What you will see in this article
The price agreed with the seller is merely the starting point. Between taxes, notary fees, registration and administrative costs, an international buyer purchasing a property in Andorra typically incurs between 4% and up to 14.5% on top of the purchase price — a margin which, on a €400,000 transaction, can amount to between €16,000 and €58,000 that does not appear in any property advert.
Knowing the actual costs of buying a property in Andorra before negotiating changes the initial offer, the actual budget and the viability of the transaction.
The real breakdown: what is paid and to whom
IGI — General Indirect Tax
The tax equivalent to VAT in Andorra is levied on the purchase of new-build properties at the standard rate of 4.5% of the registered price, in accordance with the regulations available at the Legal Portal of Andorra. On second-hand gearboxes, IGI does not apply to the sale itself, but it does apply to certain associated services.
Assuming that the IGI only applies to new builds and not budgeting for it in off-plan developments, where the developer passes it on entirely to the buyer.
Property Transfer Tax
In the purchase and sale of second-hand property between private individuals, the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales) applies. The rate varies depending on the value of the property and the relationship between the parties, which can be consulted in detail via the Government of Andorra. As a rough guide, the standard rate is around 4% of the declared value.
The declared value must align with the actual market value. Declarations below the market price lead to inspections and administrative penalties.
Notary's fees
Every sale and purchase in Andorra is executed before an Andorrano notary. Notarial fees are calculated on the value of the deed and typically range between €1,000 and €4,000 depending on the amount of the transaction and the documentary complexity. There is no published fixed tariff; it is advisable to request a prior estimate from the appointed notary.
Real estate advisory fees
In Andorra, the real estate brokerage fee is usually paid by the seller, not the buyer. However, when the buyer hires a personal shopper or active search service — such as Versus Andorra shopping service — fees are agreed independently and transparently before beginning the search.
If an estate agency charges the buyer without having signed a written mandate with clear fees, demand the breakdown in writing before proceeding.
Administrative and document translation fees
The foreign buyer who does not usually operate in Catalan or Spanish incurs additional costs for sworn translation of documentation, apostilles and consular management. These expenses, frequently ignored, can add up to between €500 and €2,000 depending on the country of origin and the volume of documentation.
Summary table: actual cost against purchase price
| Concept | Type / Estimated amount | Who pays for it |
|---|---|---|
| New build (IGI) | 4.5% of the registered price | Buyer |
| Property Transfers (Second Hand) | ~4% of the declared value | Buyer |
| Notary's fees | €1,000 – €4,000 | Buyer |
| Foreign investment (non-residents only or residents of less than 3 years in Andorra) | 6% – 10% of the property’s value | Buyer |
| Document management / translation | £430 – £1,700 | Buyer |
| Estimated total on purchase price | 4% – 14,5% | Buyer |
What changes if there is bank financing
If the purchase is partially financed via a mortgage with an Andorran bank, additional costs are added that the buyer must budget for separately:
Additional mortgage costs
- Bank valuation: between €400 and €900 depending on the institution and the property
- Arrangement fee: variable by entity; some eliminate it on specific products
- Linked life and home insurance: customary as a mortgage condition; its annual cost must be factored into the calculation of the profitability or viability of the transaction
Andorran banks offering mortgage finance include BancSabadell d’Andorra, Crèdit Andorrà and MoraBanc. The terms and conditions for non-residents differ significantly from those applied to residents, with loan-to-value ratios generally below 70% of the valuation.
The costliest mistake
Sign a reservation or deposit contract not having previously calculated the total cost of the transaction — purchase price plus all associated expenses — leads to two equally costly scenarios: renegotiating at a disadvantage once capital has been committed, or losing the deposit if the transaction is not viable within the actual budget.
The correct calculation is always based on the total available budget, from which between 5% and 7% is deducted to arrive at the maximum actual purchase price.
The next step
With the total available budget, the target area and three essential criteria for the property, the team of the shopping service Prepare a filtered shortlist where each option is already validated within the actual viability range — purchase price plus expenses included.
Frequently asked questions about the costs of buying a home in Andorra
How much does it cost in total to buy a home in Andorra in addition to the price?
Between 4% and an additional 14.5% of the purchase price, depending on whether the property is new-build or second-hand and whether the buyer is required to apply for a foreign investment licence. For a transaction worth €400,000, this amounts to between €16,000 and €58,000 in taxes, notary fees and administrative costs.
What taxes are paid when buying a home in Andorra?
The IGI (4.5%) on new-build properties, or the Impost de Transmissions Patrimonials (around 4%) on second-hand properties. Added to this are notary fees, and in the case of non-residents or those who have been in Andorra for less than three years, the foreign investment authorisation, at an additional cost of between 6% and 10% of the property’s value.
Are the costs of buying a home in Andorra paid by the buyer or the seller?
Virtually all the expenses — taxes, notary fees, document management and foreign investment — are borne by the buyer. The estate agency commission is the exception: in Andorra, this is usually paid by the seller, unless the buyer independently engages an active search or personal shopper service.
