If you have a luxury apartment in Andorra for sale, you will know that Andorra is a tiny country where the property market is not as liquid as, say, Spain or Portugal. However, there are a plenty of opportunities to be had for those with properties in Andorra, as interest in the country is slowly picking up from rich overseas investors from China, Russia, Ukraine and the Middle East.
But what can you realistically expect in Andorra’s property market? Well, you will find a plenty of buyers for an Andorra luxury apartment for sale, not so much for apartments and rentals targeted at the middle class. The higher end of Andorra’s property market has pretty much retained its value through the slowdown that hit Europe following the 2008 economic recession and has since picked up steam.
Many rich, high net worth individuals from abroad have bought homes in Andorra attracted by the low tax environment of the country and the excellent standard of living it offers. Yes, most foreign investors would rather buy homes in other low tax regions such as Monaco, London, Malta and Jersey. However, Andorra’s strategic location – it is right in the middle of France and Spain – means that properties for sale in Andorra find a plenty of takers.
Those who are looking sell luxury apartments in Andorra will do well to be aware of some of details related to the sale. For instance, sellers are required to pay agency fees in Andorra that amounts to 5% of the sales price, following a successful sale.
There is a purchase tax to be paid, which is approximately 4 percent of the purchase price of the property. Then there is a capital gains tax, which amounts to 8% of the profit made on the sale – provided there has been a profit. If you’ve sold your apartment at a loss, then you don’t have to pay this tax at all.
One way to reduce the capital gains tax is to reinvest the proceeds of the sale back into Andorran property. Your capital gains tax will be charged at its highest rate only if you transfer the proceeds of the sale abroad. The annual local taxes are very low in Andorra. They are at just 0.001% per year of the property value.
Many overseas investors who are looking to settle down in Andorra work from their home office. This means they would require bigger apartments or chalets. That’s why a majority of the new accommodations built in Andorra are large and spacious. This has been done purely to cater to the demand from foreign investors.
Andorra is a small country, very modern and with an excellent infrastructure. Plus, it is a bona fide member of the European Union. Andorra is also a top skiing destination in Europe and has quite a few popular resorts.
Even during the worst of the financial crisis to have hit Europe, Andorra held steady. Andorra is a very stable country, with excellent protection for property rights and someone looking to buy property here will know that their investment is pretty much safe.
For these reasons, a property in Andorra will always be highly prized by rich, high net worth investors from emerging nations such as China, Russia and India as well as from the Middle East.
But to make the most of the opportunity and to get the best price for your Andorra luxury apartment for sale, it is essential to hire the best UK estate agents. Otherwise, there is no way to get in touch with the foreign investors who would be interested in buying your apartment in Andorra.
Contact us today to buy or sell overseas property in Andorra