Moratorium on residential investment and Catalan language test: new requirements for residence permit applicants in Andorra
Over the past few years, Andorra has been the subject of much attention from foreign investors, including those seeking residence permits. However, recent legislative changes and initiatives by the Principality's government are making the process more complex.
Combating the shortage of properties on the market
The Andorran Parliament on foreign investment in residential real estate. The measure is intended to address the shortage of affordable rental housing in the country. It is also the first step towards the introduction of a tax on foreign investment in real estate, which is expected this fall.
The moratorium has the support of the majority of MPs (23 out of 28), but not all agree on its duration. Some MPs insist that the moratorium should be temporary, while others demand that it be in place until a global modification of the Foreign Investment Law is approved.
The real estate sector has expressed concern over the initiative, arguing that it creates legal uncertainty and could scare away potential investors.
Popularization of the official language
From 2024, applicants for and holders of residence permits will have to pass a test for knowledge of the Catalan language. This measure is aimed at preserving the official language of Andorra, which is gradually being replaced by Spanish and French.
This is not the first tightening of requirements for foreigners wishing to obtain a residence permit in Andorra. From the beginning of 2023, businessmen, investors, and professionals intending to work or create a company in the country must make a significant deposit (€50 thousand instead of the previous €15 thousand). In the case of a residence permit without the right to work, the amount has increased from €400 thousand to €600 thousand.
It is important to note that these changes may affect the investment strategies and plans of those considering Andorra as a place to invest and obtain residence permits. Potential investors and residence permit applicants should carefully review the new requirements and plan their actions accordingly.