Andorra continues to be a hot and trending topic in the Spanish media, after Spain’s biggest YouTuber, El Rubius, announced he was moving his residence to the principality. The possibility of living in Andorra is also attracting increasing interest from other types of foreign investors, not just content creators and digital nomads.
New investor demographics
In the last year, interest in permanently relocating to Andorra has increased by 15 to 20%, according to data from the Diari d’Andorra.
Two main demographics are making the switch: on the one hand, there are entrepreneurs aged 45 to 60, who decide to relocate with their businesses and families. And on the other, there are people involved in the digital world, aged between 20 and 35.
In previous years, the trend was to purchase a second home for the winter holidays or for spending alternating periods in the country, but this year estate agents have experienced growing demand for information from foreign investors looking to buy a permanent home so they can settle. This is particularly true for the first demographic (entrepreneurs aged 45 to 60).
In addition to the two mentioned above, there is a third demographic who find the idea of living in Andorra very appealing: active elite athletes. Among them are cyclists who choose to move here for the excellent geographical conditions the country offers for training. 20 internationally renowned mountain passes and road safety are also key considerations (in addition to the tax benefits which cannot be overlooked).
It is worth noting that for all 3 demographics, the country of origin is predominantly Spain. The proximity to their homeland and the cultural similarities between the two countries, make Andorra the perfect choice for setting up a new residence.
Interest in living in Andorra
The biggest motivation for settling in Andorra is the tax advantages. For example, income tax (IRPF) is a maximum of just 10% for incomes in excess of €40,000 per year. This is well below the Spanish rate, where the highest bracket is taxed at 47%. When buying a house, the property transfer tax (ITP) is 4.5% and there may be exemptions for first-time buyers.
Furthermore, new investors greatly appreciate the quality of life they enjoy in Andorra. They emphasise factors such as security, proximity to their home country, and the health and education systems, with the latter allowing them to choose from a range of options.
Finally, we shouldn’t forget that Andorra is no longer regarded as a tax haven and offers all the safeguards of a legal tax framework which also includes double taxation agreements with various EU countries. Plus, Andorra has also joined several international organisations, such as the IMF.
Are you considering relocating your residence? We can help you with all the necessary formalities for living in Andorra. Get in touch.