Wednesday, 17 April 2024

Andorra only for the rich….far from it

Do you think only rich people can relocate to Andorra? Have you considered the Principality between Spain and France as an offshore paradise with fancy ski resorts for wealthy investors? Then you definitely need to read this article.

Andorra is a fantastic place to live for anyone. No matter, if you are planning to retire or if you are looking for new business opportunities, here you will definitely find what you are looking for!

How much does life in Andorra really cost?

One of the highest expenses in daily life is rent. So let us have a look at renting prices in Andorra. Starting anywhere from 350 EUR for a basic studio, you can expect to pay an average rent of about 700 EUR for a nice two-bedroom apartment. Depending on your expectations and location, this price might go up until 1300 EUR in hot spot places like Andorra La Vela. Still this is nothing compared to other European cities and capitals like Barcelona, Paris or London. With short distances wherever you live, you might as well choose a neighborhood that lies only a few minutes’ drive away from the hustle and bustle of the city. This allows you to live comfortably while paying less rent.

However, if you are considering buying property, you should expect to spend around 70,000 EUR for a basic studio apartment. Two bedroom apartments usually range from 150,000 to 300,000 EUR. Of course, it is also possible to spend 1,000,000 EUR or more for a luxury home depending on your preferences and budget.

Cost of living Andorra

For those of you interested in establishing a company, renting an office is also more affordable than in other Western countries. Starting from 400 EUR a month renting prices will easily allow your new company to start functioning within the Principality. Local taxes and other costs are also quite low. Furthermore, the VAT at 4.5% is one of the lowest in Europe. In general, cost of living is very affordable. Taxation is very competitive and allows you to have a higher disposable income adding substantially to your life quality while reducing your overall spending.

Moving to Andorra

The only downside of moving to Andorra might be the bureaucratic system. The country is steadily undergoing new changes to make immigration more efficient and selective but not necessarily easier. Naturally, filling out documents and gathering records is always a bit of a hassle. According to local press, the officials are planning to change the conditions for future active residents. This category is referring to immigrants planning to establish a company in Andorra, working actively as a director or being a shareholder of any local business. It seems like a deposit will be required in the future. For active residents this will sum up to 30.000 EUR. On the other hand passive residents will continue needing a 50.000 EUR deposit. Nevertheless, this money can be refunded whenever leaving Andorra.

It may be worth it to make the extra investment to relocate yourself to Andorra. In the long-term you will benefit not only from lower expenses and taxes but substantially increased life quality.

If you are interested in relocating to Andorra, you might consider talking to a consultant to analyze your personal situation. He will also inform you of any necessary investment and resident types. Andorra Solutions might be the right partner for your business, relocation and projects.