Tax on empty properties in Andorra


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The Andorran government approved the introduction of a new tax on empty properties in December of last year. This fee falls under law 3/2019, governing urgent measures in relation to housing rental.

Tax on empty properties

This new tax has been designed to regulate the flat and house rental market and to improve access to affordable housing. This type of property is becoming scarce at the moment, due to increased sales and a rise in tourist accommodation driven by new tourism models.

How the new tax will work

The first thing to note is that it targets owners of empty properties which have remained unoccupied, without justification, for more than 2 years. The taxpayer will need to declare their property on a register.

Tax rate is 5.05/m2 on the total useful square metres.

For a property to be vacant and unrented for more than 2 years, the landlord must be able to demonstrate that it meets one of the following criteria, the house or the flat is:

  • A second or third residence for family, holiday or leisure use;
  • Used as the fiscal or business address of the taxpayer;
  • Immovable property related to an economic activity;
  • Empty owing to a change of address or due to health reasons; or
  • Up for sale with an estate agent.

Growing interest in living in Andorra

Meanwhile, the real estate portal Idealista has published a study which reveals that searches for homes for sale in Andorra have increased by 99.1%. The data also indicate a 76% increase in contact between prospective buyers and advertisers compared to 2019. The study underlines the factors that are drawing foreign investors to Andorra. On the one hand there are, of course, the tax advantages that the country has over Spain, particularly with the tax increases that are planned for 2021. On the other is the double taxation agreement, which prevents paying for the same thing twice. In addition, stability and geographical proximity are also advantageous and highly desirable qualities.

At Advantia Assessors, we can assist you with managing both your taxes and the procedures for living in Andorra.