Andorra Approves Ómnibus Law 2 and 2026 Budget Amid Housing and Tourism Clashes

The Consell General approved the Bill on Continuity and Consolidation of Sustainable Growth Measures—known as "Ómnibus Law 2"—and the 2026 state budget on Thursday, with 16 votes from the governing majority overcoming 8 opposition votes against. The session rejected all opposition amendments amid heated debates on housing restrictions, foreign investment rules, immigration controls, and tourism funding.

Housing Minister Conxita Marsol opened discussions by highlighting achievements under the original Sustainable Growth and Right to Housing Law from March 2025, which limited foreign purchases, banned sales-only developments, and stopped new tourist apartment licences. Within a year, 340 tourist units in buildings where they comprised less than 30% of stock converted to residential rentals. Collaboration with local councils and electricity firms identified over 800 vacant properties, urging owners to list them or face state acquisition. Marsol called the law a blueprint for tackling the housing shortage and outlined upcoming rent market reforms for March.

Ómnibus Law 2 imposes stricter measures: passive residency demands a €1 million investment—or €800,000 in property—plus a €50,000 non-refundable payment to social or housing funds. Foreign self-employed workers match this fee, excluding qualified experts. Family reunification faces stricter checks, with automatic permit revocations for breaches. Temporary staff can now shift roles within their firm or group. Foreign property taxes rise to 6% on the first unit and 10% on subsequent ones. Authorities may halt land-intensive commercial ventures with low local economic benefits.

Opposition efforts failed. The PS called for an affordable housing law on rentals and sales within six months; Pere Baró accused the bill of neglecting housing and enabling speculation. Concòrdia sought permanent bans on foreign investment permits over 49% overseas capital in property companies, sparing pre-approved projects above €1 million with major construction permits. Núria Segués noted locals competing with affluent foreigners for €300,000-€400,000 apartments; Cerni Escalé warned thresholds could inflate prices and hinder EU association negotiations, while criticising ongoing foreign real estate access. Demòcrates' Maria Martisella raised legal concerns and supported managed immigration. Andorra Endavant's Noemí Amador backed worker flexibility but lamented rejections like revoking family permits for youth offences.

Budget disputes centred on Concòrdia's push to cut Andorra Turisme's €24.6 million allocation by €10 million—around 40%—to fund housing, innovation, a tech park, tram studies, anti-loneliness efforts, and paternity leave. Escalé and Segués deemed the agency duplicative and opaque, a view shared by the PS. The majority, with Andorra Endavant, voted it down. Finance Minister Ramon Lladós warned cuts would jeopardise events, businesses, jobs, and tourism's 60% GDP share, generating €2.7 billion in 2025 revenue. Demòcrates' Meritxell López cited 12 million overnights that year—30% above 2019—plus €5 million in tourist taxes and ongoing audits. Ciutadans Compromesos' Carles Naudi called the idea harmful; Andorra Endavant's Carine Montaner credited the agency for post-pandemic recovery.

Tourism leaders echoed these concerns post-vote. Unió Hotelera president Jordi París hailed the rejection as bringing "tranquillity" to maintain planned projects, praising Andorra Turisme's promotion amid optimal visitor numbers and desestacionalisation efforts targeting higher-spending tourists from distant markets. Speaking from Fitur 2026 in Madrid, where Andorra featured 19 companies under the "Eleva la teva experiència" branding, París called Concòrdia's proposal "surprising" and sought a meeting to understand its basis and tourism vision. He stressed sustained investment stabilised the sector after 2023 recovery, warning abrupt cuts risked long-term visibility and contacts, including new Latin American leads from Mexico, Colombia, Brazil, Puerto Rico, and the Dominican Republic. Unnic's Pedro Moran reported 15 quality meetings in two days, affirming Andorra's strong brand presence; Grandvalira sources noted gains in high-value international markets.

The €710 million revenue, €750 million spending budget—up 12%—emphasises housing (€16 million plus subsidies), health, education, infrastructure, and digitalisation, bolstered by a €60 million 2025 surplus that trimmed debt to 30% of GDP. Critics flagged its operational weight (86%) and tourism reliance amid 6% recent and 19% yearly price hikes. PS and Concòrdia rejected both bills, with Baró and Escalé faulting weak housing action and market strains. External advisors termed passive residency increases "populist," foreseeing EU frictions. Marsol committed to tweaks for equitable growth and cohesion, including rent changes.