Global Daily Tax News, Andorra Planning Tax Hikes To Ease Housing Pressures, (Aug 22, 2025)

Andorra has announced plans for new tax relief measures to encourage the construction of affordable rental housing.

Outlining the proposals, Housing Minister Jordi Puy said the Government is planning exemptions from fees and taxes on construction activities, as well as a waiver of economic urban transfer taxes. The measure will only affect housing intended for rental, where at least "a good part" of the housing is rented at affordable rents, the Minister said.

Puy also discussed the Government's plan to tax empty homes at a rate of EUR100 per square meter. The Minister said the measure has already encouraged owners to rent properties or sell, despite not being implemented yet. The Minister also discussed a proposal to provide for the temporary transfer of empty apartments to the Government, with the rents collected passed on to owners.

Other proposals discussed include new levies on real estate speculation, restrictions on foreign investment, and the suspension of new licenses for "tourist-use homes".