Civil Laws at Andorra
Andorra operates under a civil law system, with a unique blend of influences including Roman law, Canon law, Catalan law, and French law. Its legal framework is primarily based on codified legislation passed by its parliament, the General Council (Consell General). While historical customs play a role, modern legislation is increasingly comprehensive.
Here's a breakdown of key civil law areas in Andorra:
1. General Legal Framework:
Constitution of Andorra (1993): This is the supreme law, guaranteeing fundamental rights and establishing the structure of the state. It recognizes the right to private property and inheritance.
Sources of Law: The law of Andorra includes both statutory law (legislation) and customary law. The Manual Digest (1748) and the Politar Andorrà (1763) are literary sources of customary law.
Judiciary: The Andorran judicial system is independent and includes various courts, from the Tribunal de Batlles (first instance) to the Tribunal Superior de la Justicia (Superior Court of Justice) and the Constitutional Court. Judgments are required to be justified, founded in the legal system, and publicly declared.
2. Family Law:
Constitutional Principles: The Constitution enshrines equality before the law, prohibits discrimination, and states that all children are equal regardless of parentage. It also emphasizes the protection of the family as the basic foundation of society.
Marriage: The civil status of persons and forms of marriage are regulated by law. The civil effects of Canon Law (Catholic) marriage are recognized. Andorran law allows for marriage contracts to establish matrimonial property regimes. If no specific agreement is made, the default matrimonial property regime is the separation of property. Spouses can, however, opt for a system of community of goods through a public deed before a notary.
Same-Sex Partnerships: Same-sex civil partnerships are permitted and recognized, holding the same legal status as opposite-sex marriages in terms of rights and obligations, including tax and succession purposes (though specific legislation might clarify nuances).
Divorce: Divorce dissolves the financial marriage regime. In cases of disagreement, courts decide, taking into account significant economic imbalance after the divorce.
Child Custody and Support: While specifics might vary, Andorran law generally prioritizes the best interests of the child in custody and support matters.
3. Contract Law:
General Principles: Andorran contract law follows civil law principles, requiring consent, a lawful object, and a legitimate cause for validity.
Types of Contracts: Various contract types are recognized and regulated, including:
Lease contracts (for property rental).
Purchase contracts (for sale of goods or services, including real estate).
Earnest money contracts (deposit agreements).
Exchange contracts (barter).
Fiduciary contracts (transfer of asset ownership to a trustee for specific purposes).
Donation contracts.
Work contracts (employment).
Mandate contracts (agency).
Loan contracts.
Deposit contracts.
Company contracts (for partnerships).
Electronic Contracts: Andorra has specific legislation (Law 20/2014) that grants full legal validity to contracts concluded through electronic communications, provided consent and other legal requirements are met. This includes provisions for electronic signatures and trust services.
Employment Contracts: Andorran labor law governs employment agreements, distinguishing between indefinite-term and fixed-term contracts. Mandatory clauses include identification of parties, job description, salary, working hours, leave, and notice periods. Probationary periods, confidentiality clauses, and non-compete clauses are generally enforceable if reasonable and legally compliant (e.g., non-compete clauses requiring financial compensation).
4. Property Law:
Right to Property: The Constitution explicitly enshrines the right to private property.
Foreign Ownership of Real Estate: Foreigners are generally allowed to purchase property in Andorra, but they must obtain government permission. This is a key requirement.
For a residence permit through real estate investment, a minimum investment (currently around €600,000, with a portion as a deposit) is required.
Foreigners often need a clear criminal record.
The purchase of property does not automatically grant Andorran citizenship.
Property Taxes: Andorra does not have an annual property tax or wealth tax.
Buyers pay a property purchase tax (3% on one apartment or land, escalating to 10% for ten or more properties).
Notary fees (0.5-1%) also apply.
Sellers may pay a capital gains tax (1-15%) if they have owned the property for less than 15 years.
Rental income is subject to a 10% tax.
Land Register: Property transactions are registered to ensure legal certainty.
5. Law of Succession (Inheritance Law):
No Inheritance Tax: A significant feature of Andorran law is that there is no inheritance tax in the Principality for residents. This makes it an attractive jurisdiction for estate planning.
Applicable Law: The succession law applicable in Andorra is primarily the personal law of the deceased's nationality. However, if the deceased had a stronger, demonstrable connection (e.g., habitual residence, ownership of property) with Andorra, Andorran law may apply.
Wills: Wills are regulated by Law No. 46/2014. They can be:
Notarial: Open (written by notary according to testator's will) or Closed (written by testator and submitted to notary). Notarial wills are generally preferred for greater legal certainty.
Holographic: Written and signed by the testator's own hand, including date and place, but requiring authentication by Andorran Justice authorities.
Succession Agreements (Inheritance Contracts): Andorra recognizes these as irrevocable instruments for asset allocation.
Forced Heirship: Andorran law includes provisions for forced heirship, meaning certain portions of the estate are automatically allocated to specific family members.
Descendants: One-quarter of the estate's net value must be transferred to the children. If there are no descendants, then ascendants (parents, grandparents) become forced heirs.
Surviving Spouse: One-quarter of the estate must be transferred to the surviving spouse if they do not have sufficient economic resources to maintain their standard of living.
Acceptance/Rejection of Inheritance: Heirs must irrevocably accept or reject the inheritance. Rejection must be explicit, usually before a notary or court. Acceptance can be express or tacit.
For specific legal advice on civil law matters in Andorra, it is essential to consult with a qualified Andorran legal professional.
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