How expensive is Andorra? Despite having a tremendously attractive tax system, Andorra’s cost of living in 2024 is pretty great! The Principality of Andorra meets all the requirements to be considered an idyllic destination for those who want a smooth life. If you are planning to move to Andorra, read about prices and what it is like to live for an expat. In this guide, we cover how much you have to spend every month on accommodation, food, transportation, and other expenses in Andorra. Let’s get started!
One of the highest costs of living in Andorra is housing rent. However, the rental prices in cities such as Madrid (+20%) or Barcelona (+25%) are considerably higher in this respect. Despite the cost, apartments and dwellings are usually well treated and renovated, although it is difficult to find cheap housing. Cities and towns in Andorra come with decent quality accommodations available for rent throughout the year.
Rental prices in Andorra vary according to the location, design, and size of each property, thus we limit ourselves to give you information about the average cost in this market. In the case of apartments of 40 square meters, furnished and with one bedroom, the price ranges between €650 and €850 per month.
It is possible to save some money by sharing an apartment with one or more people for €400 per month, in which case we advise you to find out if the apartment you choose is furnished or not. Be aware of the payment of the services associated with the apartment. Usually, you get this information directly from the lease contract, seeing that the cost of utilities such as water, electricity, and gas adds up to (on average) about €90 per month.
If you intend to buy property in Andorra, the cost of 1 square meter is set between €2,720 and €4,500, depending on the characteristics (house or apartment) and the location of the property.
Homes in Andorra come with a rental cost of €1,500, €3,000, €5,000 or more per month, having in mind luxury villas in the mountains. Prices also change according to location, etc. Depending on your taste, one type of house or another will suit you better. We can help you to find the best home to enjoy living in Andorra according to financial situation and conditions.
The cost of a standard food basket when living in Andorra la Vella or other towns in the Principality is usually more or less the same as in Spain since the VAT on basic products is low and there is no great difference between countries. Besides, Andorra generally imports these products from Spain and France, so it is quite likely that the cost of living is similar.
Also, if you are going to make a large purchase, you can visit the first town in Spain after the Andorran border, La Seu d’Urgell, and buy food in Mercadona supermarket and ask for the certificate to make a tax free purchase. Later, at the border you will get a stamp, thus, you can buy items without VAT and at the same time live in Andorra. A single person who makes all meals at home contributes to the cost of living in approximately €150-€200 per month.
In general, transportation is not a big part of the living expenses in the Principality. Gasoline and diesel, with the recent drop in oil prices, have become very attractively priced and are very affordable in Andorra. Cars, in general, also tend to be cheaper than in neighboring countries. The Andorran bus transport is a bit expensive, thus people who use it daily when living in the country buy a monthly pass.
We have mentioned before the rent cost is the most influential expense when living in Andorra. Medicines and in general the health expenses are the opposite. There are over 55 pharmacies in the Principality which help to keep medical costs low. We have already explained in another article how the Andorran health system works, described as one of the best in the world according to many rankings. Without taking into account the Social Security contribution, the cost of healthcare is very affordable, and that of hygiene is more or less the same, although to a lesser extent.
Electronics, from household appliances to mobiles, tablets, smart TVs and computers, and other hi-tech products have been and continue to be one of the top sales in Andorra. Since tech products are usually priced at a significant discount in the Principality compared to the countries from which their tourism originates, with the price differential being between 10% and 40% on some specific devices.
On appliances, you can compare prices for example at Andorra Free Market in Andorra la Vella, a company in charge of distributing, installing, and maintaining appliances in homes. You will find that the vast majority if not all are reduced in price compared to other platforms, some being more than relevant discounts.
Devices such as cell phones and tablets you can buy at Carrefour Andorra 2000, also in Andorra la Vella. A supermarket that is much more than a supermarket with very attractive prices. What is most interesting is to buy it through Amazon or other e-commerce platforms that are willing to do the tax-free purchase, better yet, to sell the product without VAT. This way, you will receive the product at a 21% discount.
The cost of restaurants in Andorra is like in all other countries: there are variety and prices depend on the place and type of services you choose. Due to COVID-19, many establishments offer also food delivery services. However, we have prepared a list with the prices of the most standardized consumption per person:
The cost of tobacco and alcohol in Andorra is considerably lower than in neighboring countries, as these products are usually charged with taxes, duties, and premiums of between 60% and 80% of the final price of the product. Tobacco and alcohol are duty-free in Andorra.
The above costs result in a budget between €1,200 and €1,400 per month. However, by sharing accommodation, the cost is drastically reduced, as the rent is much lower (€300-€400 or less).
Finally, we remind you that at Andorra Partner we provide you with all the necessary services to come to live in Andorra. Legal, fiscal, and accounting professional services to solve your particular case in the best suitable way and process only what is necessary to help you in finding housing, support bank compliance, and guide you in the day-to-day life in the country.
We know Andorra and how it works like the back of our hand. We collaborate with the best experts both nationally and internationally. Read also about the main advantages of the Principality of Andorra, as well as other of our guides.
Whether you're living in Andorra or planning to move there, it is very important to know the cost of living and the prices of things. Here we list the average spending for the four main population groups.
One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in.
The average spending-to-salary ratio in Andorra is 82% This means that on average, people spend around 82% of their income for living. According to the distribution table, 19% of the population spend approximately 60% to 70% of their income every month.
A value higher than 100% means that the expenditure of those people is higher than their income. They are spending more than what they earn. This is possible in two scenarios. They are either borrowing from their savings to survive or they are borrowing from other sources (relatives, friends, banks, etc.). More about this in the debt section.
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