Andorra la Vella City Guide

Perched in the eastern Pyrenees between France and Spain, Andorra la Vella is Europe's highest capital and the commercial core of a micro-state that pairs a 10% corporate tax ceiling, no wealth or inheritance tax and a bank secrecy heritage with year-round ski and duty-free shopping tourism. Severely constrained land, the parish is hemmed into a narrow mountain valley, and sustained foreign demand have pushed asking prices to roughly EUR 6,700 per square metre by late 2025, up about 13.6% year-on-year, with the prime Centro district reaching above EUR 7,200 per square metre and cheaper pockets such as La Margineda nearer EUR 4,400. Rental asking prices climbed close to 12.8% over the same period, and gross yields sit around a realistic 5.8%, strongest on one- and two-bedroom apartments. The catch for investors is the residency requirement: non-residents who have not lived legally in Andorra for at least two years generally need government authorisation to buy, steering most international purchasers toward the active and passive residency programmes. For those who qualify, Andorra la Vella offers a scarce, low-tax, lifestyle-led market with durable supply constraints.