Andorra: transfer tax and a first-home exemption

The search is ITP on a purchase

On 2 November 2026, the government page Altres impostos was fetched. Under ITP, impost indirecte sobre les transmissions patrimonials, it says the chargeable event is transfers of immovable property of every kind, and the creation and assignment of rights in rem over immovable property. The taxpayer is the acquirer of the property or rights, or the person in whose favour a right in rem is created or assigned. The base is the real value of the property transferred or of the right created or assigned. The rate is 4 percent: 1 percent for the government and 3 percent for the communes.

The same page lists exemptions. One line, as fetched, reads only “onerous or lucrative transfers of immovable property made in favour of natural persons” and does not finish the conditions on that line. This page does not treat that unfinished line as an exemption for every transfer to a natural person. The same page describes a separate capital-gains tax, at a rate from 1 percent to 15 percent, paid by the person who transfers the property. It says that, under the heading of reductions, 5 percent of the capital gain is withheld from non-residents.

A first home has its own answer

A separate government answer, also fetched on 2 November 2026, asks what the exemption from the real-estate transfer tax consists of. It says the exemption was introduced by Law 7/2006 of 21 June and was amended by Law 5/2025 of 6 March on sustainable growth and the right to housing, and that it is regulated by the Decree of 14 May 2019 approving the regulation, BOPA 45/2019. It says a natural person who meets the legal requirements does not settle all or part of the tax, as applicable, provided that, before the notarial deed is granted, the administration has issued a favourable decision on the exemption request. The acquirer must be a natural person, and either an Andorran national with effective residence in the Principality or a foreigner who proves at least five years of legal, permanent, and continuous residence in the last ten years. The property must be the first acquisition of a home and must be the acquirer’s habitual and permanent home. A home includes up to two parking spaces and one storage room if they are acquired together. The answer says the first acquisition is the first transfer of a home in favour of the acquirer. Annual income from salary, self-employment, a pension, or other income must not exceed four times the annualised monthly minimum wage for one acquirer, or six times for more than one. It says that, because the minimum wage from 1 January 2026 is 1,525.33 euro, the maximum annual income is 73,215.84 euro for one acquirer and 109,823.76 euro for more than one, and that those amounts increase by 20 percent if the acquirer, or a family member or dependent living there, has a disability. The value of the home must not exceed 600,000 euro. If parking and a storage room take the price above 600,000 euro, the exemption is applied up to that amount, and that value also increases by 20 percent in the disability case. The acquirer must have no debts outstanding with the general administration.

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Those sentences are those two government pages. They are not the foreign-investment authorisation guide, which was not rewritten. A pin or a contact reveal does not establish title, and a contract price is not by itself the real value used as the base. This page does not set out an exemption request.