Andorra Tightens Foreign Investment Rules Requiring Economic Benefits

Andorra has tightened its rules on foreign investment, now requiring projects to deliver clear benefits to the local economy.

Recent laws and decrees, in force since this year, mark a shift from near-total openness to a stricter vetting process based on measurable criteria. Authorities will reject proposals that fail to add value to the national economy.

A recent case, shared publicly on social media, illustrates the change. Officials denied a foreign investment request after review, stating that it lacked any significant commitment to the Principat and offered no active contribution to the local economy. The decision warned that such a project would distort the country's economic fabric.

The rejection letter further explained that approving it could harm the exercise of public authority, national sovereignty and security, public and economic order, or the general interest of Andorra.

This approach ensures foreign capital supports rather than undermines domestic businesses and priorities, according to government criteria. No further details on the specific project or investor have been released.