First Home Access Program: Regulations, Requirements and Obligations

Introduction

The Government has approved Decree 381/2025 of October 22, 2025, which establishes and regulates the First Home Access Program under a property ownership scheme. The program aims to facilitate the acquisition of a first permanent and primary residence for individuals who meet certain financial and residency requirements, through a system of state-backed guarantees and interest subsidies.

This program represents a structural housing policy measure designed to improve access to home ownership, encourage residential stability, and consolidate a sustainable housing stock.

Purpose of the Program

The Program’s purpose is to grant a temporary guarantee covering 100% of the mortgage loan required to purchase a home and to fully subsidize the interest payments generated by that loan for the duration of the guarantee period.

The aid applies exclusively to the purchase of the first home intended as the applicant’s habitual and permanent residence within the Principality of Andorra.

Eligibility Requirements

To qualify for the Program, applicants must meet all of the following conditions:

1. Be a natural person of legal age, with full legal capacity, and intend to use the property as a permanent and primary residence.
2. Have resided legally, effectively, and permanently in Andorra for at least seven consecutive years prior to the date of application. Interruptions may be accepted if justified by study, employment, or force majeure.
3. Not own any other real estate property, either directly or indirectly through companies or other legal entities.
4. Have annual income equal to or greater than twice the national minimum wage in effect.
5. Not possess financial assets equal to or greater than 30% of the total value of the property being purchased.
6. Hold a mortgage loan proposal issued by an Andorran banking institution that complies with the Program’s conditions and is accompanied by a favorable preliminary certificate from the bank.
7. Formalize the public deed of acquisition and guarantee within the period set by regulation and occupy the home within a maximum of 24 months from the approval of the application.

Property and Loan Conditions

• Maximum property price: €600,000, including annexes and dependencies.
• Guarantee duration: seven years. During this period, the Government subsidizes 100% of the loan’s interest.
• Loan repayment: during the first seven years, the beneficiary allocates approximately 33% of their income to capital repayment; all interest payments are covered by the Government.
• Repayment terms: a minimum of 20 years and a maximum of 50 years. The applicant’s age must not exceed 80 years at the end of the repayment term.
• Fees and expenses: the loan may not include study or early repayment fees. Notarial costs, taxes, duties, and property valuation fees are borne by the beneficiary.

Use and Transfer Restrictions

The Program imposes strict restrictions to ensure that the property maintains its social and residential purpose:

1. Prohibition on transfer: for seven years from the signing of the guarantee, the property may not be sold, transferred, or otherwise disposed of by inter vivos acts.
2. Prohibition on renting: renting the property, in whole or in part, is strictly prohibited during this seven-year period.
3. Breach of these restrictions: results in the immediate loss of all program benefits, the termination of the guarantee, and the obligation to reimburse all subsidized interest, plus a penalty equal to three times the amount of such interest.

After the seven-year period, any sale or rental carried out within the twenty years following the formalization of the guarantee still triggers the obligation to repay all subsidized interest and the corresponding penalty.

Additionally, the Government retains a pre-emptive right to purchase the property for twenty years after the guarantee is formalized. If this right is exercised, the purchase price is reduced by the total subsidized interest amount plus accumulated statutory interest.

Consequences of Non-Compliance

Failure to comply with the obligations arising from the Program—whether financial or related to the use or purpose of the property—results in the loss of all benefits, termination of the guarantee, and the obligation to repay all subsidized amounts, including the applicable penalties.

In cases of serious or intentional breach, the Commission may impose additional penalties, and the Government may take legal action to recover the amounts owed.

Exceptions are only permitted in cases of duly proven force majeure, subject to express approval by the Technical Housing Commission.

Conclusion

The First Home Access Program is a public policy instrument that enables many residents to become homeowners under favorable conditions. However, it involves firm commitments and strict restrictions that must be fully understood before applying.

Failure to comply with these conditions may result in significant financial penalties, including the obligation to repay all subsidized interest multiplied by a statutory penalty.

For this reason, it is essential to read the regulatory decree carefully and ensure full compliance with all requirements before submitting an application.

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