A foreigner officially registered as having been resident in Andorra for more than 20 years (only 10 years for French, Spanish or Portuguese citizens) has the same property rights as an Andorran and may freely acquire as many properties as he wishes under public title.

The issue of a permission to a foreigner to acquire a property under public title is made by a certificate (edicte) issued by the Head of the Government (Cap de Govern) or the delegated Minister. The method of applying for this permission is by means of a plea known as a sol.licitud d'inversió estrangera en immobles and the process will (normally) be handled by an estate agent (or a gestoria such as SERVISSIM). There is a fee of around 200€ involved.

Buying from a developer
When considering buying a property 'off-plans' there is a certain danger, as there is anywhere. In other words: what happens if the developer goes bankrupt? By definition, an apartment building that does not exist or has not been fully completed cannot have an Escriptura Pública. In the case of a bankruptcy the purchaser would be second-degree creditors of a similar standing to shareholders - i.e. trade creditors and mortgage lenders would have priority. However, developers - unless hugely wealthy - need to sell in advance of completion and, given the uncertainty, there is a financial incentive for the purchaser to get in early and make the biggest profit for his risk. In such a case, therefore, it is more a question of making as many checks on the financial stability of the developer as possible and retaining as much as possible of the purchase price until the Escriptura Pública is duly delivered. Banks can often help - if only with a nod and a wink since discretion is a by-word in Andorra - but often a particular bank will be financing the developer. In this case if a bank is prepared to offer a loan this should be a pretty good indication that the development will go to term. The law now permits the signing of a private contract for the purchase of a property off-plans as long as there is a clear completion date to the transaction. If this is done formally in front of the notary, the acquisition tax is payable immediately.

In the case where the development purely concerns the building of a detached house we have seen cases where the purchaser has been persuaded to sign a contract where he receives the title deed at the end of the construction process. This does not offer so much protection to the purchaser and we would strongly suggest that the purchase of the land and the construction project be treated separately. In other words, first buy the land under public title and then deal with the construction contract. Legally this is much stronger in the case of a bankruptcy or a payment dispute.

The act of sale
All purchase completions take place in front of the notary with all parties to the transaction present. It is quite common for either the purchaser or the vendor, or both, to be represented under powers of attorney (poders notarials). As long as the wording of such documents is carefully checked, we see no great disadvantage in not being present personally at the notary's office.

Contracts are established in euros. At the notary's office, bank guaranteed cheques are the order of the day and are passed over in the presence of the notary.

Required Certificates
The purchaser will receive from the seller an official Certificat d'Habitabilitat. These are issued by a qualified person such as a surveyor or architect, cost around €150 and last for 10 years. The certificates confirm that the property is suitable for habitation and are issued under strict criteria. The purchaser should also insist on receiving a certificate from the Community of Co-Proprietors (for an apartment) and certificate from the respective Commune that there is no debt owing to them on the property.

Wills
It is strongly recommended that anyone, who has property or assets of any kind in Andorra, should make a local Will or Codicil to an existing Will, even where bank accounts or property are held in joint names. There is no automatic right of inheritance for spouses. SERVISSIM has a great deal of experience in these matters and we urge you to consult us.

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