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This document is a concise up to date document offering you, the reader a full up to date dossier of information about Andorra, the worlds 17th smallest nation, nestled high in the Pyrenees Mountains between Spain and France. It is a Sovereign State with its own Constitution as of March 1993, and a democratically elected Government as from December 1993. Andorra’s main attraction to the foreign investor is its panoramic beauty, its low tax fiscal regime, the longevity of its population, its security and its excellent level of health care.


A Concise but abbreviated A – Z of Andorra.



Andorra lies between Barcelona (Spain) and Toulouse (France) with two major entrances to the country to the North and the South of the Country. Due to the mountainous terrain Andorra does not boast its own airport (more on that later) but does have access to 7 international airports within 3 hours drive from its borders. Perpignan (France), Carcassonne (France), Toulouse (France), Barcelona (Spain), Gerona (Costa Brava, Spain), Reus (Tarragona, Spain) and Alguire (Lerida, Spain). There is also an air field for Private Aircraft 10 kms south of the Andorran border in La Seu d’Urgell.

Vast expenditure over the last 15 years has increased the ease of accessibility to Andorra, especially from Spain, as they have tunnelled through many of the mountains to offer slick infrastructure, bridges and highways into Andorra.



The altitude of Andorra varies from 908m above sea level at the southern entrance from Spain at the Runer River (Riu de Runer) border to the peak of the highest mountain at 2 946m. The Nations Capital City, Andorra la Vella, sits at 1 005m above sea level, making it the highest Capital City in Europe, and the exit through the French border is located at 2 408m, making it Europe’s highest mountain pass that remains open throughout the year.



There are currently 5 Andorran Banking companies: Credit Andorra, Andbank, Vallbanc, Mora Banc and Sabadell. This number will soon be four as Mora Banc is purchasing the Andorran wing of Banc Sabadell. Andorran Banks offer multi-currency accounts and offer Swiss Style numbered private accounts to Andorran Residents. The Euro is the main currency used commercially in Andorra. As a foreigner, the opening of a Bank Account requires a thorough Due Diligence check of the applicant. The Private Banking sector has English Speaking Account Managers (along with Catalan, Spanish, French, German, Russian and Portuguese) and professionals to assist in all aspects of local and international Private and Commercial Banking procedures. While it is not a requirement, it is highly recommended that any applicant for Residency in Andorra open a Bank Account before the Residency Application, as the local banks can assist with documentation required for this process. An official introduction from a reputable Andorran source (INVICO S.L. for example) can assist in expediting the opening of bank accounts for foreigners.



2021 has introduced a new characteristic in the “Passive Residency” market.  Brexit has forced British citizens who have lived abroad (South of France, South of Spain, Balearic Islands etc.) to change their lifestyle, with European Union members only allowing Brits to stay in Europe for 90 days of every 6 months. This has opened a window of opportunity for expats to apply for Andorran Residency, and hence, get up to 50% per annum usage of their European property. It is a requirement for “Passive Residents” to spend at least 90 days in Andorra, therefore, residents are free to roam wherever the remaining days of the year. Andorran Residents have no Visa requirements for travelling through Spain or France.



The Principality of Andorra provides a genuine welcome to foreign visitors, investors, and potential residents. In fact, Andorra actively looks to adopt high net worth individuals, or remarkable professionals in certain fields in their Passive Resident scheme. This scheme has become incredibly popular in recent times to international investors, “tech” nomads, international sports people, and artists in recent times due to the attractive fiscal regime of Andorra which only charges a V.A.T. of 4.5% and the highest rate of Corporate or Personal Income Tax of 10%.



Watch this space!!

After much trial and tribulation, the Government Tender for the construction of the first Casino to be built in Andorra was granted to JOCS.S.A. Construction is currently underway in Andorra La Vella, adjacent to the Government Building. Gambling (outside of Bingo halls) has been illegal in Andorra until now, but as an added enticement to attract high net worth tourists and residents, the Andorran Government passed the law of gaming, allowing for the construction of one Casino in Andorra in 2017.



When purchasing a condominium style property in Andorra, the owner, apart from acquiring the free hold of the property (in most cases) also becomes co-owner of the common elements in the building, plot of land on which the building has been erected, the public entrance hall, staircases, lifts and elevators etc. The costs of maintenance if these elements are paid proportionately by the various owners in the building. It is recommended that these charges be investigated for an individual property before a purchase is made.




Andorran Authorities released their tightly controlled grip on the economy in 2012, allowing foreign investment and allowing foreigners to create companies in Andorra. Until this point, only Andorran Citizens could own Andorran Companies, and there was a situation whereby locals took on Shadow Ownership of companies funded and managed by internationals. The new system is much more transparent, and has opened a diversity of professional activities in Andorra to foreigners who have opened or relocated their companies in Andorra to take advantage of the corporate tax rate of a flat 10%. 



In contrast to surrounding countries, The Andorran Government has done an excellent job of managing the international Covid Crisis. Rather than closing all businesses down, they regulated restrictions by the direct effect the virus was having on the local Hospital and Health System. As Andorra has a robust health system, (offering more than 43 I.C.U. beds per 100 000 of population) it was often in a situation where it would accept critically ill patients from surrounding villages. Obviously a country that boasts one of the highest rate of longevity in the world is going to be effected more than others when a pandemic of a virus of the characteristics of Sars Cov-19 strike, the Andorran Government was able to strategically keep most businesses open under some restrictions throughout the pandemic.



With minimal taxation, one would expect an extremely high cost of living such as in Switzerland or Monaco. Fortunately, this is not the case in Andorra. While property prices are somewhat higher in Andorra than the surrounding Spain and France (due to a lack of space) most other consumables are a very similar price to what is to be found in Spain. Alcohol, Tobacco, and deluxe products like cosmetics, perfumes, and expensive watches are cheaper, and quite often are the driving force behind more than 8 000 000 tourists visiting a year. Petrol on average is €0.22 - €0.35 a litre less than fuel costs in Spain.



Andorra has the lowest violent crime rate in Europe (Lower than that of the Vatican), and incredibly low rate for other crimes. The Andorran Police force have a visible but non-intrusive presence, and the general feeling of security in the region is uncommon to most cities in Europe. The Andorran Authorities still hand down strong penalties for the use of “Social” drugs and acts of vandalism. Andorra has one prison, and the Minister of Interior Affairs has the power to expel individuals from the country, making them “Persona Non Grata” in the Principality.





Andorra, although not a formal member of the EU, has adopted the European general currency since the 1st of January 2002. On the first of July 2013, Andorra had its own design of printed Euro coins, which have been sought from international coin collectors ever since. Most major Credit Cards, with the exception of American Express, are widely used and accepted in Andorra.



As in most European cities, in Andorra, cars circulate on the right-hand side of the road. An E.U. License or an International Drivers License is requested by local authorities in Andorra to circulate, and all new residents must exchange their Drivers License for an Andorran Drivers license within 6 months of obtaining their Andorran Residency.



Andorra currently is one of the most secure countries in Europe, with an extremely low crime rate, and next to NO VIOLENT CRIME! The key to this is the careful filtering of individuals who apply for Residency in the Principality. In order to adopt residency, open bank accounts and/or invest in property, the Andorran Government will require documentation such as Apostilled Police Records. This is an efficient way of ensuring security and safety to society within the borders of Andorra and ensuring that an undesirable aspect of society does not infiltrate into the safe and free lifestyles of the Andorran population. 



If Andorra only charges a maximum of 10% Corporate and Personal Income Tax, along with a V.A.T. of only 4.5%, how does the Government raise the revenue to run the Country?

Well, to start, not a lot of money is necessary to run a country with the official population of just over 78 000 people. Andorra is a neutral state, and does not have to maintain an Army, Navy or Air Force. A small duty is levied on all products that are imported into the country (basically everything), and most importantly Andorra receives visits from over 8 000 000 tourists a year that are attracted by the “Duty Free” shopping. Products like Cigarettes, Alcohol, Perfumes and Fuel, are still a great deal cheaper than in most EU countries.



Please see the section of Schools in the “Relocation” menu of to see a more thorough examination of the schooling options in Andorra. Resuming: Andorra has 3 public schooling systems. The Andorran, The French (Lycee system) and the Spanish System, and several private and semi-private systems. The schools that are attracting the most attention from expatriate families moving to Andorra are the Agora School in l’Aldosa which is a private school, where the curriculum is taught in Spanish and uses their second language as English, and the British College of Andorra, founded in 2019, this new School teaches its curriculum in English.



The power rating is 220 – 240 volts. The cost of electricity is cheaper than most E.U. states, and the companies that supply electricity in Andorra are semi government owned. Andorra is fortunate enough to be able to supply over a third of its own electricity via hydro electric turbines, allowing electricity charges to be one of the lowest rates in all of Europe. In Andorra the average price per kilowatts/hour is 0.133 Euros while the European average is 0.206 per kilowatt/hour.



The Andorran Government is very active in sourcing and subsidising international entertainment and cultural events. In the summer months the local councils and central government organise Jazz and Rock Concerts, attract international Art Shows, (along with the now permanent Thyssen Museum in Escaldes Engordany). The Bolshoi Ballet is a regular along with other Ballet Troupes and Orchestra’s demonstrate their wares to the culturally thirsty population of Andorra. In the recent past, larger Spanish popular artists have held concerts in Andorra, but Andorra can also boast some large international artists, like Bob Dylan and Elton John, who have both visited the Principality in recent memory.



In a country where a high proportion of the land is little disturbed by man, and farming is spared from herbicides and pesticides, the flora is highly varied and rich in specie. Botanists, ornithologists, photographers and artists are drawn to Andorra from all over Europe every year. From 950 to 1 150 different Andorran plants have been catalogued. From the tourist point of view the acres of wild daffodils, narcissi, and gentians in Spring and the hillsides of rose pink with rhododendron ferrugineum in early summer are amongst the most memorable of sights. Capercailze, golden eagles, bee eaters and kites are a delight to those who walk the mountains, who may also catch a sight of the Isard (The National Animal) Mountain Goat or Wild Boar. For golf lovers, it is common to find an Alpine Marmot blocking your approach shot.



There is no import duty on personal furniture brought into Andorra providing it is not new and there is no intention to resell. It is important when considering moving furniture into Andorra the contracting of professionals who ensure that the documentation required for importation is in order (Transferring personal goods into a mini van at 2000m of altitude in a snow storm is not an enjoyable outcome) It must be remembered that Andorra is not an EU Country, and therefore there is a border inspection on all vans and lorries that enter the Principality.

There are various furniture stores in Andorra, however, due to the volume required to have expansive showrooms, most furniture stores offer a purchase through catalogue, which will be delivered and installed into your home within 4 weeks.

IKEA, Conforama, and Maisons de Monde stores are available within 2 ½ hours of Andorra, and there are transport companies that get IKEA delivered to the border (ordered online) and they will deliver to your Andorran address. 10 kms south of Andorra there are a few large furniture shops that are popular options for locals as well.



Traditionally Oil and Electricity have been the most popular form of heating homes, and considering that the winters are cold, and last for at least 5 months of the year, heating is an important factor when considering a property. However, these traditional methods are a dying breed in a green world, and modern homes are now being installed with geothermal and aerothermal heating systems. The Andorran Government is also assisting in this transition, offering subsidies to households and apartment blocks who wish to exchange the older methods of heating to newer more “earth friendly” heating systems. Considering the incredible amount of sun that Andorran receives, one would imagine solar power would be an effective method also, however, this technology has not yet widely caught on in most parts of Andorra.



Andorra has become a “year round” holiday destination over the last decade, as mountain biking, hiking, and the natural tranquil surroundings have drawn more summertime tourists. Traditionally an excellent and affordable option for a European Ski holiday destination (which is still considered as Andorra’s peak tourist season) the attraction of Spring and Autumn colours are also appealing to a wider, more curious tourist base, who also take advantage of more financially viable seasons to travel.



There is NO inheritance Tax in Andorra. Upon death, all assets within Andorra, and Andorran Bank Accounts are free of any excise before being passed to the next of kin, or the appointed party in the Last Will and Testament of the deceased.



Founded in 1969 INVICO S.L. is a private company with more than 50 years specialising in Property Sales to expatriate clients looking to relocate to Andorra to take advantage of Andorra's beneficial fiscal regime. Fully licensed and registered Realtor, and Management company, over the years INVICO has created very strong relationships within the Andorran Administration, and have the know-how to ensure that their clients achieve their property and residency goals with rapid ease, and at a reasonable price. For any property, residency, or business queries, Jakob and Peter have the experience and expertise to assist and execute our clients requirements in a discrete and professional manner. 



Andorra is the only country in the world whose official language is Catalan. However, Spanish French and now English is also spoken widely throughout the Country. An ever-increasing population from Nordic countries has also increased the use of Nordic languages.



In the 2017 Lancet Index of access to quality medicine, Andorra was rated as number 1 in the world. Andorra has a robust and very healthy (sic) medical system. The hospital is an all private room hospital and is one of the best equipped hospitals in Europe. Andorran residents are obliged to participate in the health system via the CASS  system (Caixa Andorrana de Seguritat Social),  Passive Residents are obliged to contract private insurance which offers the same conditions as the local CASS insurance (75% of all Doctors Consultation, 75% of all pharmaceuticals, 90% of Hospital visits and 90% of Pharmaceuticals whilst in Hospitals). INVICO S.L. can assist with the introduction to English Speaking health professionals to assist your integration into the country.

Many pharmaceuticals can be sourced without the requirement of a Medical Doctor’s prescription.

Andorra has medical treaties with top hospitals in Barcelona and Toulouse for any treatment that the Andorran professionals cannot offer within the Andorran hospital.



Meritxell is the Patron Saint of Andorra, and her name is shared with the Meritxell Sanctuary, located in the village of (what else) Meritxell (pronounced Mary-chay). One of the two national holidays celebrated in Andorra is the Day of Meritxell, celebrated on the 8th of September, where the locals make a pilgrimage to the Sanctuary. On the 8th of September 1972, there was a terrible fire that destroyed the original temple of Meritxell. The Andorrans contracted the world-renowned Ricardo Bofill to rebuild the sanctuary that stands today in the exact location of the old Romanic Church destroyed by the fire.



Upon application for the traditional “Passive Residency” the applicant must demonstrate their commitment to relocate to Andorra by making an investment in the country of €350 000 (this varies depending on the quantity of family members applying for residency). It is important to understand that an Andorran Bank mortgage of €350 000 is sufficient to demonstrate commitment, that is to say. If a bank will loan the applicant 70% of the value of the property (€245 000) then the applicant only has to physically supply €105 000 of this initial deposit.

Most Andorran banks are currently actively offering competitive mortgage rates, and with the negative Euribor based interest rates, it is a very interesting option. Depending on the client profile and the property that the client is intending on purchasing, the banks can loan up to 70%  in the current market. Mortgages are contracted by a Notary (the highest Legal Body in the country) therefore there are no private mortgage brokers within the Principality.



Throughout World War Two, hundreds of young Andorrans partook in the incredibly dangerous activity known as “Passadors” which saved hundreds of war affected lives. Young Andorran men would pass into occupied France, and collect Jewish families and give them safe passage over the Pyrenees into neutral Andorra. Often northern “Passadors” would introduce the family to Southern Passadors, in historic hotels and refugee meeting places like “Hostal Palanques” in La Massana, whereby the second passador would give safe passage through to Spain where the family would be safe from the searching Nazi regime. Passadors also worked from South to North, removing families from danger under the Franco regime, and transporting them to the south of France via well hidden mountain paths. Even in the depths of Winter, young Andorran men earnt a living offering security to families running from the Nazi, or the Spanish Fascist regime. Many of these families settled in Andorra.




By the end of World War Two Andorra was terribly poor. Fortunately, the property boom that arrived upon the death of the Spanish Fascist leader Francisco Franco did not blot the landscape with featureless concrete buildings that are still ever-present up and down the Spanish Coastline. That is not to say that Andorra is without its share of featureless apartment buildings, but stringent regulations were put in force regarding building heights, and ensuring that building finishes are in keeping with the natural materials of the surroundings. These regulations created a uniform, almost standard style of building until the financial crisis in 2007, at which point, almost no construction took place until 2019. With a new influx of residents has come a new exuberance in design. Along with better climate controlling technology in building products and windows, has come a new design of modern mountain buildings. World leading Architect Jean Nouvelle is participating in a grandiose urbanisation in Ordino, which has launched a “renaissance” in interesting and original building and house design in Andorra.



The population of Andorra is a little over 78 000 people. The majority of the population is made up of Andorran Citizens, followed by Spanish, French and Portuguese residents. English speaking expatriates make up approximately 2 200 people.



Property Prices in Andorra are reasonably high in comparison to similar properties in Spain and France; however, this has a lot to do with the “Japanese Syndrome”. The lack of land (Andorra’s overall land mass is of 468km²) the price of land is expensive. It is for this reason that most of the residential property in Andorra is condominium style property. There is no land or property registry in Andorra, therefore investigations of what a property was bought for, or what a neighbouring property sold for are often fruitless. Foreigners may invest in Property in Andorra; however, they are required to ask for permission from the Andorran Government to purchase and then must be registered on the Foreign Owned Property Registry.



Upon agreeing on a purchase price, a 10% deposit is paid to secure the property. This deposit is non-returnable unless the vendor unreasonably retires from the sale of the property, in which case they must compensate the purchaser with two times the deposit paid. A contract of commitment to purchase is signed by all parties, and a dossier is arranged by the Realtor covering all aspects of the sale to deliver to the Notary in order to get an appointment to execute the sale. The Notary is a government appointed official who acts impartially to safeguard the interests of both parties. At the time of the signing, payment of the balance of the purchase price is made and the Notary ensures the legality of ownership, building code, habitability and the execution of the mortgage when required. Andorra currently has 5 practising Notaries and the appointment time between the signing of the commitment to purchase contract, to the finalisation of the Notary signing the Title Deeds takes approximately 5 weeks.




In Andorra the local parish council (Comuns) levy a two-tiered property and personal contribution paid by each resident and household in Andorra. The personal tax is known locally as the “Foc I Lloc” which varies from Parish to Parish, but covers nightly refuse collection, street lighting, snow ploughing etc. The second contributions a property ownership tax which varies from €0.68 per m² to €1.81 per m² depending on the Parish where the property is located. Both these taxes are paid once annually.



Andorra lies on the same latitude as Rome, and enjoys an average of 300 sunshine days a year. The high sunshine average allows full enjoyment of outdoor activities such as alpine & Nordic Skiing, hiking, mountain biking, golf, and a variety of other team and individual sports. Each “comu” (council) has its own Gymnasium and wellness centre (except for La Massana which has a Private Gym and Mountain Resort, Anyos Park).  The International Club of Andorra organises many different activities from Mountain walks, Hash House Harriers, Patchwork, 4-wheel driving excursions along with social get togethers and quiz nights. The WAGS (Wandering Andorran Golfers Society) have organised reduced green fees at some Catalonian Golf Clubs. There are endless things to do, either in solitaire or in groups, making it easy to make new friends in Andorra and the surrounding regions.



INVICO S.L. offer an efficient low-cost rental management service to those who wish to invest in the buoyant Andorran property market. Given low mortgage rates along with low interest earnings in bank accounts, we have a portfolio of clients who are now investing in property to secure a reasonable return and protection from inflation.



Due directly to the growing interest in Andorra from foreigners, the Andorran Government has introduced different methods of becoming an Andorran Resident, allowing the individual to benefit from the low fiscal regime of the Principality and offering the successful applicant freedom of movement through the European Union. Resident permits (called Residencies) are available to applicants who genuinely intend to Andorra for at least 90 days a year, have a permanent address within the Principality and can pass the mandatory background check. The applicant has the choice of opening a company and working for themselves (never creating direct competition to existing business within Andorra) known as “compte propi” or Entrepreneurial Residencies (these residency categories are stringently controlled) or earning income from professional activity or from investments outside of Andorra (The traditional Passive Residency). There is also a category that attracts professional Sportspeople, Artists/Authors and renowned scientists who wish to use Andorra as a fiscal base. Please see our section on Residencies on our website for further information, or contact us to see how we can guide you to the category that would most suit your personal requirements.



Andorra is a particular favourite for those considering retirement. Not only for the friendly fiscal regime, but also because of the close connections to so many of Southern Europe’s treasures, within a short drive from Andorra. Andorra’s clean and dry climate also provides a healthy outdoors lifestyle, while the medical treatments in Andorra are second to none.



There was a time in the not too distant past that Andorra’s main claim to fame was that it provided the cheapest skiing in Europe. Now attention has turned to the excellent facilities that the ski resorts offer, with excellent infrastructure, and access to ski fields from the centre of most urban areas. The imminent construction of the cable car from Andorra La Vella (The nations capital) to the Peak of Caroi, and then onto Pal ski stations, will mean that tourists staying in the heart of the city centre will be able to access skiing in less than 15 minutes via cable car. The two stations; Vallnord, in the northern valley of Andorra concentrates heavily on family skiing, and the resort town of Arinsal offer great locations for Apres Ski, while the larger of the ski fields, Gran Valira, offer a lot more technical ski runs, and a lot more for the experienced skier. In 2019, Andorra was proud to host a leg of the World Downhill Championship in Soldeu (Gran Valira). Residents of Andorra get heavily discounted seasonal ski passes, either for individual stations or for both stations.



Unemployment is almost nonexistent in Andorra. All employees participate in the CASS (Caixa Andorrana de Seguritat Social) system, which supplies medical care and a pension scheme for retirement. Applicants for active residencies, or entrepreneurial residencies will be obliged to participate in this scheme, by paying 22% over and above the wage of employees to the CASS in monthly payments. Individuals who prefer to adopt the traditional Passive Residency option will be obliged to source a private insurance and pension scheme to similar characteristics of those offered by CASS.



Andorra has one of Europe’s most advantageous taxation systems, and is reasonably undiscovered, living in the shadow of other low taxation regions. A brief resumé of Andorran taxation is as follow;

  • VAT/GST                                             4.5%
  • Personal Income Tax                      10% for earnings over €24 000.00
  • Corporate Tax                                   10%
  • Inheritance Tax                                0%
  • Capital Gains Tax                             15% reducing annually over 10 years to 0%
  • Stamp Duty on New Property    4.5%
  • Stamp Duty on Old Property      4%

There are import duties and other forms of council taxes and rates which are minor taxes. Taking into consideration what other countries are charging their citizens in taxation, and then also take into account, a robust health system, security on Andorran streets, cleanliness and excellent infrastructure, Andorra offers an extremely attractive package.



Taxis are readily available in Andorra. In the busy winter period, they can take a little longer than normal (Telephone 812345). The local bus service is excellent and very affordable. Residents over the age of 65 are granted a “Magna Carta” allowing free transport on the interior bus system.

Private Taxis are available for longer journeys and are popular options for airport drop offs INVICO can supply clients with direct numbers for English Speaking Private Taxi services. There are currently 2 bus services that also supply Airport transfers to Toulouse (2 trips per day) Gerona (1 trip per day), and Barcelona (8 trips per day) which are affordable and convenient services.



There is only one telecommunications company in Andorra; Andorra Telecom, which has a monopoly over Telephone and Internet packages. Their packages are extremely reasonable and pay as you go SIM cards are available for non-residents. It is highly recommended to switch roaming off in Andorra, as many international Telecommunications companies do not take Andorra into consideration in their roaming packages, therefore the tariffs are incredibly high.



Andorra was the first country to boast the integration of high-speed fibre optical lines throughout the whole country. This offers a plethora of options for local and international television stations. It also explains the why many Tech Nomads have already relocated to Andorra. Andorran television packages include various English spoken channels, CNN, Bloomberg, BBC etc, however on regular television the options of VOSE is optional on all programs. High speed internet television also facilitates the usage of decoders for international viewing, and the individual contracting of Netflix, Amazon, and other private studio television packages.



Once a foreigner has obtained a residency permit, and registered with their local council they are able to import any quantity of cars. Imported cars must be either more than 25 years old (Vintage Cars) or must be qualified as an E.U. 5 motor (low emissions vehicle). Residency Card holders can buy cars at any of the many car yards within Andorra. Understand that the locals are very passionate about their vehicles, and it is not uncommon to see supercars circulating in the summer months. Small lightweight vehicles such as Fiats or Suzuki’s are favourites in the winter as along with winter tyres, they can access any corner of the Principality.



Andorra is visited by more than 8 000 000 tourists a year, and if possible, we recommend where possible to avoid major peak tourist times. It is advised that before considering relocating to Andorra that individuals visit the country to discover a little more about the geography and culture of the different parishes. If you are considering visiting Andorra, please contact INVICO Andorra to discuss the different regions and special areas, even tips on hotels, and touristic stops to ensure you fill your time in the Principality with enjoyable and interesting activities.