Get to know Andorra Advantage Cost of living Other advantages

Where is it and how is life in andorra

Living in Andorra

Andorra is a small country located in the Sierra de los Pirineos, geographically between Spain, with whom it borders to the south, and France, to the north. Its official language is Catalan, although Spanish has the same presence, and also French, on a smaller scale. This country has 468 km2 of extension, its capital is Andorra la Vieja (officially Andorra la Vella) and it is organized into seven parishes or zones.

Andorra la Valla, Escaldes-Engordany and SantJulià de Lòria border Spain. Canillo and Ordino border France, and Encamp and La Massana border both countries.

Andorra’s role in the European Union

Despite the fact that Andorra is not an official member of the European Union since 1990, for economic activities, such as trade in manufactured goods, it is considered part of it. And, therefore, these activities are tax exempt. Regarding the control of people, Andorra is not part of the Schengen area, so it maintains its controls at the country’s border. On the other hand, it does not issue any type of visa, having entry requirements similar to the rest of the Union’s territories. This is because to access the country you must do so through a territory annexed to the Schengen treaty. Therefore, those visitors (from outside the EU) who wish to enter Andorran territory must apply for a multiple entry visa, since visiting the country means leaving the European Union.
As for the use of the common European currency in Andorra is allowed thanks to an agreement signed in 2013.

The Andorran economy

The Andorran economy is currently supported by tourism, despite the fact that the principality has traditionally been known for being an agricultural and livestock country. Millions of tourists visit Andorra annually, attracted by the region’s climate and trade. Among these millions of tourists who visit the country, many eventually go to live in Andorra.

Advantages of living in Andorra

Thanks to its economic model, the establishment of companies in the small country has been favored, since the tax advantages of Andorra do not go unnoticed. This has also helped the exodus of foreigners to the country to settle permanently.

How is life in Andorra

Settle in the Principality of Andorra

People who settle in the country and do not carry out any work activity, will initially have a two-year residence thanks to the passive residence permit. This period can be extendable for up to 2 more years, but a series of requirements must be met. On the other hand, people who work in Andorra on their own can obtain active residence in the country.

Whether you are an investor, or if you have a business, or are self-employed, Andorra Advisors puts at your disposal all its legal services and its accounting and tax advice so that you can enjoy all the advantages that the country offers.
A person who does not have Andorran nationality but who decides to live in Andorra, can carry out the activities necessary to manage their own assets.

Is it expensive to live in Andorra?

This country offers an unbeatable accommodation offer, with a wide range of houses for rent and the purchase and sale of real estate at perfectly competitive prices. Prices vary according to the chosen area, Andorra la Vella, which brings together most of the infrastructures and services, has higher prices than the smaller parishes. In the case of the rental price, the chosen area will be more noticeable, this is due to the holiday tourism profile of Andorra.

In the case of supplies, it has a lower price than neighboring countries. For example, the price of electricity is one of the lowest in the territory of Europe; and the water supply is free in the country. In the case of the shopping basket, we can speak of savings if we compare it with neighboring countries; the country’s low rates lead to savings when filling the shopping basket.

The minimum interprofessional salary or SMI in Andorra is set at € 1,083.33, higher than the average for European countries.

Other advantages of residing in Andorra

Andorra not only has tax advantages or benefits for all those who reside in the principality. Among other benefits we find:

Privileged environment

The mountainous and ski areas, such as Grandvalira and Vallnord, which offer its inhabitants a relaxation area and multiple sports entertainment options with more than 250 skiable km.

Thanks to its unique enclave with 90% of the territory of natural landscapes, sports related to the mountains, such as hiking and skiing, are some of the best leisure options you can find if you decide to live in Andorra.

Another advantage of the environment that Andorra offers is its altitude. With its capital located 1,023 meters above sea level, it offers optimal conditions for high-performance athletes. It is because of them that many cyclists, among other athletes, do their training prior to the championships in Andorra.

Transport and communication

Andorra communicates with the territories of Spain and France by road, these are the only points of entry to the territory of Andorra. Its location between these territories allows Andorra residents to have at their disposal two airports with major international flights, in Spain the Prat airport and in France the Blagnac airport in Toulousse.

Sanitary system

The Andorran health system is the CASS. Located at the top of the world ranking of health systems, it works with a system of co-payments.

75% of the cost of medical visits are covered by the government.
When it comes to admissions or surgical interventions, these are covered by 90%.

In the case of not having the means to pay for these services and other cases of vulnerability, medical costs are covered 100%, that is, they are totally free.


Andorra has a Mediterranean climate with typical characteristics of the mountainous areas. Winter temperatures are low, with an average of -2oC and significant snowfalls. Summer brings to Andorra mild temperatures and a dry climate, with an average of 24oC, also depending on the altitude where we are.

Education system

For those who decide to move to Andorra as a family, comment on the magnificent educational system that it has. Andorra offers three options for educational systems, Spanish, Andorran and French. In the same way, in the classes the three languages ​​coexist together: Catalan, Spanish and French. All of them free and compulsory from 6 to 16 years old.

Quality of life

Andorra has a quality of life that makes it the ideal place to live. Its natural environment provides Andorra with excellent air quality 90% of the time, thanks to its setting between mountains. Thanks to this, and to other factors, Andorra is at the head of life expectancy worldwide. The average life span in Andorra is 84.5 years.

Citizen security

In terms of citizen security, Andorra has extremely low crime rates, almost non-existent, which makes it one of the safest countries in the world. Its low crime rate places Andorra in the top 5 safest countries in the world to live in and for its visitors. To get an idea, if we compare Andorra with its neighboring countries, we see Spain in position 32 and France in position 60 of the Global Peace Index.

Frequently asked questions about living in Andorra

Andorra is a country located in the Pyrenees mountains range, between Spain, with which it borders on the south, and France on the north.

The official language is Catalan, but Spanish has similar level of presence and French with less presence.

The official Andorran system, the French and the Spanish, coexist.

  • Tax advantages
  • Geographic situation
  • First level infrastructures
  • Outdoor leisure activities


Contact us

Please complete the following form and we will contact you shortly.

    Andorra Advisors logo