If you know where to look, Andorra has a lot to offer. Apart from the picturesque landscape, there are many other things to look forward to when living in Andorra. Whether you’d like to live in the capital of Andorra la Vella or perhaps a small village tucked away in the Pyrenees, basic necessities, entertainment, and essential services will remain easily accessible.
Here are some of the top advantages of living in this small country:
Safety and Security
Andorra is a very safe place. Residents have a sense of ease throughout the country. Many are of the opinion that even if you mistakenly leave your wallet or cellphone somewhere, chances are it will either be handed in by a ‘good Samaritan’ or you’ll find it where you left it.
It is by far one of the safest countries in Europe. Violent crime and assaults are nearly unheard of, even in the most urban and populated areas. Since there are limited entry points into the country, illegal activity is quite rare.
The roads in and out of the country both contain patrolled borders. There is also no airport. People feel safe enough to leave their car running and unlocked while performing routine errands. Simply put, it’s pretty safe. A very low unemployment rate also means low-scale property crimes are unheard of, which is why retiring in Andorra is so idyllic.
Low Cost of Living
One thing that can be off-putting about many regions in Europe is the cost of living. That's not the case in Andorra. In fact, it compares to very affordable cities like Madrid or Barcelona. All in all, the cost of living in Andorra tends to be 30% lower than comparable major world cities.
Let’s take a look at some common costs of living in Andorra:
Modern upscale 2 bed/2 bath apartment with car parking: €1000/month
300MBPS wifi: €39/month
Standard lunch menu: €15
Glass of beer: €1.50
Gym membership with pool, sauna, classes included: €50/month
Resident ski pass: €250 (different deals are available above and below this, however)
It’s hard to talk about living and retiring in Andorra without mentioning outdoor recreation. One look at the Andorran mountain ranges and its ski-friendly slopes and trails is enough to make any adventurer smile. Certainly, one of the major pros of living in here is access to outdoor recreational activities. Whether you enjoy hiking, biking, or skiing, there’s something for everyone.
Given the amazing mountain scenery, Andorra is a top-tier ski destination. Living in the principality means you get to have a lot of fun on the slopes. This is made even easier given that the year-round ski passes and bike parks cost less than €200 in some scenarios. Grandvalira, Vallnord – Pal Arinsal, and Ordino Arcalis operate cable cars and chairlifts for winter skiing and biking or sightseeing in the summer.
Additionally, marked hiking trails, maintained via ferratas, and signed road routes for cyclists are featured throughout the country. Whether you’re an outdoor enthusiast or professional athlete, Andorra is the perfect place to train and play.
Overall, if outdoor recreation is important to your life, Andorra should tick all the boxes.
Andorra is often considered to be a tax haven. While that’s not exactly true, reasonable taxation is a big advantage of living in Andorra. Compared to other countries, the tax system in Andorra is simple. You might even consider the country a quaint duty-free shop nestled in the endless mountains.
Let’s take a look at some tax situations in Andorra:
Personal income tax is between 0-10%
Individuals can earn €24,000 at a tax rate of 0%. €24,000-40,000 is taxed at 5%. Over €40,000 is taxed at 10%
Married couples are only taxed over €40,000 at 10%
There is no sales tax, but the VAT is 4.5%
Company profits tax is 10%
No wealth, gift, or inheritance taxes
Capital gains tax on real estate is 0-15%
Despite the relatively low tax rates, the quality of life in Andorra is quite comfortable. The government delivers great services and programs without imposing a high tax rate on citizens. The result is a happy, healthy population that feels they are not unfairly taxed, which makes for a very progressive citizenry.
Healthcare is often a hot-button issue in nearly every country in the world. Not so much in Andorra. In fact, the principality boasts a world-class healthcare system with nearly four physicians for every 1000 residents. Those who call Andorra home can enjoy top-level services locally or by visiting neighboring systems in France and Spain.
Similar to respected countries like Switzerland and Norway, Andorra boasts a very progressive healthcare system. In fact, according to a 2017 Lancet publication, Andorra ranked higher in quality and access than these health-conscious nations. The Lancet also notes that Andorra is one of the top 5 healthiest countries in the world.
So what makes Andorra’s healthcare so great? Known as CASS (Caixa Andorrana de Seguretat Social), the system covers the bulk of every individual’s healthcare costs. Additionally, should you find yourself in nearby France, Spain, or Portugal with an unexpected medical cost, these are typically also covered. All you have to do is notify CASS of your travels.
Coverage typically includes:
100% coverage for the cost of giving birth
90% coverage for all hospital visits
75% for medical and dental appointments
Aside from the basic necessities, having a community that’s welcoming and lively makes transitioning to a new home a lot easier. Andorra is a vibrant place to both live and work. A large number of expats and immigrants from the neighbouring European countries makes the principality a rather multi-cultural place to be. The capital, Andorra la Vella, is a testament to Andorra’s broad diversity.
Festa Majors tend to bring multi-day parties to nearly every village in the country. For a small country, it seems as if there is always some kind of community event or gathering to attend.
Once you get past the language barrier, you’ll find a truly inclusive community waiting to welcome you with open arms.