To figure out the cost of living, you need to take into account the prices for everyday expenses, such as groceries, housing and transportation—at the very least.
Andorra is known to have a very favourable tax system and a lower cost of living in comparison to many European countries. While it’s not cheap, the cost of living in Andorra is certainly affordable.
Below, we’ve outlined the major costs you’ll encounter while living in this small, yet scenic country.
Needless to say, shelter is one of the most basic human necessities. With that in mind, you’re going to need a semi-permanent living arrangement if you plan on staying in Andorra long term (unless you can afford to live in a hotel indefinitely).
Housing prices can vary greatly, depending on where in Andorra you plan on settling down. If you want to become a longtime resident, you’ll have to make the choice to either rent or invest in real estate.
Just like most places in the world, the property rental market in Andorra has its own quirks and features. Prices vary depending on the location, the number of bathrooms and bedrooms as well as additional benefits, such as parking.
Generally, you’ll find that apartment rental costs range between €800 and €3,000 per month. Most of the time the number will fall somewhere between the two extremes. Here’s an overview of apartment rental costs in Andorra:
1 bed/1 bath studio apartment outside the city center will cost between €800-€1,500/month
A quality 2 bed/1 bath unfurnished apartment in Encamp costs around €1,700/month
If you’re looking to put down your roots in Andorra or if your life situation demands a long-term stay, buying a house or an apartment might make more sense than renting. Real estate prices here, much like in any country, are going to vary based on property specifications and more importantly, the location.
Generally, if you want to buy a modern two-bedroom apartment, expect to pay between €250,000 and €400,000. To make calculations simpler, here’s an estimate of Andorran property costs per square metre:
Apartments: €3,268 per square metre
Townhouses and chalets: €2,700-€3,000 per square metre
Land: €727 per square metre
Obviously, depending on the location, the price can be higher or lower. Pricing will also depend on the number of bedrooms and bathrooms. Additionally, amenities like parking or extra storage may also up the price. Be sure to consult our frequently updated guide for buying property in Andorra as well as our house and apartment rental guide, both of which provide more detailed information.
Food, groceries and eating out are among the most underestimated expenses—seemingly small numbers can add up quickly and turn into an expensive affair if not monitored regularly. Your eating habits and your available budget will dictate your overall expenditure on food.
Whether you’re a fan of eating out or whipping up something in the kitchen, will the price of things allow you to flourish? Let’s take a look at the cost of groceries and eating out in Andorra.
Given Andorra’s size, it's worth mentioning that you won’t find much in the way of locally produced food. To bridge this gap, a lot of Andorra’s produce is imported directly from its neighbours, Spain and France.
Even then, the prices aren't too exorbitant. What you’ll notice instead is competitive pricing at the grocery store. As they do in any country—prices will fluctuate, but here’s a general idea of what you can typically expect to pay at the Andorran supermarkets:
Chicken breasts: €9,00/kg
Rice: €1,25/kg
Milk: €0,85/litre
Apples: €1,90/kg
Pasta: €1,20/kg
Domestic beer: €2,00/draft
Local cheese: €17,00/kg
Bread: €1,20/loaf
Since Andorra is located smack in the middle of Spain and France, its unconventional location certainly influences the many cuisines available here. From vibrant flavours to tantalizing aromas, restaurants in Andorra are brimming with recipes both familiar and unheard of.
So, let’s say you want to step out for a nice meal. How much can you expect to pay in Andorra? Generally, the average restaurant and café in Andorra la Vella (the capital) will charge around €8 to €15 per person for a scrumptious full-sized meal. Typically, this will include two dishes and a dessert, as well as one drink.
For a fancier or more upscale eating establishment, you can expect to pay slightly more. In most instances, this could be anywhere between €25 to €50 per person. Sounds like quite a bit, but rest assured, you’ll be getting a gourmet meal made with the highest quality ingredients. Think top chefs and cooks whipping up artistic fare that you won’t find anywhere else.
A big part of any monthly budget goes to utilities, which tend to be quite affordable and accessible. This is one of the contributing factors as to why the cost of living in Andorra is far lower than most countries in Europe. Here’s what you can expect to pay for most standard utilities in Andorra.
Standard utility costs:
Community charges for cleaning, maintenance, etc.: €1,000/year
Internet service (up to 300MBPS): €39/month
Electricity: €80-€90/month
With so much to explore and so many activities to partake in, getting around the principality is the next thing you’ll want to figure out. After all, you don’t want to be stuck in one place for too long. Especially when you can be out taking in the sights.
Luckily for you, transportation in Andorra is far more reasonable than what’s seen in countless other countries. Since Andorra is not very big in size, getting from one destination to another won’t eat into much of your time either.
Typical transportation costs are:
Car and vehicle fees: €150/year
Car insurance (third party liability): €350/year
Gasoline: €1,43/litre
Diesel fuel: €1,45/litre
Bus fare: €70.00/month (this can vary depending on your location, age and usage)
With its picturesque landscapes and breathtaking mountain views, Andorra brings with it an air of ease and relaxation that’s hard to surpass. If you’re on the search for leisurely activities or simply a night of fun and drinks, you won’t be disappointed with all that Andorra has to offer.
From après ski resorts to hitting your local bar for a round of delicious brews, the list is endless. But, how much will a little fun and entertainment cost you? Let’s find out below:
Ski season passes for residents: around €380/season
Gym membership: €40/month
Local wine: €4- €10 a bottle
Coffee (Latte): €1,25
Movies: €7 per ticket
Obviously, prices will vary based on the location and type of bar or restaurant in question. For example, a finer bar or establishment is going to charge more for a glass of wine than a local shop.
How does Andorra's cost of living stack up against its European counterparts? Quite well, actually. Most people find prices in Andorra to be between 10-25 percent lower than most European countries. This is largely thanks to Andorra's low tax rates.
Despite a fair cost of living, Andorra still manages to retain a diverse economy and favourable taxation system. The principality also boasts a very controlled inflation rate and a sufficient minimum salary—€1,286,13 per month. More than enough to lead a perfectly normal and comfortable life.
Despite its small size and low population, Andorra's education system is first class. In fact, the principality is internationally renowned for its public schools, which are free for all residents and citizens. Many schools even teach as many as four languages!
Since public schools are free to all residents and citizens—you’ll never have to worry about tuition fees unless you opt to go the private education route. Even so, private education is more affordable than in many other countries. Especially when you compare costs to those of larger European nations with similar education standards.
Private education costs are as follows:
Private international school: €9,250 to €12,750/year
Summer school programmes: €875/month (day) or €1,975/month (room and board)
Feel free to reach out to us for more information on what you can expect to pay for day-to-day life here. We can also let you in on the pros and cons of living Andorra, how the banking system works and what it takes to form a company in the principality. Get in touch, we're happy to help.