As we explained last October in the article “How passive residences work in Andorra”, any new resident who wants this type of residence has to invest, in a period of 6 months, an amount of at least 400,000 euros in some of the assets specified by the Immigration Department of Andorra.
Although there are currently different assets that allow this investment (shareholdings in social capital or in own funds of companies resident in the Principality, debt instruments by entities or any public administration resident in the country or unpaid deposits in the Andorran National Institute of Finance), buying real estate with a value equal to or higher than this amount remains the leading choice among new residents seeking to obtain a passive residence in Andorra.
Properties of 500.000 euros, the most demanded
As a result of this situation, it’s not surprising that the most popular type of property currently in Andorra is approximately 500,000 euros, with about 180 m², three bedrooms and a terrace. Thus, this average purchase price would be closely related to the 450,000 euros set by the regulations in order to obtain the passive residence permit, 400,000 euros of investment and 50,000 euros as a deposit in the National Institute of Finance (INAF).
However, there are residents who, before this important investment, go a little further and opt for larger properties. In this sense, it also begins to see an increase in the demand for properties ranging between 700,000 and 1.5 million euros. Unlike more modest properties, this type of property is characterized to be more exclusive, single-family, normally surrounded by nature and away from the bustle of downtown.
Andorra, a magnet for buyers and real estate investors from all over the world
In a similar way to what happens within the tourism sector, an area where the Principality has managed to position itself as first level reference seducing tourists from all over the world, the Andorran real estate sector also captivates estate buyers from all over the world. In this way, a large part of the real estate companies in the country agree that more than 70% of the current purchases of real estate are made with international investors, while only 20-30% are materialized with Andorran buyers.
Regardless of the incentive to get a passive residence in Andorra, the second motivation of international buyers is to acquire a second residence, usually high-end, in an enviable environment, being the parishes of Ordino and Massana the most chosen options. Likewise, the areas near the ski slopes of Vallnord and Grandvalira or the shopping centers of Andorra la Vella and Escaldas-Engordany are also highly valued environments for the international buyer.