Healy Consultants on how Andorra is managing to lure wealthy expats

LHASA, Andorra - March 16, 2016 - PRLog -- The Principality of Andorra fully opened its doors to international investment in 2012, in order to diversify its economy. It relaxed residency laws in a move towards attracting wealthier citizens. As a result, the property market, which until 2015 was stagnating, has begun to see a significant rise in demand and prices. Prices in sought-after upmarket locations have risen by more than 10% over the past year.

"Buyers are entrepreneurs and corporate heads, primarily looking for tax advantages," says Ralph Lünenschloss, partner with the Andorran office of Sotheby's International Realty. He says his firm is receiving increasing enquiries from high-net worth buyers from across Europe as well as Russia, America, China and African countries. Lünenschloss says the Government is considering increasing the passive residency threshold to €1 million. "There is an increase in demand for second residences but a limit to available space, as only 14% of land in Andorra is available for construction," he says.

Andorra measures only 468 square kilometers and its main income earners are financial services and tourism industries. Approximately nine million visitors arrive annually in pursuit of outdoor activities, including skiing, and duty-free shopping. There are also tax benefits for residents. The first €24,000 of earnings is tax free, and global income over €40,000 has a flat rate of 10%. Non-nationals can apply for passive residency, which requires they are resident for at least 90 days per annum and make a financial investment in Andorra of at least €400,000. This includes property and stocks. In return they can take advantage of the country's fiscal benefits, which also include no inheritance or wealth taxes.

Standard one-bedroom flats in the capital, Andorra La Vella, and in popular ski resorts such as Soldau or Tarter can cost less than €100,000, though the average price is from around €200,00 for two bedrooms. Aside from individual villas and building refurbishments, there are few opportunities to buy new-build, though some landowners are selling parcels for development as demand grows. One potential site, close to the historic village of Auvinyà, near Sant Julià de Lòria, is listed at €20 million. It offers three hectares of buildable land with permission for the development of a large resort that could include a residential component. Interested investors may want to act soon to secure a foothold in the country.

About Healy Consultants

For over a decade, the incorporation experts at Healy Consultants Pte Ltd., with their branch in Andorra, have been assisting investors worldwide to set up the optimum corporate structure for doing business in the country. The services offered include company registration, banking solutions, accounting and tax and legal services and corporate support services.

Contact us

To inquire more about Andorra company setup options and schedule a conference call, email us at email@healyconsultants or call us on +65 6735 0120.