Andorra – Lease Agreements

What is the typical lease term for renting property in Andorra?

Andorra’s Urban Property Lease Law is designed to balance the interests of both tenants and property owners, and it enshrines a minimum contractual duration of five years for leases on primary residences. This stands in notable contrast to the practices of many neighbouring countries — Germany, for instance, generally permits open-ended agreements, while France defaults to terms of one or three years depending on whether a property is furnished. Andorra takes a distinctly stability-oriented approach.

The 2025 Omnibus Law introduced amendments to Law 15/2022 on Urban Property Leasing, among them an extension of the minimum lease duration from three to five years — a reform intended to give tenants greater security of tenure and to encourage more durable contractual arrangements between landlords and occupants.

Under the updated renewal framework introduced in 2025, tenants who satisfy the applicable conditions may renew their lease for a further two-year period, providing additional certainty and enabling longer-term planning for both parties.

One important nuance is that specifying a duration in the contract is not compulsory. Under Andorran law, where a lease does not state a fixed term, it is treated as having been concluded for a period of four to five years, and the parties may agree to extend it beyond that point.

Leases are also subject to tacit renewal — known as pròrroga tàcita — for one further year at their conclusion, unless either the landlord or tenant notifies the other at least three months before the contract’s expiry date or the end of any extended period. Should the tenant continue to occupy the property for 15 days after the agreement has expired without objection from the landlord, the tenancy enters automatic renewal on broadly the same terms as the original contract.

What is the difference between furnished and unfurnished rental properties in Andorra?

Andorran rental properties are available in both furnished and unfurnished configurations. Furnished homes come equipped with essential items — typically beds, sofas, dining furniture, and kitchen appliances — allowing tenants to move in without acquiring furniture of their own, and generally making for a straightforward transition.

Unfurnished properties, on the other hand, are vacant and contain no furniture or appliances. Tenants take on the task of equipping the home according to their preferences. While this offers greater freedom to personalise a living space, it also requires a financial outlay for furnishings before the property is habitable.

Whether to let a property fully furnished, partially furnished, or empty is a decision each landlord makes independently, and many in Andorra opt to provide at least a basic level of furnishing so that the property is ready to occupy immediately upon moving in. Furnished options are therefore relatively widespread in the Andorran rental market, which is particularly convenient for expats arriving without their own belongings.

It is worth noting that the meaning of “furnished” can differ considerably from one landlord to the next. Unlike some northern European markets where white goods such as a fridge, washing machine, and oven are routinely present even in ostensibly unfurnished properties, unfurnished rentals in Andorra typically contain nothing whatsoever. Always establish precisely what is included before you commit to anything. For furnished rentals, the lease may incorporate a written inventory of all items and appliances provided.

Tenants are generally expected to cover utilities including water, electricity, and gas unless the lease specifies otherwise. Factor in additional costs such as internet, electricity, and water when calculating your overall monthly outgoings on top of the rent itself.

What are the standard clauses typically found in a lease agreement in Andorra?

Every rental contract in Andorra must contain a series of clauses setting out the rent amount and all the particularities of the property. A properly drafted agreement should cover the length of the tenancy, the monthly rent and how it is to be paid, the security deposit and the conditions under which it will be returned, the respective obligations of both landlord and tenant, and any additional charges such as utilities or maintenance costs.

Rent payment terms: Rent must be paid in the manner set out in the contract, on a monthly basis and always within the first five days of each month. It is important to note that landlords are not permitted to demand payment of rent in advance.

Rent increases: Under the 2025 amendments, the formula for adjusting rent has shifted to the Consumer Price Index (CPI) in place of a separate Housing Price Index. This change is intended to align rent rises more closely with general living-cost trends and to prevent increases that are disproportionate to broader economic conditions.

Notice periods: A tenant may bring the contract to an end at a time of their choosing, provided they give the landlord at least one month’s written notice before vacating. Where this notice is not given, the tenant must compensate the landlord with one month’s rent for each year remaining on the contract.

Maintenance responsibilities: The lease sets out the duties and entitlements of both parties. The landlord is obliged to provide a property that meets habitability standards and receives the agreed monthly rent in return. The tenant must pay the rent on time and leave the property in the same condition as when they took possession, and has the right to expect the home to be equipped with all necessary services — including heating, ventilation, and electricity.

Subletting restrictions: Andorran law gives a tenant who has entered a fixed-term lease the right to sublet all or part of the property, but only with the landlord’s written consent. Further subletting by a subtenant — that is, sub-subletting — is expressly prohibited.

Early termination: The Urban Rents Law identifies non-payment of rent by the tenant as a ground for termination exercisable by the landlord. The law also sets out defined exceptions to automatic lease extensions, such as the owner’s own need to occupy the property or the necessity to carry out urgent structural works.

What additional or optional clauses might appear in a lease agreement in Andorra?

Alongside the clauses that are standard in every Andorran lease, agreements may also contain optional provisions negotiated between landlord and tenant to reflect their particular circumstances or preferences. Expats should read these carefully before signing, as they can have a tangible effect on day-to-day life in the property.

Pet policies: A clause addressing whether animals may be kept in the property — and any conditions attached, such as a separate pet deposit or species restrictions — is among the most frequently added optional provisions. Andorra has no national default position on this issue, so the matter is left entirely to the landlord’s discretion. If keeping a pet is important to you, raise it before agreeing to anything.

Alterations to the property: Landlords commonly include provisions prohibiting structural changes, redecoration, or the installation of fittings without prior written permission. Even apparently minor modifications — fitting shelves or repainting a wall, for example — may require approval. Andorran lease agreements tend to address this explicitly, rather than leaving it to assumption.

Guest policies: Some agreements restrict the number of overnight visitors or the length of their stays. In short-term or tourist lettings, specific rules govern maximum occupancy and the presence of guests both inside and outside the property. Even in long-term leases it is worth checking whether comparable restrictions exist.

Utility arrangements: Although utilities are ordinarily the tenant’s responsibility, some landlords include them in the rent — this is particularly common in older apartment buildings where heating or water is managed communally. Beyond the monthly rent, other costs such as agency fees, security deposits, and utility charges may apply, and all of these should be factored into your budgeting from the outset.

Insurance requirements: Certain contracts require tenants to hold home contents insurance as protection against property damage. This is sensible practice regardless, but check whether the landlord stipulates a minimum level of coverage or a particular policy type.

These optional provisions can be tailored to the specific requirements and preferences of both parties. What matters most is that both landlord and tenant fully understand and explicitly agree to every clause before the contract is signed.

What should expats be especially aware of when signing a lease in Andorra?

Lease agreements in Andorra are ordinarily written in Catalan or Spanish. Anyone unfamiliar with these languages should take steps to ensure they genuinely understand every term in the contract, and should seriously consider having it professionally translated or reviewed by a lawyer. Unlike certain countries that require translated contracts or notarised documents for foreign nationals, Andorra imposes no such obligation — the responsibility for understanding what you are signing rests entirely with you.

There is no legal requirement for standard residential leases in Andorra to be notarised, but engaging a legal adviser to review the contract before you sign — especially for longer leases or higher-value properties — is strongly advisable. A local lawyer or registered property manager can work through the Catalan or Spanish text and identify any unusual provisions that warrant attention.

One financial aspect that can come as a surprise to newcomers is the sum payable at the point of signing. This typically amounts to four months’ rent in total: two months as a refundable security deposit, one month’s rent in advance, and one month’s rent as an agency commission (plus the local indirect tax of 4.5%, as of 2024). Confirm the precise breakdown in writing before you sign anything.

Landlords will generally require a range of documents before formalising the agreement, including a copy of your identity document, a covering letter describing your situation and capacity to pay, references from former employers, and a summary of your monthly income and outgoings. A bank guarantee may also be requested as an additional form of security for the landlord.

A residence permit is not a prerequisite for renting in Andorra. However, anyone intending to make the country their permanent home must satisfy the relevant immigration requirements. Since a rental property is frequently a condition of a residency application, careful planning around the timing of both is essential.

Study the deposit clause with particular care, including the amount, the circumstances in which deductions may be made, and the timeframe for its return. Similarly, make sure the respective maintenance and repair obligations of both parties are clearly defined to minimise the risk of disagreements arising during the tenancy.

Are security deposits required in Andorra, and what rules govern them?

The Urban Rents Law requires that, before taking possession of the leased premises, the tenant must provide the landlord with a security deposit equivalent to a maximum of two months’ rent. In certain circumstances, this guarantee may be replaced by a bank guarantee. The deposit is held by the landlord and returned to the tenant when the tenancy ends, upon handover of the keys.

As in Spain, a tenant renting a primary and permanent residence must provide a deposit to the landlord. This deposit may not exceed two months’ rent. That said, a deposit is not strictly compulsory — the parties may substitute it with a bank guarantee or another mutually agreed form of security.

Once the lease is concluded, the deposit — generally equivalent to one month’s rent, with two months as the statutory ceiling — is held in a separate account and refunded at the end of the tenancy, provided the property is returned in the same condition as it was at the outset. Crucially, the deposit may not be used as a substitute for rent payments if the tenant falls into arrears.

Landlord and tenant may also agree on supplementary guarantees to address the risk of payment default, such as bank guarantees, dedicated default insurance, or agreed advance payment arrangements.

If the property has been damaged beyond ordinary wear and tear, or if rent arrears exist, the landlord may deduct the relevant costs from the deposit before returning the balance to the tenant. Both parties should agree on any such deductions and maintain records of all related expenditure.

The deposit serves to ensure the tenant fulfils their contractual obligations and covers any damage identified at the end of the tenancy. When the rental concludes, the landlord is obliged to return the deposit to the tenant at the moment the keys are handed back. There is no state-administered deposit protection scheme in Andorra of the kind that exists in the United Kingdom or Australia — the deposit is typically held directly by the landlord. This makes thorough documentation of the property’s condition at the start of the tenancy all the more critical. Always verify current rules on deposit handling with the relevant Andorran authority.

Are condition reports or property inspection reports used in Andorra before signing a lease?

Condition reports are not a legal requirement in Andorra prior to signing a lease, but they are of real practical benefit to both parties. Such a report records the state of the property at the outset — noting any existing defects or damage — and provides a benchmark against which the condition of the property can be measured when the tenancy ends, helping to determine whether any deductions from the security deposit are warranted. Although there is no statutory obligation to produce one, both landlord and tenant may choose to draw up a condition report together in order to establish a clear and transparent record from the start.

To confirm that a tenant departs on the agreed date, landlords will typically arrange an inspection — or use comparable mechanisms such as inventories — before the property is vacated. However, this end-of-tenancy inspection is initiated by the landlord and does not substitute for a thorough move-in report that has been reviewed and agreed by the tenant.

Before taking possession of a property, it is advisable for both parties to carry out a joint inventory inspection and record the condition of the property, as this significantly reduces the likelihood of disagreements when the deposit is returned. Even though this is not required by law, treating it as an indispensable step is the wisest approach.

A practical method is to photograph every room, note all pre-existing marks and damage in writing, and have both parties sign and date the completed report, each retaining a copy. In countries such as France and Germany, this type of état des lieux (state-of-play report) is a statutory requirement; in Andorra it is not — but the protection it offers is equally valuable. Insisting on a written condition report at the start of the tenancy is one of the most effective safeguards for recovering your deposit in full when you leave.

What qualifications or licences should letting agents hold in Andorra?

Property professionals in Andorra must be duly authorised by the Government and enrolled in the Professional Association of Real Estate Agents of the Principality of Andorra — known as AGIA, or the Col·legi Professional d’Agents i Gestors Immobiliaris del Principat d’Andorra. This is a substantive legal requirement, not merely a voluntary form of accreditation.

Letting agents and property professionals in Andorra are expected to hold the qualifications and licences necessary to operate lawfully. Although there is no single stand-alone licensing body exclusively for letting agents, they may be required to hold a real estate licence or be registered with the Andorran government in order to conduct property transactions.

In practical terms, you should ask any agent you work with whether they are registered with AGIA and, where possible, request their registration number. Oversight in Andorra’s comparatively small property market can be less uniform than in larger jurisdictions — France, for example, requires all agents to hold a carte professionnelle issued by the local chamber of commerce, backed by mandatory insurance and financial guarantees. In Andorra, the AGIA framework provides a broadly comparable level of oversight, but the most reliable step a prospective tenant can take is to verify an agent’s registration directly with AGIA.

Exercise caution with unlicensed intermediaries who may operate on an informal basis, especially given that properties are frequently taken before they ever appear on public listings. Working with a properly registered agent gives you a meaningful avenue of recourse should problems arise. Always check current licensing requirements directly with the relevant Andorran government authority.

Is there a professional association or regulatory body that reputable letting agents in Andorra should belong to?

The AGIA — the Andorran Chamber of Real Estate Agents and Property Managers — is the professional body that unites all real estate practitioners operating in the Principality of Andorra. Its principal aims are to regulate the property sector and to represent the profession, advocating for its interests in dialogue with the public authorities.

The Col·legi Professional d’Agents i Gestors Immobiliaris d’Andorra is an entity of public character, governed by the Law on Real Estate Agents and Managers of 15 December 2000. This gives it a formal legal standing — it is not simply a trade association, but a recognised professional body with defined regulatory functions.

AGIA membership is the clearest sign that an agent in Andorra is legitimate and professionally accountable. Reputable agencies such as Immobiliària Oceànic, for instance, are members of the Col·legi de Gestors i Agents Immobiliaris d’Andorra, reflecting their commitment to maintaining professional standards.

You can confirm whether a particular agent is registered by contacting AGIA directly. Their official website is www.agia.ad — note that the site is primarily in Catalan. Always verify that details are up to date via the official website, as contact information and membership requirements may be subject to change. If you have doubts about an agent’s credentials, you may also seek guidance from the relevant Andorran government ministry.

What are a tenant’s rights and legal protections under rental law in Andorra?

The landscape of Andorra’s rental market has undergone considerable change in recent years: whereas landlords and tenants were once largely free to negotiate their own terms, successive legislative reforms have introduced meaningful constraints that tip the balance decisively in tenants’ favour.

Protection against rent increases: Rent revisions must be made in accordance with the general Consumer Price Index, within the framework of contractual freedom established by the Law on Urban Property Rentals. The annual increase in rent may not exceed the annual rate of inflation — landlords have no unilateral authority to raise rent beyond this ceiling.

Protection against eviction: Rental contracts afford substantial protection to tenants. To remove a tenant, the landlord must produce evidence of damage to the property, persistent non-payment of rent, or a material breach of the contractual terms. A landlord who decides during the five-year term that they wish to sell the property has no legal basis on which to require the tenant to vacate.

Eviction procedure: Eviction is a court-supervised process. Once a binding judicial decision has been reached, the mayor (the relevant municipal authority) serves a 15-day notice on the tenant to leave; failure to comply results in enforced removal. This judicial oversight means that informal or self-help evictions are not legally sanctioned.

Habitability standards: The landlord is under an obligation to provide a property that meets habitability requirements. Tenants have a right to expect the home to be properly equipped with all the services necessary for daily living — including heating, ventilation, and electricity. Landlords who fail to fulfil their maintenance obligations may face financial penalties.

Automatic contract extensions for older leases: When a lease concluded in 2021 or earlier reaches its end date, it is automatically extended for additional years depending on when the original agreement was made — for example, a lease predating 2019 may be extended by three years, a 2020 lease by two years, and a 2021 lease by one year — with any rent adjustments throughout those extensions linked to CPI movements.

Foreign nationals and renting: There are no legal restrictions preventing foreign nationals from renting property in Andorra. A residence permit is not required to rent. However, those wishing to reside permanently in the country must satisfy the applicable immigration conditions. The protections afforded by Andorran rental law apply uniformly regardless of nationality.

For authoritative and current information on tenant rights and dispute resolution, consult the Andorran Government’s official portal at www.govern.ad, or take advice from a registered Andorran lawyer. The Law on Urban Leases, including Law 24/2023, constitutes the primary legal framework governing rental matters in Andorra.

How do I apply to rent a property in Andorra?

Securing a rental property in Andorra follows a defined sequence of steps. Having the necessary documents and finances organised in advance can make a meaningful difference in a market where competition for available properties is intense.

1. Search for a property: Finding a rental often requires a more traditional approach — asking around locally, drawing on personal networks, and visiting real estate agents in person, as well as approaching them directly. Online platforms such as Idealista and Pisos.ad also carry Andorran listings.
2. Check agent credentials: Verify that any agent you work with is registered with AGIA (the Col·legi Professional d’Agents i Gestors Immobiliaris del Principat d’Andorra) at www.agia.ad.
3. Prepare your documents: Before the lease is signed, you will typically need to supply a copy of your identity document, a covering letter describing your personal circumstances and financial capacity, references from previous employers, and a breakdown of your monthly income and expenditure.
4. Review the lease thoroughly: Make sure you understand every provision, paying particular attention to clauses on rent, the deposit, notice periods, maintenance obligations, and any optional additions. Lease agreements are ordinarily written in Catalan or Spanish, so arrange a translation or legal review if needed.
5. Request a condition report: Prior to moving in, walk through the property with the landlord and record its condition in writing, supported by photographs. Both parties should sign the report and keep a copy.
6. Make the initial payment: Be prepared to pay approximately four months’ rent at the time of signing: two months as a security deposit, one month’s rent in advance, and one month as the agency commission (plus applicable local indirect tax).
7. Sign the lease and take possession: Once all payments have been made and both parties have signed the agreement, you will receive the keys. Store your signed copy of the lease safely for the duration of the tenancy.
8. Arrange utilities and insurance: Open your own accounts for electricity, water, gas, and internet unless these are already covered by the rent. Take out contents insurance, and check whether the landlord stipulates a specific level of home insurance coverage.

Frequently Asked Questions

Do lease agreements in Andorra have to be written in Catalan?

Lease agreements in Andorra are ordinarily drafted in Catalan or Spanish. There is no legal requirement for contracts to be made available in any other language, nor is there any obligation to provide a notarised translation for foreign nationals. If you are not comfortable reading Catalan or Spanish, arrange for a professional translation or take legal advice before putting pen to paper. You should never sign a document whose contents you do not fully understand.

How are disputes with landlords resolved in Andorra?

Evictions and serious tenancy disputes are handled through a court-supervised process. Once a binding judicial ruling has been issued, the mayor (the relevant municipal authority) serves a 15-day notice on the tenant to vacate; if the tenant does not comply, forced removal follows. For less serious disputes — over deposit deductions or maintenance failures, for example — tenants should first seek to resolve the matter in writing with the landlord and then take legal advice if necessary. Civil tenancy matters in Andorra fall within the jurisdiction of the Andorran courts (the Batllia).

Do foreign nationals face any restrictions on renting in Andorra?

A residence permit is not required to rent a property in Andorra. However, anyone wishing to live in the country on a permanent basis must meet the relevant immigration conditions. The protections provided by Andorran rental law apply equally to foreign nationals and domestic residents, and no additional legal barriers to renting exist on the basis of nationality.

What happens if a tenant needs to break a lease early in Andorra?

A tenant may bring the contract to an end at any point, provided they give the landlord at least one month’s notice before leaving the property. Where that notice is not given, the tenant is required to compensate the landlord with one month’s rent for each year remaining on the contract. If you anticipate a possible need to exit the lease early, try to negotiate an early termination clause at the time of signing.

How are rent increases regulated in Andorra?

Under the 2025 amendments to Law 15/2022, rent adjustments must be calculated according to the Consumer Price Index (CPI) rather than a separate Housing Price Index. This reform is intended to tie rent rises more closely to general cost-of-living changes and guard against disproportionate increases. The annual rise in rent may not exceed the annual rate of inflation. For the most current figures, consult a legal adviser or the Andorran government portal, as the regulatory framework continues to develop.

Can a landlord evict a tenant in order to sell the property during the lease term?

No. Rental contracts in Andorra run for five years by law and afford substantial protection to tenants. A landlord who decides during that five-year period that they wish to sell the property has no legal grounds on which to require the tenant to leave. Eviction is only possible where the landlord can demonstrate damage to the property, non-payment of rent, or a material breach of the lease’s terms.

Is the security deposit protected in a government-backed scheme in Andorra?

Unlike markets such as the United Kingdom, where deposits must be registered with a government-approved protection scheme, Andorra does not operate a centralised deposit protection authority. The deposit — capped at two months’ rent — is held in a separate account by the landlord and returned at the end of the tenancy, provided the property is in the same state as when it was first occupied. In the absence of a formal protection scheme, comprehensive move-in documentation is particularly important. Always verify the current rules on deposit handling with the Andorran government.

How competitive is the rental market in Andorra, and how do I improve my chances?

Throughout 2024 and into 2025, the Andorran rental market has remained highly competitive, with very little stock available and upward pressure on prices. To maximise your prospects, assemble all required documents before you begin your search, have evidence of income ready to present, consider offering a bank guarantee in addition to the standard deposit, and work with a registered AGIA agent who may have access to properties not publicly advertised. When a suitable home becomes available, acting without delay is essential.