Andorra Rental Laws: Pro-landlord, Neutral or Pro-tenant?
Andorra's landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. Andorra’s current legal framework leans pro-tenant, especially following recent reforms in 2023 and 2025. While the system still respects private property and contractual freedom, the balance has shifted toward protecting tenants, particularly in response to rising rents and housing scarcity.
Rents: Can landlord and tenant freely agree rents in Andorra?
In Andorra, landlords and tenants could once freely negotiate rent, but recent legislation has introduced meaningful constraints, so the situation is now more regulated and tenant-protective. Law 24/2023 (effective Jan 1, 2024) introduced new limits on rental terms and rent increases for older contracts signed between 2019–2021. These are now subject to mandatory extensions and caps on rent increases tied to CPI, or capped flat percentages for units charging specific rates per square meter. Contracts signed in 2022 or later, however, can be freely negotiated, though still governed by the current Law on Urban Property Leasing.
During forced extensions, rent can only change by the CPI, sometimes plus a capped margin (e.g., up to 4%), depending on the pre-extension rent level. For newer contracts (2022+), rent updates must follow the CPI index and respect current leasing law.
Deposits
Landlords and tenants are free to agree on the security deposit terms, but the Urban Rents Law sets a clear upper limit: the deposit may not exceed two months' rent, unless both parties agree to additional guarantees like a bank guarantee instead of cash.
What rights do landlords and tenants have in Andorra, especially as to duration of contract and eviction?
Tenancy contracts typically have a minimum duration of five years, especially for habitual residences, though one-year initial terms are common too. When a lease signed in 2021 or earlier expires, it is automatically extended for up to two additional years, depending on when the original lease was made. For example, a pre-2019 lease can be extended for three years, a 2020 lease for two, and a 2021 lease for one—always linked to CPI-based rent adjustments. Landlords and tenants may then negotiate a fresh five-year contract with rent increases capped at 10% above CPI.
Eviction is a judicially enforced process. A firm court ruling triggers execution by the mayor (municipal authority), who issues a 15-day notice for the tenant to vacate; if the tenant doesn’t comply, forced removal ensues.
In conclusion, Andorran rental law focuses on tenancy stability. Contracts typically last five years and renew automatically. Rent is tied to CPI, landlords must manage maintenance or face fines, and both parties have clear notice periods. Eviction requires formal court and municipal procedures, safeguarding tenants’ rights.
Legislation
The Law on Urban Leases, including Law 24/2023, is the central legal instrument regulating rentals in Andorra. It reflects a strong shift toward protecting tenants, especially in residential housing, while still allowing contractual freedom within defined limits.
How effective is the Andorran legal system?
The Andorran legal system provides a clear legal framework for eviction, but its practical effectiveness depends on the type of contract, the tenant’s behavior, and judicial capacity. In general, eviction is legally enforceable but may involve moderate delays.
Brief history: Recent changes in Andorran landlord and tenant law
Andorra's rental law has crystallized from informal, customary practices into a comprehensive legal system aligned with modern, civil-law standards, ensuring clarity, predictability, and tenant protections. The recent wave of reforms (2023–2025) highlights a strong shift toward tenant stability, longer lease terms, and regulated rent increases, marking a clear evolution from the earlier, landlord-friendly traditional era.
