{"id":11738,"date":"2024-12-17T16:01:50","date_gmt":"2024-12-17T15:01:50","guid":{"rendered":"https:\/\/www.augelegalfiscal.com\/buy-a-property-in-andorra\/"},"modified":"2025-10-15T20:32:05","modified_gmt":"2025-10-15T18:32:05","slug":"buy-a-property-in-andorra","status":"publish","type":"post","link":"https:\/\/www.augelegalfiscal.com\/en\/buy-a-property-in-andorra\/","title":{"rendered":"Buy property in Andorra: company or individual, 3% and rental bonuses"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Are you thinking about buying property in Andorra? It\u2019s important to understand the legal, tax, and economic factors that can influence your decision. Below, we will address three key questions that many buyers ask us before taking the plunge:<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #8f2b2f;color:#8f2b2f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #8f2b2f;color:#8f2b2f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.augelegalfiscal.com\/en\/buy-a-property-in-andorra\/#Should_you_buy_through_a_company_or_as_an_individual\" >Should you buy through a company or as an individual?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.augelegalfiscal.com\/en\/buy-a-property-in-andorra\/#Who_must_pay_the_tax_on_real_estate_acquisitions\" >Who must pay the tax on real estate acquisitions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.augelegalfiscal.com\/en\/buy-a-property-in-andorra\/#Are_there_any_tax_incentives_for_renting_out_the_property\" >Are there any tax incentives for renting out the property?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.augelegalfiscal.com\/en\/buy-a-property-in-andorra\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Should_you_buy_through_a_company_or_as_an_individual\"><\/span><b>Should you buy through a company or as an individual?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">This is one of the most common questions when it comes to purchasing property in Andorra, especially for those who residents are not. The decision to buy through a company or as an individual depends on several factors, such as the type of investment you want to make and your tax profile.<\/span><\/p>\n<ul>\n<li><b>Buying as an individual<\/b><span style=\"font-weight: 400;\">: If you are a resident in Andorra, you can buy property directly in your name. However, if you are not a resident, you will need to meet certain requirements to purchase property. In this case, you will need to pay <\/span><i><span style=\"font-weight: 400;\">the property transfer tax (ITP<\/span><\/i><span style=\"font-weight: 400;\">), which is around 4% of the purchase price, plus other associated expenses.<\/span><\/li>\n<li><b>Buying through a company<\/b><span style=\"font-weight: 400;\">: Buying through a company can be a more attractive option, especially if you intend to buy several properties or do so as a business investment. In this sense, <\/span><i><span style=\"font-weight: 400;\">anonymous companies (SA) or limited liability companies (SL)<\/span><\/i><span style=\"font-weight: 400;\"> allow you to limit personal liabilities and sometimes offer tax advantages. Furthermore, if there is an economic activity related to the property, it might be beneficial to do so through a company. It\u2019s important to note that other taxes may apply.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is important to know that everything will depend on who is the seller of the property and the circumstances of each case, as IGI, ITP, etc. could apply.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who_must_pay_the_tax_on_real_estate_acquisitions\"><\/span><strong>Who must pay the tax on real estate acquisitions?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">They should know that the <\/span><i><span style=\"font-weight: 400;\">tax on real estate acquisitions<\/span><\/i><span style=\"font-weight: 400;\"> is 3%, 5%, 8% or up to 10% of the total value of the purchase. This tax is applied in certain situations, mainly when the buyer is not resident or has been resident for less than 3 years in the Andorran principality.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Are_there_any_tax_incentives_for_renting_out_the_property\"><\/span><b>Are there any tax incentives for renting out the property?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Yes, Andorra offers some tax incentives for those who decide to rent out their property, especially if it <\/span><i><span style=\"font-weight: 400;\">is intended for long-term rental<\/span><\/i><span style=\"font-weight: 400;\">. These incentives are designed to encourage the supply of rental housing and can vary depending on the legislation in force. For this reason, it is important to consult with a tax advisor, as the conditions may change.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When acquiring property in Andorra, it\u2019s important to consider various factors, such as whether to buy through a company or as an individual, the 3% tax, and possible tax incentives for renting out the property. Every situation is unique, so it\u2019s advisable to consult with a tax expert who can provide advice based on your specific needs.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you thinking about buying property in Andorra? It\u2019s important to understand the legal, tax, and economic factors that can influence your decision. Below, we will address three key questions that many buyers ask us before taking the plunge: Should you buy through a company or as an individual? This is one of the most [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11732,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[105],"tags":[],"class_list":["post-11738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/11738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/comments?post=11738"}],"version-history":[{"count":1,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/11738\/revisions"}],"predecessor-version":[{"id":11741,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/11738\/revisions\/11741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media\/11732"}],"wp:attachment":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media?parent=11738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/categories?post=11738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/tags?post=11738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}