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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There are many internet based lists of properties out there, many which are just databases, some out of date and some overvalued.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?

The current state of the property market in Andorra (2023)

The government has announced proposals (September 2022) to limit the number of licences for construction. This also comes on the tales of the announcement that the dump for earth and spoils in Anyos is being closed, effectively limiting some construction projects. What effect the cost of living, inflationary increases, and the state of the European market has in store for the winter may well mean that construction itself reacts to market demand as it did in the 2008 crisis.

The dynamics of the Andorra property market have continued to change markedly into 2023. The market continues to be dominated by off plan developments, high-rise towers and top end xalets and this seems to be keeping construction companies in Andorra very busy. What is not so forthcoming new developments at the middle and lower end of the market.

Any form of rental is very hard to come by,  if at all.  This is now the most challenging part of the residency application process for those looking for an apartment to rent.

If you can now find a one-bedroom apartment furnished the asking rental price can start at about EUR800, steep increase from one or two years ago. There has in the past few years been a noticeable increase in the number of property agents in Andorra or trying to cash in on a buoyant market, but you can expect many of these to disappear in the next year or two as a simply are not the properties for them to rent nor to sell.

If you are looking to buy property in Andorra currently then choice is very limited, not so limited as rentals, but buyers are finding it tough with what is available.

The lockdown and subsequent effects of the pandemic do not appear to have had any effect on the market in terms of slowing things down, if anything it has speeded the market up.

As always beware of the Internet databases and what is marketed there is certainly with the current state of the market they will be woefully out of date. Both rentals and properties for purchase are being snapped up before they make it to the Internet in most cases.
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  in 2021 now start at around € 90,000 which will buy a basic studio apartment. Two bedroom apartments vary from  € 250,000 to € 800,000 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  € 350,000 - 500,000. For detached xalets generally you can now expect to pay well over € 1 million , and a lot higher for a new build. Top of the range Xalets may now set you back up to € 8 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 2023 the rental market continues to be difficult with now very limited choice 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 has not been as attracive as a rental investment compared to hotspots such as London and major financial centres. However with the squeeze on property rentals quite significant yields can be obtained but only if you can find the properties to buy. Those who purchased mid or lower range properties during the slump from 2009 until the market perked up just several years later are now reaping the benefits.

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  € 550 for a very basic studio or one bedroom, rising to about € 700- € 950 for a  larger one bedroom, from € 950 up to € 1,500 for a good size two bedroom apartment and from € 1,500 to € 3,500  for the range of three beds and duplexes. There are some xalets and terraced houses for rent and you would expect to pay from € 3,500 to € 5,500 per month for the top of the range house.

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

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