Andorra Launches Temporary Rent Aid for High-Rent Households Post-2027

The Andorran government has committed to a temporary rent assistance programme for households spending more than 30% of their net income on habitual residence rent, especially those affected by contract adjustments after 1 January 2027. Head of Government Xavier Espot outlined the measure during Thursday's Political Orientation Debate, assigning it to the Housing department in response to a Democratic Parliamentary Group proposal. Aid would be personalised, reviewable and conditional on individual evaluations of income, family structure and vulnerabilities, in line with the rental contracts law approved by the General Council on 4 June for phased implementation from 2027 to 2030. Espot stressed housing's role in fostering social cohesion and equal opportunities.

Espot highlighted rental market reactivation since taking office, with over 1,530 flats returned: 466 via relaxed habitability rules, 45 without transfer costs, 62 from stalled projects, 363 converted tourist apartments and 114 from vacant stock. Enforcement has tightened against misuse, detecting 132 cases since 2022, launching 35 sanction processes and levying fines over €190,000 since 2024.

Housing Minister Conxita Marsol reported on affordable housing advances. A tender for property acquisitions, closed this week, received six bids across parishes; assessments of values, compliance and upgrades continue this summer to inform budgeting. Spokesperson Guillem Casal described the interest as encouraging. Marsol announced a new tender within 15 days for long-term leases (up to 30 years) on low-maintenance buildings for affordable rental, with units allocated via the Institut Nacional de l’Habitatge. An forthcoming bill offers private developers up to 10% non-refundable grants for affordable projects, tied to cost controls and affordability commitments. A draft heads to parish councils in 10-12 days for input ahead of parliamentary scrutiny by 1 September. Marsol anticipated council support and measured support for limited non-urbanisable land use in affordable or seasonal housing.

Opposition parties have filed resolutions for the 14 July General Council vote. Democrats proposed their single housing aid measure. Social Democrats submitted six, focusing on purchasing power safeguards, housing solutions and public policy modernisation. These call for stable salary indexing to living costs, a technical study on gradual working-hour reductions without pay loss to enhance balance and talent attraction, ratification of the UN Convention on Migrant Workers' Rights, a National Residential Effort Index to gauge housing cost burdens, regular law effectiveness reviews and a National Well-being Indicators Framework incorporating health, education, social cohesion and environment.

In a press conference, Social Democratic leaders Gerard Alís and Susanna Vela criticised Democrats' growth model as exhausted, arguing the debate revealed its limits after years of expansion, investment attraction and economic push. Alís highlighted two opposing visions for Andorra's future, while Vela insisted institutions must prioritise rights, opportunities and cohesion over justification, measuring progress by access to decent housing and services. They positioned their party as a governance-ready alternative emphasising shared progress and quality of life.

Andorra Endavant registered 22 resolutions covering housing, health, economy, education, security, immigration, seniors, digital transformation, entrepreneurship, public administration, taxation, foreign investment, external policy and democratic standards. Highlights include easing first-home access and public guarantees, automating rent aid through data cross-checks, multiservice senior communities, generalised third-party health payments to eliminate patient advances, operating room expansions, AI deployment in administration for efficiency gains, streamlined business setup and closure, self-employed reforms, tax incentives for low-wage hikes, IRPF exemptions up to €40,000 annually, foreign investment transparency, police operational agility, early irregular immigration detection, overseas Andorran protections, an EU association referendum, youth skills enhancement, family consent for school surveys and strict payment deadlines for firms to businesses.

Espot promised a minimum wage increase next week to counter Middle East-driven inflation, followed by another by year-end aiming for 60% of average salaries. All resolutions await 14 July debate and vote.