ANDORRA: Implementation of New Law on Andorra Foreign Investments

Friday August 17 2012

It has been reported that Andorra has recently implemented a new law to liberalize Andorra foreign investments in Andorra and to open its economy..

Under the new law, foreign individuals wanting to exercise a profession in Andorra will no longer be required to have been resident in Andorra for at least 20 years, provided there is a reciprocal agreement between Andorra and the relevant foreign country.

Nevertheless, a system of authorizations from the administration still applies. Prior authorizations are required for foreigners to own property in Andorra, unless they are individuals resident in Andorra. All investments in at least 10% of the capital or voting rights of an Andorran firm also require prior authorization. Quantitative restrictions on ownership of real estate by foreigners (previously no more than two flats per individual) will be abolished. Portfolio investments do not require authorization, but they must be reported to the registry of foreign investments in the event they are in substance akin to direct investments.

This information will be updated as more details become available