Andorra Approves 550 Immigration Quotas and Rent Control Phase-Out

Andorra's Economic and Social Council (CES) has issued a favourable opinion on new immigration quotas totalling around 550 permits, which the government will soon submit for ministerial approval. Chaired by Minister of the Presidency, Economy, Work and Housing Conxita Marsol, the CES session on Thursday addressed the package alongside outlines for gradual rent control phase-out.

The quotas comprise 200 permits for passive residency without work—targeting professionals with international profiles, those with scientific, cultural or sports interests, and residents in private geriatric or healthcare facilities—plus 200 for foreign self-employed workers, prioritising liberal professions, authorised doctors and healthcare roles with about 30 slots. An additional 150 general permits (135 residency-and-work and 15 for cross-border workers) advance from the April quota, focusing on groups 1 and 2 of the National Classification of Occupations (management and highly qualified technical/scientific roles) and professionals in healthcare, education and care services. Officials highlighted the reduced scale versus previous rounds, now under the omnibus law replacing the €50,000 deposit with a non-refundable payment to the Financial Authority. These follow exhaustion of prior slots for executives and qualified staff.

Marsol stressed alignment with economic and social needs for sustainable growth and strategic sectors. CEA president Gerard Cadena supported the measures, citing firm demand exceeding quotas and near-depletion of general permits, adding that hiring from origin—starting in Colombia—is advancing for the winter season. Unions voiced concerns: USdA secretary general Gabriel Ubach called for greater sector diversification linked to housing and services capacity, criticising government planning as erratic. SEP spokesman Sergi Esteves opposed passive residency expansion, warning it adds housing market pressure amid instability.

In parallel, Marsol presented draft rent phase-out legislation for about 20,000 extended contracts, aiming for parliamentary submission around mid-March, following seven parish meetings with owners and Housing Coordinator input. Unfreezing starts in 2027 over four years at 25% annually, beginning with oldest and lowest rents—often €4-5 per square metre from pre-2012 deals. New or renewed five-year contracts would limit annual increases to 1-6% plus inflation (IPC), scaled by current rent: up to 6% plus IPC below €7 per square metre, tapering to 1-4% plus IPC for higher levels. Caps apply even on tenant changes to promote retention, with yearly hikes over five years. Marsol described it as progressive and protective, with CES feedback expected in early March and parliamentary briefings next week.

Reactions varied. Cadena deemed CES review premature without the full text, favouring a broad analysis. Ubach warned of social conflict, arguing long-term tenants—elderly or families in decades-old homes—face eviction risks without rehousing in a tight market, estimating €250-300 monthly rises on mid-sized flats over five years; he announced USdA meetings with the Housing Coordinator and potential protests, stating "if we have to take to the streets, we will." Esteves sought pre-2027 controls, a property registry for rent history checks, extensions to market deals via reference prices, and anti-fraud measures beyond tenant complaints. Concòrdia leader Cerni Escalé called increments on higher rents "out of place," urging freezes above market thresholds and tenant priority rights except in exceptional cases like non-payment. Marsol noted the text remains open to adjustments.