Andorra – Property Letting

How does the property letting process work in Andorra?

Andorra’s rental sector is governed principally by the Urban Property Leasing Law (Llei d’arrendaments urbans), most recently amended by the 2025 Law for Sustainable Growth and the Right to Housing, widely referred to as the Omnibus Law. The country’s tenancy legislation has evolved from a largely informal, customary tradition into a thorough civil-law framework designed to bring clarity, predictability, and robust protections for tenants. Operating within a civil-law system means that — unlike certain common-law jurisdictions where verbal or informal arrangements can carry legal force — tenancy agreements in Andorra must be set out in writing to be enforceable.

The letting process typically starts with marketing the property. Most landlords use local estate agencies (immobiliàries), online property portals, and personal networks. Unlike countries with centralised, publicly accessible land registries, Andorra has no such records, nor is there any registration requirement for commercial leases. Before entering into a residential letting agreement, landlords should carefully screen prospective tenants by reviewing proof of income, employment documentation, and personal references.

Once a suitable tenant has been identified, a written tenancy agreement is drawn up. A carefully constructed rental contract is fundamental to protecting both parties and should set out the lease duration, the rights and obligations of each side, and any additional costs such as utility charges or maintenance responsibilities. All contracts must comply with the Urban Rents Law; any clause that contradicts the mandatory statutory protections afforded to tenants will be rendered void and unenforceable.

The 2025 Omnibus Law introduces a series of amendments to Law 15/2022 on Urban Property Leasing. Among the most significant is the extension of the minimum lease term from three to five years — a measure intended to provide tenants with greater stability and encourage more enduring contractual arrangements. This minimum term is notably longer than the standard in many European countries: France, for instance, requires a minimum of three years for unfurnished residential lets, while Germany’s position varies by circumstance. Landlords must carefully factor this extended commitment into their forward planning.

Tenants are also entitled to renew their lease for a further two-year period, subject to meeting specified conditions. Once this renewal has run its course, landlords and tenants may negotiate a fresh five-year agreement, with any rent increase on renewal capped at 10% above CPI.

What types of rental arrangements are available in Andorra — long-term, short-term, and holiday lets?

Andorra recognises two fundamentally distinct rental categories: long-term residential letting governed by the Urban Rents Law, and short-term tourist accommodation — referred to locally as lloguers turístics or habitatges d’ús turístic, abbreviated to HUTs. The licensing requirements, applicable rules, and tax treatment of each category differ in important ways.

Long-term residential letting is the predominant form and falls squarely within the Urban Rents Law framework, including the five-year minimum term and CPI-linked rent adjustment rules described above. This is the model most landlords letting to residents, workers, and families will operate under.

Short-term tourist accommodation — Andorra’s equivalent of Airbnb-style holiday rentals — is a separate and heavily regulated category. In Andorra, such accommodation consists of furnished properties rented out for brief periods, typically ranging from a few days to several months, primarily to visitors and tourists. These rentals serve as an alternative to conventional hotel accommodation. Known locally as lloguers turístics or apartaments turístics, they are regulated under Andorran tourism legislation to ensure adherence to safety, zoning, and taxation requirements.

Critically, the market for new tourist rental licences has effectively been shut. The moratorium on issuing new HUT licences for apartments and studios will remain in force indefinitely. No new tourist licences will be granted for these categories of property. Existing registrations retain their validity, but no new applications will be accepted. This represents a significant constraint for anyone considering purchasing a property in Andorra with the aim of operating it as a holiday let through platforms such as Airbnb or Booking.com.

Should a HUT remain inactive for 12 consecutive months, the Ministry of Tourism may revoke the licence and remove the property from the official registry. Inactivity is defined as the failure to register any guests in the ROAT (Tourist Accommodation Occupancy Registry) over the course of an entire year. A revoked licence cannot be reinstated. Landlords holding existing HUT licences must therefore take care to maintain active operations.

On 6 March 2025, Andorra enacted the Law for Sustainable Growth and the Right to Housing, which, among its wide-ranging provisions, introduces new regulations for tourist apartments, tightens compliance obligations, and establishes penalties for those who fail to comply. Fines for non-compliance range from €3,001 to €18,000 and can include permanent removal from the HUT Registry.

What rental income can landlords expect in Andorra, and how are rates set?

Andorra’s rental market is defined by constrained supply and intensifying demand, making it one of the more challenging rental environments in Europe for tenants — and, historically, one delivering modest yields for landlords. Traditionally, rental yields have hovered around 2–2.5%, making property less competitive as an investment vehicle compared with major financial centres such as London. However, the severe squeeze on available rental stock has meant that considerably higher yields are now achievable in certain segments.

For new tenancy agreements, rent is largely determined by market forces at the outset, but once a contract is signed, increases become tightly controlled. The rent adjustment formula under the 2025 Omnibus Law switches to the Consumer Price Index (CPI) from the Housing Price Index (HPI), a shift designed to more faithfully track cost-of-living changes and prevent disproportionate rent hikes. Landlords are not permitted to raise rents above this cap during the course of a tenancy.

In terms of prevailing market figures, rental prices start at around €650 per month for a basic studio or one-bedroom property, rising to €800–€1,500 for a larger one-bedroom apartment. Good-sized two-bedroom properties typically range from €1,100 to €2,800 per month, while three-bedroom apartments and duplexes can command €2,800 to €6,500. Chalets and terraced houses at the top of the market may fetch €3,500 to €12,500 per month. As of 2025, even a modest one-bedroom furnished flat may start at approximately €850 per month, reflecting the considerable upward pressure on rents across the principality.

For older contracts falling under transitional provisions introduced by recent legislation, more intricate rules apply. Contracts signed in 2012 or earlier, or those priced below €6 per square metre, will be subject to liberalisation first in 2027, followed by 2013–2015 agreements or those under €7/m² in 2028; 2016–2018 contracts or those below €8/m² in 2029; and 2019–2021 contracts in 2030. During any extension periods, rents may be adjusted in line with inflation.

Landlords are advised to consult the Government of Andorra and seek guidance from a local property adviser to establish the indexed rates applicable to their particular contract year, since the rules vary according to when the original tenancy was entered into.

Do landlords need to provide a furnished or unfurnished property in Andorra?

Andorran law does not impose a universal mandatory furnishing standard for long-term residential lets, and landlords retain discretion over whether to offer their property fully furnished, part-furnished, or unfurnished. Nevertheless, market expectations and practical demand play a significant role in shaping what is most competitive.

The choice between offering a property fully furnished, partially furnished, or empty is an important one. While providing furnishings requires an upfront financial commitment, it typically makes the property more appealing to prospective tenants. Many landlords in Andorra opt to supply at least basic furnishings so that properties are move-in ready. Given the chronic shortage of available rental stock, furnished properties tend to let more quickly and can attract a modest rental premium.

For short-term tourist rentals (HUTs), a fully furnished and well-equipped property is both a practical and regulatory necessity. Tourist accommodation is expected to include white goods, kitchen equipment, bedlinen, and basic amenities, and properties must satisfy the quality and safety standards required for their designated star classification.

For long-term lets, it is best practice to draw up a comprehensive inventory at the commencement of the tenancy, signed by both landlord and tenant, recording the condition and contents of the property in detail. This inventory serves as the primary point of reference when assessing any deductions from the security deposit at the end of the tenancy. The level of furnishing does not directly influence the tax classification of a residential let, though it may affect the rental value used as the basis for calculating municipal rental income tax.

Do you need a licence or registration to let a property in Andorra?

Whether a licence or registration is required depends fundamentally on the type of letting you plan to undertake. The rules governing long-term residential letting and short-term tourist accommodation diverge considerably.

For standard long-term residential letting, there is no specific landlord licence required in the same way as, for example, local authority landlord registration schemes operating in other countries. Andorra does not currently require landlords to obtain a dedicated licence in order to rent out their properties. That said, it is important to remain abreast of local regulatory developments, as requirements are subject to change. While a formal licence may not be required, landlords are nonetheless expected to comply with all applicable laws and regulations, including those governing property ownership, taxation, and tenancy terms. Compliance with the Urban Rents Law, proper contract documentation, and the timely payment of all relevant taxes are the primary obligations.

For short-term tourist accommodation, the situation is entirely different. Property owners wishing to offer their unit for tourist rental must obtain a licence and demonstrate compliance with defined quality and safety standards. However, as noted above, the moratorium on new licences for apartments and studios as HUTs remains in force indefinitely; no new tourist licences will be issued for these categories of property, and existing registrations continue to be valid while no new applications are being accepted.

Non-resident foreign landlords must also satisfy Andorra’s foreign investment authorisation requirements before acquiring property. Foreign real estate investment authorisation represents the entry point into Andorra’s entire real estate tax framework. This requirement applies to non-residents and to many residents who have yet to consolidate their residency status; authorisation is mandatory whenever foreign capital is involved in a property transaction. Landlords should verify current requirements with the Government of Andorra and their local municipality (comú), as procedures are subject to revision.

How do you obtain a landlord licence or register as a landlord in Andorra?

For long-term residential letting, the process is less a matter of securing a formal licence and more one of ensuring full legal compliance before the first tenancy commences. The key steps are outlined below:

1. Verify property ownership and foreign investment status. Non-resident landlords must confirm that any required foreign investment authorisation was secured at the time of the property purchase. This is handled through the relevant Andorran government ministry. Consult govern.ad for current requirements, bearing in mind that the rules were revised in both 2024 and 2025.
2. Register with your local municipality (comú). Each of Andorra’s seven parishes — Andorra la Vella, Escaldes-Engordany, Encamp, Canillo, Ordino, La Massana, and Sant Julià de Lòria — administers its own local property and rental taxes. Contact your comú to ensure the property is correctly registered for ownership tax and rental income tax purposes.
3. Prepare a legally compliant tenancy agreement. The contract must meet the requirements of the Urban Rents Law, including the five-year minimum term (as of 2025), CPI-linked rent adjustment provisions, deposit conditions, and termination terms. It is strongly recommended to engage a local lawyer (advocat) or qualified property agent to draft or review the agreement.
4. Conduct a property inventory. Prepare and sign a thorough written inventory with the tenant before occupation begins, detailing the condition of all fixtures, fittings, and furnishings. This document is essential for resolving any end-of-tenancy deposit disputes.
5. Register for tax obligations. Resident landlords must declare rental income in their annual personal income tax (IRPF) return. Non-resident landlords must register for and remit Non-Resident Income Tax (IRNR). Consult a local tax adviser (assessor fiscal) or the Ministry of Finance for current requirements and filing deadlines.
6. Obtain appropriate property insurance. Though not a statutory prerequisite for letting, comprehensive landlord insurance — covering property damage, third-party liability, and loss of rent — is strongly advisable and reflects standard practice in the Andorran market.

For short-term tourist accommodation (HUTs), the process historically involved applying to the Ministry of Tourism for a licence, passing quality and safety inspections, and registering in the Tourist Accommodation Occupancy Registry (ROAT). However, given the current indefinite moratorium on new HUT licences for apartments and studios, this route is not available to new applicants. Andorra launched a programme in 2025 to digitalise administrative procedures related to real estate, so it is always advisable to confirm the current process directly with the Andorran Ministry of Tourism or through the official government portal.

What are the rules around deposits in Andorra?

Security deposits in Andorra are regulated under the Urban Rents Law. The legislation stipulates that, before taking possession of the leased premises, the tenant must provide the landlord with a security deposit not exceeding two months’ rent. This statutory cap is significant: landlords are prohibited from requiring a deposit in excess of two months’ rent for any residential tenancy, regardless of the property’s value.

In practice, the total upfront financial outlay required of a new tenant in Andorra is considerably greater than in many other countries. The initial payment requirement of four months’ rent can come as an unwelcome surprise to those unfamiliar with local conventions. At the point of signing, tenants are typically required to pay two months’ refundable security deposit, one month’s rent in advance, and one month’s rent as the agency commission (to which a local tax of 4.5% is added).

Unlike certain other countries — such as the UK and Ireland, where government-administered tenancy deposit protection schemes require landlords to lodge deposits in a ring-fenced third-party account — Andorra does not currently operate a centralised deposit protection scheme. The deposit is generally held by the landlord and returned to the tenant at the conclusion of the tenancy, provided there are no outstanding damages or unpaid rent to be offset.

To help ensure tenants vacate on the agreed date, landlords typically carry out an inspection before handover, alongside mechanisms such as signed inventories. A well-documented and mutually signed move-in inventory remains the landlord’s most effective protection when determining whether deductions from the deposit are warranted. Should a dispute arise, the matter is settled through the Andorran civil courts, as there is no dedicated tenancy deposit arbitration service. Landlords are always advised to refer to the current provisions of the Urban Rents Law and to seek legal guidance if a deposit disagreement arises.

Who is responsible for maintenance and repairs in Andorra?

Under Andorran law, the primary duty of keeping a rental property in a habitable and safe condition falls on the landlord. Maintenance and upkeep of the property are the landlord’s responsibility. Attending to necessary repairs promptly and ensuring the property remains clean and safe are essential obligations for any landlord who wishes to retain good tenants and avoid legal complications.

Structural repairs, major appliance replacements, and works required to maintain the property in compliance with habitability standards are squarely the landlord’s responsibility. Tenants are generally accountable for routine day-to-day upkeep and for ensuring they do not cause damage beyond normal wear and tear. This division broadly mirrors the approach taken in France and Spain, where the landlord maintains the fabric of the building and major systems while the tenant attends to general cleanliness and minor repairs.

Where a tenant causes damage that goes beyond normal wear and tear, the landlord may make deductions from the security deposit to cover the cost of remediation, provided the damage has been properly recorded in a signed inventory. Careful documentation of the property’s condition both at the start and end of the tenancy is the most reliable means of pre-empting disputes over deposit deductions.

There is no dedicated housing tribunal or specialist fast-track dispute resolution mechanism for maintenance disagreements in Andorra. Disagreements between landlords and tenants are resolved through the ordinary civil court system. To secure the eviction of a tenant, a landlord must furnish evidence of property mistreatment, non-payment of rent, or a contractual breach. Landlords who neglect their structural maintenance obligations may find themselves at a disadvantage if a dispute proceeds to court.

How are letting agents used in Andorra, and what do they charge?

Letting agents and property management companies occupy a central role in the Andorran rental market, particularly for overseas or non-resident landlords. Licensed property agents operating in Andorra specialise in property management and rentals, bringing with them detailed local knowledge. They can assist landlords in pricing properties competitively, screening prospective tenants, and coordinating property maintenance and repairs.

The standard agent fee for securing a tenant in Andorra amounts to one month’s rent, payable at the point of contract signing. This commission is typically borne by the tenant, who pays one month’s rent as the agency fee plus a local tax of 4.5%. This arrangement differs from markets such as the UK, where the Tenant Fees Act 2019 prohibited landlords from passing most letting agent fees on to tenants. That said, practices can vary between agents, and it is always worth clarifying who bears responsibility for the agent’s fee in any particular transaction.

For ongoing property management — of particular relevance to landlords based outside Andorra — agents typically charge a monthly management fee expressed as a percentage of the monthly rent. Market rates vary according to the agent and the scope of services included; current figures should be confirmed directly with prospective agents. The number of property agents active in Andorra has grown noticeably in recent years, increasing the range of choice available to landlords, but also meaning that service quality and fee structures vary considerably. Always obtain a clear written agreement specifying the services to be provided, the fee structure, and reporting obligations before appointing an agent.

There is no centralised regulatory body specifically licensing letting agents in Andorra comparable to, for example, the Property Ombudsman in the UK or France’s FNAIM. Landlords should seek personal recommendations and assess an agent’s local standing before making an appointment. All fee information should be verified as of the current date, since market rates shift in response to supply and demand conditions.

What taxes apply to rental income in Andorra?

Andorra’s tax system operates at two distinct levels: national government taxes and municipal (comú) taxes. Rental income is subject to obligations at both levels, and the applicable rate depends on whether the landlord is an Andorran tax resident or a non-resident property owner.

For Andorran tax residents: Income derived from renting out real estate is subject to tax, with the rate depending on residency status. Andorran tax residents earning income from letting property pay tax at a rate of 0.4% to 4% (as of 2025), assessed under the personal income tax (IRPF) system. In Andorra, net income of less than €24,000 is exempt from income tax. Income between €24,001 and €40,000 is taxed at 5%, and income above €40,000 is taxed at 10%. Rental income that keeps total annual income below the €24,000 threshold may therefore attract very low or zero national-level income tax for some landlords.

For non-resident landlords: Non-residents deriving income from Andorran property are subject to the Non-Resident Income Tax (IRNR), levied at a general flat rate of 10%. The taxable base for the IRNR is calculated on the net income attributable to economic activities, employment, real estate income, royalties, and capital gains. Some sources suggest that the withholding rate on rental income for foreign investors may differ in specific circumstances; the applicable rate should always be confirmed with the Andorran Ministry of Finance or a qualified local tax adviser.

Municipal rental income tax: Beyond national-level tax, owners of rental property in Andorra are also subject to a municipal tax on rental income. The rate varies by parish and ranges from approximately 1.75% to 4% (as of 2025). Additionally, in certain parishes further thresholds apply — in Escaldes-Engordany, for instance, an extra 1% applies to rental income exceeding €40,000. The parish of Canillo does not apply these municipal rental taxes.

Municipal authorities (comús) are responsible for collecting taxes on property, rental income, the establishment of commercial and business activities, and construction. This means that a landlord’s precise tax obligations will differ depending on which of Andorra’s seven parishes their property is located in — a factor that makes obtaining local tax advice indispensable.

Foreign investment tax: The general tax rate on foreign real estate investment ranges from 3% to 10%, though in certain circumstances a 90% reduction is available, particularly where the property is committed to long-term rental. This incentive is expressly designed to encourage foreign investors to channel property into the long-term rental market. Tax residents must file their annual return between 1 April and 30 September of the following year. Landlords are always encouraged to engage a qualified Andorran tax adviser (assessor fiscal) for advice tailored to their individual situation, as the interaction of national and municipal tax obligations for non-residents can be complex.

What are the rules around ending a tenancy or evicting a tenant in Andorra?

Andorra’s landlord and tenant legislation is widely regarded as pro-tenant. The current legal framework leans firmly in tenants’ favour, particularly following the reforms of 2023 and 2025. Although the system continues to respect private property rights and contractual freedom, the balance has shifted considerably toward protecting tenants, largely in response to escalating rents and acute housing scarcity.

Tenants benefit from strong security of tenure throughout the minimum five-year term. A landlord cannot simply decide, mid-tenancy, to sell the property and require the tenant to vacate. Landlords may reclaim possession for personal or family use, essential safety works, leasing to a company employee, or sale to a buyer who requires the property as their primary residence. Six months’ notice is required in such cases, and there are meaningful sanctions for violations, including fines of up to 100% of the annual rent, together with bans on public contracts and restrictions on accessing public assistance for the most serious breaches.

The grounds on which a landlord may lawfully terminate a tenancy during the contracted period are narrow. Tenancy contracts are weighted heavily in favour of the tenant. To secure an eviction, the landlord must present evidence of property mistreatment, non-payment of rent, or a breach of the contractual terms. The Urban Rents Law expressly provides that a tenant’s default in rent payment constitutes a ground for termination in the landlord’s favour.

Notably, from the tenant’s perspective, a tenant is now only required to give one month’s notice to bring the contract to an end. This asymmetry — extended minimum terms binding on landlords but only brief notice obligations on tenants — is a defining feature of the Andorran framework and differs markedly from the more balanced notice requirements found in countries such as Germany or the Netherlands.

Eviction is a judicially enforced process in Andorra. Once a court ruling is obtained, it is executed by the mayor (municipal authority), who issues a 15-day notice to the tenant to vacate; if the tenant fails to comply, forced removal follows. Landlords should be aware that court proceedings require time to conclude, and the duration of eviction proceedings can vary considerably depending on the specific circumstances of each case. Seeking specialist legal advice before attempting to recover possession is essential.

The Andorran government is currently considering a graduated deregulation bill for older tenancy contracts from 2027 onwards. The draft rental deregulation bill maps out a progressive easing of rent controls beginning in 2027, incorporating controlled increases and safeguards against sharp rent hikes. This remains an evolving legislative area, and landlords are encouraged to monitor developments through the official government portal.

What should expat landlords know about managing property remotely in Andorra?

Running a rental property in Andorra from overseas is entirely feasible, but it demands careful organisation and reliable local support. The single most important practical step is appointing a trustworthy local representative — typically either a property management company or a qualified lawyer acting under a power of attorney (procuració). This representative can execute documents, liaise with tenants, supervise repairs, and ensure compliance with all local obligations on the landlord’s behalf.

Non-resident landlords must be especially vigilant about their tax obligations. While residents are taxed on their worldwide income, non-residents are taxed only on income arising within Andorra. The Non-Resident Income Tax (IRNR) at 10% applies to rental income derived from Andorran property, and must be properly declared and remitted to the Andorran tax authorities. Failure to comply can result in financial penalties. Engaging a local assessor fiscal (tax adviser) with experience in cross-border obligations is strongly recommended.

Foreign landlords who acquired their property using capital from abroad must confirm that all applicable foreign investment authorisation requirements have been satisfied. Foreign real estate investment authorisation is the foundation of the entire Andorran real estate tax system, and applies both to non-residents and to many residents who have not yet fully consolidated their residency status. Such authorisation is mandatory whenever foreign capital is involved in a property transaction.

Andorra does not restrict the repatriation of rental income, and there are no currency exchange controls — the country uses the euro. However, landlords resident in other countries must also consider their domestic tax obligations on income earned abroad. Most jurisdictions require residents to declare worldwide income, including rental receipts from overseas properties. Whether a double taxation agreement (DTA) exists between Andorra and a landlord’s country of residence will determine how relief from double taxation is computed; it is advisable to consult a tax adviser in both jurisdictions to ensure full compliance.

For day-to-day management, a local property manager can handle tenant communications, coordinate maintenance contractors, collect rent, and ensure the property continues to meet ongoing habitability standards. Property agents and real estate agencies can be valuable partners in the letting process. Licensed agents in Andorra specialise in property management and rentals, possess detailed local knowledge, and can assist with competitive pricing, tenant screening, and maintenance coordination. Any management agreement should always be set out in writing, with clear provisions covering the scope of authority granted, fee structure, and reporting arrangements.

Frequently asked questions about letting property in Andorra

Can a non-resident own and let property in Andorra?

Foreigners — whether resident in Andorra or not — currently have the right to acquire real estate in the principality. Non-resident owners may let their property on a long-term basis, subject to compliance with the Urban Rents Law, applicable foreign investment authorisation requirements, and payment of Non-Resident Income Tax (IRNR) at a flat rate of 10% on rental income (as of 2025). Current requirements should be verified with the Andorran government and a local tax adviser.

What is the minimum rental term for a residential property in Andorra?

The minimum lease term for residential property in Andorra is five years, extended from three years by the 2025 Omnibus Law. Tenants are additionally entitled to renew their lease for a further two-year period. This is one of the most consequential considerations for landlords who may need to recover flexibility over their property within a relatively short timeframe.

Can I let my apartment on Airbnb or as a holiday rental in Andorra?

The moratorium on new licences for apartments and studios as tourist accommodation (HUTs) is in place indefinitely. No new tourist licences will be issued for these categories of property, and while existing registrations remain valid, no new applications are being accepted (as of 2025). If you do not already hold a valid HUT licence, operating a short-term tourist let in a standard apartment or studio in Andorra is not legally permitted.

How much deposit can a landlord charge in Andorra?

The Urban Rents Law stipulates that the deposit provided by a tenant may not exceed two months’ rent (as of 2025). There is no government-backed deposit protection scheme of the kind found in the UK or Ireland — the deposit is typically retained by the landlord and returned to the tenant at the end of the tenancy, less any legitimate deductions for damage or outstanding rent.

How is rental income taxed for landlords who are not Andorran tax residents?

Non-resident landlords are subject to the Non-Resident Income Tax (IRNR), charged at a general flat rate of 10% (as of 2025), calculated on the net income derived from real estate and other sources in Andorra. In addition, a municipal rental income tax of approximately 1.75%–4% (depending on the parish) applies on top of this. Landlords should always consult a local tax adviser and confirm current rates and any allowable deductions with the Andorran Ministry of Finance.

Do I need a local agent to let my property in Andorra?

A local agent is not a legal requirement for long-term residential letting, but is strongly advisable — particularly for non-resident landlords. Licensed property agents in Andorra specialise in property management and rentals, helping landlords price their property accurately, screen tenants, and manage maintenance. For absentee landlords, appointing a property manager under a formal power of attorney is the most practical way to ensure ongoing compliance and effective day-to-day management.

What happens if my tenant refuses to leave at the end of the tenancy in Andorra?

Eviction in Andorra is a court-enforced process. Following a judicial ruling, the municipal authority (mayor) issues the tenant with a 15-day notice to vacate; if the tenant fails to comply, forced removal is carried out. Landlords are not permitted to evict tenants through self-help measures. Given the pro-tenant orientation of the legal system and the time required for court proceedings to conclude, obtaining specialist legal advice without delay is essential if a tenant declines to leave.

Is there a tax incentive for letting property to the long-term rental market in Andorra as a foreign investor?

Yes. A 90% reduction on the foreign real estate investment tax is available in certain circumstances, most notably where the property is dedicated to long-term rental and the rent charged is kept at an affordable level. This can substantially reduce the upfront tax burden for non-resident investors who commit to providing long-term housing. Eligibility criteria and conditions should be verified with a qualified Andorran tax adviser, as these rules were amended in both 2024 and 2025 and may be subject to further revision.