Andorra reaches 88,649 residents: 55% are foreigners and tensions are growing
Andorra has surpassed its own demographic ceiling. With 88,649 residents as of September 2025, the Principality has recorded the highest figure in its history, driven by the arrival of Latin American workers. But the record hides a paradox: a tax haven that needs cheap labour to sustain its service economy, yet whose infrastructure and housing are beginning to show signs of strain.
The profile of the new residents
According to official data, 55.2% of the population holds foreign nationality. Argentines, Uruguayans and Chileans predominate among them. Most arrive on temporary visas to work in the ski resorts and hospitality sector, earning salaries of around €1,300 a month. However, housing costs are exorbitant: a one-bedroom apartment costs €400,000, making long-term stability unattainable. Many lifelong Andorrans doubt these workers will ever put down roots.
The tax haven's duality
Andorra has always attracted wealthy people seeking lower taxes, but recent growth stems from demand for less skilled labour. While YouTubers and business owners settle in with tax advantages, Latin American workers fill the jobs locals don't want. Obtaining Andorran nationality requires 20 years of legal residence, a timeframe that discourages integration. This gap between the elite and a precarious working class is one of the keys to the discontent.
Pressure on housing and services
The population boom is not only straining Andorra itself. Spanish towns such as La Seu d'Urgell are seeing rents rise as residents spill over in search of more affordable housing. In addition, Andorran healthcare has come in for criticism: although there is an agreement with Spain that funds care for Andorran patients in Spanish hospitals, many believe the system is being abused. On the other side, it is pointed out that Andorra's public healthcare is overwhelmed and that foreign residents are turning to Spanish emergency services.
With housing prices soaring and wages stagnant, the question is whether this growth can be sustained. The authorities have already voiced concern about exceeding 100,000 inhabitants. For now, the record is bittersweet: historic numbers, but with visible costs.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication.
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