Cost of Living in Andorra
LIVING IN ANDORRA
Cost of Living in Andorra: A Realistic Guide for 2025
Thinking of moving? We take a deep dive into all expenses: rent, groceries, taxes, and leisure. Discover how much you need to live comfortably in the Principality.
📊 Summary: Is It Expensive to Live in Andorra?
Contrary to popular belief, the general cost of living in Andorra is not exorbitant. While rent can be comparable to that of mid-sized cities in Spain, the great savings come from the drastic reduction in the tax burden. Salaries are often higher, which, combined with low taxes, significantly increases purchasing power.
A single individual can live comfortably on a budget of €1,300 to €1,600 per month (excluding leisure and luxuries), while a family of four would need between €2,800 and €3,500. The key factor will always be the cost of rent, which has risen in recent years.
💰 Salaries and Purchasing Power
The cost of living alone doesn’t tell the whole story. The key in Andorra is the higher net salary that workers receive. With a maximum personal income tax of 10% and contained social security contributions, the difference between gross salary and the money that ends up in your pocket is much smaller than in neighboring countries.
Junior / Basic Profile
Salary for entry-level or service positions.
- Annual Gross Salary: €24,000
- Taxes + CASS (approx.): -€2,520
- Annual Net Salary: ~€21,480
Technical / Mid-Level Profile
Average salary for qualified professionals.
- Annual Gross Salary: €35,000
- Taxes + CASS (approx.): -€3,415
- Annual Net Salary: ~€31,585
Senior / Specialist Profile
Salaries for managers, specialists, or business owners.
- Annual Gross Salary: €60,000
- Taxes + CASS (approx.): -€6,215
- Annual Net Salary: ~€53,785
🏠 Housing: The Main Expense to Consider
Rent represents the largest portion of the monthly budget. Prices vary significantly depending on the parish (municipality) and the type of property. Central areas like Andorra la Vella and Escaldes-Engordany are the most expensive.
Studio / 1-Bedroom Apartment
€750 – €1,100
Ideal for one person or a couple. Supply is limited and demand is high, especially downtown.
2-Bedroom Apartment
€1,000 – €1,600
The most common option for couples and small families. Lower prices in parishes like Encamp or La Massana.
3+ Bedroom Apt or House
Over €1,500
Chalets, townhouses, or large apartments. Prices can rise significantly depending on quality and location.
🛒 Groceries: Supermarket Prices
Thanks to a super-reduced IGI (the Andorran VAT) of 1% on food, the grocery bill is very affordable, with prices similar to or even lower than in Spain. A single person can spend between €250 and €350 per month, while a family might spend around €500 – €700.
| Product | Estimated Price |
|---|---|
| Liter of milk | €0.90 – €1.20 |
| Loaf of bread | €1.00 – €1.50 |
| Dozen eggs | €2.20 – €2.80 |
| 1 kg of chicken breast | €7 – €9 |
| 1 kg of beef | €12 – €18 |
| Coffee (250g) | €3 – €5 |
⚡️ Utilities: Electricity, Heating, and Internet
Utility costs are reasonable. Heating is the most variable expense, depending on the system (electric or oil) and the home’s insulation.
- Electricity (Average consumption)€30 – €60 / month
- Heating (Annualized average)€60 – €120 / month
- Water and Garbage Fee€20 – €30 / month
- Fiber Optic Internet (up to 1 Gbps) + Mobile~ €60 / month
🚗 Transportation and Fuel Price
Private vehicles are the preferred mode of transport. One of Andorra’s great advantages is the price of fuel, which is significantly lower than in neighboring countries thanks to lower taxes on hydrocarbons.
95 Gasoline Price
~ €1.45 / liter
Diesel Price
~ €1.35 / liter
The country has an intercity bus network connecting all parishes, with a single ticket costing around €1.90 and monthly passes available. If you’re thinking of bringing your vehicle, don’t miss our guide on how to import a car to Andorra.
❤️🩹 Healthcare (CASS) and Education
Healthcare System
The Andorran healthcare system, managed by the CASS (Andorran Social Security Fund), operates on a co-payment system. CASS covers at least 75% of medical expenses (90% in case of hospitalization). The contribution for an employee is 6.5% of their gross salary, and many residents supplement it with private insurance (€30-€60/month).
Education
Andorra offers three free public education systems: Andorran, Spanish, and French. There are also prestigious private schools with tuition fees ranging from €6,000 to €12,000 per year, which is a factor for families to consider.
⛷️ Leisure, Sports, and Dining
Leisure prices are very competitive, especially due to the reduced IGI of 4.5%.
🆚 Cost Comparison: Andorra vs. Barcelona
To understand the real savings, there’s nothing better than a direct comparison. Here’s how the costs stack up against a major city like Barcelona.
| Item | Andorra 🇦🇩 | Barcelona 🇪🇸 |
|---|---|---|
| Rent (1-bed apt. city center) | ~ €1,000 | ~ €1,100 |
| Average monthly net salary | ~ €2,100 | ~ €1,800 |
| General VAT / IGI | 4.5% | 21% |
| Maximum Personal Income Tax | 10% | ~ 45-50% |
| 95 Gasoline (liter) | ~ €1.45 | ~ €1.70 |