Taxes and costs of buying property in Andorra

Andorra's taxes on property are low compared with its neighbours, but they are not zero, and a buyer should budget for them before making an offer. This guide lists what you pay when you buy, every year while you own, and when you sell. All figures were checked in September 2026. The process itself is described in Buying property in Andorra.

Transfer tax or IGI

Which tax you pay depends on who sells:

• A resale, bought from a private owner or a company that is not the developer, pays the transfer tax, ITP (impost de transmissions patrimonials), at 4% of the price (2026). Of that, 1% goes to the state and 3% to the comú of the parish where the property is.
• A new build bought from the developer pays IGI (impost general indirecte, the Andorran equivalent of VAT) at 4.5% instead of ITP (2026). The developer includes it in the invoice.

The tax is paid at signing, through the notary, on the price stated in the deed. Parking spaces and storage rooms sold with the home are taxed the same way.

Notary fees

Notary fees are set by an official tariff that rises with the price. In practice they run from a few hundred euros to around two thousand euros for a home, plus the notary's disbursements for copies and certificates, and IGI on top (2026). Ask the notary for an estimate before the appointment: the notary will also tell you the exact tax due.

Agency commission

In the usual case the seller pays the agency, around 5% of the price plus IGI (2026). The buyer pays nothing unless a separate search agreement says otherwise. Read what you sign at the agency: a viewing form or search mandate can include a fee.

Foreign real-estate investment tax

Buyers who need the Government's foreign-investment authorisation also pay a tax on foreign real-estate investment, introduced in 2024: 3% of the value for a first home, with higher rates for further properties and for land or development. The tiers, thresholds and the refund for buyers who become residents are set out in Buying in Andorra as a foreigner.

Mortgage costs

If you borrow, expect:

• the bank's arrangement fee, a percentage of the loan set by each bank;
• the valuation, paid to the bank's valuer;
• the notary's fee for the mortgage deed, on the same tariff as the sale, plus IGI;
• life and home insurance, which the bank usually requires and may ask you to take with its own insurer.

Andorra does not charge a stamp duty on the mortgage deed of the kind Spain levies.

Yearly running costs

• Comú taxes. Each parish levies a small property tax and charges for services such as rubbish collection; together they usually come to tens to a few hundred euros a year per home, with parking spaces and storage rooms taxed separately (2026).
• Community fees for a flat, set by the community of owners' budget. They cover cleaning, the lift, insurance of the building and, in many buildings, communal heating. Ask for the current figure and the latest accounts before you buy.
• Utilities. Electricity from FEDA, water from the comú, heating oil or gas where the heating is individual. IGI at 4.5% applies to services (2026).
• Home insurance, not compulsory unless the bank requires it, but usual.

Costs when selling

When you sell, the gain is taxed under the tax on capital gains from real-estate transfers (impost sobre les plusvàlues en les transmissions patrimonials immobiliàries). The rate falls with the time you have owned the property (2026):

A main residence held for a set period is exempt. If an agency sells for you, its commission and IGI are usually your cost as seller.

Worked example: a €500,000 resale

A resident who does not need the foreign-investment authorisation buys a resale flat for €500,000 with cash through an agency (figures as of 2026):

A buyer taking a mortgage adds the bank's costs above. A buyer who needs the authorisation adds the foreign real-estate investment tax. A new build at the same price pays IGI at 4.5% (€22,500) instead of ITP.

What there is not

Andorra has no wealth tax, no inheritance tax and no gift tax (2026). Personal income tax is 10% on income above the allowance, and rental income from a property you own is taxed under it. There is no annual tax on owning a second home beyond the comú taxes above.

Laws and taxes change. This guide is general information, not legal advice: check with a notary or an adviser before you sign.