Andorra to phase out rent controls from January 2027 with up to 30% cap

The Andorra la Vella government plans to lift rent controls in a phased process expected to begin in January 2027. The measure would mark the eighth year since controls were first applied in 2019.

Authorities say the unfreezing will be gradual and will start by targeting the oldest contracts. In the first phase, contracts signed up to 2019 would be affected, including some from 2015, which are still within five-year contract terms.

The government’s approach is to set a general cap on allowable increases and then introduce correction factors for specific cases. Landlords would be permitted to raise rents by up to 30% over the price currently being paid.

Corrections may be applied to certain dwellings — for example, renovated units or properties in central locations — to avoid manifestly inconsistent price levels across the market.

The proposal aims to return more control over rental terms to property owners while preventing opportunistic rent hikes. If a landlord renews a lease with the existing tenant, they may apply the 30% increase. If they seek to replace a tenant because of problems, they would still have to re-let at no more than that same maximum increase, a measure designed to stop evictions used to secure higher rents from new tenants.

Officials say the plan seeks to avoid a single, disruptive shock such as a blanket cancellation of extensions affecting the entire housing stock. Over the coming years the government intends to extend the unfreezing to additional contract cohorts until full withdrawal of intervention is achieved.

The bill could be approved by summer. Minister Conxita Marsol said the draft law will include a set of guarantees and described the process as a progressive, safeguards-based disintervention aimed at assuring citizens.