Living in the Principality of Andorra

For a country a third of the size of the City of London, Andorra is a remarkably sought-after destination for tourists and expats alike. Spend even a little time here and you’ll soon realise why so many people are clamouring to live here.

Andorra is characterised by a strong financial system, public safety, unparalleled privacy, and low taxation. Its citizens are right up there among the top countries with the highest life expectancy (84.2 years according to the WHO). Expats have equally as much to gain from the country's healthy outdoor lifestyle, fresh air, and unique natural environment.

Are You Thinking About Moving to Andorra?

Nestled in the Pyrenees mountains between France and Spain, Andorra is a tiny microstate with a lot to offer. The principality features a smorgasbord of benefits for those who choose to call it home.

We’ll provide an overview of some of them along with links for additional information on each. While there are pros and cons to residing here, we’re of the opinion that the positives far outweigh the potential negatives. Keep reading and judge for yourself.

A Tax Friendly Destination

Andorra is an extremely tax friendly country. Compared to the rest of Europe, tax rates here are on the low side. Along with a very palatable personal income tax rate, locals also enjoy a low VAT rate (charged in place of sales tax).

Business owners are favoured with an equally impressive corporate tax rate, as are property owners. Non-resident income tax is also extremely fair. All in all, the country’s tax system is a huge drawcard for foreigners looking to relocate.

An Education System That Works

Although home-schooling is prohibited by law, parents have no need for concern as far as their children’s educational wellbeing goes.

Finding the right school can be particularly challenging and requires some patience. It’s worth the effort though, as the standard of education here is exceptionally high. Given its size, the principality has gone to great lengths to ensure children have access to the very best learning experience.

Affordable Cost of Living in Andorra

Affordability is an understandable consideration when relocating. Unless you’re of the wealthy elite, you’ll want to know that you can sustain yourself in your new country. Should you choose to move here, that’s certainly a possibility.

On average, the cost of living here is comparatively lower than in many places in Europe. Knowing what you can expect to pay for basic expenses such as rent, transportation, groceries, entertainment and so on can help you make an informed decision.

First Class Healthcare

With nearly four physicians for every 1000 residents and excellent coverage from the government, Andorran residents can rest assured that they’ll be well taken care of should the need arise. A 2017 Lancet publication ranked the principality’s progressive healthcare system higher than even those of Switzerland and Norway.

Locals are completely covered for childbirth, while hospital stays and medical and dental visits are covered at 90% and 75% respectively, further highlighting the advantages of living in Andorra. Additionally, healthcare isn’t limited to within the country’s borders.

If you inform the relevant authorities in advance about your travel plans, any unforeseen medical expenses incurred while in France, Spain, or Portugal will also be covered, adding to the peace of mind for those living in Andorra.

If this brief overview has piqued your interest, keep reading to see how it’s possible for expats to relocate to this part of the world. If you need more information, feel free to get in touch with us. We’re happy to help.

Living in Andorra

How Is It Possible for Expats?

It is no wonder that many foreigners aspire to make their living in Andorra. A very safe country, with stringent immigration control and an entry fee system, means that petty, organised, and major crime is virtually non-existent. Social benefits are also very controlled and regulated.

One of the newer avenues to gaining residency, in place since June 2012, allows foreigners to own 100% of the capital of an Andorran company and be the Director or CEO.

Llei 10/2012, del 21 de juny, d’inversió estrangera al Principat d’Andorra.

Note: This is subject to obtaining an authorisation from the Government of Andorra that verifies the identity and origin of the investor as well as the interest of the project. The usual response time is 30 days after submitting your application.

With a new economic openness, the country’s goal is to attract and encourage foreign investment, fostering a vibrant environment for living in Andorra. Foreign business owners are attracted to the advantageous tax system and social benefits, in addition to Andorra’s solid banking system and excellent quality of life.

New measures, including the following, allow the country to focus on enabling business owners to operate within the principality and employ locals.

On October 2013, a modification of the law concerning the immigration was published.

Decret legislatiu del 26-03-2014 de publicació del text refós de la Llei 9/2012, del 31 de maig, de modificació de la Llei qualificada d’immigració.

The two most significant changes are: The creation of a new type of authorisation called “per compte propi” (self-employed) for investors who operate their businesses within the principality.

The modification of the previous permit of passive residence, which provides different modalities (rentiers, international business owners, athletes, scientists etc.)

Also, with the aim of standardising the country internationally, the principality has launched a taxation system for companies and for individuals.

Llei 95/2010, del 29 de desembre, de l’impost de societats – Llei 17/2011, de l’1 de desembre, de modificació de la Llei 95/2010, del 29 de desembre, de l’impost de societats.

Llei 5/2014, del 24 d’abril, de l’impost sobre la renda de les persones físiques.

Cost of living

The first consideration that many people make before moving to a new country is the cost of living.

Education

Given its relatively small size and small population, Andorra actually boasts great schooling options.

Places to live

Moving to Andorra generally requires a bit of trust and some home-based research.

Pros and cons

Andorra is a beautiful mountainous region located between France and Spain in the Pyrenees mountains.

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