Introduction to Foreign Investment in Andorra
Foreign investment in Andorra has experienced significant growth over the past decade and a half, managed with strict controls by the Financial Intelligence Unit (Uifand). Between 2010 and 2024, a total of 7,328 foreign investment requests have been processed, reflecting Andorra’s evolution as an attractive destination for international investors.
The Role of Uifand in Oversight of Foreign Investment
Uifand has played a fundamental role in supervising and analyzing these investments, examining a total of 36,298 individuals and entities. This increase is largely due to the liberalization initiated with Law 10/2012, which boosted foreign capital inflow.
Key Data from 2013-2018
Between 2013 and 2018, Andorra experienced its peak period of application reception, exceeding one thousand annually and reaching a high of 1,464 cases in 2018. This period marked the consolidation of Andorra as an interesting market for international investment.
Subsequent Reduction and Stabilization
Starting in 2019, a notable decrease in applications was observed, with only 26 registered that year. This decline is attributed to changes in the registration system and a review of the applied criteria. Since then, the figures have remained stable at lower levels, indicating a more selective and supervised investor profile.
Recent Measures to Strengthen Oversight
Alongside this evolution, Andorran authorities have adopted new measures to improve control over investments:
- Decree 137/2025 requires foreign companies to validate a real economic activity within 18 months, including registration for business, minimum invoicing, and tax compliance.
- Inspections of service providers for companies have been intensified, with 21 thematic inspections in 2024 and sanctions exceeding €800,000 for serious violations of anti-money laundering regulations.
Perspectives for Moneyval Evaluation 2026
With the sixth round of Moneyval assessment scheduled for 2026, Andorra is preparing to present a robust system that balances growth in foreign investment with strict oversight. Uifand emphasizes the importance of ensuring the traceability of the actual owners of companies to prevent fraudulent uses and promote clean economic development.
Main Sectors and Investor Profile
The most frequent investments in recent years have been concentrated in key sectors for the Andorran economy:
- Services provision
- Wealth management
- Real estate development
- Significant income in the hospitality sector, especially in 2024
Regarding the origin of investors, Spain, France, and Andorra lead the ranking, with a notable increase in capital from the United Kingdom in 2024.
Debates on Foreign Real Estate Investment
The increasing trend of foreign real estate investment, which in 2024 surpassed direct investment for the first time in monetary terms, has sparked debates about its sustainability and impact on the local housing market.
To address these concerns, the Government has implemented fiscal and regulatory reforms aimed at modulating these flows and prioritizing investments that generate added value and real economic activity.
Conclusion
Foreign investment in Andorra has been consolidated within a solid framework of control and supervision, ensuring transparency and preventing illicit practices. For those considering residence, investment, or entrepreneurship in Andorra, it is essential to understand the current regulatory and economic context.
For more information on the fiscal reality or how to establish a company and live in Andorra, you can visit our sections dedicated to taxes in Andorra, living in Andorra, or moving management.