Exclusive new development in Ordino. View the listing
Share
Share

The Principality of Andorra is known for its political and social stability, as well as for its excellent standard of living. It’s recognized as one of the best European countries in which to buy a second home.

Andorra is characterized by its raft of financial and tax advantages, both for individuals and businesses, which makes it an attractive developed country in which to invest. Furthermore, it’s on the list of the world’s most tax-friendly countries.

In this article, created in collaboration with our partner Andorra Sotheby’s International Realty, we help you to discover the key points about this ever sought-after destination:

  • Lifestyle in the Principality of Andorra.
  • Upscale real estate in Andorra, from new development to ski chalets, to design apartments.
  • Tax tips for foreign investors.
  • Passive residency in Andorra.

Lifestyles in the Principality of Andorra: the best healthcare system and internationally recognized ski resorts

A8b

New luxury residential development in a privileged and private area of the Parish of Ordino, the Vallnord ski area (€ 2,850,000). View the listing

Andorra has an area of 468 km2 and around 76,000 inhabitants of more than 100 different nationalities. Its official language is Catalan, although French, Spanish and Portuguese also are spoken there. Its official currency is the euro and the average monthly salary is 2,041.35 euros.

The country receives more than 8 million visitors each year, who primarily visit for shopping purposes or for reasons of health and well-being. Although Andorra’s economy concentrates on services, its financial and construction sectors also majorly contribute to its GDP. The country’s nominal GDP per capita is 33,547.84 EUROS, which is above the EU’s. Since 2000’s it has grown at an average annual rate of 3.4%.

  • Andorra is one of the safest countries in the world. With its low crime rate, few places can rival it for safety.
  • Furthermore, it is the country with the second highest life expectancy in the world; according to a report in the journal The Lancet, it has the best healthcare system in the world. With 2,000 hours of sunlight per year, it is the world’s fourth healthiest country.
  • The Principality sponsors three free education systems: Andorran, Spanish, and French.
  • Living in Andorra means being able to enjoy the outdoors and the relaxed lifestyle afforded by natural landscapes.
  • And, finally, two of Andorra’s ski resorts rank in the top 10 of European resorts (in the “value for money” category). The Principality has 3,000 hectares of ski slopes, 60% of which have a guaranteed all-season artificial snow cover.

New development in Andorra: live in the midst of nature

A1a

Duplex in Ordino, in the Vallnord ski area (€ 1,165,000). Architect Rafael de La-Hoz Ricard de Deus. View the listing

This exclusive duplex is located on a new luxury housing estate in Ordino.  The exceptionally private area of Ordino is only a few minutes away from the cable car that ascends to the Vallnord Ski Resort.

City living in Andorra: discover luxury apartments in the financial district

A2

Luxury apartment in the heart of the financial and commercial center of Andorra la Vella (€ 3,260,000). View the listing

This exclusive 298 m² luxury apartment boasts an ultramodern design. Additionally, it has all the essential amenities nearby, including the popular Caldea Spa Resort.

Charming country living: ski chalets for sale

A3

Duplex in the exclusive residential area of ​​La Pleta del Tarter de El Tarter, in the parish of Canillo (€ 750,000). View the listing

Fantastic duplex for sale in the exclusive residential area of La Pleta del Tarter, in the parish of Canillo. The main cable car that travels to the Grandvalira Ski Resort is nearby.

Luxury living in Andorra: upscale mountain chalets

Andorra luxury property for sale

Chalet Tower in Escaldes Engordany (€ 5,850,000). View the listing

This luxury property is located in an exceptional residential area of Escaldes Engordany, considered one of the most prestigious in the Principality. Includes all mod cons to ensure that your lifestyle is as good as it gets.

Expert tips for foreign investors: Advantageous tax system approved by the OECD

Andorra stands out from other European countries because of its very low taxes.

Since 2009, Andorra has chosen to seek approval from the OECD for its tax regulations. The Principality’s goal is to improve its international relations and put an end to its status as a tax haven.

Despite this, its rates of taxation still are very competitive.

  • Corporation tax, income tax, and the non-residential tax is 10% at the most.
  • The general indirect tax (IGI) is 4.5%.

Please note that there is no wealth tax, inheritance tax, or gift tax.

To attract foreign investors, Andorra has not only put a number of tax incentives in place but has also introduced major measures to ensure lenient immigration policies.

  • In 2017, the international consultancy firm Bradley Hackford ranked Andorra as the second most fiscally attractive country worldwide.
  • Presently, Andorra has a pending double taxation agreement with several countries (e.g., France, Spain, Luxembourg, Liechtenstein, Portugal, United Arab Emirates and Malta). An association agreement is currently being negotiated with the EU that would give it access to the internal European market that has more than 500 million consumers.
  • Since new regulations were passed in 2012 to open the IED, the amount secured in foreign investments has grown by 268% to reach 3.8% of GDP, which is above the average of neighboring countries.

Passive residency in Andorra

A8c

View the listing

Act 9/2012 (31 May 2012) on immigration provides various possibilities for residing in Andorran territory, including ever-popular passive residency.

This type of residence permit is suitable for business people who wish to manage their assets in Andorra but conduct their business outside Andorran territory. It also is appropriate for professional athletes who wish to take advantage of the benefits of training at high altitudes while maintaining primary residency elsewhere.

Passive residents also will soon be able to enjoy the full benefits of the double-taxation agreement.

Exclusive luxury insights, delivered weekly

Your data will be used in accordance with our Terms of Use and Privacy Policy
Newsletter
Exclusive luxury insights
Delivered every week to your inbox
Newsletter
Exclusive luxury insights
For newsletter subscribers only
  • Exclusive offers
  • Curated selection of items
  • Luxury insights

Delivered every week to your inbox

Your data will be used in accordance with our Terms of Use and Privacy Policy