Andorra - An Expat's Guide to Buying Property

Andorra la Vella skyline at sunset in Pyrenees mountains

Why Andorra, you ask? Well, it’s a slice of paradise with a low tax regime, which is always a bonus.

But it’s not just about saving a few quid. The quality of life here is second to none–clean air, stunning mountain views, and a community that’s welcoming to us foreigners.

Plus, there’s a thriving expat community, so you won’t feel like a fish out of water. It’s the perfect blend of tranquility and cosmopolitan living.

When it comes to property, Andorra’s got a bit of everything–from modern apartments to rustic chalets. The market here is stable and there’s a strong rule of law, making it a safe bet for your hard-earned money.

The market has absolutely been on the uptick this last few years, but then, where hasn’t? Through the global lockdowns, more residents than ever have discovered both working from home, and abroad, and the value proposition of Andorra has clearly popped up on the expat radar.

At this exact moment, there’s not a lot of stock on the market, but this is due to change. A lot of construction has been taking place, with new properties finishing construction as we speak. This will continue for at least the next few years, if not beyond.

It’s difficult to define where is best for expats to live in Andorra, since we all have different needs.

In the capital, Andorra la Vella, you’ve got all the buzz of city life. For a more balanced lifestyle, Escaldes-Engordany is your go-to. It’s right next to la Vella, so it’s just as convenient, but it can be a great place to be if you have kids, thanks to the many playgrounds nearby. 

If peace and quiet is what you’re after, Canillo is a gem, with its proximity to ski resorts and serene settings, though it can get a little too quiet for some outside of the ski season.

For affordability, Encamp is your best bet. The centre has been heavily redeveloped and it’s transformed the village.

La Massana is particularly popular with us English speakers, thanks to its vibrant community and outdoor activities.

Ordino, on the other hand, has the lowest population density in the country, along with loads of scenic beauty. If you’re a nature lover, it could be the spot for you.

For many, Sant Julià de Lòria offers warmer weather which is a godsend, but perhaps more importantly, it’s a few minutes closer to their property on the Costa Brava or Barcelona than anywhere else in the country.

Sant Pere Martir church in Andorra la Vella. Andorra

In Andorra, expats can freely purchase property, but it’s essential to be aware of the legal framework.

Non-residents are required to obtain government approval, which was once upon a time a formality, but is becoming increasingly difficult.

Hiring a local agent like those from the team at Andorra Guides can help navigate these requirements on your behalf, so the experience is much smoother than doing it yourself.

When buying property in Andorra, consider that there are additional closing costs totalling 5% of the purchase price.

Mortgages are available, but banks typically require a 30% to 50% down payment for new-residents, or non-residents.

At the time of writing, mortgage interest rates are around 5.0%, however there’s room for negotiation. A good introduction can really help here and our team is happy to help with this.

While you might be used to shopping for property listings on a website and contacting the first agent you find, things are a little different in Andorra. Very few of the listing sites are actually showing real properties, they’re just photos to get you to enquire.

Instead, give us a call to learn more about the property market in Andorra. We’ll help you to narrow down your actual requirements first.

From there, we’ll help you to find an agent that suits your actual needs, and is able to find a property that matches your requirements and budget.

Once you’ve found a property, it’s time to make an offer. Once accepted, a private contract is signed, and a deposit (usually 10% of the purchase price) is paid.

Next, the due diligence is conducted, including an independent valuation, as well as necessary approvals.

The final step is signing the public deed of sale in front of a notary, paying the remaining balance, and transferring the property. If you’re getting a mortgage, this paperwork will be signed and notarized at the same time.

Cityscape of Canillo in Winter. Canillo, Andorra

In Andorra, a good real estate agent is invaluable, especially for expats. They can offer insights into the local market, assist in finding properties that meet your criteria, and guide you through the legal nuances of the Andorran property system.

Look for agents with experience working with expats, and don’t hesitate to ask for references or testimonials from previous clients.

The good news is that most agents will “share the deal” with other agents. If you’re used to representing yourself when buying from the seller’s agent, this may be foreign, but it’s a big benefit.

Instead of working with any old stranger, your agent can take on the role of a “buyer’s agent”. Just give them your criteria, tell them your concerns, and get them to find the right property for you, as well as negotiate on your behalf with the seller’s agent.

Expats often face challenges with legal paperwork in a foreign language and understanding local real estate practices.

Your real estate agent should help you with this, but understandably you may want an outside opinion. Typically your relocation agent can help, or otherwise a lawyer in your language.

Similarly, if you need English to be spoken during your notary meeting, make sure to request it beforehand.

Outside of the language, though, one of the biggest challenges is the stock on the market. Andorra’s a small place, so there just aren’t a lot of options. If you want your dream property, patience will be needed. 

If you want to start establishing your new home in Andorra sooner rather than later, you may need to make some compromises instead.

Remember, every challenge is surmountable with the right support and information.

After purchasing your property, settling into Andorran life involves more than just unpacking boxes.

It’s about integrating into the community, understanding local customs and possibly learning Catalan. 

Engaging with neighbors, participating in local events, and exploring the diverse regions of Andorra can greatly enhance your experience as an expat homeowner in this unique country.

Clients using our local support service don’t only get English speaking advice and support, they’re also invited to social events with other residents, form friendships and connect with new faces.

Introductions from a local can go a long way when it comes to integrating, and getting set up in Andorra.

The right guide won’t only help you to get your paperwork submitted correctly the first time, they’ll help you to thrive in your new community.

If you’re researching Andorra as a potential place to live, don’t hesitate to check out the resources from Andorra Guides.