A Guide to Property Renovations in Andorra
- elizabethhelenpier
- Dec 17, 2024
- 5 min read
Updated: Mar 8
There are various reasons you might want to renovate property in Andorra, whether it be a buy-to-flip option, a project house to gut and redo, or a simple modernisation of your property. Whatever the reason, renovating any kind of apartment or property in Andorra will mean a similar ball game of regulations to check, planning permission to obtain and builders to find. Do you want to know what procedures to consider and the cost effectiveness when renovating in Andorra? If so, read on.
Buying-to-flip, is it worth it in Andorra?
There is no easy answer to this question. In some cases, it is absolutely worth buying to flip in Andorra. However, there are factors to consider before making such a purchase:
Capital gains
As we talk about in more detail in our capital gains blog post. Capital gains tax on property follows a sliding scale precisely to dissuade you from flipping houses in Andorra. The maximum tax rate of 15% is not high but it could be counterproductive for flipping. Furthermore, in 2025 a new law is coming into play that may increase these tax rates.
Barn conversions
As we discuss in our blog post Buying property in Andorra: factors that affect the price, old barns for conversion are like gold dust in the Andorran real estate market. Special deals will be almost impossible to obtain on any property built in old dry stone. The demand is high and the supply almost inexistent.
Value and quality of old property
The main selection of property available for house flipping in Andorra is usually apartments built in the 1970s or 1980s. Unfortunately, many of these builds are now in need of more than a lick of paint. Water filtration issues, poor building maintenance and even a lack of suitable-for-living certificate could mean that however cost effective the interior flip is, the building and its peculiarities might put off buyers once the refurb is complete.
Has the property market in Andorra already peaked?
The million dollar question we have no simple answer for. Prices are still continuing to rise but there has been a deceleration of the price inflation in 2024 and 2025. We do not believe the chart is going to flip into negative anytime soon nor possibly ever but a stabilisation may be on the books for the near future. Buying-to-flip does not necessarily rely on market value increases, but between capital gains taxes to pay and estate agency fees upon sale, it’s important to consider whether a stable property market with no price fluctuations will encourage buying to flip in Andorra.
Regulation for renovating property in Andorra
In the 1970s and 1980s there was not a huge amount of land planning regulation in Andorra and what there was, was lax and flexible. If you bought a plot that was urbanizable you were more or less free to do with it as you saw fit. Much of the real estate that is available for property renovation in Andorra was built in the 1970s and 1980s which means much of it was built not according to Andorran modern-day planning regulations or needs. Issues that may occur include
Finding out the building does not have a suitable-for-living certificate
The ground/plots in most cases are freehold (90% of the time) but can occasionally be leasehold
The old apartments are likely to be missing a parking space or will only have one small one
Concerning extensions: in many cases the square meterage of the house already occupies the maximum permitted (or more) per plot size according to modern land planning regulation in Andorra. This means you may not be able to extend on the original property
Planning permission
As with most countries most external changes to real estate in Andorra need to have planning permission and other authorisations.
If you are renovating an apartment and hope to change something on the exterior of your flat, you will need the okay from the community of property owners beforehand. Nonetheless, depending on the type of work being done on your apartment it is unlikely you will need planning permission from the local parish for changes done to the exterior given how minor they presumably are, such as a change to the balcony railings.
If you are making exterior changes to a house, it is more likely they will be major changes, in which case you will need planning permission. Depending on what kind of work you want doing, planning permission can only be requested by an architect on your behalf in Andorra. This permission may take some months to be approved and in some cases years if there is a problem. See above for some of the problems that can occur.
What kind of planning permits exist?
Generally speaking, you have two types of permits. One for minor works and one for major works. Unlike other countries, you must notify any internal changes you may be doing, even if it’s simply changing kitchen cabinetry or laying a new floor. The permit for minor works englobes a very large spectrum of items, anything from painting a wall up to an entire refurb and re-roofing. To summarise, minor work permits are for any updates or changes that do not alter the structure or the current volume, shape and openings of a home.
Permits for major works are more complex as you need to supply drawings and calculations as these are usually for structural changes such as adding a new window, taking out a wall, or adding an extension. For minor work permits, you can simply hand in the application yourself to your local Town Hall. However, for major work permits you will need the signature from an architect/engineer.
Renovation permits
No matter the type of work being done both interior and exterior, if it makes noise or goes on for more than a couple of days, we recommend getting a renovation permit. These permits are usually arranged by your builders or architect, but occasionally you may be asked to sort this yourself. You will need to be signed on as the property owner in the land planning department to petition for this permit on your property. The basic permit takes around 3 weeks and is generally always approved if it is interior work. The permit will only be approved on exterior work if the planning permission has been obtained previous. At the same time as ordering a building license, if you have large quantities of debris to dispose of, you will be required to get another permit so that the skip company can leave a big disposal bag or skip on the pavement in front of the property.
How to find a builder for property renovation in Andorra
As we discuss in our How to buy land and build a house in Andorra? blog post, there are many building companies in Andorra, small and large, so we recommend getting in contact with a few, in order to compare quotes. As with building a house, builders will only be able to properly quote large exterior work once you have your architectural plans complete. For interior work finding a builder should be even easier. You will find hundreds of companies in Andorra offering interior renovation. The prices can differ substantially, so we recommend as with exterior work to compare various quotes.
Depending on the type of work that needs to be done, a quote will not be supplied, as the work cannot be quantified. Therefore, you will be given an hourly rate. This is common practice.
