Andorra’s real estate prices increased by 10%. To buy or to wait?
The Department of Statistics of Andorra has published a real estate market report: prices increased by 10% and the number of purchase and sale agreements — by 20,4% in the second quarter of 2022, year‑over‑year.
Foreigners can obtain a residence permit in Andorra by purchasing real estate worth 350,000 euros or more.
Andorra’s Department of Statistics publishes data on the real estate market once a year: reports are based on results of the second quarter. Accounted for are the number of concluded transactions, as well as the real estate value under purchase and sale agreements.
How much does real estate in Andorra cost
The cost of 1 m² of residential real estate increased by 10% on average in the second quarter of 2022, amounting to €3020,8. Last year, 1 m² of residential real estate was worth €2764,4.
The most expensive real estate is located in the following parishes:
Escaldes-Engordany — from €3000 per 1 m²;
Sant Julia de Loria — from €2900 per 1 m²;
Andorra la Vella and La Massan — from €2500 per 1 m².
In some cases, real estate costs may be different from the official version. The demand for real estate in Andorra exceeds the supply in the private sector, and some sellers don’t even advertise real estate for sale. Without public sales records, it is impossible to state the real price at which the object was sold.
Prices for real estate rent in Andorra have increased since 2008 from 5 to 15% on average depending on the region. In August of 2022, the average rental cost of a three-bedroom apartment is €1,230, according to the Numbeo.com site.
How many properties were sold in Andorra
The rise of Andorra real estate prices did not slow down property sales in the country. The number of registered purchase and sale agreements increased by 20,4% according to the second quarter of 2022 results. A total of 1,519 properties were sold, of which 538 are houses and apartments.
1,519 real estate transactions
For a small country, this is a significant amount of sales. At the end of 2021, there were 44,534 residential properties in Andorra, including tourist apartments, according to the Department of Statistics.
Real estate sales amounted to approximately 314 million euros as a result of the second quarter of 2022. This is a third more than last year.
How to get a residence permit in Andorra for the purchase of real estate
To obtain a residence permit in Andorra, an investor participates in a state program for the financially independent. They buy a property worth 350,000 euros and make a security deposit of 50,000 euros to the country’s Central Bank.
If the investor adds their family members to the residence permit application, they add €10,000 per relative to the security deposit. At the same time, the main investment amount is reduced. We provide examples in the table for clarity.
The main investment to the security deposit ratio
Real estate investment
Investor with the spouse
Investor with the spouse and one child
The investor must also prove an annual income of €39,000 and pay additional expenses: a Due Diligence check, medical insurance, an administrative fee and a residence permit card fee.
To maintain the residence permit status, it is required to spend at least 90 days a year in the country. Andorra residence permit by investment doesn’t provide the right to start a business or to work in the country — the investor must receive all income from abroad.
However, the jurisdiction of Andorra is suited for moving an international business’ tax residency or registering a new company. The corporate tax rate in the country is progressive, ranging from 3 to 10%.
Residents of Andorra can visit France and Spain without a visa, and obtain fast-track visas to the Schengen area, the USA, Canada and other countries.
Immigrant Invest is a licensed agent for government programs in the EU and the Caribbean. If you want to obtain a residence permit in Andorra, please contact our investment program experts for advice.