Andorra Temporarly Bans Foreigners from Real Estate Purchases

Andorra Temporarly Bans Foreigners from Real Estate Purchases

Anastasiia Zapevalova
22 September 2023

As of today, foreigners are prohibited from purchasing real estate in Andorra. This prohibition, however, is temporary and will remain in effect until the General Council approves legislation that imposes a tax on foreigners acquiring properties in the Principality. The only foreigners who will be allowed to purchase a property from now on, until further notice, are those who had already submitted their requests before the ban came into force, with their cases currently under review, or those who had already made a deposit to the property owner and can provide proof of it. All other transactions will not be processed.

In response to the observed increase in foreign investment in real estate and considering Andorra's resources and commitment to environmental sustainability, the government has deemed it appropriate to go a step further. They aim to ensure that the economic capacity of this foreign investment directly benefits the state through a future tax on foreign property investments. This tax is intended to generate new public resources for housing policies and economic diversification.

This measure is one of several initiatives that the government intends to present to the General Council during the ongoing session to redefine and readjust foreign investment in Andorra. The goal is to align it with the new objectives guiding the country's economic and growth policies.

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