ANDORRA Law and Practice Contributed by: Elena Redondo, Albert Hinojosa and Marc Ambrós, Cases & Lacambra
cap being from a limited percentage of the price to the full price. 2.6 Important Areas of Law for Investors The most important areas of law for an investor to consider when purchasing real estate could be: • civil law, to have the base knowledge of property rights and the different charges and encumbrances that the real estate could have; • administrative law, in order to know the regu - lations pertaining to planning and zoning; and • tax law, to use the most beneficial tax struc - ture to acquire the real estate. 2.7 Soil Pollution or Environmental Contamination In accordance with Andorran legislation regard - ing civil liability, the liability for others’ actions must be considered. In this sense, the buyer of the real estate shall be liable for any soil pollution or environmental contamination of real estate, even if it is not attributable to said buyer. The liability for others’ actions allows the buyer of the real estate to claim the necessary expens - es to compensate for the damages against the seller since they had responded previously when it did not belong to them. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law A buyer can ascertain the permitted uses of a parcel of real estate under the applicable zon - ing and planning law by consulting the Andor - ran official gazette ( Butlletí Oficial del Principat d’Andorra – BOPA), where the permitted uses for a plot or zones are published.
It is possible to enter into a specific development agreement with relevant public authorities to facilitate a project relating to, eg, the execution of a project of national interest or local sectorial plans, a project concerning the construction of roads and communications infrastructure, or the execution of the hydraulic and energy policy. 2.9 Condemnation, Expropriation or Compulsory Purchase In Andorra, there is a law of compulsory expro - priation. The procedure first requires the prior declaration of the public utility of the construc - tion project and necessitates the occupation of the property or the acquisition of the affected economic rights. In order to carry out the expro - priation, the expropriator must develop a file, which is public information and be published in the Andorran official gazette. Later, the govern - ment transmits the entire file to the Andorran Parliament ( Consell General ), with all the obser - vations and objections received, attaching a report suggesting the approval or denial of the declaration of public utility and the necessity of occupation. The Andorran Parliament makes the final decision, which has to be published in the Andorran official gazette and is directly enforce - able. In addition, Act 5/2025 has introduced a spe - cial regime for empty homes ( habitatges buits ). This Act provides for the compulsory transfer of the right to use empty homes to the Andorran government for a maximum period of five years, which will incorporate them into the public hous - ing stock for rental at affordable rates. The owner will receive financial compensation equivalent to an affordable rent amount. According to the Act, a dwelling is considered empty if (i) there is no electricity or water supply, or, despite having it, there is no energy or water consumption for the 18 months preceding the entry into force of Title
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