How to Buy a Home in Andorra

Andorra, a small principality nestled between France and Spain, is a popular destination for expats due to its low taxes, high standard of living, and beautiful landscapes. Buying a home in Andorra can be a great investment, but it's important to understand the process and regulations involved. This guide will provide you with key information on how to find houses for sale, understand the restrictions on foreign ownership, navigate the real estate system, and avoid common pitfalls.

How do I find houses for sale in Andorra?

There are several ways to find houses for sale in Andorra. You can use online property portals, local newspapers, and real estate agencies. It's also common to find properties through word-of-mouth or personal connections. It's advisable to use a reputable real estate agency to ensure you have access to the best properties and guidance throughout the process.

Are there restrictions on foreigners owning property in Andorra?

Yes, there are restrictions on foreigners owning property in Andorra. Non-residents are allowed to buy only one property, which must be used for personal use and not rented out. However, these restrictions can be bypassed by becoming a resident of Andorra, which requires living in the country for at least 90 days per year. Additionally, all property purchases must be approved by the Andorran government.

Does Andorra have an MLS type system?

Andorra does not have a Multiple Listing Service (MLS) like in the United States. Instead, each real estate agency maintains its own listings. This means that you may need to check with multiple agencies to see all available properties.

Do brokers have licenses and how do I know if they are licensed?

Yes, real estate brokers in Andorra are required to have a license. You can verify a broker's license by checking with the Andorran government's Department of Commerce. It's important to work with a licensed broker to ensure that all transactions are conducted legally and ethically.

What documents are required when buying a home?

When buying a home in Andorra, you will need to provide several documents. These include your passport, proof of financial means (such as bank statements), a criminal record certificate, and a property valuation report. If you're applying for residency, you'll also need to provide a medical certificate and proof of health insurance.

Do I need a lawyer when buying a home in Andorra?

Yes, it's highly recommended to hire a lawyer when buying a home in Andorra. A lawyer can help you navigate the legal process, ensure all documents are in order, and represent you in negotiations and at the closing. The cost of a lawyer can vary, but you should budget for around 1% of the property price.

Do people typically buy a property with all cash or take out a mortgage?

Both options are common in Andorra. Some people choose to buy property outright with cash, while others take out a mortgage. If you choose to get a mortgage, keep in mind that Andorran banks typically require a down payment of at least 20% of the property price.

Are there inspections that take place, and if so what is that process like?

Yes, property inspections are a standard part of the home buying process in Andorra. A professional inspector will evaluate the property's condition and provide a report detailing any issues. This can help you negotiate the price and avoid costly repairs in the future.

What are some of the pitfalls to avoid when buying property in Andorra?

When buying property in Andorra, it's important to avoid rushing the process, neglecting to do thorough research, and failing to understand the legal and financial implications. Be sure to work with reputable professionals, get a property inspection, and fully understand the terms of your contract before signing.