Andorra's Espot Unveils Renter Aid and Developer Incentives to Combat Housing Crisis

Andorra's Head of Government Xavier Espot has announced two new housing initiatives during Thursday's political orientation debate, building on earlier efforts to tackle the crisis. These include an "extensive and ambitious" aid programme for households spending more than 30% of their income on rent, and a joint plan with parishes offering fiscal, financial and urban incentives to private developers for affordable rental projects.

The renter aid programme, set for approval in coming days, will cover households affected by the end of rent contract extensions, those signing contracts from 2022 onwards, and others facing new leases. Espot described it as support for families transitioning from a heavily intervened market to a more normalised one, while balancing owners' rights to set rents progressively. He also pledged an additional €35 million from the 2025 budget surplus to expand the public housing stock beyond 500 units by legislature's end, with 259 in direct construction or acquisition and 224 via rentals.

Espot defended the government's record, citing over €143 million invested in public housing, a rental contract registry with 5,510 entries at an average €13.90 per square metre, a 99% drop in foreign property investment, and measures returning over 1,530 homes to the residential market—including 466 via habitability exceptions, 363 converted tourist flats and 114 previously vacant units. Enhanced fraud controls since 2022 have yielded 35 sanction files and over €190,000 in fines from 2024.

He accused opposition parties of repeatedly blocking, criticising and delaying housing bills for political gain, rather than offering viable solutions. Espot highlighted the rent thaw law as a gradual shift with protections, not full liberalisation.

On Tuesday, Housing Minister Conxita Marsol met with the seven parishes' consuls, who endorsed in principle the incentives programme first outlined by Espot on Monday. Incentives for developers cover around 10% non-repayable construction grants, three-to-six months' unpaid rent guarantees, Renova plan priority, exemptions from corporate tax, IGI VAT and property transfer tax, plus favourable bank terms. The two-year scheme applies to new builds and renovations.

Parishes would waive building permit fees, utility connections, rental income taxes or offer zero-interest grants, relaxed ventilation standards, or extra floors for viability. Consuls Eva Sansa of La Massana and Sergi González of Andorra la Vella expressed readiness to collaborate closely, though González called it "late" and noted some parishes' prior measures to avoid duplication. They will now evaluate budget impacts, with variations possible due to land constraints, such as in Ordino. Marsol stressed parishes' key role in implementation.