Living in Andorra, cost of living in 2020

One of the questions that a person usually asks when deciding to settle, settle, move or reside in another country is how much does it cost to live there or what is your cost of living. When thinking if live in AndorraThis question is even more important due to the peculiarities of this destination country. Despite having tremendously attractive taxationIt would be of little use if you could not buy products at an affordable price.

Although we have already concluded in another article what the minimum cost of living necessary to live in Andorra for a minimum acceptable life is around € 1,000-1,200 per month for a single person (€ 12,000-14,000 per year) and that the largest item in the budget is the rental of housing, it is equally important to list the usual cost of a series of basic goods and services in the Principality. That is just going to be the purpose of this article.

Before starting, we must take into account that Andorra is, essentially, a commercial and tourist country. Being Andorra famous in the past for skiing and tobacco and alcohol shopping (today it is much more than that) and today for tourism and shopping in general, it seems quite obvious that prices are generally lower than in neighboring countries. If they weren't, there would be no point in shopping. However, certain types of products are priced lower than others. That is to say, the cost of living is not homogeneous.

Restoration

The cost of the Principality's restaurants is like in all other countries: there is variety and it depends on the place and type of services you choose. Even so, we have prepared a table with the most standardized consumer prices.

Supermarket, consumer basket

The cost of the food basket when living in Andorra is usually more or less the same as in Spain, because the VAT on basic products is small and there is not much difference between one country and another. Furthermore, Andorra generally imports these products from Spain and France, with which it is quite plausible that the cost of living is similar in terms of food basket.

Also, if you are going to make a very large purchase, there is the possibility of going down to the first town in Spain after the Andorran border, La Seu d'Urgell, and buy at the Mercadona located in said urbanization and ask for the DIVA digital certificate to do a "tax free", and then digitally stamp said certificate at the border. Thus, you can buy without VAT in a supermarket as affordable as Mercadona and at the same time live in Andorra. You can go in your own vehicle and, failing that, there is a bus at a cost of € 3.5.

Thus, we can conclude that a common food basket for a person who makes all meals at home contributes to the cost of living in approximately 150-200 € monthly.

Tobacco and alcohol

Tobacco and alcohol have in Andorra a considerably lower cost than in neighboring countriesBecause they usually load these products with taxes, fees and premiums that reach between 60% and 80% of the final amount of the product.

Transportation and fuel

In general, transport does not represent a large amount in the cost of living of the Principality. Gasoline and diesel, with the recent fall of oil, have been at a very attractive price, they are very affordable in Andorra. However, the price varies. It can be seen a fairly recent update here. Cars, in general, are also usually cheaper than in neighboring countries. The Andorran bus is a little expensiveThat is why the people who use it daily when living in the country buy the monthly subscription.

Household services and expenses

One of the items with the highest cost of living in Andorra is the rental of housing. However, the prices of living in cities like Madrid (+ 20%) or Barcelona (+ 23%) are much higher in this regard. Even so, despite the cost, homes and houses are usually very well treated and well renovated, so that while it is difficult to find cheap housing, the houses for rent are of excellent quality.

In addition, there are a few points to note:

• In housing we have put the most frequent prices and characteristics in Andorra. However, there are homes with a rental cost of 1,500, 3,000, 5,000 or more euros per month, which are luxury houses in the mountains. Prices also change by location, etc. Depending on your case, one type of home or another will be better for you. We find you the best home to live in Andorra according to your situation and conditions.
• The cost of electricity and gas, despite being one of the lowest in Europe, depends on the technology installed in the home, as well as free access to the thermal water of Escaldes (since this way you don't pay neither for heating water nor for heating).
• On mobile telephony, the base rate is € 30 per month, although mobiles can be added to the Internet rate at home, greatly reducing the cost. In addition there is seasonal internet for the home, prepaid cards and more. You can see everything in the page of the only telecommunications company in Andorra, Andorra Telecom. It is important to remember that there is NO ROAMING IN ANDORRA, so neither the data nor the calls from Spain are useful. Be especially careful if you use a foreign card.
• The price per square meter to buy a house in Andorra is usually between € 2,700 and € 3,300, depending on the area and the qualities of the property in question.

Clothes and shoes

In general, clothing and footwear are usually considerably cheaper than in Spainnot to mention already in France. In fact, the multinational stores such as Pull & amp; Bear, Zara, h & amp; m, Stradivarius, etc. They put on their label the price of the same garment in Spain and the price in Andorra, to encourage the customer to buy there because it is cheaper. All garments have a price between 5% and 10% lower without counting offers, which make it even cheaper. This is due to the cost of indirect taxes that brands are saved.

Hygiene and health

If we have previously mentioned rent as one of the things that most influences the cost of living in Andorra, medicines and in general health spending are the opposite. That is why in the Principality there are many pharmacies: because they are profitable. We already have in another article how the laudable Andorran health system works, ranked as the best in the world according to many rankings. But it is also that, without taking into account the Social Security subsidy, the cost of previous health is very affordable, and that of hygiene more or less the same, although to a lesser extent.

Sport and entertainment

The prices of leisure and entertainment when living in Andorra, as well as sports, are similar to those in Spain. In sport there is a lot of variety and it depends on where you go, you will find some prices or others.

Electronics

Electronics, from household appliances to mobile phones and tablets to smart TVs and computers and other hi-tech products have been and continue to be one of the top sellers in Andorra. This is because these products usually have a price quite lowered in the Principality compared to surrounding countries from which its tourism comes, being the price differential between 10% up to a 40% on some specific devices. Therefore, electronics does not place a great burden on the cost of living compared to the surrounding countries.

Also, items that are not allowed in other CEC countries (such as tasers, extendable batons, pepper sprays and car antirradares) they are for sale legally and freely in Andorra, at many points of sale along the famous "shopping street".

On home appliances, you can compare prices for example in Andorra Free Market in Andorra la Vella, a company in charge of distributing, installing and maintaining household appliances, among other things. You will find that the vast majority if not all are reduced in price compared to other platforms, with some discounts being more than relevant.

As for devices such as mobile phones and tablets and everything in general, you can take a look at Andorra 2000, also in Andorra la Vella. A supermarket that is much more than a supermarket, and with very attractive prices. Anyway, if the amount of the technological product is very large, surely what interests you most is buying it from Amazon or another e-commerce platform that is willing to do the tax free or, even better, to sell you the product without VAT. So, the product will have a 21% discount. In the future we will write an article about shopping in Andorra.

In conclusion

So for a single person who rents home alone, the cost of living in Andorra monthly would be approximately the following:

Thus resulting in a budget between € 950 and € 1200. However, sharing a home the cost is drastically reduced, since the rent item is much lower (€ 300-400 or less).

Finally we remember that at Andorra Insiders we provide all the necessary services to come to live in Andorra. Both professional legal, tax and accounting services to solve your particular case in the way that best suits you and process only what is necessary, such as helping you in things like finding housing, support for compliance bank, and guide you in the day to day of the country.

We know Andorra and how it works like the back of our hands and we collaborate with the best experts both nationally and internationally. You can contact us here, and can also read the main advantages of the Principality of Andorra here, as well as other of our articles.