The Law for Sustainable Growth and the Right to Housing, known as the Ómnibus Law, was approved by the General Council of Andorra on March 6, 2025. Its goal is to address the housing crisis, regulate foreign investment, and promote balanced urban development.
Key dates of entry into force
- Publication in the BOPA: no later than 28 March 2025
- General entry into force: 15 days later, expected 18 April 2025
- Mandatory release of vacant housing: October 2025
- Conversion of tourist housing into residential: between 2028 and 2030, depending on the accommodation category
Main measures
Limitation on foreign investment
- Non-residents may only acquire 1 chalet or 2 apartments.
- New developments must allocate at least 50% to affordable housing.
Anti-speculation measures
- Additional capital gains tax of 10% if sold within 2 years, and 5% if sold between 2 and 5 years.
- Tax on vacant housing doubled: €100/m² per year.
Tourist-use housing
- Granting of new licences is restricted.
- Existing licences must be renewed every 3 years.
- They must be converted into residential rentals between 2028 and 2030.
Taxation
- New IRPF deduction for the purchase of a main residence: up to €5,000 (50%), applicable from the 2026 campaign.
Mandatory release of vacant housing
- Owners will have 6 months (until October 2025) to rent out the homes or transfer them for a period of 5 years.
Immigration
- Permits will be limited for subcontracted non-EU workers, who must leave the country upon completion of their contract.
Possibility of a constitutional appeal
The Andorra Endavant party has proposed challenging the law before the Constitutional Court, although it would need support from PS or Concòrdia, who are not expected to join the initiative.
The Llei Òmnibus represents a major shift in housing policy and the conditions for investing in Andorra. Given the complexity of the new legal framework and its impact on investment, taxation, and housing access:
We recommend consulting a legal or tax specialist in Andorran real estate to accurately assess how these measures may affect you and to ensure compliance without surprises.
