How Law Omnibus 5/2025 concretely promotes access to the first home in Andorra

The new legislation aims for a real revolution in the housing market, especially aimed at those who find it hardest to access their first residence. Here's how these measures are concretized and what they mean:

1. Exemption from the Property Transfer Tax (ITP) up to €600,000

• What does it do? Those who allocate a property as their first residence, with a maximum value of €600,000, will be exempt from paying the ITP.
• Objective: Reduce initial purchase costs, mainly for young people and families with limited resources, facilitating their first step into property ownership.

2. Income Tax deductions for acquisition expenses

• What does it mean? People buying their first home can deduct up to 50% of related purchase costs on their income tax declaration, with a maximum of €5,000 per year.
• Who benefits? Ideal for those with low or moderate incomes who face financial barriers to accessing their first home.

3. Programs to promote affordable housing

• What does it establish? In new real estate projects, at least 50% of the units must be at moderate prices.
• Impact: More young families and vulnerable groups will be able to buy housing in zones with responsible and sustainable urban planning.

4. Support in financing and rehabilitation aid

• What is offered? Favorable mortgage programs with low interest rates and aid programs for renovating old homes.
• Benefit: Easier access and lower costs for obtaining a dignified first home.

5. Restrictions on secondary market purchases by foreigners

• What does it entail? Large-scale property purchases by investors or foreign capitals are limited, restricting acquisition to one single-family home or two floors.
• Why? To ensure property is primarily prioritized for residents and to prevent concentration influencing prices.

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