Concòrdia’s Proposals to Tighten Economic Requirements in Andorra
In the current context of stability and growth in Andorra, the parliamentary group of Concòrdia has considered that the tools proposed by the government for the continuity and consolidation of measures for sustainable growth are similar to those previously presented to modify the immigration law, but less effective. Therefore, they have proposed amendments to make the law more effective and restrictive regarding the minimum economic requirements to obtain residence and work permits for self-employment, as well as for passive residents.
Deposits and Investments for Residence and Self-Employment Work Permits
According to the Concòrdia proposal, applicants for these permits must make a deposit of 50,000 euros with the Andorran Financial Authority (AFA), in addition to a non-refundable deposit of 50,000 euros in favor of the State.
Additionally, a minimum permanent and effective investment of 200,000 euros in Andorran assets is required, explicitly excluding real estate property.
The investments can be made, for example, in shares of high value-added resident companies that do not replace the existing economic fabric; also in public debt instruments or issued by Andorran companies.
Updating Investment Values and Exemptions
It is proposed that the value of the investment be updated and indexed according to real estate market fluctuations to maintain the actual economic effect of the measure.
Exemptions are also contemplated for essential professions of interest for collective well-being, ensuring that the regulations do not affect key sectors.
Requirements for Passive Residencies
Regarding passive residencies, Concòrdia has presented amendments that raise the minimum investment to one million euros, also excluding real estate property.
This investment can be allocated to shares in the share capital or equity of companies considered high value-added, which do not replace sectors already existing in the country. Investment in public debt instruments or non-interest-bearing deposits with the AFA are also contemplated.
This investment will be updated based on real estate market variations. Additionally, proposals include non-interest-bearing deposits of 50,000 euros with the AFA, 25,000 euros per dependent person, and an investment of 100,000 euros as a non-refundable contribution to the state.
Impact on the Real Estate Market
Concòrdia warns that the proposed changes, which increase the real estate investment from 600,000 to 800,000 euros, could have an inflationary impact on the real estate market, especially affecting more affordable housing.
The parliamentary group leader, Cerni Escalé, defends the need for a real dissuasive effect to promote strategic sectors for the country and prevent increased pressure on the real estate market, avoiding the rising cost of affordable housing.
The proposal limits real estate investment exclusively to new construction or high-cost rehabilitation projects to avoid distorting more accessible prices. Currently, over 60% of offered homes are priced above 800,000 euros.
Objectives and Justification of the Proposals
The main goal of these amendments is to reduce the number of new residents, ensuring that those who arrive can adequately contribute to public financing, keep state accounts healthy, and allow for the expansion of public policies.
These measures also aim to prioritize attracting investors in strategic and high value-added sectors to ensure Andorra’s sustainable development.
More Information for Residents and Entrepreneurs in Andorra
If you are interested in obtaining more information about living in Andorra, its taxes, healthcare system, or how to move, visit Living in Andorra. For specific details about residency and tax requirements, see Residency in Andorra.
For those interested in company formation and management, or cost of living, also consult Taxes in Andorra and Cost of Living in Andorra.