Law of property transfer tax real estate since the General Council at its session of 29 December 2000 approved the following: law on the tax on real estate transfer preamble the level of economic development of the Principality and the desire to increase and enhance the most of the Andorran economy demand and, in turn, are conditioned by the improvement of the infrastructures of the Principality. The improvements and innovations mentioned are carried out by means of investments financed exclusively by the public sector.

The need to finance these investments has promoted the creation of a tax figure that until about the returns on these investments, mainly. This new tax is a tribute of indirect nature, which record certain transmissions of real estate and the tax burden falls on the crime of these goods.

This law introduces a model of fiscal responsibility by virtue of which two tax installments: the State and communal. With the aim of guaranteeing the principle of reservation of law that requires the article 27 of the Constitution and the powers attributed to it in the Commons for the article 80.2 of the Constitution and article 9 of the Law of delimitation of competences of the common, this law establishes a high-low type. The common that opt to establish the tribute on the conveyance of real estate to register for the municipal cadastre must regulate in their respective budgetary regulations the tax rate applicable to the transmissions that take place within its territorial demarcations, and in the terms and provisions of this law, without which this tax rate may be lower than the minimum or greater than the maximum laid down in this law. The management of the tribute is made for shared between the Government and the communes, each for the part of tax debt that will be in charge. However, for the purpose of simplifying the management system, it is anticipated that the common can delegate to the Government, by means of the corresponding agreement, competition from the communal management of taxes.

The law that regulates this tax is developed through twenty articles, divided into four chapters. The chapter, which consists of two articles, establishes the general definitions of the tax. The second chapter, with a total of nine articles, develops the body and the basic content of this tax figure.

The third chapter is dedicated to the rules of management of the tax. And the last chapter is intended for the specific regulation of the system of violations and penalties relating to this tribute. To this are added three additional provisions, a transitional and final provisions.

Chapter i. General Definitions Article 1 legal status 1. The present real estate property transfer tax is a tax of indirect nature that record the onerous transfer and conveyance profits inters real estate, as well as the Constitution and the transfer of real rights on real property, under the terms described in this law.

2. The tax is required according to the true legal nature of the Act or contract, regardless of the fact that the parties have given.

3. For the purposes of this tax, also are considered real property facilities of any kind established with permanent character, which are not portable to your building and although the land on which they are located is not belongs to the owner of the real estate.

Territorial Scope article 2 1. This tax applies to all transfers of real property, and in the constitutions and the transfers of real rights on these assets when they are located in the territory of the Principality of Andorra.

2. For the purposes of the application of the corresponding municipal lien users should in the parish where the property is located.

Chapter II. Fact generator, tax base, tax rate and tax fee Article 3 Made the generator 1. Conveyances are subject to this tax the transmissions, onerous or profit inters, all kinds of real estate as well as the Constitution and the transfer of real rights over real estate.

2. Are also acts subject to this law: a) the transmission of shares or of shares of companies, as well as the establishment or transfer of real rights on these shares or shares when at least 50 per cent of the assets of these companies are made up of real estate or real rights over real estate.

b) transmissions or awards of real estate carried out as a result of any judicial or administrative.

c) The insolutumdacions of real estate and the awards of the same goods for payment of debts.

d) the records of domain and the acts of notoriety to which the law does not give the effect of recognizing the ownership of real property to a person, unless proven to have paid the tax in advance.

e) domain recognition in favour of a certain person, with the same exception provisions of the previous section.

f) administrative concessions involving the private use of real estate.

g) the extension of the content of in rem rights constituted, which has been always to liquidate that implies for its owner equity increased, which serves as a basis for the requirement of tribute.

3. For the purposes of this law, are considered to be also subject to the tax pledge contracts and option contracts when they have to a property or rights over real estate.

4. For the purposes of this law, are considered translatius events, and therefore subject to this tax, the preparatory contracts, promises or options, where it is expected to pay a higher price to twenty-five percent of the total price that has been agreed for the sale, or those that are made for indefinite or for a period exceeding five years, regardless of the moment in which takes place the delivery of possession. At the time of the signing of the definitive contract of sale resulting from these promises or options not practiced liquidation, provided that initially have been effectively cleared by this tax.

If it proves the termination of the contract before expiration said term of five years, you can get the refund of the amount you pay, meaning that the difference between the amount initially paid and the one that should have cleared


by reason of the preparatory agreement, in the terms governing the article 17 of this law by undue back and as long as the prompt before the expiration of the period of prescription of the tax.

5. For the purposes of this law, it is considered that the barter contracts involve the existence of two transmissions.

6. For the purposes of this tax resolutions or cancellations of contracts by the parties are considered new transmission. In the sales letter or with the Covenant of retrovenda, the exercise of the right to wear and remove or retrocessió the repurchase agreements are also considered a new transmission.

Article 4 Exemptions 1. Are exempt from the tax transfers and constitutions of rights of real estate made in favor of the General Council, the Government, the communes and the quarter-finals.

2. Remain exempt from tax the goods and rights transmissions made by the spouses to the marital community, which perform any of the spouses to the other within the framework of the amendment of the conjugal community and, in general, the awards of property and rights that are carried out within the framework of the dissolution and liquidation of the economic regime of marriage.

3. Remain exempt from tax the constitutions or transfers of real rights guarantee.

4. Remain exempt: to) donations from real estate and real rights constitutions or transmissions on the immovable carried out between spouses or persons who have a kinship by blood online descendant, ascendant and/or collateral up to third grade.

b) donations of shares of companies in which more than 50 per cent of the assets is comprised of real estate property or property rights on the same property, carried out between partners or individuals that have a kinship by blood online descendant, ascendant and/or collateral up to third grade.

c) donations of real property between companies or real estate contributions to societies in which all its shareholders have between them a kinship by blood online descendant, ascendant and/or collateral up to third grade or are spouses, and that as a result of the transmission or input more than fifty per cent of the assets is comprised of real estate or real rights over real estate.

Article 5 1 Incurrence. The tax is payable at the time of the transmission, the establishment or transfer of assets or rights which are subject, as appropriate.

2. In any transfer of assets, Constitution or assignment of property rights, the effectiveness of which is suspended by the existence of a condition or term, the tax will not be paid until their compliance, without prejudice to the provisions of article 13 of this law.

It is not so in the case of the resolutòries conditions, in which the tax is payable at the time of the transmission.

3. Notwithstanding the provisions of the previous sections, for the acts referred to in paragraph 4 of article 3 of this law, the tax is payable at the time of the completion of the Act. The formalization of the definitive transfer paid no tax.

Article 6 tax Forced 1. For the purposes of this tax, are taxable the crime of property or rights subject to the transmission, or those in favor of which constitutes or give a real law.

2. In the domain records and the minutes of notoriety to which the law does not give the effect of recognizing the ownership of real property to a person, it is required that the person a tributary further.

3. In recognition of the domain name in favour of a certain person, that person is liable for tax.

4. in the administrative concessions, tax is forced the dealership.

5. The tax required must meet the tax regardless of the terms and conditions established by the parties.

Article 7 Tax Base 1. The basis of taxation is made up by the real value of the property conveyed or of law which constitutes or gives.

2. Only minoren the basis of taxation burdens that reduces the real value of the goods, but never the debts, even if they are guaranteed by pledge or mortgage.

3. For the purposes of this law, the transfer of property rights is valued as follows: a) if the usufruct is temporary, in the 2 by 100 on the total value of the asset for each period of one year, without that may exceed the limit of 70 to 100. In the event that the usufruct has a duration less than one year are valued in the 2 to 100 on the total value of the good.

b) if the usufruct is for life, in the 70 to 100 on the total value of the asset when the user has less than 20 years; This percentage will be reduced accordingly in a 1 to 100 for each year that the user has more, with a minimum limit of 10 to 100 of the total value of the good.

4. The value of the naked property is determined by the difference between the value of the usufruct and the total value of the good.

5. The right to use and the room are settled as if it were a usufruct.

6. The usufruct constituted in favour of a legal entity for indeterminate time, or for a period of thirty years, it is considered fiscally as a transfer of freehold Resolutive condition, subject to.

7. In the case of promises of sale or purchase options that do not have the consideration of transfer of goods in accordance with this law, the tax base is the price consigned to the promise, or choice, with a minimum of ten percent of the value of the good.

8. In the case of administrative concessions, the basis of taxation is determined by the following rules: a) if the administration sets a total amount in price or Canon have to satisfy the dealership, the base is this amount.

b) When it is not applicable to the rule above, the value declared by the interested parties, without prejudice to the right of the Administration in the area of verification of values.

9. For the purposes of payment of the tax, in the case of transmissions or transmissions free of charges without the intervention of price, the parties must state in writing or to the document of liquidation the value attributed to the assets subject to the transmission.

Article 8 tax rate 1. The State tax rate is 1.25 to 100.

2. If the common set a tribute on the conveyance of real estate to register for the municipal cadastre, the municipal tax rate will be established by its regulations, which may not be less than 0.50 to 100 or greater than 1.25 to 100.

Article 9 tax Fee 1. State tax fee is calculated by applying to the base of the taxation


tax rate the State tax.

2. The communal tax fee is calculated by applying to the tax base the municipal tax rate of tax.

Article 10 payment Guarantee the goods or rights transmitted respond, anyone who is the holder of the tax debt that is caused by this tax, unless the owner is a third party protected by the public or faith will justify the purchase of the goods in good faith and with just title.

Article 11 Limitations 1. This tax is prescribed within the period established by the law on the bases of tax law.

2. The prescription you start counting from the date on which to execute the notarial deed or, if this is private documents, from the moment in which the document is presented to liquidation.

Chapter III. Management and liquidation Article 12 Competition 1. The competition for the management and settlement of the tax for the part of the tax debt that corresponds to the Government's reimbursement actions exercised by the Ministry responsible for finance.

2. Competition for the management and settlement of the tax for the part of the tax debt which corresponds to the common is reimbursement actions exercised by every common. For this purpose the Commons must approve regulations for the respective rules of management and payment of the tax for the part of the tax debt corresponding to the communal fee.

3. However, the Commons can subscribe an agreement with the Government, by virtue of which the management and payment of the part of the tax debt of the tax corresponding to the common is delegated to the Government in the following terms: 3.1. The Government collects the total revenue generated by the tax and paid to the common part that corresponds with settlements including all accrued in a quarter and transmissions which are paid within the period of thirty days following the last day of the quarter above natural.

3.2. Unless otherwise agreement, the payment is made by bank transfer to the account that you previously indicated the common.

3.3. In the same period of thirty days specified in paragraph 3.1 above, the Government will send to each common detailed communication in which they specified the details of the transfers were made, the total number of payments made and the total amount collected by reason of the tax.

4. For the purposes of the provisions of the previous section, the system for the management and settlement of the tax determined in articles 13 and 15 of this law is to apply to the part of the tax debt to the Government. In cases where you have subscribed an agreement with the common, this system of management and payment of the tax is also applied to the part of the tax debt corresponding to the common Agreement were signed.

Article 13 settlement of the tax 1. In the event that the transmission of a right or law or the Constitution of a real law will formalise through a private contract, the tax obligation is to autoliquidar the tax, presenting it and by entering the amount in the settlements Office of the Ministry in charge of finance, within a period of thirty days from the date of the private contract.

In the event of a subsequent elevation to public of this private contract, settlement of the tax must be justified at the time of the lifting of the public contract.

2. In the event that the transmission of a right or law or the Constitution of a real right to be awarded through a public deed, the tax must have to liquidate the tax simultaneously to the granting of the public deed, having the notary public to meet the obligations of article 15 of this law.

3. In the transmissions subject to conditions precedent that requires the intervention of notary public for the effectiveness of the transmission, the settlement of the tax will have to be made simultaneously in his speech.

In the other transmissions subject to conditions precedent the fulfillment of which does not require the intervention of notary public, tax has to liquidate as if the condition precedent did not exist, without prejudice to the return of the tax when it accredits the non-fulfilment of the condition mentioned.

In this case, applies the provisions of article 17 of this law on the return of the tax. The consummation of the transmission with the fulfillment of the condition, does not give rise to new settlement.

4. Must be determined according to the terms, the models, forms and Declaration of tax income, and the forms of justification of the payment of the tax.

Article 14 Check of values 1. The Administration can check the real value of the assets or rights transmitted. In order to get this real value, the Administration must use a system of assessment based on an expert appraisal, sufficiently motivated, the goods subject to the transmission. In any case, the tax expert estimated the taxation can promote forced contradictory to the law on bases of tax law.

2. In the transmission made by private contract, the Administration notifies the result of the check of the value directly to the tax obligation, under the terms established.

3. In the transmission made through a public deed, the Administration notifies the result of the check of the value to the notary public that he authorize the script mentioned in the terms to be established, in order that this requires the compulsory tax and notify the content of the check.

Article 15 obligations of public jurymen 1. The public can not jurymen authorize any public deed of transfer of property, or of incorporation or transfer of real rights on the same goods made by private contract, nor can Protocol private documents where you reflect these transfers of property or rights over the same property, if the taxable does not demonstrate previously or simultaneously the liquidation and If applicable, the payment of the tax, or which are of application cases of not holding established in this law.

2. In the case of acts subject to the tax in which there is no intervention price, the settlement is taking to based on the real value of goods declared for the same tax obligation, that must be consigned to writing.

3. The public perceive the jurymen of the settlement made by the required tax and make the payment to the Ministry in charge of finance, within the deadlines and under the models must be determined.

4. public jurymen to attach to the array of writing a copy of the payment of the tax.


5. the public appeared competent service jurymen of the Ministry in charge of finance, during the first two weeks of each quarter, the relationship or understanding index of all events subject to the tax you have authorized and of the settlements that have perceived in the quarter immediately preceding natural, in the manner and under the models must be determined.

6. The Ministry responsible for finance must require the notary public in order to notify the tax forced the settlement resulting from the check in the terms established by the regulations.

7. The public, jurymen in the procedure of checking of previous values and at the request of the Ministry responsible for finance, are required to identify the tax liable in the event that this has not satisfied the settlement resulting from this procedure in the terms established by the regulations.

Article 16 Registration Obligations 1. The notary must notify the administrative registry of real property the granting of any act or contract that involves a real estate property or the establishment or transfer of rights where necessary, so that it will proceed to their registration.

2. Must be determined according to the manner and the procedure to carry out the registration.

Article 17 Return to undue 1. The Administration has to repay the amount paid, by repayment of undue, in those cases where the tax is liquidity prior to its incurrence, if within a period of ninety days after the liquidation tax has not obliged the transmission has occurred certifies that, unless the end of the period of prescription of the tax.

For this purpose, you must submit the original declaration of the payment of the tax, in the models and the ways that established by the regulations.

2. When you declare or recognize legally or administratively the nullity or termination of a contract, the taxpayer is entitled to the return of that meeting as to the administration fee, as long as you claim the rebate before the end of the period of prescription of the tax.

Chapter IV. Infractions and sanctions Article 18 infractions and sanctions 1. Tax offences arising from the provisions of this law shall be governed by the system of violations and penalties set forth in chapter III, the third section of the law of the Tax Ordinance.

2. For the purposes of this law are offences of defrauding the following: to) Leave to enter totally or partially the tax debt resulting from the tax, is not to present statements or the lack of clearance or because, having it done, omit data, items or amounts necessary to determine the basis or tax payments.

b) Enjoy or get improperly exemptions or refunds of the tax.

c) Every action or omission to act if you get economic damage for the administration.

3. For the purposes of this law are simple offences the breach of any obligation or duty tax law derived from the management of the tax when it constitutes infringement of defrauding.

Article 19 Determination of sanctions 1. The simple offences will be penalize with a fine of no less than 50,000 pesetas or more than 250,000 pesetas.

2. The offences of defrauding it penalize with pecuniary fine of 25 per 100 of the resulting tax debt, more the interests of corresponding delay.

Article 20 Notifications of infringements 1. Prior to the imposition of a penalty, must be notified to the person concerned the proposed resolution with indication of the facts charged, the precept infringed and the amount of the fine. The person concerned has a term of thirteen working days to raise everything they consider appropriate for their defense.

2. After the deadline of allegations, the competent body of the Administration gives the corresponding resolution, which can be toured in the terms established by the law on the bases of tax law.

3. In any case, and in order that the administrative act is in suspense, with the filing of the appeal must deposit a security deposit that, in the opinion of the competent authority, be enough to guarantee the payment of the tax debt.

4. in the case of transfers made through public deed, the notary public on the requirements of the Administration must notify the tax forced any sanction against him at the top. If, within a period to be fixed by the forced payment of the penalty does not tax, the notary public which entitles the public deed must notify the administration of the personal data of the taxpayer.

Additional provisions First The tax authority acknowledged in the Commons for the article 9.5 of the qualified law of delimitation of competences of the common in connection with real estate transmissions to register in the municipal cadastre, is exercised by common agreement with the provisions set out in this law.

Second law of general budget can update or adapt the tax rate and the amount of the penalties established by this law.

Third is created the administrative registry of real property, which is attached to the Chamber of Notaries, which register the acts and contracts for which will transmit ownership of real estate property or constitute or give real rights over real estate.

This register needs to ensure the confidentiality of the data corresponding to the natural or legal persons who appear as holders of registered rights.

Sole transitory provision for the purposes of the application of that tax to the date of transfer of the assets or rights is determined according to the provisions of article 11.2 of this law. However, contracts pertaining to transfers of assets or rights that they relapse on real property made before the entry into force of this law and that have not been formalized in a public deed can be raised to audiences within the period of one year from the entry into force of this law without being required to pay the tax, when it accredits to the Ministry in charge of finance the possession of real estate or real estate on the right before the entrance into force of this law, by means of the presentation of the administrative documents related to the real estate in question, issued on behalf of the owner. Has been to establish regulations governing the administrative procedure.

The acts and contracts in accordance with the previous paragraph is proven to have


been signed prior to the entry into force of this law shall be governed by the rules and regulations applicable and in force at the time when the operations were carried out above.

Final provisions First authorises the Government to develop regulations to that law.

Second this law enters into force fifteen days to be published in the official bulletin of the Principality of Andorra.

Casa de la Vall, 29 December 2000, Francesc Areny Casal Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Jacques Chirac Joan Marti Alanis, President of the French Republic the Bishop of Urgell Co-prince of Andorra Co-prince of Andorra