Andorra Approves 6 More First-Time Homes, Total Hits 20 of 25

The Andorran government has approved six additional applications under its first-time homeownership programme, bringing the total to 20 out of 25 dossiers processed since the initiative launched five months ago.

Government spokesperson Guillem Casal highlighted the milestone during a press briefing following Wednesday's Council of Ministers meeting. He noted that two applicants withdrew their requests, while three remain under review. Around 50 people across these 20 families stand to benefit, with average annual incomes of €58,999—below the national median salary for 70% of recipients. Casal emphasised that this shows the scheme targets societal groups facing the greatest barriers to homeownership.

The average purchase price for approved cases comes to €397,829.80, with the government committing over €500,000 so far and a total subsidised amount exceeding €1 million across all approvals.

Under the programme, the government covers all mortgage interest payments for the first seven years at Euribor plus 0%. Thereafter, rates shift to Euribor plus 0.50% for the remainder of the loan, which can extend up to 50 years. This structure allows buyers to focus payments on principal repayment early on, enhancing long-term affordability.

Eligibility requires at least seven years of legal, effective and permanent residency in Andorra, no existing property ownership domestically or abroad, and assets below 30% of the home's value. Properties are capped at €600,000, with no down payment needed. Applications involve bank solvency checks, valuation by the National Housing Institute, and finalisation via notary deed among the buyer, bank and government.

Casal described the programme as successful despite criticism, aligning with broader efforts to address housing challenges and promote residential stability.