Andorra has become an attractive destination for Russian travellers and investors. They are attracted by the climate, landscapes, sports opportunities, shopping, cultural life, as well as a reliable country for investment. In accordance with International living index Andorra takes the 12th position in the world for its living standards. In Andorra, per capita GDP index is higher than in many developed EU countries. Andorra is also included in the list of top 25 countries for business development. Thanks to the Law that allowed foreigners to have a business in Andorra, the Principality has reinforced its positions of the financial centre. Andorra offers one of the lowest general tax rates compared to other developed countries. Moreover, Andorra’s passports are in the top 20 of the “strongest” in the world.
The demand for real estate in Andorra in 2019 compared to the previous year increased by about 40%. More than a quarter of requests for the purchase of real estate in this country have to obtain a residence permit. Most Russians consider the purchase of a house, chalet or apartment, the proportion in preferences remains approximately equal. It is too early to talk about the exact number of transactions for acquiring real estate in Andorra in 2019, but it is already clear and clear that their number is higher than last year. Residency in the country is possible when investing at least 400 thousand euro in real estate or other assets. Russians, as well as other foreigners and companies, obtained the right to buy real estate in Andorra without any limits.
Residential real estate has never been profitable from the point of view of a further lease. Traditionally the profitability from leasing local real estate doesn’t surpass 2-2.5%. In 2019, the rental prices for the standard studio-type apartment up to 40 sq m starting from 400 euro per month. The prices for three-piece apartments start from 500 euro and rising to about 900 euro, and for four-piece apartments – from 600 euro. The prices for a chalet and homestead vary, depending on the area and the quality of repairs, from 1500 up to 4000 euro.Therefore Russians acquire commercial real estate that has been a deficit sector on the market for a long time, and now the profitability of commercial real estate can be more than 3%. One of the best options is to present Russians a big (from 5 bedrooms) apartment or chalet, not far from ski lifts for further leasing it on daily or weekly basis to big companies of ski amateurs. Although the ski season in Andorra lasts only 5 months, the profitability from leasing of such apartment can make up to 7-15%. In case of using additional advertising tools, the profitability may grow as far as in summer the tourism in Andorra doesn’t fade but modifies into other domains (cycling, tracking, golf, eco-tourism). Moreover, resorts on the Mediterranean Sea are an hour's drive from Andorra.