Expat Andorra
Andorra is a small principality hidden in a tiny valley between France and Spain. It is one of the smallest self governed areas in the world and for most of its history was unknown to many in Europe.
Today, Andorra has a thriving tourist economy and is considered to be a world class tax haven for the wealthy. Andorra offers a lot to those that would like to visit or live within her borders and currently boasts the highest life expectancy rate in the world at over 83 years of age.
Climate
The climate of Andorra is considered to be temperate. Andorra has warm summers and cold, snowy winters. Precipitation is common throughout all seasons of the year. Andorra is known for skiing and the ski seasons lasts from November to April. During the months of May through September the temperatures are warm and comfortable with highs in the 80’s, but mostly temperatures are less staying within the 70’s.
Government
Andorra is a principality, which is located in a valley in the Pyrenees Mountains between France and Spain. While this principality is tucked away it is relatively easy to get to with only a few hours drive from parts of France or even Barcelona.
Andorra is a stable and secure place to live and work. It is a thriving tourist destination and a tax haven for the wealthy. For those that would like to live in Andorra, the process is extremely straightforward and in many cases easy. For American citizens, you can enter Andorra with only a passport (no visa is required). US citizens can stay in Andorra for up to 90 days before they must exit, get their passport stamped and reenter. You can find out more information about visa and residency requirements at the Andorra Ministry of Tourism.
Tax System
Andorra is known to the very wealthy as a tax haven. In Andorra there is no income tax, no capital gains tax and no inheritance tax. It should be noted that employees that work in Andorra are required to contribute to the national insurance program.
Andorra is also a great place to shop due to the fact that there is limited duties on most imported goods, but even though a small percentage of goods have duties; these duties only rise into the single digits unlike most other European countries. In addition there is a small tax on property ownership and there is a tax levied for rental property.
It should be noted that in order to do business in Andorra, you must create an Andorran entity and as an employee of an Andorran business entity, there is no income tax or corporate tax.
Medical Care
Andorra’s medical system is more than adequate and for the most part you will find a well developed health care infrastructure, well trained physicians and a well trained support staff. Andorra has a health and social security system called CASS. This system provides health care to all residents and employees of Andorra. Employers contribute about 13% per employee, however employees pickup about 6 to 9% of the cost. If you are self employed and living in Andorra as a resident, you will usually need to pay 18% of your earnings for medical care and social security.
Real Estate
Purchasing real estate as an investment or to live in Andorra is straightforward and for the most part a simple process, however there are specific guidelines that foreigners must follow.
For instance, in Andorra a single individual that is classified as a foreigner can purchase and acquire only one dwelling. Corporations are disqualified, you must be an individual. If you have lived in Andorra for more than 20 years or are a natural citizen of Andorra, you may acquire as many properties as you would like without restrictions. The term property can be referred to as a home, condo, or land that you wish to develop.
Prices for property in Andorra can be quite expensive, especially since Andorra is a tax haven and tourist Mecca. Expect normal two to three bedroom homes to cost about $300,000 to $700,000. Obviously in the high end market, there are many houses to purchase costing over one million US dollars.
If you are on a small budget and looking for a place to purchase, there are many smaller size chateaus that are built mainly for tourists that come to ski. These dwellings are usually very small only about 500 to 700 square feet; however they are great bargains at about $100,000 per unit.
For those looking to rent, there are many apartments available, however most of them are geared towards tourists looking for short term accommodations.
Shopping
Shopping in Andorra is a pleasure, for a tiny little principality in the Pyrenees Valley, this land has definitely made a name for itself. Millions of people each year come to Andorra to enjoy the many attractions and the wonderful bounty of shopping available. Because Andorra does not have a value added tax or duties added to many products, many brand name and luxury products can be purchased for far less than either Spain or France. It should be noted that there is a small duty on certain items such as cigarettes and spirits, but they are only in the single digits.
Cost of Living
If you are looking for a great place to spend time as an expat, Andorra is definitely it; the cost of living is actually lower than in the United States, as well as most of Western Europe. Because of the low duty costs on many items and large tourist population that ventures to this small principality keeping the economy strong each year, Andorra for its residents is quite affordable.
While housing is the most expensive part of life in Andorra, food, wine and necessities are usually very affordable compared to neighbors Spain and France. Plus, there are plenty of markets around that sell goods at bargain prices. If you are looking for a high quality lifestyle with a low cost of living, take a look at Andorra.
Andorra Extradition
Andorra has no extradition treaties in effect.
Map of Andorra
