Andorra Bans Foreign Investors From Buying Property In Efforts to Tackle Housing Crisis
Andorra, a microstate between Spain and France, is popular for its ski resorts, mild summers and convenient tax breaks, attracting thousands of foreign investors to this ‘tax haven’, AtoZSerwisPlus.com reports.
Real estate prices in Andorra rose by 13 per cent between October 2022 and March 2023, while last year, some 500 real estate applications were approved by the government, with investors buying properties with a value of up to €183 million.
Foreign Investments Banned for Three Months in a Bid to Tackle Housing Crisis
The Andorran government introduced a ban on investments from overseas for three months, to later be replaced by a tax on all foreign property purchases.
The tax revenue will instead be used to build more affordable rental accommodation. The average square metre price in Andorra is higher than in most Barcelona districts, amounting up to €4,700.
On the other hand, Andorrans can struggle to afford to live in their own home country due to a considerably low minimum wage of €1,300, while buying a property in this microstate can be three to four times more than the minimum wage that working-class nationals earn monthly.
The restrictions will apply to non-residents, which leaves space for investors to apply for residency permits. In order to be a ‘passive resident’ in Andorra, one must live there only for 90 days per year. While the permit does not allow a foreigner to be employed by an Andorran-based company, the situation is ideal for digital nomads who generate income globally.
Passive residents must have invested around €600,000 into the country, the majority of which has to be invested in properties, but this requirement can be waived if the subject is earning money abroad.
Ban to Further Push Catalan Language Proficiency Requirements
The recent ban will not only limit investments to Andorra but also make it more challenging for individuals looking to purchase real estate in the country, as there is a language proficiency requirement to obtain a residence permit in the country.
Starting in 2024, residence permit holders in Andorra will have to prove they can communicate in basic Catalan in order to renew their permits. As the country tries to preserve its language, applicants will have to attend a 30-hour Catalan course.
The whole situation has sparked debate and has been criticised by outsiders, with some public personalities even raising questions about Andorra operating as a dictatorship.
For the Employer
Are you looking to Hire? Let us help you find the perfect candidates!
Step 1: Fill out the employer's questionnaire. Please provide us with the necessary details about your job requirements and company. We'll use this information to customise our services for you. Fill in the form.
Step 2: Choose the best offer. Once we receive your completed questionnaire, we'll prepare a tailored proposal for recruitment, employee leasing, or outsourcing services.
Step 3: Welcome your new employee. We'll utilise our extensive network and resources to find the ideal candidate for your business. Please don't worry; we'll ensure favourable conditions for you and the employee.
Take advantage of exceptional talent for your company. Complete the employer's questionnaire today, and let us handle your hiring needs.
For Job Seeker Registration
If you are looking for Truck Drivers, such as our guest today, we would like you to fill out the application form on our website. After reviewing the details of the completed offer, a representative of AtoZ Serwis Plus will contact you and tell you about all the details. Fill in the form.
Would you like some advice? So that you know, the information I've included here is for you to review. You'll always need to consult with your legal and tax advisor(s) and follow their guidance. AtoZ Serwis Plus cannot assist with legal or tax matters. The information presented is not specific to any particular company or workforce nor reflects how AtoZ Serwis Plus products are distributed in any jurisdiction. Instead, it is general. AtoZ Serwis Plus makes no representations or warranties regarding this information's accuracy, completeness, or timeliness. It shall not be liable for any losses from using or relying on it. It is your responsibility to exercise caution when using this information.
