Purchasing property in Pas de la Casa, Andorra
Are you thinking of buying property in Pas de la Casa in Andorra? The resort offers a specific and simplified real estate transaction formula: "the emphyteutic lease”.
A legal formula that facilitates real estate purchases in Pas de la Casa
From pastures to ski slopes
Located on what once was the communal pastures, the ski resort of Pas de la Casa has existed for about 60 years. It was created on the land of the parish of Encamp and all the real estate of Pas de la Casa is still to this day the property of the town of Encamp.
To develop the urbanization of the Pas de la Casa ski station, the town of Encamp has developed a special legal form: "emphyteutic lease" plots which are then divided for each lot built into horizontal divisions (emphyteutic payment).
The emphyteutic lease
Each plot is sold with an emphyteutic lease deed of 70 years with unlimited renewals.
Once built, each building is divided according to a horizontal property regime and each apartment or parking sold are subject to a separate, individual 70 years renewable emphyteutic lease.
Any transfer, disposal and other purchase of property in Pas de la Casa is subject to the payment of a municipal tax of 5% on the declared value of the sale; said tax can be paid at the signing of the deed. To this is added a tax of 4% called Andorran heritage tax (ITP) that records the act.
The advantages of the emphyteutic lease
Tax benefits when buying property in Pas de la Casa
Because it is cheaper and tax deductible, homeowners pay less tax! Whether it is a private purchase or a company purchase, everyone enjoys tax benefits reserved to the buyers of property in Pas de la Casa. Therefore, more and more developers offer their customers the option of not paying for the land to accelerate the development of their assets. The occupation of land is acquired by an emphyteutic lease of 70 years with unlimited renewals. Thus, investing in property in Andorra becomes cheaper!
How does it work?
Emphyteusis allows the person who benefits from it (called lessee) to have the full enjoyment of a property belonging to another (called the emphyteutic lessor) in return for a sum of money at regular intervals called a dues or fee. Simple, this system encourages property purchases in Pas de la Casa.
What if I buy my property with an emphyteutic lease as a private purchase?
"He who owns property, is a rich future citizen", so say some of the politicians who govern us. However, tax measures encourage property investment, at least, if you are going to borrow the funds. But after 10, 15 or 20 years, your apartment will be paid for and your taxes will be calculated based on the cadastral income of all your assets.
For those who want to enjoy nice tax benefits, the emphyteutic lease is deductible under the 1147 Code and the 2147 Code for the spouse. It is then removed from your highest tax rate, in many cases over 50%. For example, if you pay an emphyteutic lease of 1,500 euros per year, and you are taxed at 50%, you save 750 euros per year in taxes. As long as you remain the owner of the property purchased the Pas de la Casa in Andorra, you will enjoy this tax benefit. You are looking at an economy of tens of thousands of euros.
Family wealth management: the FRONTERA BLANCA Agency
The Andorran specialist in real estate transactions in Pas de la Casa
Established for 20 years now, the FRONTERA BLANCA Agency has acquired a solid experience in mountain residences and in the profitability of its assets.
• Active member of the Realtors Association of Andorra:
• Affiliated to the International Federation of Realtors:
la FIABCI (www.fiabci.com)
• Chairs the association of tourist rentals in Andorra:
A team at your service 365 days a year in charge of monetizing and optimizing the ratio of your investment as a holiday rental, also ensures all administrative and accounting procedures of your property in Pas de la Casa in Andorra thanks to its property management. What’s more we constantly maintain your assets and guarantee maximum discretion for any transaction.