| Property prices in Andorra, second only to | | | | also a tax haven, with many people moving to |
| Monaco in popularity among Europe's tax havens, | | | | the country to benefit from her income tax free |
| have risen consistently over the last decade by | | | | status. |
| an average of ten per cent a year, and in the last | | | | Buying a property in Andorra is often seen as a |
| two years by over fifteen per cent. | | | | route to residency, which entitles people to live in |
| But a lack of snow and tourists in December and | | | | Andorra and benefit from her tax haven status. |
| January has stopped the rise in its tracks, | | | | To obtain residency in Andorra, applications need |
| according to Andorra property specialists. | | | | to be submitted in Catalan. A notarised copy of |
| 'We normally seen an influx of buyers from the | | | | the applicants passport, birth certificate and a |
| first week of December through to mid April who | | | | certificate of good conduct from the home |
| want to buy ski apartments, but it has been very | | | | country are submitted at the same time. |
| slow this year,' they comment, adding 'It's been | | | | According to a local travel guide residency |
| an unusual ski season as there was next to no | | | | normally takes between three and six months to |
| snow between December and mid January. A lot | | | | be approved. |
| of tourists, some of whom end up buying a | | | | Once residency is granted, residents are supposed |
| property in Andorra, have delayed their visit or | | | | to spend six months a year in Andorra, but this |
| gone elsewhere. We anticipated February and | | | | isn't policed. |
| March to be a busier sales period but it didn't | | | | One of the drawbacks for those looking to |
| really happen.' | | | | become a resident in a tax haven when |
| Andorra has unusually high demand for property | | | | considering Andorra has been that the country |
| as there are three streams of buyers: | | | | has no airport of its own, and is unlikely to have |
| An active local market, international buyers looking | | | | ine future given that it is located in the Pyrenees. |
| for residency in a tax haven that offers residents | | | | The nearest airports are Barcelona and Toulouse. |
| a zero rated tax rate, and second home buyers | | | | Recent improvements in the road from Barcelona |
| looking for a ski property in the Pyrenees. | | | | to Andorra though have cut the travelling time by |
| And it is the second home buyers, mainly for ski | | | | some thirty minutes to two hours fifteen minutes. |
| properties, that has seen the Andorra property | | | | 'Given the tax advantages Andorra has', note the |
| market stopped in its tracks - for the first part | | | | travel guide, 'A two and a quarter hour trip to the |
| of 2007 at least. | | | | nearest international airport could be viewed as a |
| One of the highest rises in recent years was the | | | | small price to pay for those who will be saving |
| 19 per cent increase in property values in 2005, | | | | substantial amounts of money in tax. Especially |
| with the 2006 increase not far behind at around | | | | when you consider that their properties could be |
| 15 per cent. | | | | rising in value quite significantly in the years to |
| Andorra Residency | | | | come, and for those who like skiing it's a holiday |
| As well as being a top ski destination, Andorra is | | | | and tax paradise in one! |