Advice on buying Andorra Property

PURCHASE
As a non resident you need to apply for a soliicitud from the Andorran Government, this document in Catalan requests permission for you to purchase the property in question; this is granted automatically to persons fulfilling these conditions
1 Property purchasers must be 18 years and over
2 Must have a current passport or National Identity Papers
3 Does not hold a title deed to another Andorran property
4 The property that is to be purchased, if an old one, had at the time of construction been authorised by the government to be constructed, and complied with the building regulations in force at that time. It goes to say that any new property must comply with the building regulations in force at this time.
Once you have made the decision to purchase a property in Andorra you will required to make a deposit of 10 with your agent to secure the sale at the price agreed, an agreement is signed by both parties, and a receipt for the 10 given to the seller this is a non refundable deposit should the purchaser withdraw on unreasonable grounds.
Normally within 6 weeks the purchase contract is signed in front of the notary, the balance of the money is paid, and the title deed issued.
BEWARE if you are offered a property for sale by someone offering a PROMESA IRREVOCABLEDE COMPRA-VENDA (an irrevocable private contract of sale) this practise of selling property has been outlawed by the Andorran government.
It is possible in the near future that the Andorran Government will relax the law of only allowing of a non – resident to own only one property. At this time if a second property is sought then it must be registered in another family name (not a spouse) or in the name of an Andorran company.
COSTS
Typical costs for property purchase of an apartment 100sq metres priced at € 300000
Government purchase tax                         3750
Government AfA purchase tax                 3750
Notary Fee                                                1500
Government Suplien                                   190
Electricity connection                                 117
Telephone connection                                   36
Community Fund                                        600
                                      Total                     9943
 
MORTGAGES
Mortgages are available for property purchase in Andorra, banks will lend up to 60 of the property value fixed at 6 over 15 years