Andorra Approves Rental Aid for Households Overburdened by Rent

The Andorran Council of Ministers has approved a temporary rental assistance programme with a €6 million budget for 2027—expandable if needed—for households spending between 30% and 36% of their income on private rent, depending on earnings. The measure, presented by Housing Minister Conxita Marsol following the council meeting, targets long-term residents facing housing costs and will run until 2030 or the public housing stock reaches 1,500 units.

Applications begin on 1 November, with monthly payments starting 1 January 2027 for 12 months, renewable if conditions hold. Aid covers the gap between the applicable income threshold and actual rent, capped at the public housing rate per parish square metre plus 20%—such as €1,284 monthly in Andorra la Vella. It applies to any private rental used as a primary residence, regardless of lease terms, and extends to first-time homebuyers with mortgages exceeding 40% of income, provided the property and annexes cost under €600,000.

To qualify, households need 15 years of continuous permanent residency, with allowances for justified absences related to study, work or health. Income must fall between 1.2 and 3.5 times the minimum wage, with no other property owned in Andorra and net worth below ten times the annual minimum wage. All working-age adults must be employed or self-employed, barring disability or illness.

The subsidy thresholds rise progressively: 30% of income for 1.2-1.5 times minimum wage; 31.5% for 1.5-2 times; 33% for 2-2.5 times; 34.5% for 2.5-3 times; and 36% for 3-3.5 times. Marsol cited a young person earning €2,000 monthly—1.3 times minimum wage—paying €1,000 for a 100 sqm apartment in the capital. They would cover €600 (30%), receiving €400 in aid.

In related updates, Culture, Youth and Sports Minister Mònica Bonell outlined changes to youth emancipation grants amid falling applications—from 87 in 2021 (42 approved) to 15 in 2025 (eight approved). Eligibility now spans ages 18-35, with gross annual income up to €35,000. Grants cover a full two-month deposit plus first month's rent, applicable from 1 January 2026 if current employment supports a five-year lease. For shared arrangements with partners or friends, cohabitants cannot exceed minimum wage earnings.

An El Periódic editorial praised the openness to all contracts and relief for families, plus youth grant expansions, but flagged risks from strict rules like the 15-year residency and asset limits potentially sidelining some in need. Officials view the criteria as adaptable for future tweaks.