Andorra – Selling Property

What are the steps involved in selling property yourself in Andorra?

Real estate transactions in Andorra follow a structured, multi-step sequence. Whether a seller chooses to work with an agent or handle the process independently, several stages are legally required for every sale. Familiarising yourself with the complete sequence before you begin marketing your property will help you anticipate potential delays and ensure the transaction is legally sound from start to finish.

The process broadly follows these steps:

1. Prepare and list your property. You determine an asking price and promote the property through whatever channels are available to you — online portals, social media, or personal contacts. It is worth noting that there can be considerable variation between advertised prices and realistic market values in Andorra, influenced in part by whether the seller is a local resident or an owner of a second property seeking to exit. Pricing your property carefully against current comparable sales is essential, and reviewing recent transaction data is advisable before setting your figure.
2. Obtain a Habitability Certificate (certificat d’habitabilitat). This certificate is a non-negotiable seller obligation. You must engage a locally qualified architect to inspect the property and confirm that it satisfies all legal standards for residential habitation. The certificate is typically required both to proceed with a sale and to maintain utility connections. It is wise to initiate this early in the process, as any remedial works identified during the inspection can add time before the certificate is issued.
3. Negotiate and sign the preliminary contract (promesa de compravenda). Once terms have been agreed, both parties sign a binding commitment to sell. This document records the agreed purchase price and any additional conditions attached to the transaction. The buyer is required to pay a deposit equivalent to 10% of the agreed price, which serves to reserve the property and halt further viewings. This deposit is forfeited by the buyer if they withdraw without lawful justification, though the seller is also bound by the conditions established in the agreement.
4. Await any foreign investment authorisation (if the buyer is a non-resident). Where the buyer is a foreign national, they are required to apply to the relevant government offices for an authorisation for foreign investment — a Catalan-language document recording the details of the property and the particulars of the sale. This authorisation generally takes one to two weeks to process. As the seller, you should factor this step into your overall timeline expectations.
5. Instruct a notary. A notary must be engaged to supervise the final stage of the sale and to provide an impartial guarantee of the interests of both parties. In Andorra, involvement of a notary is not discretionary — it is a legal requirement for every valid property transaction. Rather than functioning as an advocate for either side, the notary is a government-appointed official whose role is to verify the legality of the transaction and oversee its formal execution.
6. Sign the public title deed (escriptura pública) and complete the sale. The notary prepares the public title deed, which must be signed in person at the notary’s office by both the seller and the buyer. Legal ownership of the property transfers at this point, once the agreement has been concluded and the real estate delivered in the presence of the notary.
7. Capital gains tax declaration. You are required to calculate and settle any capital gains tax liability arising from the sale. If you are a non-resident, the buyer is obliged to withhold a portion of the sale price on your behalf at the point of completion (see the capital gains section below). Engaging a local tax adviser to ensure full compliance with the applicable IRPF or IRNR rules is strongly recommended.

All official documents in Andorra are prepared in Catalan, which is the language used for all formal papers and contracts throughout the country’s property purchasing process. If you are not a Catalan speaker, you should arrange a qualified translator or engage a bilingual legal professional to assist you.

Do most sellers in Andorra use an estate agent, or is private selling common?

Andorra’s property market is small in scale and strongly oriented towards professional agents. Private sales are not prohibited, but the practical realities of a market with limited online listing infrastructure — relative to more mature European markets — mean that the majority of sellers work with a local agent, particularly those targeting international buyers.

In many cases, both rental properties and homes for sale are secured by buyers before they ever appear on public listing platforms. This means that agents’ internal networks and personal relationships frequently drive transactions more effectively than open advertising. For a foreign seller who lacks an established local presence, this dynamic makes professional representation particularly valuable.

A knowledgeable local estate agent can be an exceptional asset, especially for expatriate sellers. They can offer informed perspectives on current market conditions, help position your property competitively, and navigate the specific legal and procedural requirements of the Andorran system on your behalf. Agents in Andorra commonly collaborate with one another to share deals — a practice that broadens the reach of your listing and can accelerate finding a buyer.

Commission rates charged to sellers in Andorra can reach as high as 10%, though typical rates fall in the 3% to 5% range. Always confirm and agree the commission structure in writing before formally instructing any agent. Unlike markets such as France or Spain, where buyers and sellers more often retain separate legal representatives, in Andorra the notary serves as the neutral legal authority for both sides, which simplifies the professional landscape.

Selling privately is an option, but it requires you to manage all advertising, negotiation, documentation preparation, and coordination with the notary independently. Given that properties in Andorra can remain on the market for months or even years rather than weeks, having professional support to sustain a longer marketing campaign is something many sellers find worthwhile.

How does capital gains tax work when selling property in Andorra?

Capital gains tax on property disposals in Andorra underwent a significant overhaul through Llei 5/2023, which took effect on 1 January 2024. Previously, real estate capital gains were taxed under a standalone law — the Impost sobre les Plusvàlues en les Transmissions Patrimonials Immobiliàries. That legislation was repealed by Llei 5/2023 with effect from 1 January 2024, and gains on real estate disposals are now fully incorporated into the IRPF, IS, and IRNR frameworks.

Always verify the prevailing rates and thresholds with the Andorran Ministry of Finance or a qualified local tax adviser, as these can change following further legislative developments.

Rates for resident sellers (as of 2024)

For resident individuals not engaged in economic activity — the most typical situation for private property owners — a sale within 2 years of purchase attracts tax at 10% on the gain, together with a speculative surcharge of 5%, producing a total effective rate of 15%. This “guany especulatiu” element was introduced specifically to discourage short-term property speculation. Sales concluded after 2 years but within 5 years of ownership are taxed at a flat 10% on the gain, with no additional surcharge.

After 5 years of ownership, progressive reduction coefficients begin to reduce the taxable portion of the gain, with the effective rate diminishing each successive year. Sellers who have held the property for 13 years or more face a tax rate of 0%. This tiered structure is notably more favourable for long-term holders than comparable regimes in many European countries — in France, for example, a flat rate of 19% applies to individuals’ property capital gains, with taper relief only commencing after 22 years, making Andorra’s accelerated reduction schedule a genuine advantage.

Rates for non-resident sellers (as of 2024)

For non-residents, the applicable rate broadly mirrors that applied to companies: 15% capital gains tax on gains realised within the first 2 years of ownership, and a flat rate of 10% on gains realised in all subsequent years.

Capital gains arising from real estate disposals by non-residents are taxed under the Non-Resident Income Tax Law. The taxable amount is calculated as the positive difference between the actual value at which the property is transferred and its original acquisition value. At the point of sale, where the seller is a non-resident, the buyer is required to withhold 5% of the sale price and remit this sum to the Andorran authorities as an advance payment against the seller’s tax liability. Where the amount withheld exceeds the seller’s actual tax due, the seller may submit a claim for repayment of the difference, which the Andorran tax authority is required to process within six months of receiving the request.

CGT exemption for primary residences

Capital gains arising from the sale of a primary residence may be exempt from tax in Andorra, provided the seller subsequently acquires a replacement primary residence using the sale proceeds within 6 months. To qualify, the seller must have been resident in Andorra for at least 5 years, the property sold must have been their primary residence, and the proceeds must be reinvested in another primary residence within Andorra within the 6-month window. This exemption is not available for investment properties or secondary residences.

It should also be noted that from 2025, sellers must be able to demonstrate physical presence in Andorra for at least 183 days in the year of sale in order to avoid being treated as a non-resident for capital gains tax purposes. This rule is particularly significant for passive residents who spend extended periods outside the country. Specialist advice should be sought well before you list your property for sale.

Are there other taxes or costs involved in selling property in Andorra?

One of the advantages Andorra offers property sellers is the relative simplicity of transaction costs on the seller’s side. Beyond capital gains tax, there are currently no additional government taxes levied on the seller upon completing a property sale in Andorra. There are, however, professional fees and practical expenses that sellers should factor into their financial planning.

By convention, all notary fees arising through the transaction are borne by the buyer. This means the seller’s direct out-of-pocket expenses — beyond capital gains tax and any agent commission — are comparatively modest when set against seller obligations in countries such as France or Germany, where additional notarial charges can fall on the seller. Andorra does not levy inheritance tax, so if a property were to pass to heirs based within the country rather than abroad, no tax of this nature would generally arise in connection with the subsequent disposal of that property.

Local communal taxes also apply. Each municipality, or comú, is responsible for levying taxes on property ownership, rental income, commercial activity, and construction. These are charges that apply to holding the property rather than to the sale itself, but it is important to ensure all outstanding local tax obligations are discharged before completion to prevent any complications arising. Current rates should be confirmed with your local comú or a licensed Andorran notary.

What legal requirements must sellers meet in Andorra?

Andorra’s legal framework for property transactions places particular obligations on sellers that must be fulfilled before any sale can lawfully proceed. Unlike some markets where buyers shoulder most of the due diligence burden, Andorran law requires sellers to proactively prepare and produce specific documentation as part of their obligations.

Habitability Certificate

The law requires sellers to provide a certificate issued by the Andorran authorities confirming that the residential property meets the applicable standards for habitation. This is secured by commissioning a local architect to carry out an inspection of the property. The sale must be finalised at a notary office, and obtaining the mandatory Habitability Certificate is a prerequisite for completing the transaction. The certificate confirms that the property meets all relevant local standards of habitability and construction quality. While Andorra does not operate an equivalent to the UK’s Energy Performance Certificate as a mandatory sale requirement, the habitability certificate serves as the primary document confirming the property’s compliance with legal standards.

Title documentation and encumbrances

Andorra does not operate a centralised national land registry. However, each town hall maintains its own real estate registry for local tax purposes, and the transfer of title is formally recorded through the Andorran chamber of notaries. Notaries record all public deeds relating to real estate, including any encumbrances, modifications, and other registered matters affecting the property. As a seller, you must be able to demonstrate clean title and must disclose any mortgages, charges, or third-party rights attached to the property.

Community and condominium obligations

If the property you are selling forms part of a condominium or community of owners, all outstanding community fees must be cleared before the sale can proceed. Buyers and their advisers typically carry out thorough due diligence on properties, examining ownership records and checking for any debts — including amounts owed within a condominium arrangement. Unresolved fees or disputes have the potential to delay or prevent completion.

Rules specific to foreign sellers

Foreign sellers face no specific legal restrictions on disposing of Andorran property — the right to sell mirrors the right to have purchased in the first place. However, as noted above, non-resident sellers are subject to the 5% buyer withholding on the sale price under the IRNR framework, and they must submit a capital gains tax declaration to the Andorran tax authority. Official guidance on tax filing obligations is available from the Andorran Ministry of Finance (Ministeri de Finances). Engaging a local tax adviser or gestor with experience in property transactions is strongly recommended for any non-resident seller.

How does the exchange and completion process work in Andorra?

The completion process in Andorra is more streamlined than in many comparable markets, largely because the notary fulfils a consolidated role that would elsewhere be divided among solicitors, conveyancers, and land registry officials.

Ownership in Andorra is transmitted under a system that requires both a valid agreement between the parties and the physical delivery of the real estate, with both elements confirmed before a public notary. No single element on its own is sufficient to constitute a legally complete transfer. In practical terms, this means the sale is not finalised until the relevant documents have been executed at the notary’s office.

Preliminary contract stage

The process opens with the signing of the promesa de compravenda — the commitment to sell — under which both parties confirm the agreed price and conditions, and the buyer pays a non-refundable deposit of 10% of the purchase price. This deposit is retained by the seller if the buyer withdraws without valid cause. This arrangement differs from markets such as the UK or the US, where no binding deposit is typically required at the reservation stage, and it provides meaningful commitment from both parties before any funds transfer at completion.

Notary completion

At completion, the notary verifies that the outstanding balance of the purchase price is held in escrow and oversees the handover of keys to the buyer and payment of the balance to the seller. The notary then executes the escriptura pública — the public title deed, which is the Andorran equivalent of a formal deed of transfer. This process typically takes between four and six weeks from the signing of the preliminary contract, though circumstances can extend this timeframe.

Following execution, the notary registers the title deed with the Property Registry of Andorra. This registration creates a public record of ownership and safeguards the legal rights of the incoming owner. The registry updates ownership records and issues formal documentation to the new owner, a process that typically takes several additional weeks to finalise.

Overall timeline

Most transactions reach completion within approximately 4 to 8 weeks of the price being agreed, provided that all documentation and funding are in order. The key variables influencing pace include: bank readiness and KYC compliance, the deposit contract being signed and funded, any foreign investment authorisation where the buyer is a non-resident, the habitability certificate being available, and the scheduling of a notary appointment. Sellers who are preparing their own documentation without professional support should allow additional time to gather and organise all required paperwork.

Is property exchange or part-exchange an option in Andorra?

Formal property exchange or part-exchange — in which a seller transfers their property directly in return for another, without a conventional cash-based transaction — is neither a widely recognised nor commonly marketed arrangement in Andorra. There is no dedicated legal framework specifically governing property swaps, and the modest size of the Andorran market makes it relatively unlikely that a suitable matching counterpart will exist for any given property.

That said, such an arrangement is not legally prohibited. Any property exchange would need to be structured as a bilateral transaction and executed before a notary in the same manner as a conventional sale. Both parties would need to reach agreement on the respective valuations of their properties, and capital gains tax would apply to each side of the exchange based on the gain arising from each party’s disposal.

Properties in Andorra can remain on the market for extended periods — months or even years rather than weeks — and this relative illiquidity means that, in principle, a part-exchange arrangement could serve the interests of both parties in certain circumstances. The practical challenge, however, is locating a willing counterpart in such a small market, which represents a considerable obstacle.

Any seller contemplating a property exchange should take independent legal advice from an Andorran lawyer with expertise in property law and should engage a tax adviser to assess the capital gains consequences of the proposed arrangement. Proceeding without specialist guidance is inadvisable.

What should foreign sellers know about repatriating sale proceeds from Andorra?

Andorra does not impose general capital controls, and there is no blanket restriction on transferring the proceeds of a legitimate property sale out of the country. However, foreign sellers should be aware of a number of important practical and regulatory considerations before initiating any international transfer of funds.

Anti-money laundering and source-of-funds checks

Andorran banks apply rigorous anti-money laundering (AML) and know-your-customer (KYC) procedures. Andorran banks maintain extensive lists of countries subject to enhanced scrutiny, which means that funds arriving from or being sent to certain jurisdictions may be subject to additional checks or delays. The same level of scrutiny that applies to incoming funds also applies to outgoing transfers. Sellers should ensure that all proceeds from the sale are comprehensively documented — including the notarial deed and any tax clearance records — and that their bank holds a full record of the transaction before attempting to transfer a significant sum internationally.

Tax clearance before transfer

Non-resident sellers should confirm that their capital gains tax liability has been correctly established and either settled or offset against the 5% advance withholding before transferring proceeds abroad. The Andorran tax authority, the Ministeri de Finances, supervises this process. Obtaining written confirmation of clearance from a local tax adviser before initiating any international transfer is strongly recommended.

Double taxation treaties

Andorra has been progressively expanding its network of Double Taxation Treaties (DTTs). As of early 2026, the Principality has signed 21 conventions for the elimination of double taxation, including with Spain, France, Portugal, Luxembourg, Liechtenstein, Malta, UAE, Cyprus, San Marino, Hungary, Czech Republic, Croatia, Monaco, Iceland, the Netherlands, South Korea, Lithuania, Latvia, Montenegro, Belgium, and the United Kingdom. If your country of residence has concluded a DTT with Andorra, you may be able to offset the capital gains tax paid in Andorra against any tax liability arising in your home jurisdiction, potentially reducing or eliminating the risk of double taxation. The precise terms of any applicable treaty should be reviewed with a qualified tax adviser in both countries.

Importantly, regardless of whether a double taxation treaty exists with a third country, any tax already paid to that country is fully creditable against any corresponding tax obligation in Andorra. For sellers whose home country taxes the gain at a higher rate than Andorra, this means no additional Andorran tax may effectively be payable.

Currency transfer

Andorra uses the euro (EUR), so sellers transferring proceeds to another eurozone country will not incur currency conversion costs. For transfers into non-euro currencies, engaging a specialist international money transfer provider is worth considering, as these services typically offer more competitive exchange rates and lower fees than standard bank transfers. Comparing options before committing to a large transfer is always advisable.

Frequently asked questions

What happens if the buyer pulls out of the sale in Andorra?

At the preliminary contract stage, the buyer is required to pay a non-refundable deposit of 10% of the agreed purchase price. This sum protects the seller in the event that the buyer decides to withdraw during the sales process. If the buyer exits without a valid legal justification, you as the seller are entitled to retain the deposit in full. Conversely, if you as the seller withdraw without cause, you will typically be required to return the deposit and may also be liable to pay the buyer a corresponding penalty sum. The precise consequences of withdrawal should be set out clearly in the preliminary contract (promesa de compravenda), which makes careful professional drafting of this document essential.

Can I sell my Andorran property remotely or using a power of attorney?

In many circumstances yes, provided an appropriate power of attorney is in place and all documentation has been properly prepared in advance — though you should verify which steps must be completed in person and which can be handled remotely. A power of attorney (poder notarial) must itself be notarised, and where it is executed outside Andorra, it will generally require an apostille in order to be recognised in Andorran legal proceedings. If you are planning to sell without being physically present in Andorra, you should consult an Andorran lawyer well in advance to confirm the requirements and avoid procedural complications.

How long does the full process typically take from listing to completion?

Properties in Andorra can remain on the market for an extended period — often months and sometimes years — so sellers should plan accordingly rather than expecting a swift turnaround. Once a buyer has been found and the price agreed, most transactions complete within roughly 4 to 8 weeks, provided all documentation and funds are in order. The duration of the marketing phase is the principal variable and depends heavily on the type of property, its location, the asking price, and prevailing market conditions.

Do I need to pay capital gains tax in Andorra if I am not a resident there?

Yes. Capital gains arising from property disposals by non-residents are subject to taxation under Andorra’s Non-Resident Income Tax Law. The taxable amount is calculated as the positive difference between the transfer value and the original acquisition cost of the property. The buyer is required to withhold 5% of the sale price as an advance payment against the seller’s liability. Non-residents are not eligible for the primary residence CGT exemption. Where a double taxation treaty exists between Andorra and your country of residence, the tax paid in Andorra may be creditable against your home country tax liability. You should confirm the current rules with a qualified tax adviser in both jurisdictions.

Is there a land registry where I can check that the title is clean before selling?

There is no single national land registry in Andorra. However, each town hall maintains its own real estate registry for local tax purposes, and the transfer of property title is recorded through the Andorran chamber of notaries. Your notary is able to conduct the relevant searches against notarial records to confirm that your title is free of encumbrances before you proceed with the sale.

Do I need to disclose structural defects or issues to the buyer?

Andorran civil law imposes general obligations of good faith in contractual dealings, and sellers carry a duty not to conceal known defects that would materially affect a buyer’s assessment of the property or its value. While there is typically a cap on a seller’s liability for breach of representations and warranties — commonly ranging from a limited percentage of the purchase price up to the full price — disclosing all known material defects clearly within the preliminary contract is the most effective way to manage your exposure. A local lawyer can advise on the specific disclosure obligations that apply in your circumstances.

Can I sell my Andorran property if I am behind on local communal taxes?

Outstanding communal taxes (comú levies) or unpaid community of owners fees can complicate or hold up a sale. Buyers and their notaries conduct due diligence checks that include reviewing encumbrances and outstanding charges attached to the property. Clearing all liabilities before marketing your property is best practice. Your local comú can confirm what amounts are outstanding, and your notary will verify the position at the time of completion.

Will I need a lawyer as well as a notary when selling in Andorra?

The notary occupies a central legal role in every Andorran property transaction, acting as a neutral government-appointed official who guarantees the lawfulness of the sale. However, the notary does not act as an advocate for either party’s individual interests. Retaining a local lawyer is strongly recommended, particularly for foreign sellers who are unfamiliar with Andorran law, those conducting the sale under a power of attorney, or anyone with complex tax or ownership circumstances. A lawyer will review the contract terms, advise you on your obligations, and ensure your interests are protected throughout the transaction.