The Andorran Council of Ministers has approved an immediate measure: the suspension of authorizations for foreign investment in real estate. This decision has the support of 23 out of 28 members of the general council.
This measure is a response to the increasing interest of foreign investors in real estate properties, with its primary goal being to address the issue of the scarcity of affordable housing in the Principality.
The government plans to implement a tax on foreign investment in real estate, with the proceeds going towards projects benefiting the citizens, such as infrastructure, economic diversification initiatives, and the expansion of the public housing rental stock. Additionally, efforts are being made to introduce a tax for foreign investors who divest their investments in Andorra before a specified deadline.
While awaiting the implementation of this tax and working on updating the foreign investment law, which will be presented in the first quarter of 2024, the process of suspending foreign investment is initiated in accordance with Article 60.1 of the Constitution. This is being done urgently and out of extreme necessity to discourage speculative transactions by potential investors during this period of regulatory uncertainty.
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