Investing in commercial premises in Andorra: rents, IGI and risks
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The short answer
In commercial premises, rent is subject to IGI at the general rate of 4.5 %, unlike housing. The return depends on the strength of the tenant, the location and the length of the lease. A non-resident remains subject to authorisation and to the foreign investment tax.
What changes compared with housing
| Point | Housing | Commercial premises |
|---|---|---|
| IGI on rent | Super-reduced rate (0 %verified on 09/10/2026) | General rate (4.5 %verified on 09/10/2026) |
| Tenant | Individual | Business |
| Term | Residential lease | Commercial lease |
| Risk | Vacancy | Tenant default |
Questions before buying
- Who is the tenant and how long does the lease have left to run?
- Which activity is authorised in the premises by the parish?
- Which charges are re-invoiced to the tenant?
- What price per m² compared with local transactions?
For a non-resident
The purchase is subject to prior authorisation and to the foreign investment tax: see buying as a non-resident.
The return on premises in practice
Premises let to a business generate higher rent per square metre than housing, but with a different risk: vacancy can last longer and the value depends on the location. IGI on the rent is at the general rate of 4.5 %verified on 09/10/2026, invoiced to the tenant, who generally recovers it if their activity is subject to IGI.
Checks before buying
| Point | Question |
|---|---|
| Lease | Remaining term, review clause, early termination |
| Activity | Municipal and government authorisation tied to the premises: see registered office |
| Charges | Which charges are re-invoiced? |
| Price | Comparison with local transactions |
| Tenant | Creditworthiness and security deposit |
Purchase by a non-resident
A non-resident's acquisition limits concern housing, parking spaces and annexes; the purchase of premises falls under a different authorisation regime: have a lawyer confirm before any preliminary agreement. See buying as a non-resident.
Taxation
On purchase, ITP or IGI depending on the seller: see IGI and buying to let. On rent, see taxation of rent.
Work out your own case
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Frequently asked questions
Does IGI apply to commercial rent?
Yes, at the general rate, unlike residential rent.
Can a foreigner buy premises?
Yes, with prior authorisation and the taxes that apply to non-residents.
How do you value premises?
By the rent, the length of the lease, the location and comparable transactions.
Going further
Official sources
This information is general and is not personalised legal, tax or financial advice. It is verified as of the date shown and may change.