Selling a property held by a company in Andorra: sale of shares
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The short answer
Since 2024, selling shares in a company whose assets consist at least half of real estate located in Andorra is taxed as a sale of real estate, even where no more than one fifth of the ownership changes. The tax and the advance payment follow the logic of a direct sale.
What changes
Before 2024, only the sale of a large share of the capital triggered the tax. Now, the transfer of shares in an entity whose assets are mainly real estate in Andorra is taxed in all cases, with the same obligations to make an advance payment before the notary.
The cases concerned
- Asset-holding company owning one or more homes: see asset-holding company.
- Indirect holding of a property through a foreign company.
- Gradual sale of small shareholdings: the criterion is the assets, not the percentage.
Points to watch
- Real value of the property and book value: the gap between them determines the taxable gain.
- Surcharge if the sale takes place before the speculation period: see sale within two years.
- Buyer: a sale of shares may also lead to taxes for the purchaser.
What the rule says
For a non-resident, the real estate capital gain includes gains from rights or shareholdings in entities, resident or not, whose assets consist mainly, directly or indirectly, of real estate located in Andorra or of rights in rem over such real estate, or where such rights or shareholdings give their holder the right to enjoy Andorran real estate. The basis is the difference between the real value and the acquisition value. The rate is 15 %verified on 09/10/2026 before two years and 10 %verified on 09/10/2026 after two years.
What this changes for a holding company
A holding company that mainly holds Andorran real estate does not benefit from the exemption of capital gains on shareholdings if the assets of the company sold consist of Andorran real estate to the extent of 50 %verified on 12/10/2026 or more: see participation exemption. This is one of the reasons why a real estate asset-holding company is not a classic holding company.
Questions to settle before selling
- Do the company's assets mainly consist of Andorran real estate?
- What is the real value of the property, and what is its justified acquisition value?
- Who is the buyer, and do they need a foreign investment authorisation?
- Must the tax advance payment be made before the notary?
Have a written valuation prepared, which will serve as proof in the event of an audit.
Work out your own case
Free simulators, built on the official values of this page.
- Capital gains simulator for selling property in Andorra (resident and non-resident)Capital gains tax, net proceeds for the seller and the tax paid by the buyer.Open
- Rental yield calculator for Andorra (gross, net, payback)Gross and net yield from your data, plus the price-per-m² estimator.Open
- Cost of an employee and corporate tax in Andorra: calculatorEmployer contributions, net pay before tax and a company's corporate tax.Open
Frequently asked questions
Is selling the shares more advantageous than selling the property?
Not automatically: since 2024, the two operations have been brought closer together. Only a calculation on your own case will show.
What tax applies to a selling company?
Corporate income tax, with a speculation surcharge in the event of a quick resale.
Who is affected?
Any entity, resident or not, whose assets mainly consist of real estate located in Andorra.
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.