You're thinking of moving to Andorra, and one of the first questions on your mind is whether to rent or buy a home in the Principality. With its magnificent scenery, quality of life and safety, Andorra is attracting more and more foreign residents. But how do you go about finding the ideal home? Our team AND Capitalspecializing in assisting individuals and companies wishing to settle in Andorra, offers you its best advice.
Buying property in Andorra
Whether you're already an Andorran resident or not, you can buy as many properties as you like in the Principality of Andorra: houses, chalets, apartments... Buying a property allows you to take full advantage of the many benefits Andorra has to offer. andorran tax advantages very profitable. It can also be an excellent real estate investment.
Buying property in Andorra generally follows the same rules as in France or Spain. However, there are a few things to bear in mind:
- Prices per m2 often include annexes such as terraces, garages and gardens. Be sure to check actual surface areas.
- There is no obligation to present an energy performance diagnosis. Ask about the property's insulation - winters can be tough!
- As a homeowner, you'll have to pay the local taxes set by the local authorities (approx. €100/year/person).
Renting accommodation in Andorra
Renting a property is often the preferred option for those wishing to establish their tax residence in Andorra. Here are the main criteria to consider, according to the experts at AND Capital :
1. Rent and charges
Unlike France, there is no rent control in Andorra. Prices can therefore vary according to demand. On average, expect to pay around :
- 700€ for a studio
- 900 to 1200€ for a T2
- 1200 to 1800€ for a T3
- 1800€ and more for a T4
In addition, you'll need to pay one month's agency commission, two months' deposit and the first month's rent. Charges (around €100/month for a T3) generally include cold water, heating and maintenance of common areas.
Rents are deducted directly from your Andorran bank account. It is therefore essential to open one quickly.
The AND Capital team
2. Rental conditions
To rent in Andorra, all you need to show is your identity papers. Proof of income is not required. However, you are required to have a andorran bank account. Signing a renewable one-year rental contract is the norm.
3. The choice of parish
Andorra has 7 parishes with different attractions. Some prefer to live in the heart of the bustling capital Andorra la Vella. Others prefer the wide open spaces of La Massana. You'll need to think carefully about your needs and your daily commute, summer and winter alike.
4. Parking or garage
Having a covered parking space is a real plus in Andorra. It saves you the hassle of having to clear the snow from your vehicle every morning in winter before leaving for work. Many rentals include this service, so don't forget it!
Buying or renting through a company
It is entirely possible to acquire property in Andorra via a company. This offers numerous advantages in terms of tax and asset optimization:
- Reduction of certain taxes
- Possibility of depreciating the asset and deducting certain expenses
- Easier transfer in the event of resale or inheritance
- Protection of personal assets
Visit setting up a company in Andorra is quick and easy, with limited costs. The legal forms best suited to this type of set-up are the limited liability company (SL) or the public limited company (SA). Don't hesitate to seek advice from experts like those at AND Capital.
Buying through a company allows you to optimize your tax situation and protect your assets. It's an interesting option to consider when moving to Andorra.
The AND Capital team
As you can see, becoming a homeowner or tenant in Andorra is no easy task. Between the local specificities and the different options available, it's best to have the right support to make the right choices. AND Capital puts all its expertise at your service to find the best solution for your expatriation project. Contact us to find out more!
