Andorra Approves Rental Aid for Households Overburdened by Rent

The Andorran Council of Ministers has approved a temporary rental assistance programme worth €5 million for 2027—with potential for expansion—for households spending between 30% and 36% of their income on rent, depending on earnings. Applications open on 1 November, with payments taking effect from 1 January 2027 and applied retroactively.

Housing Minister Conxita Marsol described the measure as "ambitious" and aimed at making housing affordable for all citizens. It applies to any private rental contract for a primary residence in the country, a shift from the government's initial plan to limit it to cases involving mandatory lease extensions. "It's a reality, not a promise in the sun," Marsol said, adding that the programme positions Andorra as a leader in housing access. It will continue until 2030 or until the public rental housing stock hits 1,500 units.

Eligibility requires 15 uninterrupted years of permanent residency, with exceptions for study, work or health reasons. Households need annual incomes from 1.2 to 3.5 times the minimum wage, no other property in Andorra, net worth below ten times the minimum wage, and all working-age adults employed or self-employed, with justified exceptions.

Aid levels vary by bracket: for 1.2-1.5 times the minimum wage, it kicks in above 30% of income; 1.5-2 times, above 31.5%; 2-2.5 times, above 33%; 2.5-3 times, above 34.5%; and 3-3.5 times, above 36%. Subsidies cover the excess up to a cap based on the public housing rate per parish square metre plus 20%—for example, €1,284 monthly in Andorra la Vella.

Marsol cited a case of someone earning €2,000 monthly (1.3 times the minimum wage) paying €1,000 for a 100 sqm apartment there: they would pay €600 themselves and receive €400 in aid.

The programme also extends to first-time homebuyer mortgages where repayments exceed 40% of borrower income and the purchase price is under €600,000. Aid here caps at the difference between the mortgage payment and the affordable housing rate plus 20%.

Separately, the government updated youth emancipation grants, originally launched in 2020. Culture, Youth and Sports Minister Mònica Bonell said the changes address a drop in applications—from 87 in 2021 (42 approved) to 15 in 2025 (eight approved)—to better fit current conditions, following youth surveys prioritising emancipation. Key adjustments raise the age limit from 22-30 to 18-35, income cap from €24,000 to €35,000 gross annually, and allow retroactive claims to 1 January of the current year. Grants now fully cover the deposit and first month's rent, assessing current job income rather than the prior year.