Rental income from residential properties is 2-3% per annum. Ski lift accommodation can be rented out all year round and earn an annual return of 7 to 15%.
Rental prices in different towns in Andorra
Rental prices in Andorra have risen by an average of 5% to 15% depending on the region from 2008 to 2019. In 2021, the average rent for a three-bedroom apartment in Andorra is €1,193 per month. This is the price quoted by Numbeo.com.
The cost of renting a flat depends on the region. There are a total of seven regions in Andorra that are called communities or "parrocchia": Ordino, Canillo, La Masana, Encamp, Andorra la Vella, Escaldes Engordagne and San Julia de Loria.
The average monthly rent in Andorra is based on data from three sources:
- Numbeo.com. The portal invites users to share information about the prices of living in their country, including renting and buying property, prices for food and travel.
- Idealista.com is one of the largest marketplaces for the sale and rental of properties in Spain and Andorra.
- Enalquiler is a website specialising in property rental in Spain and Andorra.
Average cost of renting a three-bedroom apartment in Andorra
Sant Julia de Loria
Sant Julia de Loria
Andorra la Vella
Andorra la Vella
The most expensive options for renting accommodation are in the town of Escaldes, which borders the capital Andorra la Vella. Tourists come to Escaldes for the ski resorts and the hot sodium-rich thermal springs. The town is home to the most famous thermal spa complex in the country, Caldea.
CaldearnSpa includes several thermal springs, water attractions, geysers, saunas and massage pools
Escalda is also home to the Grandvalira ski resort. The total length of the slopes is 210 kilometres
Why investors rent accommodation in Andorra
To obtain a residence permit in Andorra, it is compulsory to be registered in the country. It is not necessary to buy accommodation - renting a property is sufficient, For example an apartment or house.
A residence permit in Andorra allows you to move to a country with clean mountain air, quality healthcare and education. Residents can also take advantage of the country's favorable taxation system. There is no tax on capital gains, dividends or inheritance in Andorra. Income tax is levied at a rate of 0 to 10%, while the VAT rate is only 4.5%.
Andorra is not part of the Schengen Area and the European Union, but is a member of the EU Customs Union. Andorran citizens and residents travel visa-free to neighboring Spain and France. To visit the other Schengen countries, they need a visa, which can be obtained through a simplified procedure in just one day.
Ski and thermal holidays in Andorra. With 10 million tourists coming to Andorra every year for holidays, the demand for rental properties is high.
In June 2020, Andorra was one of the first countries to open its border to foreign tourists. In July 2021, the country remains open, including to Russians. To enter the country, Russians need a valid Schengen visa, issued by any state of the agreement. A negative PCR test for coronavirus must be carried out no earlier than 72 hours before arrival in Andorra
Wealthy people prefer to own their own home in Andorra, so they can come on holiday to Andorra at any time. The price per square meter for a home ranges from €1,000 to €5,000 depending on the region.
How to obtain a residence permit in Andorra by investment
Andorra grants residence permits by investments in real estate, securities, investment funds or businesses. Investors can also open an interest-free deposit at a local bank.
If the investor receives a residence permit together with his family, he pays an additional €10,000 for each relative to the amount of the insurance deposit. In this case, the amount of the main investment is reduced.
The investor participates in the programme with his spouse and two children. The cost of the family's participation in the programme will still amount to € 400,000: € 80,000 will be set aside as a insurance deposit, and € 320,000 will be invested in the economy.
The investor needs to register in Andorra in order to become a resident of the country. And it is mandatory to spend at least 90 days per year in the country in order to maintain residence permit status.
Immigrant Invest helps you to obtain a residence permit in Andorra by investment. If you want to buy or rent a property in order to become a resident, seek advice from the experts in the investment programmes.