Where Is Andorra and What It’s like to Live There?
Where is Andorra?
Andorra is a micro-state located between the north of Spain and the south of France.
Its size is 468km2 and it has 118km of borders. Currently the number of inhabitants in Andorra is approximately 80,000 people.
The official language of Andorra is Catalan, but Spanish, French and English are also widely spoken.
Is Andorra a Country?
Andorra, despite having such a small territory, is a country. It is neither part of Spain nor of France, but is a state of its own.
This small country adopted its constitution on March 14, 1993.
It is necessary to point out that Andorra is not part of the European Union, it only has some agreements signed between the parties. That is why the official currency in Andorra is the Euro.
What is Andorra famous for?
One of the reasons why Andorra is more fashionable lately is due to its attractive tax framework.
Andorra’s taxation is tremendously low compared to neighboring jurisdictions and even to the rest of the European Union countries.
This table clearly shows that taxes in Andorra are much lower than in other countries, which means that the tax savings for any company located in the Principality will be higher.
It is important to keep in mind that Andorra is not a tax haven, as in 2010 it definitely came off the blacklist of OECD countries.
How can you settle in Andorra?
Settling in Andorra is relatively simple if you have a business that you want to transfer to the country or if you want to invest in the country in order to obtain your residence in the Principality.
To do so, you will mainly have to choose between the residence that suits you best and once the residence in question is defined, start with the relevant procedures (which can become somewhat complicated).
Types of residencies
In this other article you can see in detail the types of residence offered by the immigration department of Andorra.
But in short, Andorra has these types of residency:
- Residence and work: for those people who come to reside in the country as workers of a third company (i.e. they have an employment contract).
- Residence for own account: for those people who have a company abroad and want to transfer their business to the country. It is important to note that this residency currently requires a deposit of €15,000 (this may change to €50,000 in the coming months).
- Non-Profit Residency (passive residency): this residency is designed for those people who are only looking to invest in the country (specifically €400,000, amount that may also change in the coming months) and be able to live on income. It is important to take into account that this residence does not accept to have an economic activity in the country, it only allows to receive income from outside Andorra.
The advantages of living in Andorra
In addition to the tax advantages that can be seen quickly compared to other countries, especially Spain and France which are the closest countries to Andorra, there are many advantages of living in Andorra.
Andorra is currently one of the safest countries in the whole European territory and this makes its inhabitants live peacefully in the country. The current situation is far from the situations of violence and robberies in Spain and France in particular.
This is due to the fact that in Andorra there are many immigrants who are looking for tax savings and therefore must have an exemplary behavior before the Andorran authorities, otherwise they can be expelled from the country.
In addition, prostitution is completely forbidden in Andorra, severely punished by the Andorran authorities. It is worth mentioning that Andorra is a country where the cleanliness of its cities is also taken into account, so it is very pleasant to walk through streets that are completely clean, cared for and with no risk for its citizens. This aspect, is something that is not obtained in Spain and France or in other countries of the world.
Andorra also has the largest skiable domain in Europe, which makes this territory highly attractive for winter tourists. In summer, this territory becomes mountains with beautiful landscapes for hiking or mountain biking with official routes and competitions organized by the Government of Andorra.
How expensive is it to live in Andorra?
The standard of living in Andorra has grown substantially. This is due to the fact that more and more foreign investors are seeking to establish their companies in Andorra in order to pay less taxes. This has caused the average salary to increase and the cost of services in Andorra to rise.
This is so that currently in Andorra there is a very high real estate market, taking into account that for example an apartment of 120m2 can have a value (depending on the area) of 600.000€ and can be rented between 1.200€ and 3.000€ depending again on the area.
Many resident workers are opting for the option of moving to Spain (border town called La Seu de Urgell) while working in Andorra in order to obtain housing at a more affordable price.
Interesting facts about living in Andorra
Andorra has one of the highest Human Development Indexes (HDI) (ranked in this category).
Andorra’s healthcare system is one of the best in the world. It works through a co-payment system, where the patient pays 25% of the bill and the public health system pays the remaining 75%.
Andorra has three different public education systems: French, Spanish and Andorran. Although for those who wish there is also a fourth option: the British school (private).
Contact with us
In case you are interested in residing in Andorra, you can contact us so that we can advise you on what is the best option in your case.
Keep in mind that each person has a completely different case so we recommend that before starting any process, you can talk to us without obligation so we can guide you in the best possible way.
