Living in Andorra
The cost of living in Andorra, compared with France
The cost of living in Andorra comes down first and foremost to housing, which is scarce and expensive, far more than to groceries. Taxes on consumption are low, but inflation reached 4.8% over one year in August 2026. Here is what costs less, what costs more and the items in a budget, using only the official figures available.
- IGI at the general rate (French VAT: 20%)
- 4.5%
- IGI on food
- 1%
- inflation over one year (August 2026)
- +4.8%
- monthly rent for a recent tenancy (2024)
- €13.0/m²
Key points
- The cost of living in Andorra is not lower than in France overall: taxes on consumption are low (IGI of 4.5% at the general rate, 1% on food and 0% on residential rents), but housing is expensive.
- Housing is the heaviest item: households that had moved in less than a year earlier paid an average rent of €13.0/m² a month in 2024, and a flat sold for €4,569.7/m² in the second quarter of 2026, according to the Departament d’Estadística.
- Inflation reached 4.8% over one year in August 2026 (2.4% in France), driven by transport and by the housing, water and energy item.
- You need to allow for CASS contributions, top-up health insurance, parish taxes and, often, a car equipped for winter.
- Residents benefit from a free monthly bus pass on regular routes.
On this page 11 sections
- Why do prices differ from those in France?
- Andorra or France: what costs less?
- Rents and property prices: the official figures
- What is the inflation rate in Andorra?
- Which taxes and contributions weigh on the budget?
- Healthcare: do you need top‑up insurance?
- Getting around: free buses, an equipped car
- What budget do you need to live in Andorra? The items to plan for
- What salary do you need to live in Andorra? The method
- Frequently asked questions
- Sources
Why do prices differ from those in France?
The first difference lies in indirect taxes. In Andorra, VAT is called IGI (impost general indirecte, general indirect tax). Its general rate is 4.5%, compared with 20% for the standard rate of VAT in metropolitan France. Several special rates apply.
| IGI rate | What it covers (main cases) |
|---|---|
| 4.5% art. 57 | General rate: most goods and services |
| 1% art. 58 | Food and non-alcoholic drinks, water, books, newspapers and magazines, sanitary protection and nappies |
| 0% art. 59 | Renting of residential homes (with parking spaces and furniture rented together), care from professionals under agreement with the CASS, education, reimbursed medicines |
| 2.5% art. 60 bis | Passenger transport (excluding cable transport), certain cultural activities |
| 9.5% art. 60 | Banking and financial services |
Articles of Llei 11/2012 on IGI. A rate of 3.5% also applies to the purchase of a home intended for long-term letting (art. 60 ter).
A lower tax does not guarantee a lower price: prices also depend on import costs, competition and the local market. No official statistics compare grocery prices between Andorra and France; we therefore publish no shopping-basket prices. How the tax works is explained in detail in IGI, Andorra’s VAT.
Andorra or France: what costs less?
What costs less in Andorra than in France is mainly a matter of tax: consumption, food and earned income are taxed less there. What costs more is housing, healthcare and life in the mountains. No official survey compares prices in the two countries, but taxation and official statistics point to solid trends.
Rather favourable
Lighter on the budget
- Consumer goods, taxed at 4.5% instead of 20%
- Food, taxed at 1%
- The bus for residents, thanks to a free monthly pass
- State schools, free in all three school systems
- Income tax on earnings, nil up to €24,000 of net tax base
Rather burdensome
Heavier on the budget
- Housing, scarce and expensive: monthly rent of €13.0/m² for a recent tenancy (2024), €4,569.7/m² for a flat sold (second quarter of 2026)
- Healthcare: the CASS reimburses 75% of consultations with a referring GP (33% otherwise), based on its own tariffs
- Banking services, taxed at 9.5% IGI (see how to open a bank account in Andorra)
- Life in the mountains: a car, compulsory winter equipment
- Property purchases by foreign nationals: up to 10% in a specific tax
Housing calls for a particular word of warning: it is what makes the difference between a manageable budget and a tight one. Its official figures are presented below.
Rents and property prices: the official figures
The Departament d’Estadística publishes two benchmarks. For renting, the average rent paid by resident households reached €9.5/m² a month in 2024, excluding charges, and €13.0/m² for those that had moved in less than a year earlier. For buying, a flat sold for an average of €4,569.7/m² in the second quarter of 2026, compared with €2,579.8/m² five years earlier (+77%, indicative calculation).
- Average monthly rent paidall tenants, 2024
- €9.5/m²
- Rent for a recent tenancyless than a year in the home, 2024
- €13.0/m²
- Sale price of a flatsecond quarter of 2026
- €4,569.7/m²
Listings show higher amounts: on Pisos.ad, in the second quarter of 2026, an average of €26.94/m² a month for flats to rent and €8,026.61/m² for flats for sale. These are asking prices, for a sample of available properties, not rents paid or completed sales. The details are in our guides on average rent in Andorra and on the price per m² of flats.
What is the inflation rate in Andorra?
The Departament d’Estadística publishes the consumer price index (CPI) every month. In August 2026, prices rose by 4.8% over one year, after 4.2% in July. Core inflation, which excludes energy and fresh food, was 3.7%. The same official note records +4.3% in Spain and +2.4% in France.
- AndorraAugust 2026, over one year
- +4.8%
- Spainsame period
- +4.3%
- Francesame period
- +2.4%
The rise comes mainly from transport, and in particular from fuel:
| Expenditure item | Weight in the index | Rise over one year |
|---|---|---|
| Housing, water, electricity and fuels | 24.9% | +5.0% |
| Food and non-alcoholic drinks | 21.4% | +2.5% |
| Transport | 14.7% | +9.5% |
| Hotels and restaurants | 6.9% | +5.5% |
| Clothing and footwear | 4.4% | +7.1% |
| Health | 3.5% | +2.8% |
| Overall index | 100% | +4.8% |
Source: Departament d’Estadística, note A142 of 14 September 2026. The weights come from the 2024 household budget survey; their conversion into percentages is an indicative calculation (weighting divided by 10,000).
Petroleum products rose by 25.4% in one year. The note for September is announced for 12 October 2026. The CPI also matters for tenants: Llei 11/2026 caps the revision of rents under extended leases at the CPI, as explained in our presentation of Llei 11/2026 on leases.
Which taxes and contributions weigh on the budget?
Beyond prices, your budget depends on compulsory levies. For an employee, the CASS (Caixa Andorrana de Seguretat Social, Andorra’s social security fund) deducts 6.5% of gross salary; the employer pays a further 15.5%. A self-employed worker contributes 22% on a base linked to the average salary: €587.95 a month in 2026 in the general case, less when starting out.
Income tax (IRPF) is moderate on earned income: nothing below €24,000 of net tax base, then an effective rate of 5% up to €40,000 and 10% above that. See income tax in Andorra (IRPF) and the CASS contribution rates; to compare your situation in France and Andorra, our comparison tool calculates both taxes on the same income.
Finally, each comú levies local taxes, within the limits set by law:
| Parish tax | Who pays | Legal range |
|---|---|---|
| Foc i lloc | Each resident aged 18 to 65 registered in the parish census | €5 to €50 a year per person |
| Property ownership tax | The owner | €0.30 to €3 per m² of built area, weighted by a location index |
| Tax on rental income | The landlord | 0.4 to 4% of rents received |
| Service charges (waste, etc.) | Users | Amount set by each comú |
Source: Llei 10/2003 on the finances of the comuns. Each comú sets its amounts within these limits.
Healthcare: do you need top-up insurance?
The CASS reimburses 75% of consultations and 90% of hospitalisation, based on its own tariffs, provided you follow the care pathway with a referring GP (the “via preferent”). The rest, and any difference between the price charged and the CASS tariff, is payable by you. This is why top-up health insurance is common.
Passive residents, who do not contribute through their work, must take out private insurance covering 100% of medical costs in Andorra. There is no official tariff: ask for several quotes. The details are in our guide to social security in Andorra (CASS) and top-up health insurance.
Getting around: free buses, an equipped car
The Govern funds 100% of a monthly pass giving free, unlimited journeys on regular bus routes. It is reserved for people who have legal, effective and permanent residence in Andorra, and for Andorran nationals. Seven national lines link the parishes.
A car often remains useful in the mountains. Allow for its insurance, fuel, whose price rose markedly in 2026 according to the CPI, and winter equipment, compulsory from 1 November to 15 May on all the country’s roads. The rules are detailed in our guides to driving in Andorra in winter and to driving licences and vehicle registration in Andorra.
What budget do you need to live in Andorra? The items to plan for
In the absence of official statistics on everyday prices, we do not publish a model budget. Here, however, are the items to plan for, with the amounts set or measured by an official source.
| Item and what determines it | Official benchmark |
|---|---|
| Rent or mortgage repayment Parish, floor area, condition of the property, market | Average rent paid: €9.5/m² a month in 2024, €13.0/m² for a recent tenancy; 0% IGI on rent |
| Energy, water, heating Consumption, altitude, insulation | “Housing, water, energy” item: +5.0% over one year (August 2026) |
| Food Habits, where you shop | 1% IGI; +2.5% over one year (August 2026) |
| Transport Bus or car | Free bus pass for residents |
| Healthcare Non-reimbursed share, top-up insurance | CASS, with a referring GP: 75% of consultations and 90% in hospital, based on its tariffs |
| Social security contributions Status | Employee: 6.5% of gross salary; self-employed: €587.95 a month on the standard base |
| Income tax Income, family situation | 0% up to €24,000 of net tax base, then 5% and 10% (earned income) |
| Parish taxes Parish | Foc i lloc: €5 to €50 per adult per year |
| Schooling Chosen system | Free state schools in all three systems |
| Residency procedures Residence status | See Costs and AFA deposit |
Amounts verified on 11 October 2026. The other items depend on your situation and on the market.
What salary do you need to live in Andorra? The method
No official threshold sets the salary needed to live in Andorra, except for passive residency, which requires resources of more than three times the annual minimum wage, about €56,500 a year in 2026. Above all, everything depends on the rent. Here is an example built using only official figures: a single person, paid the median salary, who rents 70 m² at the average price for a recent tenancy.
| Item | Monthly amount | Basis of calculation |
|---|---|---|
| Median gross salary | €2,235.35 | Declared to the CASS, June 2026 |
| Net salary, after CASS and tax | €2,088.90 | Our “gross to net” example |
| Rent for 70 m², excluding charges | €910 | 70 m² × €13.0/m² (2024 average) |
| Left after rent | €1,178.90 | Before charges, foc i lloc, insurance and everyday spending |
Indicative calculation: net salary of a single person with no other income; 2024 average rent of households that had moved in less than a year earlier, the latest official data available (note A062). On the minimum wage, €1,466.71 net a month, the same rent would represent 62% of net salary.
The net calculation is detailed in our guide to net salary in Andorra. For your own budget, follow these steps:
Cost your housing first
Start from the official average rent, then look at listings and view properties on the spot, in several parishes. Note the floor area and the rent per square metre: this is the reference figure in the law on leases.
Calculate your tax and contributions
Estimate your tax and your contributions from your actual income, using our calculator.
Ask for insurance quotes
Top-up health insurance if you contribute to the CASS, insurance covering 100% of costs if you are a passive resident. Compare several offers.
Check your parish’s taxes
Foc i lloc, property tax and service charges vary from one comú to another: ask the comú concerned.
Keep a margin for inflation
Prices rose by 4.8% over one year in August 2026. Follow the monthly notes of the Departament d’Estadística.
Frequently asked questions
Are groceries cheaper in Andorra than in France?
Food is taxed at only 1% IGI, but no official body publishes a comparison of grocery prices between the two countries. Prices also depend on import costs and competition. The most reliable approach is to compare your usual shopping basket yourself, on the spot.
Is rent subject to VAT in Andorra?
No. Renting a residential home falls under the 0% IGI rate, including parking and furniture rented with the home. The landlord, on the other hand, pays a parish tax on the rents received, of 0.4 to 4% depending on the parish.
Is there a council tax in Andorra?
Not under that name. Each resident aged 18 to 65 registered in the census of their parish pays the foc i lloc, of €5 to €50 a year depending on the comú. Owners also pay a property ownership tax, and service charges, for waste for example, may be added.
Read: Where to live: the 7 parishes › Parish taxes: each comú sets its own
What salary do you need to live in Andorra?
There is no official threshold, except for passive residency, which requires resources of more than three times the annual minimum wage, i.e. about €56,500 a year for a single person in 2026 (indicative calculation: monthly minimum wage × 12 × 3). Rent remains the decisive factor: 70 m² at the average rent for a recent tenancy (€13.0/m² in 2024) costs about €910 a month excluding charges, i.e. 44% of the net median salary (€2,088.90 a month, indicative calculation based on the €2,235.35 gross of June 2026).
Read: Working: jobs and salaries › Average salary and median salary in Andorra: the official figures
Is the bus really free for residents?
Yes. The Govern funds 100% of a monthly pass giving free, unlimited journeys on regular routes. You must have legal, effective and permanent residence in Andorra at the time of the application. The pass is personal; if it is lost, a duplicate of the physical card costs €3.
Read: Getting to Andorra › Getting around by bus: seven lines and a free pass
Why is inflation higher than in France in 2026?
In August 2026, inflation stood at 4.8% over one year in Andorra, compared with 2.4% in France, according to the Departament d’Estadística. The gap comes mainly from transport (+9.5%), driven by rising fuel prices, and from the housing, water and energy item (+5.0%).
Are banking services taxed more heavily?
Yes. Banking and financial services bear IGI at 9.5%, the highest rate of this tax. It is added to the services invoiced by banks and financial institutions.
Read: VAT in Andorra (IGI) › VAT rates in Andorra: the six IGI rates
Sources
- Llei 11/2012 on the general indirect tax (IGI), consolidated version (opens in a new tab) portaljuridicandorra.adRates of 4.5%, 1%, 0%, 2.5%, 3.5% and 9.5% (Articles 57 to 60 ter).
- Departament d’Estadística, A062: housing characteristics, 2024 (3 February 2026) (opens in a new tab) sig.govern.adAverage rent paid: €9.5/m² in 2024, €13.0/m² for households that had moved in less than a year earlier; 64.5% tenants.
- Departament d’Estadística, A117 and A145: housing transactions and prices, second quarter of 2026 (6 August 2026) (opens in a new tab) sig.govern.adAverage price of flats sold: €4,569.7/m², compared with €2,579.8/m² in the second quarter of 2021.
- Pisos.ad, quarterly residential market report, second quarter of 2026 (document published by Altaveu) (opens in a new tab) altaveu.comAsking prices in listings: €26.94/m² to rent, €8,026.61/m² to buy.
- Departament d’Estadística, A149: salary statistics, June 2026 (opens in a new tab) sig.govern.adMedian gross salary declared to the CASS: €2,235.35 a month.
- Departament d’Estadística, A142: consumer price index, August 2026 (opens in a new tab) sig.govern.adInflation of 4.8% over one year, breakdown by item and comparison with Spain and France.
- Service-public.fr: VAT rates in France (opens in a new tab) entreprendre.service-public.gouv.frStandard VAT rate of 20% in metropolitan France.
- Llei 10/2003 on the finances of the comuns, consolidated version (opens in a new tab) portaljuridicandorra.adFoc i lloc, property tax and tax on rents: legal ranges.
- Govern d’Andorra: free monthly public transport pass (opens in a new tab) govern.adPass 100% funded for residents, personal and non-transferable.
- CASS: employee contributions (opens in a new tab) cass.ad6.5% paid by the employee and 15.5% by the employer.
- CASS: contributions of self-employed workers (opens in a new tab) cass.adBase linked to the average salary; €587.95 a month on the standard base in 2026.
- Llei 5/2014 on personal income tax (IRPF), consolidated version (opens in a new tab) portaljuridicandorra.adPersonal allowance of €24,000 and tax credit (bonificació) capped at €800.
Consolidated texts on the Portal jurídic d’Andorra have no official value: only the version published in the BOPA is authentic. How we verify.
General information, not advice. This guide sets out the rules in force on 11 October 2026, based on official texts. It is no substitute for a professional review of your situation (lawyer, tax adviser, gestoria). Spotted an error or a change? Write to us.
Further reading
