In a tight session on Thursday, the General Council of Andorra confirmed the temporary suspension of foreign investment in real estate. The proposal secured support from 23 of the 28 parliamentarians, with only three members from Andorra Endavant voting against. During the debate, tensions arose between the ruling bloc and opposition factions as they debated the scope and consequences of this measure.
Conxita Marsol, who holds the portfolio for Presidency, Economy, Labor and Housing, defended the 2008 foreign investment law as a pillar for a more diverse and sustainable Andorra. Marsol noted that changes introduced in 2012 signaled a significant economic shift that helped create wealth even amid a crisis, while acknowledging that some effects—such as real estate speculation—have become undesirable in the housing market. She emphasized the need for a comprehensive legislative overhaul, including an international real estate investment tax, to address these challenges.
From the initial tax reliefs and the regulatory impasse, the government opted for a moratorium that Marsol describes as temporary and time-limited. Yet members of Andorra Endavant and the Liberal party remained skeptical and warned against treating all foreign investment as a monolith. Concòrdia and the Social Democrats urged that the moratorium stay in place not only until a tax measure is enacted, but until a broad amendment to the law is finally approved and implemented.
The General Council session occurred mere hours after a press conference where the Col·legi d’Agents i Gestors Immobiliaris (AGIA) voiced its concern, saying the stance could destabilize the sector. Gerad Casellas, head of AGIA, warned that the moratorium would have far-reaching consequences for the industry and warned that the changes to the law could introduce legal uncertainty. This uncertainty, he argued, might deter investment and lead to a loss of clients.
AGIA representatives were asked whether foreign buyers are predominantly speculative and whether the proposed leasing restrictions would dampen demand. Casellas contended that the government’s approach may be misdirected, suggesting that free market dynamics and self-regulation could be more effective in stabilizing prices rather than heavy-handed political interventions. He argued that intrusive policies on leasing could chill potential purchases and cited concerns about overregulation harming the real estate market’s fundamental balance. In this view, a measured approach that respects market signals and property rights would better support long-term stability in Andorra’s housing sector.