Real Estate in Andorra

Given its relative isolation, Andorra has managed to exist outside the mainstream of European history for decades, with few ties to countries other than France and Spain.

In recent times, however, the thriving tourist industry, along with developments in transportation and communications, have made Andorra far more accessible.

The influx of tourists each year account for some 80% of Andorra’s GDP, with an estimated 9 million visitors attracted by Andorra’s duty free status, and year round holiday venues.

Andorra’s banking sector, with its tax haven status, also contributes substantially to the economy of this tiny principality, which measures just 468 km2 in total.

Agricultural production though is limited in Andorra, as only 2% of the land is arable, which leads to most foodstuffs having to be imported. Farming consists mainly of livestock activities, such as domestic sheep rearing. Generally, Andorra produces very little in the manufacturing sector, other than cigarettes, cigars, and furniture.

Andorra is not a full member of the European Union, but it does enjoy a special relationship with it, such as being treated as a EU member for trade in manufactured goods, and as a non-EU member for agricultural products. Andorra lacks a currency of its own, and uses that of its two surrounding neighbours. Prior to the introduction of the Euro in 1999, Andorra traded in both the French Franc and the Spanish Peseta.