Key points

  • Law 11/2026 of 4 June (BOPA No. 70, 23 June 2026) organises the staged exit from the forced-extension regime for housing leases in force since 2019.
  • It targets contracts signed in 2021 or earlier; leases concluded from 1 January 2022 already sit under the general regime.
  • Release comes in four blocks: 2027 for pre-2012 contracts (or rent ≤ EUR 6/sqm), 2028 for 2013-2015 (≤ EUR 7/sqm), 2029 for 2016-2018 (≤ EUR 8/sqm), 2030 for 2019-2021.
  • At its block's maturity, either party may terminate on 6 months' minimum notice; failing that, the contract continues under the general regime.
  • On a new lease, rent increases are capped for five years by the per-sqm level: from 6% + CPI per year (rents ≤ EUR 7/sqm) down to 1% + CPI (above EUR 12/sqm); rents above EUR 2,500 monthly escape the caps.
  • The SICAR register created by the reform centralises lease registration — an administrative datum to absorb now.

An organised thaw, not a dry liberalisation

The Andorran legislator did not reopen the market in one stroke: it built a four-year ramp, ordered by contract age and rent level. The logic is social — releasing the oldest, lowest rents first, which also sit furthest from market — but the asset effect is immediate: two identical buildings can carry leases released three years apart. In a valuation, that calendar is read line by line, lease by lease.

The landlord's arithmetic

A 2014 lease at EUR 6.50/sqm is released in 2028. Market rent may be double; the new contract's increase cap, however, depends on the starting level — 5% + CPI per year in the 7-8 EUR/sqm band. The catch-up is real but cadenced: the present value of a building under extension is computed with the ramp, not with today's market rent. That is precisely the work we conduct, through our on-the-ground presence in Andorra, before any income-building acquisition in the Principality.

What it changes for the foreign investor

Combined with the Omnibus 2 law's IEI (6%/10% at entry) and the officially measured market, Law 11/2026 completes Andorra's new landscape: dearer entry, more legible rental holding. A "frozen" building is now bought with a statutory release date — one the seller knows too. That is where the negotiation lives.

General information, verified at publication date. Rules change: every transaction calls for licensed local advice.