INVEST IN REAL ESTATE & PROPERTIES IN ANDORRA
WHY INVEST IN ANDORRA'S REAL ESTATE MARKET?
WHY CONSIDER ANDORRA AND NOT OTHER “LOW TAX COUNTRIES” IN EUROPE?
- Andorra is attracting international investment interest for the reasons mentioned above and for its being relatively ‘undiscovered’ by foreign investors. Interest is rising as a location of interest as is not densely populated as other lower taxed countries in Europe.
- The country has very low inhabitants per square meter 153.6 vs. Monaco’s 18,815. This makes the country an interesting prospect for individuals wishing privacy, less human concentration and quieter surroundings.
- A property buyer may expect to pay around €2,761 per square meter (2016 data). When you compare other lower ‘taxed’ countries offering residency such as Monaco, the average price per square meter is €44,522. In 2016 Andorra property is priced at 6% of that of Monaco per square meter.
SUMMARY OF TAXES
Andorra is known for its low taxes. It is now a cost effective option for those wishing another residence, retire or relocate, and/or start a business.
Consider the following:
- Income taxes are very low (0-10%) as are corporation taxes (2-10%)
- VAT rate (known as the IGI) 4.5%
- Personal income tax rate 5% to 10%
- Corporate tax rate is 2-10%
- No inheritance tax
- Local property taxes average about 0.05% p/a
- Andorra is located in the Pyrenees with high air purity and low air humidity. The altitude and low residency occupancy rate has made Andorra a great retreat for respiratory and bronchial sufferers. The country is known to have one of the world’s highest life expectancy rankings and a great state run health care system.
- Residents in Andorra are aware how secure one is in Andorra. It has a very low crime rate and a very high quality and standard of life. Life expectancy was estimated at 83.5 years. This is one of the highest in the world. The country appears as having the fourth best healthcare in the world according to the World Health Organization.
- Andorra is known for its skiing and other outdoor sports. It has been home to some of the most modern ski resorts which have hosted the Alpine Ski World Cup Championships and has the Europe’s highest golf course. Equestrian and fishing activities are popular in the country.
- The country has a lot of walking routes and being located in the Pyrenees - mountain climbing is a popular activity.
- Andorra enjoys its own gastronomy - a fusion of French and Spanish cuisines typically cooked in or over a fire, resulting in creation of some impressive dishes.
- Andorra has excellent communications to some of the best beaches and locations in southern France and northern Spain. The country is roughly two hours to airport and tourist hubs of Barcelona, Toulouse, and Perpignan.
- In Spain you can reach Andorra by flying to Reus and Gerona. There are private airports and helicopter pads near and in Andorra.
- Andorra has worked hard to improve its international standing as it was classed as a ‘tax haven’. New economic reforms and laws plus the introduction of a new income tax mark it out as a respected place to live. Due to the size of Andorra a resident can expect a large property to actually live in, over being a property which has financial perks.
- The country is considered largely unspoiled by globalisation and does not have a high concentration of people which other microstates in Europe have. It is now seen by some as a preferred option to start a business or invest in than other countries in Europe.
For more information on how to invest in Andorra and gain residency, please contact us using our form, by email, or by phone +376 724888.