Special taxation
If there is one activity that is king in Andorra, apart from thermal baths and winter sports, it is shopping! In fact, Andorrans are always aware of the best deals of the moment and know the right addresses. Whatever the time of your visit to Andorra, whether or not you fall within the winter (mid-December to early March) or summer (five weeks from mid-June) sales periods, you should know that many shopkeepers offer promotions throughout the year. This great flexibility in pricing is explained by 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 neighbours France and Spain, to European taxation. As a result, the IGI (General Indirect Tax, equivalent to our VAT) can be freely determined. It is set in Andorra at a rate of 4.5% when it is around 20 or 21% in France and Spain, making it the lowest rate in Europe. The good news is that with such a low tax rate, it is possible to buy a whole range of high quality products - including prestigious brands - at a lower cost.
Aware of this significant advantage and the large flow of shopping-oriented tourists that it generates, the Principality has organised its commercial activity in a rational manner, so as to make shops and shopping centres easily accessible, both geographically and in terms of time slots. Thus, all the shops - fashion, accessories, perfumery, electronics, sports, optical products, tobacco, spirits, food - are grouped together in about ten commercial areas spread over the seven Andorran parishes. Recently, a new semi-pedestrian shopping area of almost two kilometres was inaugurated, called The Shopping Mile, running between Andorra la Vella and Escaldes-Engordany and concentrating an impressive number of shops of all kinds. In the heart of this area, the wide range of opening hours (depending on the season and the day of the week) means that you can shop until 8pm, 9pm or even 10pm. There are four public holidays in the Principality when shops are closed:1
January (New Year), 14 March (Constitution Day), 8 September (Our Lady of Meritxell, patron saint of Andorra) and 25 December (Christmas). That leaves 361 days for shopping.There is a quantity restriction: each product on sale in Andorra has an associated duty-free allowance, corresponding to the limit on the quantities or units that 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 everything related to perfume, tobacco and spirits. To keep up to date with these limits and to avoid going outside the law, 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 products and goods, including technological and electronic products. The release dates for new products from major international manufacturers are the same as in the rest of Europe, whether it's 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 large chains share the sector in Andorra: Parfumeries Gala and Parfumeries Júlia. You won't be able to miss them, as they line the country's city centers, and there are a good number of them on Meritxell Avenue in Andorra la Vella. Fashionable clothing and accessories are also available, as well as luxury watches and jewelry, with the windows of Andorra's stores displaying articles by internationally renowned designers. As Andorra is a popular territory for athletes of all kinds, the range of the latest sportswear - especially for mountain and snow sports, but not only - is also quite extensive.
As far as photography, hi-fi and music are concerned, Andorra is not short of good deals either. Are you looking for a recent camera for less than 100 €, a high definition camera for less than 200 €? Welcome to the paradise of all kinds of low-cost high-tech products. 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 are so many to choose from, take your time before deciding, and store around to compare prices, especially if you are planning to make a major purchase such as a computer, camera or smartphone.
Andorran stores also offer a wide range of products for children, musical instruments, and excellent local food products, from cheese to cold cuts, as well as a wide range of products from Andorran agriculture that are just as delicious as those found in ordinary supermarkets and shopping centers. The Christmas period is a good time to find a bargain, and the supermarket shelves are filled with typical mountain products: llonganissa (a type of sausage), bull (typical black pudding), various pâtés and local ham. Finally, there are dozens of stores specialized in the sale of cigarettes and alcohol in the Andorran capital alone. One could even say that they are running the streets. You will find a large choice of cartons sold for around 20 € and 30 € in all supermarkets. Note in your shopping agenda some commercial events where promotions are legion, such as Valentine's Day and Father's Day in March.
