Another Steep Property Price Rise For Tax Haven Andorra

e known outside of the skiing and financialand Arinsal, although Arinsal's nightlife during the ski
communities, the small European tax haven ofseason early December to late April tends to steer
Andorra has seen some startling rises in her propertymany newcomers to La Massana and Ordino.
values in the last two years, with a repeatSki Holidays
performance in 2007 possible.In addition to attracting international buyers in
In 2005 property inflation hit 19 per cent, and in 2006increasing numbers for residency, the Andorra
the official property inflation reached sixteen perauthorities have invested heavily in their ski
cent, and according to Andorra property specialistsinfrastructure, boosting the country's tourism
Tribune Properties 2007 is likely to see a further tenpotential and subsequently Andorra's real estate
per cent rise.market.
'There are three streams of buyers for Andorra', sayAnd for this year's ski season Andorra has opened a
Tribune, 'An active local market, second home buyersnew family friendly ski park in Arinsal, moving away
looking for ski apartments, and international buyersfurther still from her old image of a cheap and
who want to gain residency in a tax haven. Thecheerful ski holiday for 18-30 year olds to one that
international buyers add pressure on prices and oftencaters well for all.
buy three or four bedroom apartments and chalets,One of the few drawbacks when taking residency in
making sure that the top end of the market is asAndorra compared to Monaco has been access to a
active as the low and mid range properties.'major international airport. While Monaco enjoys close
With a lack of snow for the first eight weeks of theproximity to Nice Airport, with a ten minute helicopter
Andorra ski holiday season, the second home buyersride available, Andorra's nearest airports have been
could be thinner on the ground than usual. TheBarcelona and Toulouse, three hours away, with no
number of tourists is down by some fifteen perdirect flights to Andorra.
cent, and that could impact the property market asRecent road improvements between Barcelona and
some visitors like it so much they buy a property inAndorra has cut this by thirty minutes, and there is a
popular resorts such as Arinsal and Soldeu. So wepossibility of a scheduled helicopter service, Andorra
feel a ten per cent rise in Andorra property valuesweather permitting, or more likely ten minutes from
could be realistic for 2007.'the Spanish Andorra border, allowing quicker access
Andorra as a tax haven destination has beento international flights for business people considering
benefitting recently from the high cost of real estateAndorra residency.
in Monaco. Monaco recently became the mostOther improvements within Andorra include new
expensive country for property in Europe, and whiletunnels, allowing quicker access to the ski fields, and
a 32m2 studio in Monaco will cost close to a milliondriving around Andorra easier.
Euros including the closing costs, Andorra offers overWith more demand from international buyers who
100m2 three bedroom two bathroom apartments atwant to take advantage of Andorra residency, the
less than half the price - with the same taxAndorra government announced in February that it
advantages as better known Monaco, bringing out awas increasing the number of residency applications
map of Andorra for many investors recently.from the previous 200 year a year to 500.
The different type of buyers tend to head for'Andorra is becoming more popular among the
different areas of Andorra, with the ski apartmentinternational buyers', comment local travel guide
buyers tending to purchase in the key ski resorts ofYourAndorra, 'And with Monaco real estate prices
Soldeu and Arinsal.sky high it comes as no surprise that the
Those looking for residency go more for the yeargovernment has moved favourably by allowing more
round villages and towns which have a residentresidents. But it's not just the tax free living they
community.come for - it's the Andorra weather as well for many
Outside of the capital (la Vella) these tend to be Lawho see the ideal opportunity to live in a tax free
Massana and the upcoming village of Anyos, Ordinoenvironment and enjoying winter sports too.