Renting in Andorra: Llei 11/2026 regulates leases and rents from 2027 to 2030

What the law says

On 4 June 2026, the Consell General passed Llei 11/2026, which sets “the legal regime applicable to residential lease contracts for habitual and permanent residence for the period 2027⁠–⁠2030”. It enters into force on 1 January 2027, with one exception: its second transitional provision, applicable from the day after its publication in the BOPA, already allows the landlord to announce their decision to renew or terminate, with at least six months’ notice.

The text takes over from Llei 24/2023 of 28 November 2023, whose lease extensions are coming to an end. Its preamble presents it as a transition towards the freedom of contract of the law on urban leases (Llei 15/2022):

Is my lease extended? The 2027⁠–⁠2030 timetable by year of signature

Leases for a habitual and permanent residence concluded in 2021 or earlier come out of the extensions in waves, until 2030. The law divides them into four categories, according to the year of signature or the rent per square metre: meeting either of the two criteria is enough to fall within a category.

The rent per square metre is calculated on the computable floor area, excluding parking spaces, storage rooms and charges. At the end of each extension, the landlord may terminate with at least six months’ notice; otherwise, the lease may continue by tacit extension.

At the end of these extensions, the lease returns to the general regime for urban leases: term, tacit renewal and notice are covered in our guide to the rules of a lease in Andorra.

New lease: by how much can the rent increase?

When a new lease is signed, with the same tenant or another, it must last at least five years, and the rent increase is capped. The cap depends on the rent per square metre of the previous lease: it is an annual percentage added to the CPI (consumer price index), in each of the five years of the contract (Article 2).

In 2027, for new leases that follow leases in the first category, the CPI-linked share passed on in the first year is limited to 2.5% (fourth transitional provision).

A special regime applies to homes let below the reference price for public housing in their parish, which the law sets at between €7.95/m² in Canillo and €10.70/m² in Andorra la Vella and Escaldes-Engordany: during the first three years, the rent may catch up with this price in thirds, on top of the CPI (Article 3).

Rents in 2027: which CPI applies?

For a revision in 2027, it is the CPI for 2026 that counts. During the statutory extensions, the rent may change, at most, only in line with the change in the consumer price index for the previous calendar year (Article 1). This figure is not known at 11 October 2026: it will be published by the Departament d’Estadística once 2026 is over. Depending on your situation, the law provides for:

• lease extended by law (second to fourth categories in the table above, for example a lease signed from 2013 to 2021): revision limited to the 2026 CPI;
• lease tacitly renewed in 2027: revision in line with the general 2026 CPI, without the 2.5% cap (fourth transitional provision);
• new lease signed in 2027 following a lease in the first category (2012 or earlier, or €6/m² or less): caps under Article 2 or 3, but the CPI-linked share passed on in the first year may not exceed 2.5%;
• new lease that follows an extended lease: annual increase capped at between CPI + 1% and CPI + 6%, according to the table above.

We do not publish forecasts: the 2026 CPI will be reported here as soon as it is officially published. These articles refer to the change in the index for the previous calendar year without specifying whether this means the annual average or the change from December to December: if in doubt about the calculation of your revision, have it checked by a professional.

Who is not protected, including passive residents?

The law’s regime does not apply in several cases (Article 1.5), in particular:

• a monthly rent of €2,500 or more, excluding parking spaces, storage rooms and charges;
• a single-family house;
• a lease concluded with the holder of a residence permit without gainful activity, i.e. passive residency;
• safety, sanitation or hygiene works that make the home uninhabitable;
• the landlord taking the home back for themselves or a relative up to the second degree, with six months’ notice and occupation for at least five years;
• taking the home back to house an employee of the landlord, or the sale to a buyer who makes it their habitual residence;
• a refusal to renew expressed by the tenant, or a departure attributable to the tenant.

Other measures to know about

• Penalties: letting above the caps is a serious offence, punishable by a fine equal to 50% of the annual rent, with adjustment of the rent and repayment of the overpayment; preventing the extension of a lease without legal grounds is a very serious offence.
• Use of homes: it is prohibited to use residential homes for the economic activities of non-resident persons, which must be carried on in commercial premises, coworking spaces or other business premises (Article 6).
• Register of leases: a computerised register of rental contracts (SICAR) is created; the comuns enter in it the leases of main residences when the tenant applies to be registered in the parish census.
• Housing supply: within six months of entry into force, the Govern must create a programme of incentives for the construction and renovation of homes at affordable rents, and promote a guarantee fund against unpaid rent.

Who is affected, and what remains uncertain

Tenants whose lease for a main residence was signed in 2021 or earlier, and their landlords, are the first concerned. Newcomers are too: a home coming out of an extension is relet within the law’s caps, except in the excluded cases. The rental market is described in our guide to long-term renting in Andorra, and its weight in the budget in our guide to the cost of living in Andorra.

Still unknown are the level of the CPI that will be used for the revisions from 2027 to 2030, the effect of the law on rental supply, and the practical application of the exceptions (taking the home back, works), which requires supporting evidence and may be challenged. In the event of a dispute, seek advice from a professional.