Mountain Tax Haven And A Record Property Price Rise

Andorra, a small independent country andmore than that in tax during the time they are
European tax haven in the Pyrenees, saw realresident in Andorra.
estate prices rise in value by 19.3 per cent lastReal Estate Price Increases
year, and one local travel guide thinks thatDemand for property in Andorra for the year
another rise in prices is likely in the year ahead.ahead is every bit as high as in the past claim local
Best known for her ski resorts, Andorra attractsestate agents, with many potential buyers already
nearly ten million tourists a year, but it's not justhaving planned visits.
the holiday makers who are falling in love with theSurprisingly perhaps for a tax haven, mortgages
country and buying second homes that is fuellingfor a property are as available as many European
the price rises, the guide says.countries, with rates around the same level. Up to
'Quite a few tourists do like Andorra enough toeighty per cent of a property's value is often
buy a ski apartment, and there is an active localagreed by the banks in Andorra.
market too. But what really pushes the prices upBuying a property in Andorra is often seen as a
is that there's a third stream of buyers, peopleroute to residency, which entitles people to live in
from around the world who want to takeAndorra and benefit from her tax haven status.
residency and benefit from Andorra's tax havenTo obtain residency in Andorra, applications need
status.'to be submitted in Catalan. A notarised copy of
Property currently for sale in Andorra include onethe applicants passport, birth certificate and a
bedroom apartments at 210,000 Euros, twocertificate of good conduct from the home
bedroom apartments in Soldeu, the main skiingcountry are submitted at the same time.
area of Andorra, at 272,000 Euros and 280,000Residency normally takes between three and six
Euros in another ski village Arinsal, and threemonths to be approved.
bedroom apartments in the capital Andorra laOnce residency is granted, residents are supposed
Vella at 333,000 Euros. Houses start from aroundto spend six months a year in Andorra, but this
900,000 Euros.isn't policed.
Andorra property specialists have also noticed anOne of the drawbacks for those looking to
increase in buyers recently, and comment that abecome a resident in a tax haven when
large part of the increase in buyers is theconsidering Andorra has been that the country
increased attention from potential overseashas no airport of its own, and is unlikely to have
property buyers in the UK.ine future given that it is located in the Pyrenees.
'The number of buyers from the UK hasThe nearest airports are Barcelona and Toulouse.
increased quite noticeably over the last couple ofRecent improvements in the road from Barcelona
years', they say, 'With many quoting higher taxesto Andorra though have cut the travelling time by
in the UK as their reason for moving to Andorra.some thirty minutes to two hours fifteen minutes.
Most seemed convinced that the tax take from'Given the tax advantages Andorra has', note the
their earnings will rise more in the years ahead,Andorra travel guide, 'A two and a quarter hour
and are planning for retirement and selling theirtrip to the nearest international airport could be
businesses now'.viewed as a small price to pay for those who will
They also comment that historically tax havensbe saving substantial amounts of money in tax.
have been popular no matter how the economyEspecially when you consider that their properties
is. When someone buys a property in Monaco itcould be rising in value quite significantly in the
often doesn't matter to them if it's a fewyears to come.
hundred thousand Euros as they're going to save