Idyllic Andorra: The small, landlocked country known for its ski resorts, mild summer temperatures, and generous tax breaks is located among the southern peaks of the Pyrenees, between Spain and France.
Since 2018, house prices there have risen by 30%, with 10% growth year-over-year. Sales shot up by 20% year-on-year, as per the Department of Statistics of Andorra.
The key reason behind this trend is foreign investment. In 2022, the Andorran government authorized 500 applications from foreign investors, amounting to almost €183 million.
Media report about another unexpected factor: YouTubers and digital nomads flocking to the micronation because “it’s just a thing right now”. Influencers head to Andorra for the glorious mountain scenery, and stay for the low taxes, banking confidentiality, and high GDP per capita (bigger than Germany and Sweden).
The authorities in Andorra are concerned about a potential crisis in the housing market but, unlike Portugal, have not yet implemented restrictive measures.
As of September 2023, the average house price in the country was € 4,230 per square meter, and according to JamesEdition data (Homes for sale in Andorra), the average in the luxury segment reached €6,130 per square meter, with the most popular regions among affluent foreign buyers spanning Escaldes-Engordany, Sant Julià de Lòria, Andorra la Vella, and La Massan.
More to Know about Andorra: The Path to Residency Through Real Estate Investment
An individual foreign investor can secure a Golden Visa and residency in Andorra by investing €400,000: €350,000 in real estate and a €50,000 deposit into the country’s Central Bank. Note: This can scale to €340,000/€60,000 for a couple and €330,000/€70,000 for two adults and a child.
The investor must prove their annual income is at least €39,000 and pay expenses like medical insurance and due diligence checks. Additionally, residence permit holders must spend at least 90 days a year in Andorra. They can visit France and Spain without visas and obtain them for the Schengen Area, the USA, Canada, and other countries via a fast-track procedure.
In general, people apply for a Golden Visa for tax benefits, and because Andorra is seen as a “safe haven” in Europe.
