c/ Baixada del Molí,3-5 Edifici Molí III Bloc D 1r-1a
AD500 Andorra la Vella (Principat d’Andorra)
The rental market in Andorra faces a new regulatory stage from 2027. Law 11/2026, published in the BOPA no. 70 dated 23 June 2026, establishes the legal regime applicable to certain housing lease contracts intended for habitual and permanent residence during the period 2027-2030.
This regulation is part of the process of progressive unfreezing of rents and seeks to order the transition between the system of legal extensions of recent years and a new framework with specific limits, deadlines and conditions.
One of the main points of the law is that not all contracts will be affected in the same way. The application will depend on factors such as the year of formalisation of the contract, the rent per square metre, the computable surface area of the home and whether it is really a home intended for habitual and permanent residence.
According to the law, some contracts may end earlier, while others will be subject to legal extensions of one, two or three years, depending on their age and the applicable rent per square meter. During these extensions, the rent may only be updated, at most, with the CPI of the previous calendar year.
The law also introduces limits for new contracts that are formalised once the previous contract has been correctly terminated. In these cases, the maximum increases will depend on the price per square metre of the terminated contract, with percentages that can vary between 1% and 6% per year, plus the CPI, depending on the corresponding tranche.
In addition, the regulations set affordable rental reference prices by parish and regulate how the computable area of the home must be calculated, excluding concepts such as parking, storage rooms, supplies and certain related services.
For landlords, this new regulation makes it especially important to review each contract before communicating a renewal, termination or rent update. For tenants, it means a framework with more rules on extension periods, upgrade limits, and the conditions under which a contract can end.
At DALI Serveis Immobiliaris we recommend analysing each case individually, as the application of the new regulations depends on the specific data of each contract: date of signing, expiry, monthly rent, surface area, parish, use of the property and possible annexes or subsequent modifications.
Source: BOPA no. 70, of 23 June 2026, Llei 11/2026, of 4 June.
