Extensions until 2030 · Limited increases · 6-month notice · Legal exceptions
The Law 11/2026 on rentals in Andorra It will enter into force, with general effect, January 1, 2027. Introduce a progressive schedule to end the extraordinary extensions of certain regular housing contracts signed until 2021.
1. When do the extensions end?
| Year | Signed contracts |
|---|---|
| 2027 | 2012 or earlier |
| 2028 | 2013 to 2015 |
| 2029 | 2016 to 2018 |
| 2030 | 2019 to 2021 |
Important: Contracts with rents equal to or lower than €6, 7 or 8 per m² may be entered into earlier calendars, according to the requirements of the law. The termination dates also depend on the contractual expiration date and the notice period.
2. How much can the rent increase?
Finalize an extension It does not allow the rental to be automatically updated to market price. Article 2 sets out the following maximum increases for new contracts subject to the law:
| Previous rent | Maximum annual increase |
|---|---|
| Up to 7 €/m² | 6 % + CPI |
| More than 7 to 8 €/m² | 5 % + CPI |
| More than 8 to 9 €/m² | 4 % + CPI |
| More than 9 to 10 €/m² | 3 % + CPI |
| More than 10 to 12 €/m² | 2 % + CPI |
| More than €12/m² | 1 % + CPI |
An 80 m² apartment with a rent of 900 € has an income of 11,25 €/m².
Applying Article 2 and assuming a 2.5% pass-through CPI %, the first-year increase would be 4.5 %%.
900 € → 940.50 €/month
In certain new contracts for 2027, the CPI component for the first year is limited to 2.5 %%. This is a legal limit, not a CPI forecast.
3. Is there another way to update the income?
Yes. Article 3 allows certain rentals below the affordable reference price of their parish to gradually approach that value over three years, in addition to the corresponding CPI.
For example, the initial values are 10.70 €/m² in Andorra la Vella and Escaldes, 9,47 €/m² in Encamp y 9.56 €/m² in La Massana. The prices of the seven parishes are set out in the law and are updated annually.
The computable surface and the housing rent must be calculated according to legal criteria, without confusing them with the square meters advertised commercially or the amount of services and annexes.
4. Pre-notifications and excluded contracts
Warning: To resolve the affected contracts, the owner must comply with a minimum of six months. Transition communications can already be carried out from 2026 onwards.
Main exceptions to the extraordinary regime: housing rentals of €2,500 per month or more, single-family homes and certain contracts for residents without a profit-making activity, among other legal presumptions.
The minimum overall duration of new contracts for regular housing is five years, With the legal exceptions provided for by law.
Before communicating a finalization or modifying a rent, check the date of the contract, its expiration, the price per square meter, and the applicable limitations.
An incorrect calculation can lead to conflicts and sanctions.
5. How does the new law affect you?
Between 2027 and 2030, the rental market in Andorra will undergo a progressive transition. Each contract may have different conditions and must be analyzed individually.
In VERSUS ANDORRA We help owners and tenants understand these changes and manage their real estate operations.
Contact us:
Tel. +376 361 617
versusandorra.com
Updated on October 30, 2026. Source: Law 11/2026 — Legal Portal of Andorra. General information that does not replace individualized legal advice.
Frequently Asked Questions About Renting in Andorra in 2027
When does Law 11/2026 on rental in Andorra come into effect?
Law 11/2026 comes into force on January 1, 2027. From that date, the progressive withdrawal of contracts affected by forced extensions begins, following a timetable that will extend from 2027 to 2030.
How much can rents in Andorra rise in 2027?
It will depend on each contract. Law 11/2026 establishes different increase limits based on the price per square meter of the previous rent. The expected increases range from 1% to 6% annually, plus the corresponding CPI. For new contracts formalized in 2027 under this regime, the CPI component for the first year is limited to 2.5%.
Can the owner raise the rent directly to the market price?
Not necessarily. The fact that a contract ceases to be protected by a forced extension does not mean that the owner can immediately set any market price. Law 11/2026 establishes limits and progressive mechanisms for updating the rent of certain contracts.
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