1. Progressive Holding Period Tax Scale (15% to 0%)
Law 21/2006 imposes a 15% rate on gains realized within year 1, stepping down annually until reaching 0% (tax-free) after 10 years of ownership.
Tax & Finance Principality of Andorra Official Sources Cited
Capital Gains Tax on Andorra Real Estate: Rates, Exemptions, and Calculator
Andorra’s real estate capital gains tax rewards long-term property ownership, reducing the tax rate annually from 15% down to complete exemption after 10 years.
Calculadora de Plusvàlua
Principat d’Andorra·Llei 21/2006
Andorra Real Estate Capital Gains (Plusvàlua) Calculator
Estimate property capital gains tax based on holding duration under Andorran Law 21/2006 (decreasing from 15% down to 0% after 10 years).
450 000 €
650 000 €
25 000 €
3 years
0 (15%)3 (12%)6 (6%)10+ (Exempt)
Progressive Exemption Schedule (Law 21/2006)
0 a.
15%
1 a.
14%
2 a.
13%
3 a.
12%
4 a.
10%
5 a.
8%
6 a.
6%
7 a.
4%
8 a.
2%
9 a.
1%
10+ anys
0%
Estimated Tax Assessment
12%Net Capital Gain175 000 €
Applicable Tax Rate12%
Capital Gains Tax Payable21 000 €
Net Proceeds After Tax629 000 €
Nota Legal i FiscalThis capital gains tax calculation is indicative and based on Andorra's statutory property tax brackets (Law 21/2006). It does not substitute official tax filings or licensed tax counsel from the Departament de Tributs i Fronteres.
2. Capital Improvement Deductions
Certified renovation costs and original purchase transfer taxes can be added to the acquisition basis, lowering taxable net gain.
Frequently Asked Questions
Statutory and practical answers compiled according to Andorran regulations.
Q. When is a property sale tax-free in Andorra?
After 10 full years of holding, capital gains tax drops to exactly 0%.
Q. How is the tax collected at closing?
The officiating notary calculates and withholds the estimated capital gains tax from the sale proceeds on the date of execution.
Official Primary Sources
Information synthesized from official publications of the Principality of Andorra: