Last Updated:
Aug 30, 2006
More house prices rises expected in Andorra
Andorra has witnessed strong property price rises over the past few years. There were price rises of 16% in 2004, 19.5% in 2003, and 14% in 2002, according to AGIA, the professional college of Andorran estate agents.
AGIA forecasts that Andorran property prices will rise by 15% in 2006. The average price for a newly built dwelling is now €4,600 per sq m., according to the realtor Invico Andorra.
Andorra saw modest rises during 1995-99,then sharp rises in 2000-01. Since then house prices have moved steadily up. The government imposed a moratorium on building in 2004, which has ensured that supply does not outstrip demand.
Non-resident foreigners need permission to purchase property. A non-resident individual can acquire no more than 1,000 square metres, or, if purchasing an apartment, one unit.
AGIA forecasts that Andorran property prices will rise by 15% in 2006. The average price for a newly built dwelling is now €4,600 per sq m., according to the realtor Invico Andorra.
Andorra saw modest rises during 1995-99,then sharp rises in 2000-01. Since then house prices have moved steadily up. The government imposed a moratorium on building in 2004, which has ensured that supply does not outstrip demand.
Non-resident foreigners need permission to purchase property. A non-resident individual can acquire no more than 1,000 square metres, or, if purchasing an apartment, one unit.
RENTAL YIELDS
Last Updated: Sep 16, 2009
Our sample of properties in Andorra is rather skewed. By selecting countryside properties, we have unfortunately pre-selected relatively expensive, relatively low-yielding properties (low yields are typical for country properties everywhere). Next year we should try to include a city centre sample.TAXES AND COSTS
Last Updated: Jul 12, 2006
Rental Income: Personal income is not taxed as such in Andorra. Rental income, however, is taxed at 3% by some Andorran parishes.
Capital Gains: There are no capital gains taxes in Andorra. There is, however, a property acquisition tax, which ranges from 1% to 2% of the acquisition price. Alternatively, at times the purchase acquisition tax is levied per square metre.
Inheritance: There is no inheritance tax in Andorra.
Residents: Being an Andorran resident for more that 20 years entitles you to the same property acquisition rights as a citizen.
Capital Gains: There are no capital gains taxes in Andorra. There is, however, a property acquisition tax, which ranges from 1% to 2% of the acquisition price. Alternatively, at times the purchase acquisition tax is levied per square metre.
Inheritance: There is no inheritance tax in Andorra.
Residents: Being an Andorran resident for more that 20 years entitles you to the same property acquisition rights as a citizen.
BUYING GUIDE
Last Updated: Jul 12, 2006
Total roundtrip costs, i.e., the cost of buying and selling a property, range from 10% - 15%. The buyer pays 5%, while the remaining 5% - 10% is paid by the seller.The real estate agent’s commission, around 5% - 10%, is the biggest part of the transaction cost. The agent’s commission is paid by the seller, but is invariably reflected in the property asking price.
LANDLORD AND TENANT
Last Updated: Jan 01, 1970
Andorran tenant protection laws are...
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If you can recommend a helpful property lawyer in Andorra, please mail: publisher@globalpropertyguide.com
If you can recommend a helpful property lawyer in Andorra, please mail: publisher@globalpropertyguide.com
ECONOMIC GROWTH
Last Updated: Aug 30, 2006
Tourism - backbone of the Andorran economy
A pocket-sized princedom, Andorra is squeezed between France and Spain in the Pyrennes. Though tiny, it contains some of the most dramatic scenery, with mountainous landscapes and meandering rivers.Authority over the co-principality is shared between Spain and France. The French President and the Bishop of Urgell are its co-princes.
Andorra makes its living from being a tax haven and from ski tourism, nowadays far more important. This small country (pop 67,000) has a somewhat down-market reputation – it is low cost and there are tax-free drinks and cigarettes. Boozy Britons figure prominently among the tourists.
Tourism accounts for more than 80% of Andorran GDP. The principality attracted an estimated 11.6 million tourists in 2005. There were more winter-sports enthusiasts from the UK than the US, Canada and Switzerland combined.
The banking sector, with its partial “tax haven” status, also contributes substantially to the economy. In 2004, the economy grew by 4%, and per capita GNP stood at $24,000. Inflation was 3.4%.Andorra is a member of the EU Customs Union. It is treated as an EU member for trade in manufactured goods (no tariffs), but as a non-EU member for agricultural products.
Andorra’s population is rapidly growing. Although Andorran citizens and native-born Andorrans are outnumbered by non-Andorran residents, the ‘native’ population keeps on rising.
