New regulations limit foreign real estate investment in Andorra to protect the local market and ensure access to housing.
The real estate market under control
Andorra has always been a popular destination for foreign investors. However, rising property prices and increasing difficulties for residents to access housing have led the government to tighten regulations. In recent years, the influx of foreign capital into real estate has led to a rapid rise in prices, making home ownership increasingly difficult for local residents. In response, the authorities have introduced measures to limit speculation and ensure a more balanced development of the real estate market.
What Are the New Limits for Foreign Investors?
Foreign investors can now purchase only one single-family home or a maximum of two apartments, studios, or similar properties.
They may also acquire up to six parking spaces, with a limit of three spaces and three storage units per apartment. The aim of these restrictions is to limit the concentration of property in the hands of speculative investors, in order to maintain a supply of affordable housing for residents.
Real estate investment in Andorra, a market in transition.
What are the rules for foreign residents and developers?
Foreign residents who have lived in Andorra for less than three years are considered foreign investors and must comply with these restrictions.
Foreign real estate developers are also subject to strict rules. They can only buy land for housing development if at least 50% of the properties are allocated for affordable rental housing.
Buying property in Andorra: new rules apply.
A Tax to Curb Speculation
A special tax on foreign real estate investment has been introduced to discourage speculation and fund affordable housing initiatives. The aim of these new measures is to stabilize the real estate market, prevent prices from spiraling out of control and guarantee fairer access to housing for Andorran residents. The purpose is to strike a balance between Andorra’s economic attractiveness and the need to preserve its living environment and social cohesion.
Your Investment in Andorra with Nodum Corporate
At Nodum Corporate, we guide you through every step to ensure a secure and profitable investment in Andorra. Our team of experts can offer you personalized advice on tax, legal and real estate issues, to ensure your investment goes smoothly. Contact us today to make your project a reality with complete confidence!
