Most housing rentals in Andorra have lived for years under an exceptional regime, leases extended by law and rents that only update with CPI. Law 11/2026 puts an expiry date on that freeze, from 1 January 2027, contracts become free in phases until 2030, with caps so the jump is not into the void. It affects some 20,000 of the country’s 25,000 leases. This is what the new rental law in Andorra says, with the text in hand and no noise.
In short
- Forced extension ends in phases: leases signed up to 2012 (or rent ≤6 €/m²) become free on 1 January 2027; 2013-2015 (or ≤7 €/m²), in 2028; 2016-2018 (or ≤8 €/m²), in 2029; 2019-2021, in 2030.
- While the extension lasts, CPI only: rent cannot rise beyond the CPI update, and the notice period for non-renewal goes from 3 to 6 months.
- New leases are not a free-for-all: if the home was already rented, for 5 years the increase is capped by brackets, from 6 % + CPI (rents ≤7 €/m²) to 1 % + CPI (>12 €/m²).
- There are exceptions with no extension: rents of 2,500 €/month or more, single-family homes, tenants with passive residency, own or family use, works or a sale to someone who will live in it — and there the next lease is at a free rent.
- If you arrive now, your lease was already free (those signed from 2022 are outside the regime): you will notice the supply surfacing from 2027 and the caps when renting a home that was already rented.
Updated on 22/10/2026 with the text of Law 11/2026 (Andorran Legal Portal) and the Govern’s presentation.
What Law 11/2026 is and who it affects
It is Law 11/2026, of 4 June, which approves the regime for main-home rentals for 2027-2030 and organises the progressive exit from market intervention. It applies from 1 January 2027 to leases signed before 1 January 2022, the ones dragging years of forced extension and frozen rent. Those signed from 2022 were born with free rents and stay that way.
The why is in the official registry, according to the data published in November 2025, new leases are signed at an average of 1,338 € a month and above 18 €/m², and renewed leases over 5 years old pay 7.8 €/m². Two markets in the same country. The law does not unfreeze in one go, it orders the transition in four phases with caps, and according to the Govern’s presentation, some 20,000 of the country’s 25,000 leases will go through it.
The calendar
The phase is set by the year you signed, but a low rent moves you up: at 6 €/m² or less you are free in 2027 even if you signed in 2018, whichever condition comes first applies. The metre that counts is the computable surface, no parking or storage room, and terraces count with reduced coefficients.
| Lease signed | Or with rent of | Last forced extension | Free rent from |
|---|---|---|---|
| Up to 31/12/2012 | ≤ 6 €/m² | until 31/12/2026 | 1 January 2027 |
| 2013-2015 | ≤ 7 €/m² | until 31/12/2027 | 1 January 2028 |
| 2016-2018 | ≤ 8 €/m² | until 31/12/2028 | 1 January 2029 |
| 2019-2021 | — | until 31/12/2029 | 1 January 2030 |
| From 1/1/2022 | — | none | already free |
The first wave is the big one, some 7,000 leases become free on 1 January 2027, according to the Govern. Two rules run through the whole calendar, during the forced extension rent only updates with CPI, and the notice period for non-renewal goes from 3 to 6 months.
Caps on new rentals
So that nobody jumps from 7.8 €/m² to 18 €/m² overnight, the law caps for 5 years the rent of new leases on homes that were already rented, the previous rent plus a percentage that depends on what was being paid per square metre.
| Previous rent | Maximum increase (plus CPI) |
|---|---|
| up to 7 €/m² | 6 % |
| 7 to 8 €/m² | 5 % |
| 8 to 9 €/m² | 4 % |
| 9 to 10 €/m² | 3 % |
| 10 to 12 €/m² | 2 % |
| over 12 €/m² | 1 % |
The logic is inverse, the cheaper the rent was, the more room it has to rise, because it starts lower. Public housing stock goes separately, at affordable prices. And this carries penalties, breaching the caps or blocking the extension are infringements, the serious ones, up to 50 % of a year’s rent, although there is no ex officio control, the Administration acts if the tenant files a claim.
Exceptions
The regime has limited exit doors. There is no forced extension, among other cases, when:
- The rent is 2,500 €/month or more, not counting parking, storage room or utilities, it falls outside the regime.
- The home is a single-family house.
- The tenant holds a residency without gainful activity (the passive one), their lease is not covered by the extension.
- The owner wants it for themselves or for family up to the second degree, with 6 months’ notice and the obligation to occupy it for 5 years.
- Mandatory works make it impossible to keep living in it.
- The rental is tied to an employment relationship (housing provided to an employee).
- It is sold to a buyer who will live in it as their main home.
- The tenant simply does not want to renew.
In most of these cases, the next lease is signed at a free rent, with no brackets. And if you arrive in the country with passive residency, your lease falls outside the protection.
If you are moving to Andorra
If you sign your lease now, the regime does not touch you, leases from 2022 are already at free rents. The day-to-day detail is in the cost of living in Andorra guide.
Your rental contract is a piece of your Immigration file, for any permit you need to prove housing in Andorra.
If you don’t want to trudge the country flat by flat, our real estate personal shopper finds the home, negotiates terms and leaves the contract ready for the file, and the relocation service takes care of the full move. And if you are thinking of buying instead of renting, start with the real estate investment guide.
Want to know which phase your lease falls in and how much it can rise? Or are you moving to Andorra and need a rental with a solid contract for Immigration? In an initial consultation we go through it with your papers in hand.
Frequently asked questions about the rental law in Andorra
When does the new rental law in Andorra come into force?
Law 11/2026 was passed on 4 June 2026 and its regime applies from 1 January 2027 until 2030. The exit from forced extension is phased: 2027 for the oldest or cheapest leases, and 2028-2030 for the rest, depending on the year of signature and the rent per metre.
My lease is from 2014 and I pay 6.50 €/m². When does the extension end?
By year of signature (2013-2015) you are in the second phase, and by rent (up to 7 €/m²) as well: your lease becomes free on 1 January 2028. Until then, rent only updates with CPI, and the owner must give you 6 months’ notice not to renew.
Can the owner take the flat back before my phase?
Only in the limited cases, own or family use (6 months’ notice and 5 years’ occupation), a sale to someone who will live in it, works that make it uninhabitable and the other cases in the law, besides the usual breaches of contract. Beyond that, blocking the extension you are due is a very serious infringement.
How much can my rent rise while the extension lasts?
Only the CPI update. The real increases come when the lease becomes free, and even then with a cap: if the home is rented again, the new rent is limited for 5 years by brackets, from 6 % to 1 % plus CPI.
I’m an owner. Will I be able to set any price once my lease is free?
You can choose not to renew, with 6 months’ notice, or sign a new lease, but if the home was already rented the price is capped by brackets for 5 years. Truly free rents are for the exceptions, rents of 2,500 €/month or more, single-family homes, a tenant with passive residency or a sale to someone who will live in it, among others.
I’m arriving in Andorra in 2027. Does this law raise or lower my rent?
Directly, neither, your new lease was already free since 2022. For your budget, count on the 1,338 €/month average of new leases.
The rental law in Andorra makes nothing cheaper or dearer by decree: it puts a calendar and caps on an unfreezing that had been pending for years. The date that matters is yours, your lease’s or your arrival’s, and both are better prepared before 1 January 2027 than after.
Book an initial advisory consultation with WIT Andorra for 135.85 €: we tell you which phase your lease falls in, how much it can rise and with what notice. And if you are arriving in the country, our real estate personal shopper finds the home, negotiates with the law in hand and leaves the contract ready for your Immigration file. You can also write to us at info@wit.ad.
