Andorra rental law 2027–2030: what changes

Which leases it covers

Leases on a main and permanent home signed in 2021 or earlier (article 1).

Excluded, among others, are leases of 2,500 € a month or more, detached houses, tenants holding residence without gainful activity, and cases where the landlord takes the home back to live in it or house a close relative, or sells it to someone who will live there (article 1.5).

When each extension ends

It depends on the year the lease was signed or on the rent per square metre, whichever is met first (article 1.1). Until then, the rent can only rise with inflation (CPI), once a year.

The landlord must say in writing whether they will renew or end the lease at least 6 months before each anniversary (article 1.4). Without that notice, the lease is tacitly extended.

How much a new lease can rise

When the extension ends and a new lease is signed, the yearly rise over its five years is capped: CPI plus a number of points that depends on the rent per square metre of the previous lease (article 2). The cheaper it was, the more it can rise.

In 2027, the CPI part of the first rise on a new lease cannot exceed 2.5% (fourth transitional provision).

The square metre is measured on the home’s countable floor area: without parking space or storeroom, and with terraces and balconies weighted (article 4).

If the rent was below the parish social price

If the rent was below the reference price for social rental housing in its parish, it can rise to that price in three equal thirds over the first three years, on top of CPI (article 3). These are the reference prices set by the law, updated every year with CPI:

The second column is the median rent of homes listed on Pisapis today. The gap between the two is the gap between an old lease and one signed now.

If the rent rises more than allowed

Signing a new lease above the cap is a serious offence: a fine of 50% of the annual rent, cutting the rent to the cap and repaying the excess (article 5). Blocking an extension without legal grounds is very serious: a fine of 100% of the annual rent, among other penalties.

Any clause that worsens the tenant’s position is void, and any overpayment can be deducted from the following month’s rent (articles 1.2 and 1.3).

And the market, meanwhile

Today a two-bedroom flat in Andorra is advertised at a median of 2,000 €/month, and rent per square metre stands at 24 €/m² per month. These are new-lease prices: what anyone who has to move when their extension ends will find.