ANDORRA Law and Practice Contributed by: Oriol Giró, Laia Bertran, Yaumara Toledo and José Luis Andrés, Emindset Law Firm
Emindset Law Firm Edifici Prat de la Creu, Bloc A, 4t 1a Carrer Prat de la Creu 59–65 AD500 Andorra la Vella Andorra Tel: +376 728 882 Email: contact@emindsetlaw.com Web: www.emindsetlaw.com
1. Legal System 1.1 Legal System and Judicial Order
old also require approval. Direct and indirect hold - ings are aggregated. Real estate investments always require prior approval, subject to limited inheritance and matrimonial-property exceptions. Applications are assessed against public order, national security, economic stability, environmental, housing, labour- market, public-health and anti-money laundering con - siderations. Real estate acquisitions are quantitatively restricted, while property development and tourist accommodation investments are subject to specific prohibitions or conditions. Regulated sectors, includ - ing finance, insurance and telecommunications, may require additional sector-specific approvals. 2.2 Procedure to Obtain Approval and Sanctions for Non-Compliance Foreign investors must submit a prior-authorisation application to the competent ministry, either directly or through an authorised representative. The filing must identify the investor, beneficial ownership and proposed investment, and include supporting cor - porate and transaction documents. Individuals must generally provide a valid passport and criminal-record certificate, duly legalised or apostilled as applicable. Additional documents may be required depending on whether the investment concerns a company, share - holding or real estate. The statutory decision period is two months, extendable by one further month, and the investment may only be completed after approval. Unauthorised investments may be declared null and void.
Andorra’s civil-law system is based primarily on the Constitution of 1993 as the supreme legal norm. Its private law has also been influenced by both Roman law and Catalan legal traditions. Case law is not for - mally binding, although decisions of the higher courts are highly persuasive. The Batllia is the main first-instance court for civil, administrative and certain criminal matters, while the Tribunal de Corts primarily hears serious criminal cas - es. Appeals are generally decided by the High Court of Justice. The Constitutional Court, which is separate from the ordinary judiciary, reviews constitutional mat - ters and protects fundamental rights. Once effective domestic remedies have been exhausted, individuals may also bring an application before the European Court of Human Rights concerning an alleged vio - lation of the European Convention on human rights attributable to Andorra. 2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments Foreign investment in Andorra is generally subject to prior administrative authorisation by the Andorran Government. Approval is required for incorporating or acquiring interests in Andorran companies, estab - lishing branches or permanent establishments, and acquiring more than 10% of a company’s capital or voting rights; subsequent changes above that thresh -
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