Special taxation
If there's one activity that's king in Andorra, thermal baths and winter sports aside, it's shopping! In fact, Andorrans are always on top of the latest bargains and know all the right addresses. No matter when you visit Andorra, whether or not you fall within the winter sales period (mid-December to early March) or the summer sales period (five weeks from mid-June), you should be aware that many retailers offer promotions throughout the year. This great flexibility in pricing is due to the simple fact that the principality is not part of the European Union (although it adopted the euro as its national currency in 2014), and is therefore not subject, as are its neighbors France and Spain, to European taxation. As a result, the IGI (Impôt Général Indirect, equivalent to our VAT) can be freely determined. In Andorra, it is set at a rate of 4.5%, compared with around 20 or 21% in France and Spain, making it the lowest rate in Europe. The good news is that with such low taxation, it's possible to buy a whole range of top-quality products from all sectors - including prestigious brands - for less.
Aware of this significant advantage and the large flow of shopping-oriented tourists it generates, the principality has organized its commercial activity in a rational way, so as to make stores and shopping centers easily accessible, both geographically and in terms of time slots. All stores - fashion, accessories, perfumery, electronics, sports, optical products, tobacco, spirits and food - are grouped together in a dozen shopping areas spread across the seven Andorran parishes. Recently, a new semi-pedestrian shopping mile of almost two kilometers was inaugurated between Andorra la Vella and Escaldes-Engordany, featuring an impressive array of stores of all kinds. In the heart of this zone, the wide range of opening hours (depending on the season and the day of the week) means you can shop until 8pm, 9pm or even 10pm. There are also four public holidays in the Principality when shops are closed: January1 (New Year), March 14 (Constitution Day), September 8 (Our Lady of Meritxell, patron saint of Andorra) and December 25 (Christmas). That still leaves 361 shopping days.
There's also the matter of quantity: every product on sale in Andorra has an associated duty-free allowance, corresponding to the limit on the quantities or units a person can take out of the principality. The maximum value of goods per person must not exceed €900, but the rules are stricter for perfume, tobacco and spirits. To keep abreast of these restrictions and avoid going outside the law despite yourself, consult the Andorran Consumer Service website www.comerc.ad (in Catalan) or the French customs website www.douane.gouv.fr
What exactly do we find?
But what exactly can you find in Andorran stores? It's quite simple: all current consumer goods and merchandise, including technology and electronics. Market launch dates for new products from major international manufacturers are the same as in the rest of Europe, whether for cell phones, computers, audiovisual equipment or household appliances.
As for the luxury sector, and perfumery/cosmetics (creams, ointments, make-up kits, etc.) in particular, two major chains share the sector in Andorra: Parfumeries Gala and Parfumeries Júlia. You won't be able to miss them, as they dot the country's town centers, and a good number can be found on Andorra la Vella's Avenue Meritxell. Fashionable clothing and accessories are not to be outdone, as are luxury watches and jewelry, with Andorra's store windows showcasing the wares of internationally renowned designers. And since Andorra is a popular destination for athletes of all kinds, the range of the latest sportswear - particularly, but not exclusively, for mountain and board sports - is also extensive.
When it comes to photography, hi-fi and music, Andorra has no shortage of bargains either. Looking for a new camera for under €100, or a high-definition camera for under €200? Welcome to the paradise of low-cost high-tech products of all kinds. In Andorra la Vella, you won't take three steps without coming across this type of store. So there's no need to list 36 of them. However, since there's so much to choose from, take your time before deciding, and store around to compare prices, especially if you're planning to make a major purchase such as a computer, camera or smartphone.
Andorran stores also sell children's items and musical instruments in bulk, as well as excellent local foodstuffs, from cheese to cold meats, and a wide range of equally delicious products from Andorran agriculture, which can be found in ordinary supermarkets and shopping centers. When it comes to gastronomy, the Christmas period is a great time for bargains, as supermarket shelves fill up with typical mountain products: llonganissa (similar to sausage), bull (typical black pudding), various pâtés and local ham. Finally, there are dozens of stores specializing in the sale of cigarettes and alcohol in the Andorran capital alone. In fact, you could say they're all over the streets. You'll find a wide selection of cartons selling for around €20 and €30 in all supermarkets. Make a note in your shopping diary of a few commercial events when promotions are legion, such as Valentine's Day and Father's Day in March.
