Law 3/2024 on the Tax on foreign Investment in Real Estate and Decree 76/2024 on the Regulation on the Tax on Foreign Investment in Real Estate

On February 1, 2024, the General Council approved Law 3/2024, of February 1, on the tax on foreign real estate investment in the Principality of Andorra (hereinafter “Law 3/2024”) which was published in the Official Gazette of the Principality of Andorra on February 28, 2024. The aforementioned Law has been promoted by the Government of Andorra with the aim of establishing a tax that will tax foreign investments in real estate, which until now were suspended under Law 16/2023, on the temporary suspension of foreign investment in real estate in the Principality of Andorra. Additionally, Law 3/2024 modifies and specifies some concepts contained in the current Law 10/2012, on foreign investment in the Principality.

At the same time, on February 29, 2024, Decree 76/2024, of February 28, was published in the BOPA, on the Regulation of the tax on foreign real estate investment in the Principality of Andorra (hereinafter “Decree 76/2024”). This Regulation develops the application of this tax, as well as its declaration modalities. At the same time, it regulates, among other aspects, the declaration procedures, the forms of settlement, the payment modalities and refunds, as well as the procedures for taking advantage of the tax benefits established in Law 3/2024.

From Crowe Andorra we want to summarize the main new features contained in the aforementioned Law and Regulation.

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