ANDORRA Law and Practice Contributed by: Elena Redondo, Albert Hinojosa and Marc Ambrós, Cases & Lacambra
accredited that they fulfil the requirements to be classified in the five-star category. Act 42/2022, 1 December, of the digital econ - omy, entrepreneurship and innovation has also been passed and it establishes, among others, the legal framework for co-living and co-working spaces in Andorra. The real estate market in Andorra has recovered from the COVID-19 pandemic and is no longer impacted by it. Notwithstanding the above, the real estate mar - ket in Andorra has been impacted by the rising inflation and increases in interest rates, through the increase of the construction costs which caused some works to be temporarily suspend - ed, and the increase of the financing costs which caused some projects to reduce the amount financed by third parties and increase financing by equity partners. 1.3 Proposals for Reform The Andorran government is working on a law proposal to modify the current regulations regarding urban planning and development to substitute the current Act and adapt it to the actual circumstances of the country and the sec - tor. The actual regulation is from the early 2000s.
• a co-ownership, which is the right owned by more than one person over real estate; or • in a condominium ( propietat horitzontal ), the ownership of common premises is shared by the plurality of owners of each unit that makes up the apartments. On the other hand, the property right could be understood as a limited right. Therefore, in Andorran law, the following rights are recognised as limited property rights: • leasehold, which is the temporary right that includes the ability to build on the ground or in the subsoil, and the right to overhang, with the right to appropriate what has been built for a specific period; • beneficial interest, which is the right by which a person can use the property of another and enjoy its benefits, with the obligation to preserve and take care of it; and • emphyteutic lease, which is the right by which the useful domain of a real estate property is given for a period by the payment of an annual pension, whereby the assignment is made as recognition of the useful domain of the property. 2.2 Laws Applicable to Transfer of Title Titles are transmitted by the theory of the title and mode. This theory is a system of transmis - sion of ownership that requires the conclusion of an agreement, the subsequent delivery of the real estate to be transmitted, and proof before a public notary, without any aspect being enough separately. Depending on the activity to be carried out with the real estate, attention should be paid to administrative regulations. Depending on the economic sector (residential, industrial, offices, retail and hotels), different types of real estate
2. Sale and Purchase 2.1 Categories of Property Rights
The right of property can be understood as a full right or a limited right. In Andorra, the right of property understood as a full right could be: • an absolute freehold, permanent and absolute tenure of land or property, with the freedom to dispose of it at will;
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