One way to acquire Andorran residency is through investment in real estate in the Principality. Is it possible to buy land in Andorra? We tell you that although it is an accepted measure, today, it has its limitations.
How do you invest by buying land in Andorra?
People who want to move to the Principality, especially those who want to do it through non-profit passive residence, can invest in different areas. Some ways to do so are by investing 600,000 euros through a bank deposit, purchasing shares funds, and even acquiring houses or land in Andorra. Until not so long ago, buying land in Andorra was a viable and very easy option.
Requirements to buy real estate in the Principality
The first step to acquiring real estate in the Principality is to request authorization from the Andorran Government. Regardless of the project, this step is the key to investing in real estate. That is if you want to live on the property or build on it. The authorization makes it possible to acquire real estate in the seven parishes of the Principality.
In addition to the authorization, a series of requirements must also be met, and specific documentation must be provided:
- Be over 18 years of age.
- Not having a criminal record, for which the corresponding certificate issued in the country of origin must be provided.
- Invest 600,000 euros in real estate.
- To deposit 50,000 euros with the AFA or Andorran Financial Authority.
- Demonstrate that sufficient financial resources are available.
- Residing more than 90 days a year in Andorra.
- Bring the passport, as well as the certificate of marital status.
- Present the contract of sale of the land in Andorra.
- Submit documentation related to pension, disability, or illness.
- Provide the Andorran medical certificate.
The first step is to request the authorization of the Government and sign the corresponding land purchase contract in Andorra. Then, the purchase and sale must be formalized before a notary, and the public deed must be signed. When the parties have signed, the investor can take possession of the real estate. With these steps completed, the notary proceeds to the registration of the deed of sale, and, of course, the buyer must pay the taxes.
Limitation on the purchase of land in Andorra: a government measure
Andorra is a perfect country to invest in because of its low taxation, excellent education and health systems, and, of course, its beautiful landscapes and the quality of life of its residents. All these conditions have meant that, in recent years, the Principality has received an exodus of immigrants, especially from Spain. More and more Spaniards are looking to settle in Andorra and start operating through the opening of companies and businesses.
Although many opt for rental housing, those investors who want to invest in real estate logically have to buy land in Andorra, although it is also possible to buy houses or apartments. The rise of the Principality as a perfect destination has made the country’s nationals find themselves in a very difficult situation when finding a property to rent.
The demand for rentals has increased in recent years, and the housing supply is insufficient. In other words, many Andorrans and immigrants who want to rent a property cannot do so because no apartments and houses are available on the market. For this reason, the Government has introduced a measure that prevents foreigners from buying houses, apartments, and land in Andorra. The measure, although temporary, is not known when it will be in force, but it is estimated to be at least for three months. Today, it is known that the Government is not issuing the corresponding authorizations to be able to invest in real estate.
The keys to the temporary measure limiting real estate purchases
The provision preventing the purchase of land in Andorra was published in the BOPA as Law 16/2023 of September 7 on the temporary suspension of foreign investment in real estate in the Principality. It consists of a single article stating that granting new authorizations for foreign investment in real estate is suspended for non-resident foreign individuals and legal entities (foreign and Andorran) with foreign capital. In the latter case, the measure is applied regardless of the percentage of foreign capital participation.
This new law clarifies that the corresponding permits may be processed and issued in the following cases:
- Applications submitted before the entry into force of the law (September 5, 2023), will be processed in accordance with the regulations applicable at that time.
- When the holders of foreign investments in land in Andorra prove that before September 5, there was an agreement of wills to purchase a property.
The rest of the applications submitted after the entry into force of the temporary regulation are automatically denied and are considered not formulated. If you want to buy land in Andorra, we have already advanced that this is a temporary measure, although it is not yet known when it will be in force. However, from MCA Assessors, we help you to look for other investment options in the Principality.
