30 - July / 2019

The volume of foreign investment increased 84.3% last year and multiplies by six the figures of 2013

The number of foreign investment applications formalized (authorized and formalized before an Andorran notary), in 2018 presents a variation of -17.1% (-104 applications). However, the volume of formalized investment grows 84.3% over the previous year to reach 152 million euros and multiplies the figures recorded in 2013 (almost six times more), according to the latest report of the Statistics Department of the Government of Andorra.

The total number of applications filed in 2018 represents a variation of -13.3% with respect to the previous year. Even so, the volume of initial investment declared reflects a variation of +26.7% with respect to 2017 and reaches almost 180 million euros.

Foreign direct investments correspond to corporate operations that require prior authorisation, such as the incorporation of a company, the acquisition of more than 10% of shares or holdings in an Andorran company, the modification of corporate objects and the capital increases. In view of this, the Administration has one month to resolve the request through affirmative administrative silence. Although there was already a regulation of foreign investment in the Principality of Andorra, before 2012, it is with the entry into force of Law 10/2012 of 21 June that the process of economic opening culminates.