Where it is and how to live in Andorra

Andorra is a small country located between Spain and France. The official language of the country is Catalan, although English, French and Spanish are equally present.

Approximately 468 kilometers cover the country and its capital is Andorra la Vieja officially Andorra la Vella and is distributed in seven parishes: Andorre la Vella, Escaldes-Engordany, Canillo, Ordino, La Massana, Encamp and Sant Julià de Lòria.

 

Why is Andorra not part of Spain?

Andorra is a completely independent country from Spain. This has been the case for years. Until the 20th century Andorra was a territory far from the interests of Spain and it was not until 1914 that its first road connecting Andorra with Spain was built, specifically the road that connects La Seu d’Urgell with Andorra.

King Boris I of Andorra

Yes, Andorra had a king for a short period of time. On July 8, 1934, with the promise of riches and prestige for Andorra, Boris Skosyrev proposed himself as king to the General Council, which approved him.

However, the bishop of La Seu d’Urgell and the co-prince of Andorra immediately disavowed him as king and Spain had to intervene. Later, the «king» was taken to Madrid where he was tried and expelled to Portgual.

Is it expensive to live in Andorra?

The country offers the best in accommodation and a wide selection of property purchases at high prices.

It is true that Andorra currently has a higher income public and so rents and sales of apartments have adapted to this market.

Prices depend on the parishes chosen Andorra, however, Andorra la Vella, Escaldes-Engorday, Ordino and La Massana are the most sought after and therefore the most expensive. On the other hand, electricity prices are currently the lowest in Europe. Water is freely available in the country as you only pay for access to water and not for the amount of water you spend per month.

Travel to Andorra

Andorra is a very popular tourist destination, both in winter and summer, although it attracts its largest audience in winter because it has the largest ski area in Europe, making its ski slopes extremely attractive.

Its atmosphere, rural and at the same time modern, makes more and more parties and events related to snow, sports and even different technologies such as blockchain technology.

In short, Andorra has endless experiences for its visitors.

Moving to Andorra: ADVANTAGES

There are plenty of good reasons to work and stay in Andorra. Besides the tax benefits, we have a wonderful natural habitat. All this adds up because the history of Andorra, the nature, the security, the education, the health, the events and the Andorran society make this area one of the best places to live.

One more thing we can take into account is the Andorran education system with a variety of options.

Specifically, the Andorran education system has three different educational systems: Spanish, Andorran and French (although you can also find in the Principality the British system but the latter is private).

Tax advantages of residing in Andorra

Andorra’s working lifestyle offers certain taxes and benefits that other countries such as Spain or France do not.

However, beneficiaries must meet certain requirements. If you reside in this Principality you can obtain certain advantages.

The natural environment that Andorra offers is for many visitors something very interesting because in addition to leisure, adventure, mountain, exercise, hotels, treatments, drinks, gastronomy, it offers an endless number of activities in which the visitor can enjoy both with children and for all ages, either in the city or in the mountains.

Living in the Pyrenees, specifically in Andorra, offers a series of fiscal rights thanks to the Andorran tax law. Let’s see for example the following comparative table that proves the tax advantages of the Andorran law:

Settling in the Principality of Andorra

There are several ways to establish in the Principality of Andorra. The most characteristic and the most common is through the creation of a company in the Principality of Andorra.

This is important since many residents come specifically to live in Andorra to establish their business in order to obtain the tax advantages offered by this country. This data is provided directly from the Government of Andorra and is important information as it helps many businessmen to pay less for their profits obtained worldwide.

However, it is important to know that residency in Andorra is the result of a process that normally takes about three months.

Requirements to settle in Andorra

Establishing a life in Andorra has many possibilities. From salaried people to elderly people looking for peace of mind.

There are many people who want to move and reside in Andorra. When it comes to work, environmental changes and tax benefits.

We need to know how we should move to Andorra. Thus getting a permanent residence in the Principality. There are many ways to live in Andorra, either through buying a home, setting up a business or getting a job in the Principality.

What type of residence to apply for in Andorra?

In Andorra you must choose a residence and know the different types of applications that exist. These vary depending on why you live here.

You may have been involved with companies for a job or shareholders. You can invest here you can do sports professionally or you can also be a researcher and artist.

Those are the ones we will define so you can determine the one closest to you. When you are looking for an address in Andorra, your current position will be useful and the activities you will be doing in the territory.

Active residence

This type of residence is focused on those people who are self-employed in their country of origin or who have a company and consider moving their activity to Andorra.

If you have the objective to work and reside in Andorra, the best option is to move. In addition to a deposit of 15.000 €. In addition, the conditions must be 183 days within Andorra. It is one of the easiest methods to obtain residency in Andorra.

It is not difficult to obtain this residency in Andorra, however you will have to be patient as the process takes approximately 3 months.

Active Residence for Work

This residence is for those people who are looking to work for someone else in Andorra, that is to say they are looking for a job in the valley. The age to obtain this residence is between +18 and retirement.

However it is very difficult to obtain, as Andorra is a small country and the hiring of foreigners is limited, as this way the workplaces and the rights of the Andorrans and already residents in Andorra are protected.

Passive residence

You can also live passively or without benefits if you intend to leave work and stay in Andorra. This type of residences are excellent, as they only require 90 days of stay in the territory.

They are designed for people who want to retire in Andorra or want to live on their income.

An investment of 400.000€ must be made, where 350.000€ must be invested in a house or in a financial product under the Andorran legislation. And the remaining 50.000€ must be sent as a deposit to the Andorran Financial Authority, which controls the state of Andorra.

Other advantages of residing in Andorra

Moving to Andorra not only has tax benefits for everyone living in the principality. Some of the most beneficial aspects include:

• A privileged environment: Andorra is famous for its beautiful natural sites. Andorra has no sea, it is a rolling mountain valley, however it has become a natural entertainment center for many elite sportsmen and women. It is a place with very optimal options and conditions for training because it also has many options.
• A magnificent health system: Andorra has one of the most important things when looking for destinations for residence; its health system. Andorra’s health system is one of the best in the world and this has been corroborated by different international studies.
• High security: both residents and tourists can enjoy a high level of security in this part of the Pyrenees. In Europe, this small country is the one with the highest security, which generates a greater welfare for its residents as they obtain better rights. Walking around the city with the security of knowing that nothing will happen is priceless.
• A triple educational system: Andorra currently has three types of centers in the city. The Spanish, Andorran and French educational system. These centers are spread throughout the different parishes and there is also a private center of British education system with which the government of Andorra has an agreement.

All this makes Andorra a very desirable country, since both for its activities and its lifestyle, make as a result many people of different ages change their plans and dedicate to live in Andorra and tax their earnings in this small Principality surrounded by nature and not for example in the Spanish State.

Privileged environment

The mountainous and skiable areas such as GrandValira and Vallnord offer residents a place to relax and enjoy multiple sporting activities with more than 270 km of skiable terrain. The unique enclave with 91% of the territory covered by the landscape is an important recreational activity for mountaineers such as hiking and skiing. A further advantage Andorra offers is its high altitude. The capital is at an altitude of 1,0323 meters which offers optimal conditions for high performance athletes.

Health system

Andorran health system called CASS. On top of the world health list is the system that uses a co-payment system. In cases where the patient cannot pay for this service and other vulnerable situations medical expenses are paid 100%, i.e. totally free. a good reason to stay in Andorra.

As a general rule, each resident pays 25% of his medical bill, while 75% is paid by the Government of Andorra.

Educational system

If you decide to move to Andorra with your family, please comment on their incredible education. Andorra has three educational systems: Spanish and Andorran and French.

Climate – Weather in Andorra

Andorra is known for its Mediterranean climate, similar to the mountainous areas. Winter temperatures remain low, averaging 2°C with significant snowfall. Summer brings with Andorra high temperatures and dry weather with a minimum of 24°C.

Andorra Andorra La Vella (Its Capital)

Currently, Andorra la Vella is the capital of the Principality of Andorra. It is where its nerve center is located, the seat of justice and the main building of the Government of Andorra.

Andorra la Vella and Escaldes-Engordany, both parishes encompass the main events of Andorra.

And what do I have to do to obtain residency in Andorra?

It is very simple, if you have already decided what type of residence suits you best, you just have to contact us so that we can help you with all the data and information you need to know before starting this adventure.

From Andorra Services we can help you, both to give you all the information, and to help you find places to reside and locate your company.

It is very important that you do not have a criminal record (important) as a criminal record certificate is required to obtain any type of residency in Andorra. In addition to that, your work experience will be requested either through the extract of your country’s work life or through the contributions together with your Curriculum Vitae.

In addition, you will have to look for an apartment, either to buy or to rent before starting the process of obtaining the residence in Andorra, since it is requested either the deed of sale of the apartment or the rental contract to start the process.

Hotels in Andorra

When visiting Andorra, you have to take into account what kind of tourism you want to do, because if you prefer to attend events, live gastronomic experiences, visit the thermal center of Caldea in Escaldes-Engordany and therefore visit the center of the country and go shopping, you will need to look for a hotel between Andorra la Vella and Escaldes-Engodany. These two parishes are basically based on wellness tourism.

On the other hand, if you are not looking to be in the city center, but you are looking for other experiences, such as skiing, adventure, altitude or sports related experiences, in that case, you need to look for hotels in the mountains.

These hotels can be located in the parishes of La Massana, Ordino, even Pas de la Casa or Canillo. These parishes are the ones we recommend you to look for hotels if you want to come to Andorra with your family and enjoy the mountain or do sports in the valley, but well, there are different tastes.

What to do in Andorra?

This is a question that has an easy solution: you can visit emblematic tourist spots or enjoy its thermal resorts or do sports in the country.

Andorra has very nice areas to visit, for example in Canillo the famous viewpoint of Roc del Quer, free of charge.

The center of Andorra la Vella, Meritxell Avenue, which joins Carlemany Avenue in Escaldes-Engordany is another emblematic point of the country. As well as different lakes such as Tristaina lake or the llac dels Pessosn (which in winter freezes and can only be accessed by skiing).

However, there are also quieter plans for those who do not want to ski, you can enjoy a great day of snow in the Pas de la Casa or in the beautiful village of Soldeu, where you can also find hotels like the Hermitage where you can enjoy beautiful views and a very unique cuisine.

Currently, it is in the Hermitage Hotel in Soldeu where the only Michelin star restaurant in Andorra is located.

What to buy in Andorra?

In the past, many tourists came to Andorra only to shop because the Andorran VAT (IGI) is 4.5% instead of 21% in Spain for example, which made it highly attractive for many purchases.

Nowadays, prices have become more balanced and it is true that it is still very cheap to buy alcohol, tobacco, perfumery products and electronics in the Principality of Andorra.

How to get to Andorra?

Andorra is currently accessible from both France and Spain.

Andorra has a national bus station with direct routes to Barcelona (Sants and Airport), France, Galicia and Portugal.

In addition, commercial flights have recently been inaugurated in La Seu d’Urgell at La Seu D’urgell – Andorra Airport. This allows residents of Andorra to travel directly to Madrid in just one hour.

This airport is located 30 minutes from Andorra, has parking and is small. It normally has two flights to Madrid during the week and they are studying the possibility of adding a third flight per week.

Finding an apartment in Andorra

One of the most important things to do before moving your business to Andorra is to find an apartment in the country.

Currently the rental apartments have expensive rents and there is not a very big market. So we advise you to start this process first of all, as it will be the most complicated thing (together with the opening of the bank account in Andorra).

Opening a bank account in Andorra

This is probably the most complicated thing to do in Andorra at the moment, next to looking for an apartment. There are only 3 banks in the country and their internal compliance processes are very exhaustive and lengthy.

You have to justify in any case the origin of the funds of all the money you intend to relocate in Andorra.

It is not recommended that you try to open a bank account before obtaining residency in Andorra as you run the risk of being reported to your country of habitual residence before you can finalize the process of changing residency to Andorra.

If you are a non-resident and want to open a bank account in Andorra, please note that you need a minimum of 150.000€ to be accepted as a client.

Cars in Andorra

Once you are a resident in Andorra you can import your vehicle into Andorra as long as it meets all the requirements.

Click on this link to obtain all the information related to importing your vehicle to Andorra.

Homologate your driving license in Andorra

This is one of the obligations you must take into account when residing in Andorra. You have a specific time of one year to homologate your driving license in Andorra. If you do not do so, you may be sanctioned by the Andorran police.

If you reside in Andorra you must drive a car with Andorran license plates and your driving license must be Andorran.

This process is relatively quick (it takes about a month) and requires you to present your driving license as they will exchange it for the Andorran one.

In case you want to drive in Europe you will have to apply for a European driving license (as in any country part of the EU) with a simple process and paying a fee for it.

One of the important points of this type of driving license is that it does not work by points as for example in Spain or France. This type of license works exclusively through the system of fines, so when you are sanctioned by the authorities, no points will be deducted from your license and you will not be able to «lose it» in that way.

Contact us if you have any doubts

If you have any doubts about the information contained in this article or in others that you can find in our website, do not hesitate to contact us.

You can contact us without obligation through our direct whatsapp or through our email.

We will answer your initial questions and you will be able to talk to our advisors so they can help you from Andorra Services to find the residence that best suits your needs or the legal structure that your business requires.

We can help you whether you need solutions in Andorra or in Spain. Our advisors and lawyers have more than 10 years of experience in the sector.