Andorra Landlords Gain Immediate 6-Month Notice Rights Under Rental Deregulation
New rules allow Andorran property owners to notify tenants immediately on lease futures. Reforms phase out controls over years with tiered caps and new tenant duties.
Key Points
- Landlords can send 6-month pre-notices now for contract renewal or termination, effective immediately despite main rules starting 2027.
- Rent controls phase out gradually: 2012+ contracts or <€6/m² deregulate in 2027; later ones up to 2030, with IPC-only adjustments during transition.
- New contracts cap annual increases by rate: up to 6%+IPC for low rents, down to 1%+IPC above €12/m².
- Tenants liable for guests' misconduct; eviction possible after two safety sanctions; fines up to 100% of year's rent for violations.
Landlords in Andorra can immediately send six-month pre-notice letters to tenants about renewing or terminating rental contracts under new deregulation rules, despite the main provisions not taking effect until January 2027.
The law, published in a special edition of the Butlletí Oficial del Principat d'Andorra (BOPA) on Tuesday, includes a second transitional provision that activated on Wednesday. This enables property owners to inform tenants of their intentions based on the upcoming framework, with notices required at least six months before contract expiry.
The reform phases out rent controls gradually by contract signing year or current rate per square metre. Contracts from 2012 or earlier, or those below €6 per square metre, face deregulation from 1 January 2027. Those signed 2013-2015 or up to €7 per square metre extend to 2028; 2016-2018 or up to €8 per square metre to 2029; and 2019-2021 to 2030. During these extensions, rents can only adjust by the IPC inflation index.
Once new contracts are signed—with the same or different tenants—annual increases over five years will be capped by prior rate: 6% plus IPC (capped at 2.5% for 2027) for €7 per square metre or below; 5% plus IPC for €7-8; 4% for €8-9; 3% for €9-10; 2% for €10-12; and 1% plus IPC above €12. Properties below a parish's affordable housing reference rate follow a three-year ramp-up to that threshold, then IPC-only unless general rules allow more.
The law adds tenant responsibilities, including liability for immoral, dangerous, inconvenient, or unhealthy activities by invited guests. It introduces a new contract termination ground: two administrative sanctions for public safety violations within the building, incurred by the tenant within one year.
Exceeding permitted increases counts as a serious infraction, fined at 50% of one year's rent. Wrongfully blocking extensions is a very serious infraction, penalised at 100% of one year's rent.
Officials stress the controlled rollout aims to balance interests amid the shift from longstanding rent freezes.
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