Print
version
version
The country lurks between neighbors Spain and France, whose size is a thousand times larger. Meanwhile, the miniature country is divided into seven regions (parishes):
Some parishes are divided into quarters ("quarts"). For example, in the parish of Ordino, there are eight "quarts" (the largest of the same name has 3 thousand people), Sant ' julia de Loria is divided into ten settlements, Canillo – into 11.
The capital region of Andorra la Vella is the smallest by area – only 12 sq.km. At the same time, it is the most populated one with more than 22,000 inhabitants. This is the location of state bodies, executive, legislative and judicial authorities. Banks, educational and medical institutions are located here. It is also the main place where people buy real estate, mainly apartments, townhouses and condominiums. You can find villas with chalets on the market, but they are much more expensive.
The center is a relatively noisy place, so it is recommended to go to the northern part of the city, which is a quieter area. It is easier to get around the capital ciyt on foot. A personal car can become a concern: there are big problems with parking in the city, so when buying or renting a house, it is better to immediately get a parking space as well.
Another geographical fact: Andorra has no access to the sea, but there are more than 60 mountain lakes, thermal springs and four rivers on its territory.
Legally, Andorra is not an offshore country, but taxes are much lower (by 20-40%) than in most European countries. The absence of customs duties attracts not only shopping enthusiasts, but also businessmen to the country.
Andorra is a member of the UN, OSCE and the IMF. It also has observer status at the WTO and a special agreement with the EU, without being included in it. Important: the principality does not belong to the Schengen area, but its residents can easily move around neighboring France, Spain, and Portugal without a visa.
The country uses euro (it never had it's own currency, once in circulation were the Spanish peseta and the French franc).
There is no national Army in Andorra. In the event of an attack, France and Spain will protect the citizens. In addition, in case of emergencies or natural disasters in Andorra, an alarm is activated, referred to here as sometent. All Andorran men between the ages of 21 and 60 are required to respond to it.
Andorra does not have an airport, only helipads. Tourists get here from the airports of Barcelona, Toulouse, Perpignan, Reus and Girona. Wealthy citizens sometimes use a small airport for private boards in the Spanish city of La Seu d'Urzhel (11 km from the border).
Trains run from the international airports of Spain and France to the border with Andorra. From there, you have to get on the CG-1 and CG-2 roads - by bus or rented cars. There are no railways in Andorra itself. The nearest railway station is L'Hospitalet près l'Andorre, located in France, 10 km east of the border. High-speed trains from Paris run here.
Andorra can be reached by bus directly from Barcelona, Toulouse and Girona airports. The journey takes about three hours.
Andorra is a rich country with more than $20,000 per capita income per year and a low unemployment rate (according to various sources, from 3% to 4%). At the same time, the cost of living here is lower than in large cities in America, Canada, France or Australia. Expenses are comparable to those in Madrid or Barcelona.
According to Numbeo statistics for March 2021, the monthly expenses for a family of four are €2,500, excluding housing costs. Rent a one-bedroom apartment costs about €700 in the city centre and €500 outside of it.
The purchase will cost €3,500-5,000 per sq.m in the central areas of cities and from €2,000 on the outskirts. In the luxury real estate segment, prices can reach up to €15,000 per meter.
According to realtors, the pricing in the real estate sector has it's features: the cost of similar houses located in the neighborhood can vary significantly because of the sunny side of a mountain. However, there are also traditional factors that affect the price: proximity to tourist attractions, infrastructure, the view from the window, the quality of construction, and others.
The country has an attractive tax system. There is no tax on wealth, capital gains, dividends, inheritance. The income tax rate for residents does not exceed 10%:
Non-residents pay a fixed 10% on the profits made in Andorra.
Real estate is not subject to inheritance or transfer taxes. However, owners pay capital gains tax on the sale of property they have owned for less than 13 years.
Even if a foreigner spends less than 183 days a year here, they can declare a centre of vital interests in Andorra and enjoy the local tax regime, which is considered one of the most profitable in Europe. Many people apply for a residence permit in Andorra for this purpose.
Residence permits of Andorra are most often obtained on one of two grounds:
The owner of a passive residence has the right to live in Andorra all year round. They must spend 90 days a year in the country. In reality, it is extremely difficult to check exactly how long a foreigner was in Andorra, since stamps are not put in the passport when crossing borders with neighboring countries.
A housing boom swept Andorra in the early 2000s. It was caused by high demand from foreigners. In the five years to 2008, the value of real estate increased by 50%. However, after the global financial crisis, prices fell by 25%. Since then, the market has been in a depressed state for several years.
In 2012, the authorities approved a law that simplified the procedure for buying real estate for foreigners. Non-residents were allowed to buy residential real estate without restrictions, having previously obtained permission from the government (for this they fill out the form "Autoritzacio d'inversio estrangera en immobles"), which is almost always a formality.
The majority of buyers of Andorran real estate are foreigners, their share reaches 70%. The largest group of investors are Spanish and British. Apartments and chalets in Andorran resorts are of interest to investors who earn money by renting out real estate to tourists. According to the calculations of realtors, the yield here is standard for Europe, it reaches 8% per annum with a successful investment.
Local real estate is also bought by people who plan to get an Andorran residence permit and the possibility of free movement in France and Spain, where you can enter without a visa. In addition, the principality attracts foreigners who want to open a business in Europe and reduce the tax burden.
