How to become a homeowner in Andorra?

Nestled between France and Spain, this 468 km² micro-state offers an exceptional living environment to its 76,177 inhabitants. With an average life expectancy of 83.5 years, Andorra is one of the best countries in the world to live in. The country harmoniously combines Pyrenean tradition and modernity, while preserving a spectacular natural environment.

Quality of life and incomparable safety

According to the latest study by Numbeo, the world’s largest database on living conditions, the Principality of Andorra is the safest country in the world. This recognition is based on rigorous hard and comparative data, encompassing various aspects of daily life such as housing, health, traffic, crime, cost of living and pollution.

Remarkable statistics

• Crime Index: 12.87 (exceptionally low)
• Safety Index: 87.13% (highest in the world)
• Population: 76,177 inhabitants (2019 census)

Comparison at the level of wider Europe (2024)

See the full 2024 global crime index ranking
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Impact on Quality of Life

These excellent safety results contribute significantly to the exceptional quality of life in Andorra, which is particularly remarkable for a country of this size. This security performance reinforces the attractiveness of the Principality, both for its residents and for international investors.

• Quality of life for residents
• The stability of the real estate market
• Investment security

This privileged security location is therefore a major asset for Andorra, especially in attracting investors looking for a stable and safe environment for their assets.

A particularly advantageous tax regime

Andorran taxation appeals to informed investors:

• VAT (IGI) among the lowest in Europe at 4.5%
• Progressive and advantageous income taxation:
  • 0% up to €24,000 per year
  • 5% from €24,001 to €40,000
  • 10% over €40,000
• No inheritance or wealth tax
• Tax exemption of bank interest up to €3,000 per year

A paradise for winter sports enthusiasts

As a homeowner in Andorra, you have privileged access to:

• More than 300 kilometres of slopes spread over three major areas
• First-class facilities in Grandvalira, Ordino-Arcalís and Vallnord-Pal Arinsal
• Diversified activities: cross-country skiing in Naturland, tubbing, winter hiking, snowmobiling
• Modern facilities open all year round

Real estate investment opportunities

Rental investment: a safe bet

The Andorran rental market offers several profitable strategies:

Year-round residential rentals

• Stable local demand
• Consistent returns
• Minimal rental risk due to the high purchasing power of residents

Vacation rentals

• High demand during the ski season
• Attractive rates in high season
• Summer rental potential for mountain activities

Prestigious properties

Spread over the 7 historic parishes (Andorra la Vella, Canillo, Encamp, Escaldes-Engordany, Sant Julià de Loria and Ordino), the high-end properties offer:

• Stable valuation over time
• Customization opportunities
• A niche market with international demand

Alternative investments

Parking

• Moderate initial investment
• Stable and predictable profitability
• Simplified management
• Consistent demand year-round

Commercial premises

• High return potential
• Secure commercial leases
• Valuation linked to the country’s economic dynamism

Maximize the return on your investment

The different performance levers

1. Rental income

• Strategic choice of location
• Optimization of the type of rental according to the season
• Professional management of the property

2. Potential capital gains

• Selection of developing areas
• Renovation and improvement of the property
• Anticipating market developments

3. Tax benefits

• Optimal investment structuring
• Use of available tax arrangements
• Long-term wealth planning

The acquisition process in Andorra

Conditions and procedures

To become a homeowner in Andorra, you must:

• Be of legal age
• Provide an extract from the criminal record (for foreigners)
• Opening a bank account in an Andorran bank
• Submit a Foreign Investment Application

Clickand’s expert support

Clickand stands out for its personalized support throughout your project:

Preparatory phase

• In-depth analysis of your investment objectives
• Personalized market research
• Rigorous pre-selection of properties according to your criteria

Acquisition phase

• Expert negotiation
• Comprehensive administrative support
• Coordination with the various stakeholders

Post-acquisition follow-up

• Rental management advice
• Continuous tax optimization
• Monitoring the performance of your investment

Conclusion

Investing in real estate in Andorra represents a unique opportunity to combine exceptional quality of life, advantageous taxation and attractive return potential. Whether you opt for an apartment, a prestigious chalet or a rental investment, the key to success lies in quality professional support.

With Clickand, benefit from in-depth expertise in the Andorran market and a tailor-made service to make your investment project a reality in the best conditions. Our experienced consultants guide you every step of the way, from finding the perfect property to continuously optimizing your investment.