Real Estate in Andorra - The Euro Tax Haven Threat

By Roger Munns

Both Monaco and Andorra’s property prices have seen a levelling off this year, according to Tribune Properties, but say this can be explained by factors other than the new EU directive. Tribune say that in Monaco the passing of Prince Rainier earlier this year cast a shadow over the Principality, while in Andorra the local market has slowed as Andorrans struggle to keep up with the price of property, fuelled by buyers from around the world seeking residency.

..
Two other factors have contributed to the slow down in the first half of the year which could be reversed in the second half – the absence of UK buyers awaiting the outcome of their election in May which saw the Labour Government returned for a historic third term with Tony Blair as Prime Minister and possible tax rises in the pipeline, and buyers holding US dollars who were hit by the rise in value of the Euro – which has now peaked following the EU Constitution ‘No’ votes in France and The Netherlands in June.

.. Both Andorra and Monaco require new residents to live there for six months a year to maintain their residency (but Andorra doesn’t police this once residency is granted).

Andorra property prices start from just over 200,000 Euros for a one bedroom apartment, while Monaco is more expensive with one bedroom apartments from around 600,000 Euros.