New Measures for Passive Residents in Andorra
The Government of Andorra is working on a proposal to update the conditions for residency in Andorra for passive residents, that is, those who do not engage in lucrative activities within the country. The main change involves increasing the initial required investment from €600,000 to €800,000. Additionally, the return of the bank and insurance deposit is proposed, which had been eliminated with the enactment of the omnibus law.
Why are these measures being taken?
The goal of these measures is to reduce the current tension in the Andorran real estate market and to facilitate better access to housing for regular residents. These policies aim to balance demand and prevent mandatory investment in real estate from exerting pressure on prices and housing availability.
Proposals and Debates in the Consell General
The opposition parliamentary group, Concòrdia, has proposed a bill to prohibit residents without lucrative activity from using the mandatory investment to purchase real estate. They even suggest raising the minimum investment to one million euros to ease real estate pressure and improve housing access for Andorran citizens.
The Minister of Presidency, Economy, Labor, and Housing, Conxita Marsol, has stated that the government is working on a proposal to eliminate that real estate investment and that they already have a near-final draft. However, she laments the lack of prior dialogue in how these proposals are presented.
Political Positions and Dialogue
Concòrdia asserts that they have the law ready, and during a session of the Consell General, Prime Minister Xavier Espot expressed willingness to dialogue and reach an agreement due to the importance and concern about the country’s growth. However, Minister Marsol was surprised by the quick announcement of Concòrdia’s proposals without consultation.
Meanwhile, Jordi Jordana, president of Demócrates, also expressed surprise, highlighting the Prime Minister’s willingness to open a dialogue with all groups.
What does this new regulation mean for those wishing to reside in Andorra?
These new rules could significantly change the financial requirements for obtaining passive residency in Andorra. Currently, interested parties must make a minimum investment of €600,000, which could be raised to €800,000 or even €1 million according to ongoing proposals. It is important to note that the investment can be in financial products, with the bank deposit being returned, thus broadening options beyond real estate restrictions.
- Increase of the minimum initial investment for passive residents.
- Return of the bank and insurance deposit for investments in financial products.
- Restrictions on real estate investment to prevent housing market inflation.
- Open political debates on the final amount of mandatory investment.
Market Balance and Outlook
The increase in minimum investment and limitations on property purchases for passive residents aim for a more balanced market. The demographic growth in Andorra generates high demand for housing, which raises prices and makes access difficult, especially for Andorran residents who live and work in the country.
The situation has motivated the government to propose new investment options that attract passive residents while helping to reduce real estate pressure.
Measures to Foster Integration of New Residents
Besides economic measures, the parliamentary group Concòrdia has proposed a law to promote integration and welcoming of newcomers to Andorra. Initiatives include a reception service providing information about residency rights and obligations, healthcare and educational services, as well as administrative guidance.
Activities such as cultural events and excursions are also planned to familiarize new residents with the language, institutions, and culture of Andorra, promoting social cohesion and respect for local identity.
Proposed Services for Integration
- Information on residency rights and obligations.
- Guidance on healthcare and education systems.
- Assistance with administrative regulations.
- Cultural excursions to explore territory and heritage.
- Catalogs of associations and events for social participation.
Conclusion: Adapting to New Residency Norms in Andorra
If you plan to relocate and establish your residency in Andorra, it is important to keep these changes in requirements and regulations in mind. The increase in initial investment and restrictions in the real estate market reflect a strategy to maintain quality of life and economic stability of the Principality.
Staying well-informed and advised will help you adapt your moving or investment project to the current context. At Andorraway.com, we have resources and expert guidance to assist you with all aspects related to residency, taxation, and life in Andorra.
For more information about residency, taxes, and daily life in Andorra, visit our section on living in Andorra and discover all the details you need for a successful move.