Housing in Andorra

The Catalan word for housing is habitatge. People renting a home in Andorra generally use the private market through an agency, a direct owner, or public listings. The lease agreement (contracte d’arrendament), that is, the rental contract, must be in writing. The rental deposit (fiança) may not exceed two months’ rent; a bank guarantee may be agreed as an alternative. Depending on the situation, residence administration requires a copy of the lease, proof of ownership, or a certificate for public accommodation. After receiving immigration authorisation, registration with the competent communal administration (Comú) must normally take place within three months. Anyone who is not the tenant normally needs the owner’s consent to register their residence. An exception generally applies to spouses, registered partners, and first-degree relatives in the direct line. Foreign buyers need prior approval through the e-tramits online platform (e-tramits) before acquiring property if they are not resident in Andorra, have lived there for less than three years, act as a foreign legal entity, or represent an Andorran company with more than 5% foreign capital or foreign voting rights. The application requires an identification number (NIA). After approval, the purchase is completed by a public notarial deed. The administrative fee is 300 euros; the decision takes no more than two months and may be extended by one month. In 2026, the tax on foreign real-estate investment is 6% for the first property and 10% for the second. This tax concerns the acquisition decision but does not replace an assessment of the purchase price and other acquisition costs. The first-home programme may provide a 100% loan guarantee and an interest subsidy. Requirements include, among other things, at least seven years of lawful, actual, and continuous residence; no household-owned home in Andorra or abroad; assets worth less than 30% of the purchase price; annual income of at least twice the current minimum wage; and no public debts. The public stock of affordable rental housing is administered by the National Housing Institute (Institut Nacional de l’Habitatge) and the applicants’ register (Registre de sol·licitants). Registration normally requires at least five uninterrupted years of lawful, actual, and continuous residence; no home ownership; and no building right or usufruct over a home in Andorra or abroad. A housing need exists when rent accounts for more than 30% of income or an administrative housing solution already exists. Regular net income must be above 1.01 times the minimum wage and no more than 2.2 times that wage. For families with at least two dependent minor children, the upper limit is 2.5 minimum wages when both parents have regular income. Assets may not exceed four times the annual minimum wage, and there must be no public debts. The application is free and can be submitted online with an electronic certificate or through the administrative procedures service (Servei de Tràmits); the maximum decision period is two months. Only a positive INH decision creates effective registration. Allocation takes place through separate public listings by household and dwelling type, with a notarial draw in the event of a tie. In 2026, the official stock comprises 150 homes. The public contract lasts five years and may be renewed annually; after approval, the contract and move-in must take place within one month. Liability insurance is required. If eligibility is lost, the renewal may also end. The 2026 rental subsidy requires at least five years of lawful and actual residence. Income may not exceed 1.2 times the income threshold (LECS); the subsidy rate is generally 30% and 35% for priority groups. The subsidy runs for twelve months and may be requested at any time in 2026 online or through the procedures service. Youth emancipation support additionally requires an age of 22 to 30, five years of residence, income above the minimum wage, and gross income below 24,000 euros; this support covers two rental deposits and the current month. Registered rental data from the registered rental-data system (SICAR) and the communal administrations (Comuns) show around 4,300 reported contracts and an average reported rent of 13 euros per square metre for November 2025. This figure describes only the registered sample and is not a general market offer. During the tenancy, a copy of the contract is deposited with the competent communal administration; the communal administrations provide data to the system. Ordinary age-related repairs are normally the landlord’s responsibility, while the tenant is responsible for damage caused by misuse. Alterations and improvements require the landlord’s consent. A sale does not automatically end the lease; the buyer takes over the landlord’s position. The landlord returns the rental deposit when the keys are handed over, less proven rent arrears or contractually justified damage claims. A tenant may leave early with one month’s notice; no exceptional penalty applies for this. The notice period for non-renewal is three months. From 1 January 2027, Law 11/2026 (Llei 11/2026) will gradually change the system of forced contract extensions. In 2027, a landlord may end contracts from 2012 or earlier and contracts with rent below 6 euros per square metre. If a required notice is not given six months in advance, the rent is adjusted by the consumer price index and the contract is tacitly extended for one year. For new contracts, annual increase limits depend on the previous rent: up to 7 euros per square metre, 6% plus the consumer price index; above 7 to 8 euros, 5% plus the consumer price index; above 8 to 9 euros, 4% plus the consumer price index; above 9 to 10 euros, 3% plus the consumer price index; above 10 to 12 euros, 2% plus the consumer price index; and above 12 euros, 1% plus the consumer price index. For 2027, the consumer price index is capped at 2.5%. The specific assessment therefore depends on the contract date, floor area, previous rent, and provable delivery of the notice. Reclaiming a home for the owner’s own use or for family members up to the second degree requires six months’ advance notice, a sworn declaration, and proof of the family relationship. Protected contracts are subject to special restrictions on termination for renovation. Anyone who must leave public housing because eligibility has ended may remain on a suitable waiting list. The Renova renovation programme (Renova) supports renovations that improve habitability, accessibility, safety, or energy efficiency. For homes acquired through a transfer in lieu of payment or mortgage foreclosure, the government may exercise a right of first refusal or repurchase. The decision period is 60 calendar days, the payment period is no more than four months, and the right applies only to transfers defined by law. Tourist accommodation with a tourist-accommodation designation (HUT) does not automatically belong to the normal rental market; its licensing is a separate matter.