Property Buying Costs in Andorra

Property buying costs in Andorra at a glance (2026)

Build your purchase budget from separate components: the price, transaction tax, any foreign investment tax, professional fees and financing. A universal allowance of 5–7% can be too low. The examples below show how the calculation changes under stated assumptions, while the later sections cover running costs and a future sale.

Purchase tax — ITP

ITP is the tax on property transfers where its legal conditions apply. Confirm the seller’s status and the transaction with the notary: “resale” alone does not determine the tax.

• Headline rate: 4% of the agreed purchase price
• Split: 1% to the national government (Govern d'Andorra), 3% to the parish council (comú) of the property's location
• Taxable base: confirm the valuation rules, declared value and any applicable relief with the notary or tax adviser.
• Paid: at or shortly after the notary deed - the notary manages the payment instruction

Ask for the tax calculation before signing, including the applicable base and payment deadline.

Purchase tax — IGI

IGI is Andorra’s indirect tax. Whether it applies to a property transaction depends on the seller and the legal nature of the supply, not solely the age of the building.

• Standard IGI rate: 4.5% where the transaction is subject to that rate.
• New developments: confirm whether the quoted price includes IGI and how stage payments are treated.
• Resale transactions: check ITP/IGI classification rather than assuming that all second-hand homes attract ITP.

The transaction may be subject to ITP, generally 4% when applicable, or IGI at the applicable rate, commonly 4.5%. The seller and transaction determine the treatment, not simply whether the property is new or resale. Foreign real estate investment tax can apply in addition at 6% or 10%, according to the category, with specific reliefs and transitional rules. Add individually quoted notary, professional and financing costs. See property buying costs.

Notary fees

Every Andorran property purchase completes at the notary. Notary fees are set on a sliding scale.

• Request a written estimate for the purchase deed and identify what is included.
• Check additional costs for a power of attorney or certified copies.
• If borrowing, distinguish the purchase deed from mortgage-related formalities.
• Ask whether translations, legal advice and taxes are included or billed separately.
• Who pays: buyer pays the notary for the deed; the seller typically pays for cancellation of any existing mortgage or encumbrance

Administrative and documentation costs

• Ask for each charge to be itemised; do not assume a universal property-registry fee.
• Confirm which title, cadastral and local-authority formalities apply to the property.
• Agree who completes the formalities after signing and which documents you will receive.

Foreign investment authorisation

• Check whether the buyer or ownership structure falls within the foreign investment rules.
• Separate the administrative filing fee from foreign real estate investment tax at 6% or 10% where applicable.
• File early, but make contractual dates conditional on the authorisation actually being issued.
• What it covers: notification and authorisation of foreign capital investment in Andorran real estate under the foreign investment law

Agency fees

• Standard Andorran practice: estate agency commission is paid by the seller, not the buyer
• Buyer-side advisory fees: may apply on bespoke search briefs or specific consultancy arrangements - confirm scope before engagement
• INVICO: licensed AGIA agency (no. 384) - our fee structure is confirmed clearly before any work begins

Mortgage arrangement fee (if using finance)

• Arrangement fee: use the amount in the bank’s written mortgage offer.
• Valuation: request the bank-approved valuer’s quote before instructing the report.
• Other financing costs: check mortgage formalities, insurance and early repayment conditions.

For the full picture on Andorran bank mortgages, non-resident loan-to-value and the KYC process, see banks in Andorra.

Worked examples - total buyer cost at different price points

These are worked examples, not market fee estimates. Assume the stated tax base equals the price, the buyer owes 6% foreign investment tax with no relief, and the professional, administrative and financing amounts shown are hypothetical quotes. The first two examples use ITP; the third assumes an IGI-taxable supply; the fourth adds a mortgage. Actual liability and invoices must be calculated for your purchase.

EUR 500,000 resale apartment

• ITP (4%): EUR 20,000
• Notary (approx.): EUR 4,500
• Assumed administration: EUR 500
• Foreign investment tax (6%): EUR 30,000; assumed filing fee: EUR 200.
• Total assumed transaction costs: EUR 55,200 (11.04% of price), excluding the price itself.

EUR 1,000,000 resale apartment

• ITP (4%): EUR 40,000
• Notary (approx.): EUR 7,000
• Assumed administration: EUR 600
• Foreign investment tax (6%): EUR 60,000; assumed filing fee: EUR 200.
• Total assumed transaction costs: EUR 107,800 (10.78% of price), excluding the price itself.

EUR 2,000,000 new-build chalet

• IGI (4.5%): EUR 90,000
• Notary (approx.): EUR 10,000
• Assumed administration: EUR 700
• Foreign investment tax (6%): EUR 120,000; assumed filing fee: EUR 200.
• Total assumed transaction costs: EUR 220,900 (11.045% of price), excluding the price itself.

EUR 1,000,000 purchase with 70% mortgage (EUR 700,000 loan)

• ITP (4%): EUR 40,000
• Notary (deed + mortgage deed, approx.): EUR 9,000
• Assumed administration (purchase and mortgage): EUR 900
• Foreign investment tax (6%): EUR 60,000; assumed filing fee: EUR 200.
• Mortgage arrangement fee (1%): EUR 7,000
• Bank valuation: EUR 1,000
• Total assumed transaction costs: EUR 118,100 (11.81% of price), excluding the price itself.

Ongoing property costs in Andorra

Transaction costs are one-off. Ongoing costs recur annually or quarterly and should be part of your total cost of ownership calculation.

Community fees (quotes de comunitat)

• What they cover: building maintenance, lift, cleaning, external areas, building insurance and building administrator fees
• For an apartment, request the actual annual budget, your share, recent accounts and any arrears affecting the purchase.
• Pools, concierge services, lifts and communal heating can materially increase charges. Check planned major works as well as routine costs.
• Paid: usually quarterly direct debit - requires an Andorran bank account
• Where to find it: we obtain the current community fee schedule from the seller or the building administrator before you sign

Property tax (ICI - Impost Comunal Immobiliari)

• What it is: Andorra's equivalent of council tax, levied by the parish (comú)
• Local property charges vary by parish and property. Ask the relevant comú for the applicable assessment rather than using a national annual estimate.
• Paid: annually to the relevant comú

Buildings insurance

• Building-level cover: usually included in community fees for apartments (the building is insured collectively)
• Contents and liability: individual policy required for your belongings and personal liability
• Obtain a quote based on the property, insured contents, liability cover, excess and exclusions.

Utility deposits and activation costs

• Electricity: confirm the local distributor, any deposit, connection charge and capacity required.
• Internet: ask Andorra Telecom for the current plan, equipment and installation charges.
• Water: included via comú supply for most properties, activation via the building administrator

Property gains tax on exit (plusvàlua)

The former separate property capital-gains tax was repealed from 2024. Gains now fall within the relevant income-tax regime, with additional provisions for certain short-holding disposals. A sale does not automatically become tax-free after a fixed number of years. Ask an adviser to calculate the treatment for the seller, acquisition date and proposed sale.

• Keep purchase, improvement and sale-cost records for the gain calculation.
• Check the rules in force when selling, including any short-holding surcharge and relief.
• This is a seller-side cost, not buyer-side, but relevant for total investment planning

For income tax on rental income and investment returns see income tax in Andorra.

How Andorra buying costs compare to Spain and France

Compare like-for-like budgets using the actual buyer, property and location. National headline rates do not show the full entry cost:

• Andorra: identify ITP or IGI, plus any foreign investment tax and professional costs.
• Spain: tax rates and reliefs depend on the autonomous community and the transaction.
• France: distinguish transfer duties and other taxes from the notary’s remuneration.
• Financing: compare bank fees, valuation, insurance and repayment conditions.
• Ownership: compare local taxes, community charges, insurance and maintenance.
• Future sale: consider the seller’s residence and the applicable gains regime.

Andorra’s headline transfer tax can look attractive, but foreign investment tax can change the comparison substantially. Obtain complete written budgets in each jurisdiction before treating one market as cheaper.

Frequently asked questions

How much does it cost to buy property in Andorra? The transaction may be subject to ITP, generally 4% when applicable, or IGI at the applicable rate, commonly 4.5%. The seller and transaction determine the treatment, not simply whether the property is new or resale. Foreign real estate investment tax can apply in addition at 6% or 10%, according to the category, with specific reliefs and transitional rules. Add individually quoted notary, professional and financing costs. See property buying costs.

What is ITP in Andorra? ITP (Impost de Transmissions Patrimonials) is the property transfer tax on resale purchases. The rate is 4% of the purchase price, split 1% to the government and 3% to the parish comu. It is the main buyer-side tax on the majority of Andorran property purchases.

What is the difference between ITP and IGI in Andorra? The transaction may be subject to ITP, generally 4% when applicable, or IGI at the applicable rate, commonly 4.5%. The seller and transaction determine the treatment, not simply whether the property is new or resale. Foreign real estate investment tax can apply in addition at 6% or 10%, according to the category, with specific reliefs and transitional rules. Add individually quoted notary, professional and financing costs. See property buying costs.

How much are notary fees when buying property in Andorra? Request a written quote for your deed and any related mortgage, power-of-attorney or translation work. A single percentage is not a reliable quotation for every purchase.

Do I pay agency fees as a buyer in Andorra? Standard Andorran practice is for the agency commission to be paid by the seller. Buyer-side advisory fees may apply on bespoke search briefs - confirm scope before engagement.

What are the ongoing costs of owning property in Andorra? Budget for community charges, local property charges, insurance, utilities and maintenance. Use actual bills, the building budget and planned works rather than a universal annual total.

What is the property gains tax in Andorra? The former separate property capital-gains tax was repealed from 2024. Gains now fall within the relevant income-tax regime, with additional provisions for certain short-holding disposals. A sale does not automatically become tax-free after a fixed number of years. Ask an adviser to calculate the treatment for the seller, acquisition date and proposed sale.

What is the property tax in Andorra? Property-related local charges are set by the relevant comú. Confirm the charge, taxable base and amount for the actual property.

Are property buying costs cheaper in Andorra than in Spain or France? Not necessarily. Compare transaction tax, foreign investment tax, professional fees and financing for the actual properties and buyers in each country.

What is the foreign investment authorisation and what does it cost? Foreign buyers can purchase in Andorra, subject to the rules for the buyer and investment. Authorisation is not a formality or a guarantee: acquisition limits, residence history, ownership structure and the proposed use can matter. Confirm eligibility and any foreign-investment tax before signing a binding reservation, and obtain the required authorisation before completion.

Next step

For the full buying process - brief, shortlist, offer, notary and handover - see buy property in Andorra. For the banking side see banks in Andorra. For tax on income and gains after purchase see income tax in Andorra.