Andorra Fines Eviction Abuser €100K, Plans €30M Public Housing Boost

Andorra's Housing Minister Conxita Marsol has confirmed a €100,000 fine against a property owner who evicted tenants by claiming the apartment was needed for a family member—likely a son, young relative, or cousin—before placing it back on the rental market or selling it, breaching housing rules.

Speaking on RTVA's *Avui serà un bon dia* and Ràdio Nacional, Marsol explained that the penalty equals double the capital gains from the transaction. She highlighted the government's response to public complaints, which have prompted additional fines of €2,000, €3,000, and €4,000 in similar cases. Officials verify whether a declared family member actually moves in, and Marsol stressed ongoing inspections to protect tenants from such evasions.

In parallel announcements on Diari TV's *Parlem-ne* and other outlets, Marsol outlined plans to expand the public housing stock using half of the 2025 budget surplus—€30 million—to buy three buildings with around 200 apartments. These will require minimal upgrades, such as electrical work and window replacements for sustainability, allowing occupancy within two or three months. One building will offer units for sale below market rates, prioritising purchase options while considering rentals. Another may become a cohousing project for elderly residents living alone, featuring shared spaces to combat isolation.

The executive is preparing a tender for owners of suitable, near-ready buildings, many reportedly vacant. Marsol anticipates launches next year.

On rentals, with freezes lifting under a law entering parliamentary debate this week—effective June for about 7,000 older contracts allowing 6% hikes plus up to 2.5% IPC—Marsol expects limited impact. Many long-term owners, she said, will apply modest increases rather than maximums, given reliable payers. The Sicar system will track prior rents, enabling tenants to report excesses when switching landlords or renewing.

She anticipates few changes to the bill, already aligned with the government majority, despite opposition input. Incentives for rental-focused developments, including tax breaks, IGI exemptions on materials, or extra storeys without underground parking, are due in three months with parliamentary approval.

The Unió Sindical d’Andorra (USdA) warned that some real estate portals mislead by suggesting rents will stay capped post-thaw, urging transparency as contracts shift to free-market rates, potentially causing sharp rises.

Marsol also noted 19 applications for first-home purchase aid, five approved and some nearing notary, and defended the foreign investment tax's limited cooling effect amid sustained demand. Among recent buyers, 61% are residents of over three years.