Andorra is a country located between France and Spain. This principality has a population of 75,000 and it is also a famous tourist destination attracting over 8 million people annually. Because of the unique location, Andorra offers a complete range of recreational pursuits in both the winter and summer seasons. This increases the demand for shifting to this country. The residential properties also remain a stable and attractive investment in this country due to the low taxation rates, high-quality healthcare, and schooling facilities, and great investment opportunities.
So, the quality of life here is much higher than in other parts of the European Union countries. With one of the lowest taxation rates in the world, people often consider Andorra as the tax heaven. This is one of the reasons why people choose to shift to this country. Besides, the property prices are very reasonable in Andorra. It offers a great opportunity for people to invest in the real estate properties of this country.
How Much Tax to Pay for Real Estate
So, if you want to know how many taxes are paid in Andorra, then the answer is that the taxation system is very simple in Andorra. And unlike other countries, taxes like inheritance tax or wealth tax don’t exist here. Besides, the low percentage of tax is also applicable to the VAT, which goes from 4-12%. The capital gains tax is 10% with several exemptions for reducing and eliminating the requirement to pay it. You can get more information about it by visiting the best Andorran Tax Agency.
And although there is a high demand for the real estate market in Andorra, the property prices are very reasonable. Besides, the options for renting are not that positive here. The availability of rented properties is limited and it is consistent.
Legal Requirements for Apartments in Andorra
So, if you have decided to buy a property in Andorra or want to get apartments in Andorra La Vella Center after going through this blog, then now I will guide you about the legal requirements for purchasing properties in this country. Remember that you need authorization from the government to purchase a property in this country. And there are two main types of taxes involved here namely tax on the purchasing price (1.5%) and tax related to the ITP (2.5%).