises (in which case he has had 12 months rent there), or he agrees to purchase in which case the 12 months prepayment (or rent) will be deducted from the agreed purchase price. There are considerable advantages to this for the applicant:-

He has a top quality property for rent for 12 months,
He can settle in with the family in Andorra and look slowly at that or other properties for sale,
He has 12 months if necessary to prepare the best deal on financing,
The 12 months prepayment if a sale is agreed is deducted for the agreed price,
At the end of 12 months he can walk away, rent elsewhere, buy elsewhere, or even negotiate a further 12 months in the property.

Whilst this will not suit every situation, it will be ideal for those who plan to purchase to live here but would rather rent for a period before making a firm decision. For those with purely an intention to rent and never buy then it is not suitable.

Please contact me if you think this scheme might be useful in your circumstances. It also involves identifying those chalet or apartment owners who themselves may be interested in this type of agreement, we already have a few on board, and this scheme is likely to grow in popularity especially with the poor market condions in the sales market.

In Andorra as in most if not all parts of Europe, the property market here is depressed. Prices have remained unrealistically high in all but those cases where a sale has been imperative for the owner. In reality asking prices are at a level where the few buyers that are in the market find too high. Local Andorran owners and construction companies would rather leave newly built blocks empty than having to drop the price. As far as foreign owners are concerned, if they do not need to sell then their asking prices too are generally high. However some bargains are beginning to emerge. As an example a brand new attic apartment has just been reduced from € 1.2 million to € 680,000. So patience is the name of the game at the moment.


Many xalets and apartments here are holiday homes, the longer the economic downturn persists, the greater individual necessities become, and the first item of household expenditure to dispose of is the holiday home. There are an increasing amount of individual needs to sell at a marked down price, but as yet the mass market has not followed other than those sporadic bargains.

I am partnered with some agents whom I consider to be reliable. If Anyone interested in viewing apartments or xalets I would suggest that you let me know in advance what exactly are your requirements and then I can prepare on your behalf a short list of properties to view without you wasting time viewing unsuitable properties.

Please note I DO NOT CHARGE YOU FOR THIS SERVICE, so in effect you have the advantage of my local knowledge and I can act on your behalf and in your interests.



As in any country there are builders with good reputations and there are the others. Also be aware that Andorra has mountains (!). Some agents may try to convince you that you would have sun all day. Even in summer no where in Andorra has sun all day and in winter you need to be specifically aware behind which mountain the sun disappears at 1430 in the afternoon.



Please contact me if I can assist or represent your interests in any purchase or rental, whether in support of your passive residency application, investment or the holiday home.

The purchase of property is relatively easy normally with the payment of a deposit and after a few weeks of legal work a visit to a notary to obtain title to the property. There is a stamp duty tax payable to the comu (local parish) and which varies between 2-3 % of the purchase price. The buyer pays no commision to the agent for purchases, the commission paid by the seller is generally 5%.

Two years ago a capital gains tax was introduced to prevent speculation. There is a sliding percentage scale over a twelve year period which reduces from 15% to % 0 on the increase in sale value over purchase value. That is where my guidance on the matter ends as even lawyers here seem not to fully understand the complexity of the calculations. This law was poorly enacted, but be aware of its existence.

Prices for purchases start at around € 100,000 which will buy a basic studio apartment. Two bedroom apartments vary from € 150,000 to € 300,000 for a new quality finish, three beds are on the market up to a dream price of up to € 700,000, the average guide for a three bedroom apartment would be in the region of € 300,000. Detached xalets are appearing at the € 600,000 mark whereas a couple of years ago a Xalet under € 1 million would have been difficult to come by. Top of the range xalets will set one back up to € 5 million.

I have placed below a cross section of property available from the high-end of the market to the low end. This will give you a rough idea of value for money in Andorra and what you can expect. Arranging viewings from photos through agents on the internet is not advisable as photos often are misleading. You will probably end up wasting a lot of time with viewings in which you have little or no interest. That is where I offer a different service, I will identify your requirements and recommend shortlists to assist you prior to your arrival. A beautifully advertised apartment may need a new roof, a replacement lift perhaps, there may be drainage problems, an unstable slope at the back, and above all that great view that disappears soon after you move in hidden by the new construction in front of the block you didn't know about when you were purchasing your dream apartment ! Some smaller roads have been blighted by heavy lorries taking soil to a land dump which has been placed right at the top of a hill.....You NEED to know these things before you decide !!

Let me do the searching for you and prepare a short list of properties for you to view. Let me assist in identifying these problems you may encounter, I am here to help you settle in a new country so whether for passive residency, investment or that second home close to the ski resorts, let Jane take the strain......

The rental market is fairly buoyant but prices have not risen and do not appear to be on an uptrend. Historically the rental yield has been and remains around the 2-2.5% yield, so not property is not attracive as a rental investment compared to hotspots such as London and major centres.

The luxury end of the market has been quite buoyant, there are some lets available, in general they are more quickly rented out due to their scarcity on the market and consequently the choices available may be limited.

As far as rentals are concerned the landlord will generally demand two months rent as a refundable deposit, plus one month rent in advance. Also at the time of signing the rental contract the agency fee will need to be paid which is also one month's rent. So at the time of signing a rental contract you will need to pay four months rent.

Rental contracts are by law for five years and are heavily weighted in favour of the tenant. To evict the tenant the landlord has to provide evidence of mal treatment of his property or non-payment of rent or a breach of the conditions of contract. He cannot decide in the five years that he wishes to sell the property and get you to leave. Also the annual rental increase can be no more than the annual inflation rate, so again the landlord can't unilaterally decide to raise the rent.

The tenant however need under current temporary legislation to give one month's notice to leave. The usual notice is three month's notice and some penalties depending on how many of the five years there is left on the contract. this emprary legislation was bought in by the Government as one of the means to inject some life into the economy in the face of the economic crisis. Just how temporary this is, is unknown but as at May 2011 there is no sign yet of reverting to the three month rule.

Rental prices start at about € 350 for a basic studio or one bedroom, rising to about € 400- € 500 for a newer and larger one bedroom, from € 500 up to € 800 for a good size two bedroom apartment and from € 650 to € 1300 for the range of three beds and duplexes. There are some xalets and terraced houses for rent and you would expect to pay from € 1,500 to € 4,000 per month for the top of the range house, but renting larger properties can be more difficult for choice.

Encamp
Constructed Area 47 M
Terrace size 42 M
For Sale: 125,000 €

Light and spacious attic studio, fully furnished and equipped, with uninterrupted views over Encamp village and the Funicamp. This property is only 100 metres from the local town-hall, doctors, public transport, shops and pharmacy, and only 200 metres from the main ski-lift. Small reception area, kitchen with serving- hatch, dining- sitting room (and bedroom) with fire-place and access to the very large, sunny, terrace. seperate bathroom. 3 large cupboards.The property is for sale with a storage locker, and although it has no allocated parking space in the garage, there is a large exterior (free) parking just behind the block approx 50 metres walk.

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Arinsal
Constructed Area 95 M2
Terrace Size 8M2
For Sale: 210,000 €

Light and spacious apartment located close to the centre of Arinsal village and access to the ski-slopes. This property is all exterior and offers delightful mountain views. Entrance to open-plan kitchen (with seperate utility room) dining/living room with access to the terrace (of approx. 8m2), WC, 2 double bedrooms (one with fitted wardrobes) and 1 bathroom.
The price includes 1 parking space and storage locker.

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La Massana
Constructed Area 105 M2
For Sale: 280,000 €

Very spacious apartment, of recent construction (approx. 1.5 yrs), located close to the centre of La Massana and all the amenities. Recently renovated this property was a 3 bed apartment but has been changed to a large 2 (double) bedroom property. Entrance hall leading to sitting/dining room with mountain views, semi-open kitchen equipped with hob, oven and extractor, 1 large master bedroom with en-suite shower room and fitted wardrobes, 2nd double bedroom also with en-suite bathroom and fitted wardrobes.
The price includes 2 parking spaces.

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La Massana
Constructed Area 129 M2
Terrace size 24 M2
For Sale: 412,000 €

Recently renovated ground floor apartment enjoying good views, sun and lots of light. This property is located just a short walk to the centre of La Massana village. Entrance leading to the modern open plan kitchen with seperate utility room leading to an internal patio, dining/living room with fire- place and access to the terrace (of 24m2), master bedroom with en-suite bathroom, and with fitted wardrobes (also leads on to the terrace), 2nd double bedroom also with fitted wardrobes, full bathroom.
The price includes 1 parking space and 2 storage lockers (1 large and 1 small).

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El Serrat
Constructed Area 350 M2
Terrace size 40 M2 Plot size 1206 M2 Garden size 1000 M2
For Sale: 825,000 €

Detached house in a very quite location with magnificent views and sun most of theday. It enjoys a large and mature garden. It is situated in a urbanized area on the Ordino valley, at 10km from Ordino village and all its services, and also 8km from the Ordino Vallnord ski station. Entry hallway, laundry area, garage for 1 car (but outdoor parking for 5 further cars), office, courtesy WC, fully equipped kitchen with dining area and long gallery enjoying lots of light, views and sun , sitting-dining area with fire-place, access to a large covered terrace into a bbq area, double bedroom with full bathroom en suite and fitted wardrobes.
Downstairs: 2 double bedrooms with full bathrooms en suite (one is a Jacuzzi bath). Access to the garden

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Anyós
Constructed Area 371 M2
Terrace size 96 M2 Plot size 535 M2
For sale: 1,685,000 €

Luxury chalet, fully furnished, wih stunning views over the La Massana valley. Recent construction with quality finishings, underfloor heating on upper levels, large windows,and lift to all levels. Ample reception area on 1st floor leading to master bedroom with private dressing area, en- suite bathroom and access to the large terrace, 2 further double bedrooms (1 of which has fitted wardrobes) also leading to terrace, seperate shower room. Top of the house hosts an open-plan living/dining area with views, kitchen and WC. In the lower level there is a guest suite (with en-suite bathroom), laundry room, boiler room, lift maintenence room and garage for 5 cars.

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Arinsal 52 M2
For Rent: 350 € per month

Furnished one bedroom, one bathroom apartment with fireplace close to the slopes and lively village of Arinsal. This is an example of probably the cheapest available for passive residency requirements.

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Erts 52 M2
For Rent: € 500 per month

Newer construction between La Massana and Arinsal. One bedroom and one bathrooom, unfurnished, a good finish, ideal perhaps as a base to establish residency whilst looking to purchase or find the ideal apartment, parking and ski locker included.

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Pal 67 M2
For Rent: € 525 per month

A rustic style one bedroom apartment in a quiet village in the mountains five minutes from the ski resort of Pal. In good condition with fully fitted kitchen and parking. For those that prefer a quieter environment. Includes fireplace, balcony, ski locker and parking.

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Anyos 100 M2, Terrace 6 M2
For Rent: € 700 per month

Beautifully light apartment in the village of Anyos close to La Massana, with two bedrooms and two bathrooms, one ensuite, fully equipped and enclosed kitchen. Nicely appointed with views, fireplace, terrace, parking and ski-locker.

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La Massana, 208 M2, Terrace 17 M2
For Rent: € 1,300 per month

Recently constructed spacious and light Attic duplex fully furnished and equipped. Situated 5 mins walk to the centre of La Massana and enjoying uninterrupted views across the sunny valley. Three bedrooms, three bathrooms, one ensuite, enclosed cupboards, fire-place, large terrace, ski locker and a spacious parking place. Ideal for a family rent in Andorra.

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