How much does it really cost to buy a home in Andorra: the expenses that no one mentions until it is too late

The price agreed with the seller is only the starting point. Between taxes, notary, registration and administrative procedures, the international buyer usually assumes between 6% and up to 10% additional in the case of processing foreign investment on the purchase price — a margin that, in a transaction of €400,000, represents between €24,000 and €40,000 that do not appear in any advertisement.

Knowing this figure before negotiating changes the initial offer, the real budget and the viability of the operation.

The real breakdown: what is paid and to whom

IGI — Indirect General Impost

The tax equivalent to VAT in Andorra is applied on the purchase of new construction housing at the general rate of4.5%on the written price, according to the regulations available in theLegal Portal of Andorra. In second-hand transmissions, the IGI does not apply to the sale itself, but does apply to certain associated services.

→Frequent error:assume that the IGI only applies to new construction and not budget for it in off-plan developments where the developer passes it on entirely to the buyer.

Impost of Patrimonial Transmissions

In the sale and purchase of second-hand properties between individuals, the Impost de Transmissions Patrimonials applies. The type varies according to the value of the property and the relationship between the parties, which can be consulted in detail through theGovernment of Andorra. As an indicative reference, the general rate is around the4%about the declared value.

→Critical information for the international buyer:The declared value must align with the actual market value. Declarations below the market price generate inspections and administrative sanctions.

Notary fees

All sales and purchases in Andorra are formalized before an Andorran notary. Notarial fees are calculated on the value of the deed and usually range between€1,000 and €4,000depending on the amount of the operation and the documentary complexity. There is no published fixed tariff; It is advisable to request a prior quote from the designated notary.

Real estate consulting fees

In Andorra, the real estate brokerage commission is usually assumed by the seller, not the buyer. However, when the buyer hires a personal shopper or active search service — such asVersus Andorra purchasing service— fees are agreed independently and transparently before starting the search.

→Warning sign:If a real estate agency charges the buyer without having signed a written mandate with clear fees, demand the detail in writing before moving forward.

Document management and translation expenses

The foreign buyer who does not operate in Catalan or Spanish usually incurs additional costs for sworn translation of documentation, apostilles and consular management. These expenses, often ignored, can add up to between€500 and €2,000depending on the country of origin and the volume of documentation.

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Summary table: actual cost over the purchase price

Concept	Type / Indicative amount	Who pays it
IGI (new construction)	4.5% on written price	Buyer
Patrimonial Transmissions (2nd hand)	~4% on declared value	Buyer
Notary fees	€1,000 – €4,000	Buyer
Foreign investment (Only applies to non-residents or residents who have been living in Andorra for less than 3 years)	6% – 10% of the value of the property	Buyer
Document management / translation	€500 – €2,000	Buyer
Estimated total on price	4% – 14.5%	Buyer

What changes if there is bank financing

If the purchase is partially financed by mortgage with an Andorran bank, additional costs are added that the buyer must budget for separately:

• Bank appraisal:between €400 and €900 depending on the entity and the property
• Opening commission:variable by entity; some eliminate it in specific products
• Linked life and home insurance:customary as a condition of the mortgage; Its annual cost must be integrated into the calculation of profitability or viability of the operation

Andorran banks operating in mortgage financing include BancSabadell d’Andorra, Crèdit Andorrà and MoraBanc. Conditions for non-residents differ significantly from those applied to residents, with financing percentages generally lower than 70% of the appraised value.

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The most expensive mistake

Sign a contractreserve or depositWithout having previously calculated the total cost of the operation, the purchase price plus all associated expenses leads to two equally costly scenarios: renegotiating at a disadvantage once the capital has been committed, or losing the signal if the operation is not viable within the real budget.

The correct calculation always starts from the total available budget, from which 5–7% of expenses are deducted to obtain the maximum real purchase price.

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The next step

With the total budget available, the area of ​​interest and three essential criteria of the property, the team of thepurchasing serviceprepares a filtered shortlist where each option is already validated within the range of real viability — purchase price plus expenses included.