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Andorra Property Guide. Where should I buy or rent?

Introduction to Andorra
How can I help You ? Updated June 2020.

There are many internet based lists of properties out there, many which are just databases, some out of date and some overvalued. Identifying the suitable primary agent for your needs can be a minefield for the unprepared. As part of my services I can act for you in finding the right property. I am partnered with some reliable and trusted registered agents. If you are 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 have the right agents prepare on your behalf a short list of properties to view without you wasting time viewing unsuitable or overvalued properties.

Please note I do not charge 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.

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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 that holiday home.

Andorra La Vella, where should I buy property in Andorra?
Into 2019 How will property fare?
2019 and into 2020 provided continued momentum for property transactions, particularly for Xalets and the top end of the market with offer prices being forced ever closer to asking prices. New high rise promotions in Escaldes are reported to be of interest off the plan but are placed at historical highs per square meter.

The slack in the middle market has been taken up and prices also have started to move a little. The lower end of the market has also become tighter. At least this was the situation pre pandemic! Where the market will adjust to is of course unknwon, it is expected that the market will pause here while things stabilise. What downturn ensues in neighbouring countries will as always affect the market here, particluarly the middle and lower ends.

For rentals, again before the pandemic there has been a shortage of availability of units for rent. There is not a lot of choice at all levels
and consequently rents have pushed higher. The market has opened again recently, as with sales it is probably too early to be exact on the situation here.
The above is my opinon and experience in Andorra, I am not a registered agent just a realist!!

Look no further, ROC Properties will guide you...
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A Price Guide for Purchasing Property in Andorra

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 is fixed in all parishes at 1.5% of the purchase price. Also payable to the Government is the ITP at 2.5% (Impost de Transmissions Patrimonials). The buyer pays no commision to the agent for purchases, the commission paid by the seller is generally 5%. The Notary normally acts for both parties, it is not common for lawyers to be involved, nor for surveys. On the latter point this can be advisable under certain circumstances and I can get independent surveys for you if required.

Some 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.

Prices for purchases continue in 2020 (Pre pandemic) to start at around € 80,000 which will buy a basic studio apartment. Two bedroom apartments vary from  € 150,000 to € 600,000 for a new quality finish,  three beds are on the market up to a price of up to € 900,000 or even more in a new build, the average guide for a three bedroom apartment would be in the region of  € 300,000 - 450,000.  Detached xalets are appearing at the € 850,000 mark and may need renovating but generally you can now expect to pay well over € 1 million for a Xalet , especially a new build. Top of the range Xalets may set you back up to € 6 million.

As always in Andorra there continues to be wide discrepancies in advertised and asking prices and that is due to a number of factors that are not often explained, especially whether the owner selling is Andorran or whether it is a second home that needs to be sold.

ROC Properties known in Catalan as ROC Propietats will be delighted to guide you through the mine field without losing that arm and a leg.

A Price Guide for Renting Property in Andorra

Through 2019 the rental market continues to be difficult with limited choices available and this will continue with rental prices already being forced up.

One thing to note in renting a property is the up front payment of four months rent, this can be unexpected if you are not prepared for it. You are required to pay at the time of signing two months refundable security deposit, one month's rent in advance and also one month's rent for the Agency commission ( plus local tax of 4.5%).

Historically the rental yield has been around the 2-2.5% yield, so property is not that attracive as a rental investment compared to hotspots such as London and major financial centres. Currently, more acceptable investment yields can be found at the mid to lower end of the market.

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 maltreatment 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 cannot unilaterally decide to raise the rent.

A tenant is required to give ONE month's notice for each year or a fraction of year remaining in the contract. This means that a person who rents an apartment whilst he is looking to buy may end up having to give or pay 5 months rent to get out of the contract. Now this can be negotiable and if you feel that you are looking at a shorter term rent it may be best to negotiate this at the start with the landlord. However the law is the law and if the landlord decides to pursue his penalty the Courts are likely to agree with him. Since the law was enacted very few landlords are not open to negotiation.

Rental prices start at about  € 400 for a very basic studio or one bedroom, rising to about € 500- € 900 for a newer and larger one bedroom, from € 700 up to € 1,300 for a good size two bedroom apartment and from € 900 to € 2,500  for the range of three beds and duplexes. There are some xalets and terraced houses for rent and you would expect to pay from € 2,500 to € 4,000 per month for the top of the range house, but renting larger properties can be even more difficult for choice.

Once again, ROC Properties known in Catalan as ROC Propietats will be delighted to guide you through the rental market.

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