Andorra Home Europe Andorra Buying Guide Buying Property in Andorra More AD × Andorra Financial Overview Overview Rental Yields Income Tax et al Tax Example Taxes if Resident Buying Guide Property Inheritance Country Statistics Property Investments Where to Buy Survey of Andorra Andorra Andorra la Vella Escaldes-Engordany Ordina Sant Julia de Loria Key Contacts Accountants Lawyers Real Estate Agents Total transaction costs are moderate in Andorra October 28, 2016 How high are realtors’ and lawyers’ fees in Andorra? What about other property purchase costs? Transaction Costs Who Pays? Tax on Sale of Property 4% buyer Notary Fee 0.5% - 1% buyer Real Estate Agent´s Fee 5% - 10% seller Habitability Certificate 0.07% seller Costs paid by buyer 4.50% - 5.00% Costs paid by seller 7.57% - 12.57% ROUNDTRIP TRANSACTION COSTS 12.07% - 17.57% See Footnotes Source: Global Property Guide NOTE: Tax on Sales of Real Estate (ITP) Tax on sales of real estate (ITP) is levied at a flat rate of 4%. Tax on Transfer of Real Estate Tax on transfers of real estate is levied at 2.5% on the current market value or selling price of the property; 1.25% is a government tax and 1.25% is a local tax. Notary Fee The buyer pays for the notary fees. NOTARY FEE PROPERTY PRICE, € NOTARY FEE €66,112 - €72,111 €444.75 + 0.3% of transaction value €72,112 - €78,111 €462.75 + 0.3% of transaction value €78,112 - €84,111 €480.80 + 0.3% of transaction value €84112 - €90,111 €498.85 + 0.3% of transaction value €90,112 - €96,111 €516.85 + 0.3% of transaction value €96,112 - €102,111 €534.90 + 0.3% of transaction value €102,112 - €108,111 €552.90 + 0.3% of transaction value €108,112 - €116,111 €570.95 + 0.3% of transaction value €116,112 - €120,111 €589.00 + 0.3% of transaction value €120,112 - €300,506 €607.00 + 0.2% of transaction value €300,507 - €601,102 €997.70 + 0.1% of transaction value Over €601,103 €1,268.15 + 0.1% of transaction value Real Estate Agent’s Fee The agents will usually expect 5% of the agreed purchase price, and some will ask for 10% if a foreign or associate agent has been instrumental in locating the purchaser. However, it is sometimes possible to agree a lower figure, particularly on the more expensive properties. The commission is invariably paid by the seller, but is equally invariably reflected in the property asking price. THE PROCESS OF BUYING PROPERTY There are restrictions on nonresident foreigners buying property. A permission to purchase is required, and a non-resident individual can acquire no more than 1,000 sq. m., or if purchasing an apartment, one unit. When an agreement has been concluded, the buyer and the seller sign and exchange copies of the Promesa de compra-venda (promise to buy and sell), which outlines the conditions of the purchase, such as payment terms and completion date. A 10% deposit payment is customary at this point. The deposit is then put in an escrow account by the agent while a “permission to purchase” (suplicas) request is submitted to the government. Once permission has been obtained, an appointment is sought with a notary. At the Notary’s office, both parties sign the Escriptura Publica, the property transfer document. Cheques or bank drafts and keys are then exchanged. Completion, for resale properties, takes about one to two months. Footnotes to Transaction Costs Table The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc. Andorra - More data and information How high are estate duties in Philippines? Where to by property in Andorra Comments Be the first to comment on this article! Login or Register to submit a comment! In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.