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Andorra and why invest in it

Investing in Andorran Properties: A European Real Estate Dream Come True

Nestled between Spain and France, the principality of Andorra has enjoyed a long and rich history over the centuries. It currently boasts a population of just under 77,000 inhabitants and due to its convenient proximity to both Toulouse and Barcelona, the region has become a very popular tourist destination.

Not only do more than 100 nationalities live within this area, but it is also associated with one of the lowest crime rates per capita in the world. Although the official language spoken here is Catalan, other languages including French, Spanish and Portuguese can also be heard. Of course, it is never difficult to encounter English or American residents.

In terms of the standard of living, Andorra boasts the second-highest life expectancy rate (84 years old) as well as what is currently considered to be the best healthcare system on the planet.

When we combine these obvious amenities with more than 2,000 hours of sunlight every year and a wealth of natural parks, is begins to become clear why more than eight million visitors from all walks of life choose to partake in all that this principality has to offer. 

Real Estate Opportunities in Andorra


A growing number of individuals are wishing to invest in Andorran properties.There are many reasons why this is the case. Some are interested in the competitive taxes which have always been associated with this country. Others are keen on becoming involved with one of the most secure banking systems in the world. As the GDP of this principality is far above that associated withthe European Union (€33,000 euros as opposed to €21,000), those who are looking to relocate here will not be disappointed in terms of their standard of living.This GDP is likewise increasing at a rate of over three per cent on an annualbasis. We should also not fail to mention that many choose an investment scheme that involves their entire family. This is due in no small part to the fact that the students can attend Andorran universities free of charge. To highlight these facts, it has been shown that the volume of foreign investment has increased by an incredible 268 per cent since 2012. It should therefore be clear to appreciate why Engel&Völkers Andorra is often consulted when a lucrative real estate investment is desired. 


The Andorran Tax Framework


As mentioned previously, many of those who have been looking to relocate to this Principalty are motivated by its highly competitive taxes. Some figures should put this viewpoint into perspective. Taxation on corporate and non-resident activities is capped at a maximum of 10 per cent. Indirect taxes are likewise limited to only 4.5 per cent. However, there is also a great dealof clarity associated with this framework. There are currently numerous double taxation agreements with many other countries within the European Union including Spain, Portugal, France and Luxembourg. To once again mention reale state, it is critical to note that one of the main reasons why many have been motivated to invest is due to the fact that property-related taxes are nearly non-existent. Owners are only obligated to pay a yearly fee to their local governmental administration that will not exceed €400 euros for a chalet of 500 square metres. Anyone who owns an Andorran property which is valued at more than €350,000 euros can also apply for permanent residency here.

Of course, the experts at Engel&Völkers Andorra will be more than happy to address any additional questions that you may have. In terms of contentment and quality oflife, this principality is indeed a cut above the rest.

 Andorra la Vella
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