Advice for Buying Property In Andorra

Agents Use one agent until you have exhausted all the possibilities. Most agents have many of the same properties on their books, so give them a chance to show them before contacting another agent. Always use a firm who is a member of AGIA, the Andorran association of estate agents, you will then have some recourse should you become dissatisfied. Try to avoid an agency that also administers the buildings into which you might wish to buy, as there could then be a serious conflict of interest when you come to sell.

Title There is only one secure type of contract in Andorra and that is the Escriptura Publica or Public Title Deed. It is possible that a new building or a building under construction will not have completed the necessary formalities. In this case a clause must be written into the private purchase contract protecting the buyer. All public documents have to be notarised.

Payments It is normal to pay a deposit of 10% to secure a property pending completion in front of the Notary. You will at this time sign a private purchase contract, which states the description of the unit being purchased, the full purchase price, the terms of payment, and the date of completion. You can also insist on additional clauses to protect your interests.

Notaries There are four Notaries Public in Andorra. Remember, they are government appointees and it is their job to pass clear title to you, therefore you do not need a lawyer to do this. All official documents must be in Catalan so it is a good idea to use a Notary who speaks good English.

Law Roman-Catalan law governs Andorra. This is not the same as British law. All official documents must be in Catalan. It is a good idea to make an Andorran will to cover your Andorran assets for this you consult one of the Notaries.

Advice for Overseas Buyers

The Andorran Government's current foreign investment policy is framed and administered with a view to encourage foreign investment in Andorra and ensure that such investment is consistent with the needs of the Andorran community.

The Government recognises the substantial contribution foreign investment makes to the development of Andorra's industries and resources.

Foreign investment is welcomed in Andorra but is restricted to save the country falling into the hands of foreigners in the way that Mallorca has. The way this is done is to make two classes of ownership, Andorrans and residents of 20 years plus on the one hand and foreigners on the other. Andorrans can own any type and any amount of property they wish. Foreigners can only own one unit, which may take the form of an apartment, or a chalet on a plot of land or a plot of land on its own. The plot may not be more than 1000m². The government achieve this by making foreign purchasers apply for permission to buy or sell and the Notaries will not transfer public title to a foreigner who does not have the permit. As the Notaries are appointed by the government they must do their bidding but at the same time the system protects foreigners by guaranteeing a clear title.

©2007 Invico SL