c/ Baixada del Molí,3-5 Edifici Molí III Bloc D 1r-1a
AD500 Andorra la Vella (Principat d’Andorra)
The tax campaign incorporates a greater reduction for the acquisition of a primary residence and an incentive for owners who use their properties to rent at an affordable price.
Andorran taxpayers are facing the last weeks to file their personal income tax return for the 2025 financial year. The campaign began on April 1 and will end on September 30, 2026, so it is advisable to review the new features introduced this year in time, especially those related to housing.
One of the main modifications affects those who have acquired their habitual and permanent residence. The reduction planned for this concept has been increased from 1,000 to 5,000 euros per year, according to the information published by the Department of Taxes and Borders.
The campaign also incorporates an incentive specifically aimed at owners. Landlords who rent properties at an affordable price can benefit from a tax reduction of up to 5,000 euros, subject to the amount limitations established for this measure.
The existence of a maximum of 5,000 euros does not mean that all taxpayers can automatically apply that amount. The possibility and amount of the reduction depend on the fulfilment of the conditions provided for and the specific situation included in the return. Therefore, owners and buyers should check the supporting documentation before submitting or accepting their settlement.
The issue is especially timely during September: the Department of Taxation itself points out that more than 60% of returns are filed during the last month of the campaign and recommends not waiting until the last few days.
For the real estate sector, these modifications are relevant because they use taxation as an instrument both to facilitate the acquisition of the main residence and to encourage the incorporation of homes into the rental market at prices considered affordable.
Verifiable source: Govern d'Andorra – Departament de Tributs i de Fronteres, The campaign for the 2025 personal income tax return, published on 31 March 2026 and applicable to the campaign that remains open until 30 September 2026, begins.
Consult the official information of the Government on Personal Income Tax 2025
