Living in Andorra is synonymous with a high quality of life, since it offers a wide range of advantages and incentives, unknown to most, that make this an excellent place, not only as a second home but also for permanent residence.
Why invest in Andorra?
Andorra is a small country located in the southwest of Europe, in the heart of the Pyrenees. With 77,546 inhabitants, the principality boasts impressive, rugged landscapes, full of life and colour. An ideal refuge for lovers of nature, serenity and mountain sports.
This corner of the world offers a wide range of advantages and incentives, unknown by most, that make Andorra an excellent place, not only as a second home but also for permanent relocation. Over recent years, we have witnessed many people pack their bags and decide to move to Andorra to start enjoying a fuller life.
Advantages and incentives of living in Andorra
The charm of this country goes far beyond its interesting tax framework. Andorra boasts more than 700 years of history and landscapes considered world heritage sites by UNESCO. Andorra offers security and tranquillity, being the country with the second lowest crime rate in the world, and provides improved health and quality of life, proven by the fact that it is the country with the fifth highest life expectancy. Andorra is also, of course, a land of ski slopes, some of them considered the best in the world. The public education system is also excellent, with schooling in Andorran, Spanish and French.
“The public education system is very good, with a bilingual system in Catalan and French until the age of 7, when Spanish and English are introduced. There is also a French system, as well as private schools. During the months from January to March, all the children go skiing one day a week with the school, which they love”, says Jordi Tàpies Ibern, director of Lucas Fox Andorra.
Jordi Tàpies Ibern, was born and raised in Andorra and tells us key aspects of life enjoyed by residents in the principality.
By living in Andorra, you can enjoy the outdoors and the relaxed life that nature and its landscapes offer. “If you like nature, mountains and outdoor activities, this is your place, there are always activities on weekends,” he says.
If you have a family, Andorra also offers many possibilities. “For parents, the best thing is to feel the security that Andorra and the Pyrenees offer. Most children go to school alone from the age of 5 or 6 without worries and go to their extracurricular activities without needing an adult to accompany them. For the majority of Lucas Fox clients, the calm and safe environment enjoyed in Andorra is one of the main advantages along with the financial benefits”, explains Jordi.
A hub of innovation and entrepreneurship
The truth is that Andorra has become, in recent years, a hub for innovation and promotion of entrepreneurship, since it offers great advantages for entrepreneurs and small business professionals looking for a better quality of life.
In fact, in 2012, with the aim of encouraging diversification and promoting growth, the state opened its doors wide to foreign investment, thus causing an increase in the mobility of companies, freelancers and entrepreneurs. Since then, foreign investment has grown by 500 % in less than a decade. While it is true that you have to go through several procedures to set up a company, in Andorra they are very simple and, in most cases, successful.
As recently as 2017, the consulting firm Bradley Hackford ranked Andorra as the second most attractive country to invest in, considering factors such as low tax pressure, fiscal and legal security, as well as the speed in the management of procedures, among other advantages.
The truth is that it is a great opportunity for small companies, virtual companies, independent professionals and / or techies, but, above all, it is ideal for entrepreneurs who want to establish their holding company from scratch.
Agility of procedures
One of the clear advantages is the speed of the procedures, with positive outcomes in most cases. A review of each request is carried out in order to avoid money laundering, terrorism or any other illegal activity; these cases are practically non-existent.
Although, there are two types of procedures to be able to start the activity, in simple businesses, if they meet the essential requirements, they can start the same day that the request is submitted.
Attractive tax framework
The state has an advantageous tax system. Corporate tax is at a maximum of 10%, while in Spain it is at 45%. It is a gradual system where those companies with an income of less than or equal to € 24,000 are exempt from payment.
What is more, Andorra is the country with the lowest Value Added Tax (VAT) in Europe (4.5%).
In order to keep talent in the area, Andorra offers support and coaching programs for all entrepreneurs. Among other organisations, the country has the Actua agency and NIU, an accelerator and business incubator, both are in charge of providing advice and continuous support to new projects, with the aim of predicting their success and continuity.
Tech – Friendly
And, if that is not enough, the country also collaborates with different leading entities in technology and innovation such as the Massachusetts Institute of Technology (MIY), Google and the Skolkovo Innovation Center (Moscow), among others, which make Andorra a hub of cutting-edge discovery and innovation.
Where to live in Andorra
In Andorra there are different types of demand. The two main markets are divided between those who want to live in Andorra and acquire a first residence and ski enthusiasts looking for a second residence.
The former usually invest in large family villas in residential areas of a higher value on the outskirts of Andorra la Vella, in towns such as Sant Julià, Massana, Escaldes or Ordino.
For their part, snow sports fans tend to invest in cheaper apartments located near the ski slopes, also far from the centre of Andorra.
However, the demand for modern apartments in the city centre has also rocketed in recent months and the profile of the buyer of these properties is for both first and second homes.
Investment in Andorra is booming in second residences for ski holidays and in apartments in the city centre, where you can let properties and obtain good returns.
Ref: ND PEAK HOUSES
Prices available on request
Price available on request
Are you thinking of moving to Andorra or investing in property here? Take a look at a selection of properties at Lucas Fox Andorra.