Andorra FDI Surges 219% to 968M Euros in 2025, Led by Real Estate Boom

Foreign direct investment declarations in Andorra reached 967.9 million euros in 2025, a 219.2% increase from 303.2 million euros in 2024, according to A140 data released Monday by the statistics department. The figure included 1,352 applications—a 4.3% rise—with 1,218 approvals, 89 rejections and 22 lapses. Four major applications alone totalled nearly 444 million euros.

Real estate drove the surge, with 843 foreign transactions valued at 514.3 million euros, up 35.6% in value and 55.5% in volume from 542 deals the previous year. Spain topped the list with 400 operations worth 197 million euros, followed by France with 146 deals at 108.4 million euros. Since the 2012 economic opening under Law 10/2012, such activities have involved 6,342 operations totalling 2.281 billion euros. Approved applications pointed to potential investments of 925 million euros—more than triple the prior year's—with real estate requests rising from 294 to 390 and their value jumping from 102.5 million to 641.2 million euros, or two-thirds of the total.

The boom followed the end of Law 16/2023's moratorium on foreign real estate purchases in early 2024. Subsequent measures included Law 3/2024's tax on such investments and extension of foreign procedures to residents with less than three years in the country, plus Law 5/2025 on sustainable growth and housing, which applied similar rules to non-residents. Notarized deals increased 36.2% to 703, though their value dropped 21.6% to 118.3 million euros.

On Tuesday, APTA president Josep Duró and secretary Jordi Cerqueda called for tighter controls on foreign real estate investment during a news conference in Andorra la Vella. They argued the 2012 opening was poorly managed and allowed damaging operations, leaving the country in a corrective phase. Duró attributed rising property sales to legal uncertainty pushing owners to offload assets, disadvantaging local entrepreneurs against international funds. "We cannot keep selling another inch of land," he said, adding he opposed "selling the country." They advocated selective investments aligned with national needs, greater local involvement in foreign projects to ensure long-term gains, and higher barriers like Switzerland's 30% fees versus Andorra's 6%. Cerqueda stressed newcomers must earn their place: "The person who comes has to work for it and pay that interest." They rejected border closures as unfeasible but urged emulating restrictive models in Switzerland and Monaco, while favouring high-value sectors over labour-intensive growth. Cerqueda warned population would follow economic demands: "If the economy requires 150,000 people in Andorra, they will come," cautioning against overbuilding vacant homes.

Concòrdia echoed these concerns, demanding a temporary suspension of foreign real estate investments after the data showed over 500 million euros invested and a 55% operations rise. The party criticised government omnibus laws for failing to curb speculation threatening housing access and constitutional rights. Since the legislature began, Concòrdia has seen four proposals rejected: higher taxes and exclusion zones in the foreign investment law; a halt to new urbanisation licences; direct tax changes against speculation; and immigration law tweaks limiting property buys by non-working residents. It seeks to cap non-resident foreign purchases at one property, prioritise permanent residential use, and redirect funds to productive sectors for economic diversification and social cohesion.

Opposition parties intensified criticism Tuesday. The Partit Socialdemòcrata (PS) called the data proof of government failure, urging bold limits on foreign investment and dismissing current measures as revenue-focused rather than restrictive. PS deputy president Pere Baró said: "They show the absolute failure of Demòcrates in trying to curb foreign real estate investment... We need to stop it for real, bravely." Andorra Endavant took a cautious stance, planning parliamentary questions after reviewing the figures.

Housing pressures tie into broader trends. A Spanish outlet highlighted Andorra's appeal to Latin American migrants due to easy residency via digital economy laws and Decree 212/2023, alongside fiscal advantages and security—though this fuels local debates on affordable housing and rent de-freezing for 2027-2030. CEA president Gerard Cadena recently called for labour from other continents amid European shortages, drawing rebukes from Unió Sindical d’Andorra for prioritising wage improvements over undercutting conditions. Q4 2025 immigration data showed cross-border worker permits up 62.7% to 83, with active permits hitting 60,284 by year-end, a 2.4% gain. Real estate debt comprised 40% of Crèdit Andorrà's 2024 private credit within 5,517 million euros total private debt, against national liabilities nearing 6,858 million euros—or 1.82 times GDP.