Andorra Opposition Slams Demòcrates' Tax on Expat Property Sales

Andorra's parliamentary opposition has sharpened its criticism of Demòcrates' push to impose foreign real estate investment taxes on non-resident Andorran nationals selling overseas properties, amid ongoing disputes over housing shortages, nationality rules, and rental market reforms.

The proposal, advanced through amendments to the "Ómnibus 2" continuity law, would scrap current exemptions in the tax regime, subjecting those sales to a levy set to double in rate. Demòcrates argues this provides legal clarity amid potential rises in disputes. Concòrdia leader Cerni Escalé labelled it shortsighted, noting Andorra's struggle to attract back expatriate talent—especially young graduates and seasoned workers—in a rental market too strained to support returns, leaving home purchases as the main option. He accused the plan of diluting national identity by treating citizens like outsiders, favouring foreign land buyers, and aligning hastily with EU rules on capital flows without public input. Andorra Endavant president Carine Montaner called it a fundamental misstep, insisting non-residents remain Andorrans with enduring family, social, and economic links, and deserve prioritisation in a pressured property sector rather than penalties. The PS, via deputy president Pere Baró, signalled openness to review but stressed tax obligations should depend on residence, not nationality alone.

Nationality law amendments underscore deep rifts. Demòcrates and coalition partner Ciutadans Compromesos prioritise tighter oversight, refining residency definitions, civic standards, criminal record exclusions, and deadlines for proving prior nationality renunciation. Ciutadans Compromesos adds flexibilities like 10-year residency for Andorra-educated applicants and safeguards for expatriate families' children. Concòrdia seeks 15 years' residency, B2 Catalan proficiency, integration evidence, dual nationality protections, and anti-statelessness rules. The PS pushes 10 years' residency, acceptance of unavoidable dual nationality, longer provisional periods, and expatriate family protections, deeming the government bill too rigid for modern interconnections. Andorra Endavant demands 20 years' residency, automatic revocation for unrenewed criminal checks or dual nationality, stricter marriage pathways, honorary nationality by two-thirds parliamentary vote for exceptional cases, and repeal of birthright citizenship for children of foreign parents.

Separate tensions surround a pending rent thaw law. During Sant Tomàs events and the Casa de la Vall reopening, opposition figures voiced frustration over leaks preceding parliamentary or stakeholder consultation. Escalé criticised the closed drafting, bypassing the Economic and Social Council and key actors like unions and businesses, urging dialogue first. PS leader Susanna Vela said no text or briefing had reached them, viewing leaks as a test of sector reactions. Montaner demanded bills go to lawmakers before public release, as people's representatives. Ciutadans Compromesos' Carles Naudi cautioned that leaks may not match the final version, advocating balance for landlords enduring freezes and tenants' housing rights. Demòcrates stressed awaiting the definitive draft.

Opposition also raised urban planning concerns, with Escalé opposing high-rises in narrow valleys and calling for parliamentary input on height limits. Others noted existing commissions and local commune powers.

These issues overlap with Entry/Exit System preparations, set for Schengen rollout by 10 April 2025. Ministers Imma Tor and Ester Molné assured lawmakers of sustained random border checks, Schengen database use for overstays and risks, no queues, provisional permits, and controls on irregular workers via 1,452 inspections since July—yielding 64 statements, 11 revocations, and 54 cases. As of 18 December, authorisations totalled 4,445, down from 4,656 in 2024.