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Andorra Government Prepares Aid for 2022 Tenants Facing 2027 Rental Risks

Andorra's Head of Government Xavier Espot announced plans for targeted support to protect tenants with 2022 contracts expiring in 2027 from sharp rent increases under the new deregulation law advancing in parliament.

Key Points

  • Xavier Espot acknowledges 2022-signed tenants most exposed without new law protections, facing hikes post-2027.
  • New law ends 2019 mandatory extensions, allows 1-6% annual increases plus inflation for 20,000 contracts.
  • Aid targets excessive rent hikes via regulations; bill advanced with opposition amendments rejected.
  • Opposition slams process as unilateral; union warns of speculation over housing rights.

Andorra's government is preparing support measures for tenants whose rental contracts, signed in 2022, expire in 2027 without benefiting from the protections in the new rental deregulation law.

Head of Government Xavier Espot acknowledged that this group remains the most exposed under the legislation, which ends the mandatory extensions in place since 2019 and introduces gradual rent increases of 1% to 6% annually, plus inflation, for around 20,000 contracts between 2027 and 2030. These tenants, no longer subject to forced renewals, face potential sharp hikes upon renewal or non-renewal.

"We can provide certain support and protection for these tenants, and that is what we are working on," Espot stated during the Andoflora inauguration. He specified that assistance would target cases of "excessive or significant" rent increases, potentially through regulatory or executive actions rather than further changes to the law itself.

The bill advanced through the General Council's Economy Commission on Friday with only minor technical adjustments, as the Democratic Party of Andorra majority rejected nearly all 43 amendments from opposition groups—Concòrdia, the Social Democratic Party, and Andorra Endavant. Two proposals remain pending: one from the Social Democrats on procedures for owners reclaiming properties for personal or family use, and another from Andorra Endavant to bar non-residents from commercial activities in residential rentals. A decision is due at Thursday's commission meeting.

Opposition parties decried the process as unilateral, with publications on May 15 presenting the text as final before parliamentary debate concluded, alongside Espot's public assurances of limited changes. Concòrdia leader Cerni Escalé highlighted a "double discourse," noting over 300 rejected housing amendments this term. The Social Democrats cited a "total lack of dialogue," while Andorra Endavant called it an "institutional disrespect" to the Council.

Espot defended the law as "protective and balanced," fulfilling his party's electoral pledge for progressive market liberalisation without blanket mandatory extensions. He accused opponents of instrumentalising housing debates despite their amendments not addressing Sindicat de l'Habitatge demands.

The union, after meeting majority representatives, warned the law upholds market speculation over housing rights, leaving post-2021 contracts arbitrarily unprotected amid already inflated rents. It demanded written commitments for future safeguards, indefinite contracts as standard, a reference price index, and stricter fraud checks like the "child trap" loophole.

The text now heads to full Council debate, backed by the majority despite opposition vows to vote against.

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