Andorra’s Council of Ministers has swiftly approved the suspension of authorizations for foreign investment in the real estate sector. This decision garners support from 23 out of the 28 parliamentarians in the general council.
This action responds to the rising interest of foreign investors in the real estate sector, aiming to tackle the shortage of affordable housing in the Principality.
The government is set to introduce a tax on foreign real estate investments, with the funds allocated to projects benefiting the local population, including infrastructure development, economic diversification initiatives, and the expansion of public rental housing. Simultaneously, efforts are underway to establish a tax for foreign investors divesting their Andorran investments before a specified deadline.
While awaiting the implementation of this tax and working on the revision of foreign investment laws, expected in the first quarter of 2024, the suspension of foreign investment proceedings, authorized under Article 60.1 of the Constitution, has been initiated. This urgent and necessary measure discourages speculative transactions by potential foreign investors during this period of regulatory uncertainty.
If you have any questions or require further information, please do not hesitate to contact us. Our team is here to provide you with the best advice and guidance regarding these developments in Andorra’s real estate sector.
