Why is living and investing in Andorra so attractive?
GESTIM, real estate and agency in Andorra, proposes some reasons to invest and live in Andorran land
Andorra and its new economic and fiscal model
Thanks to international agreements with different countries of the European Union, Andorra established bank transparency and the personal income tax (IRPF) as of January 2015. This tax has an identical structure to Spanish and other countries Europeans, but it has a fixed rate that does not exceed 10%. The new scheme also incorporates important exemptions and deductions that reduce it substantially.
On the other hand, a new network of agreements has been negotiated to avoid double taxation, with countries such as Spain, France, Luxembourg, Portugal and Liechtenstein.
If to this we add that in the Principality there are no other taxes such as inheritance and donations, or wealth, we have as a result a country that continues to be extremely competitive in tax matters.
Bilateral agreements between Spain or France and the Principality of Andorra offer a framework of transparency in economic relations and favor the investment of new capital.
Thanks to these agreements, Andorra is no longer considered a tax haven and has allowed the Principality to offer greater guarantees to investors. These characteristics that differentiate it from its European peers, make it a more competitive center in terms of tourism and commerce, and the offer of services.
The new economic model allows the liberalization of foreign investment and promises endless business opportunities. Thanks to a law voted in 2012, it is possible for non-resident foreigners to own 100% of the capital of their Andorran companies and there is no restriction on the movement of capital and assets, such as real estate. If you add to this attractive living conditions, an unbeatable environment and the tax advantages mentioned above, international investors cannot be indifferent.
Non-residents of Andorra can acquire a property without any restriction, as long as an administrative authorization for the purchase issued by the government has been requested. Once in possession of this authorization, there will be no limits to buy land, houses, apartments in Andorra and live in it.
Foreigners who want to live in Andorra invest in properties
In the last 30 years, a significant increase in real estate investment has been observed, closely related to the boom in tourists who have come to the Principality. Real estate has become mainly collective and recently built. But there are those who prefer to invest in individual properties or land. It should be noted that land is a rare asset in the Principality and, therefore, its costs have skyrocketed.
It is still possible to find some charming houses and individual chalets in Andorra, but they are rarely for sale, as they tend to belong to traditional Andorran families. Real estate developers, like GESTIM, are always on the lookout for these exceptional assets to offer them to their most demanding clients.
The Andorran dream
The quality of life in Andorra is indisputable. It is a dynamic country with a gross domestic product (GDP) of 80%, an almost non-existent level of unemployment (less than 4%) and a very low crime rate. Life expectancy is one of the highest in the world and it has a developed health system.
Low-tax commerce and investment-friendly taxation make living in Andorra a very attractive option for individuals.
If it is a company, the Principality of Andorra also has advantageous proposals, such as a labor cost that favors employment flexibility, with social charges of 20% and a multilingual workforce with a high level of training.
Between France and Spain: strategic location
Contrary to popular belief, Andorra claims 260 days of sunshine a year and offers its habitants an exceptional natural setting. Outdoor sports activities, both in summer and winter. Some ski slopes that enjoy international fame, with an exceptional blanket of snow.
It has a strategic location between two large countries, Spain and France, which place it 2 hours from Barcelona, 2:30 hours from Toulouse and extremely fast access to the Mediterranean sea. Soon, the opening of the international airport will allow you to make the journey to Paris in 1 hour and 10 minutes.
If you are still wondering if Andorra is a good place to live and invest, GESTIM Real Estate and Management team in Andorra la Vella will advise you on the investment opportunities that best suit your particular interests.