If you are thinking about moving to the Principality, it is necessary that you know in detail everything related to renting in Andorra. What is renting in the Principality like? What do you need to take into account when renting a property? We will tell you about it in the following article.
In Andorra, as anywhere in the world, the lease is a contract that establishes rights and obligations for the parties. That is, the landlord (homeowner) has the obligation to provide a habitable property to the tenant; In exchange, he receives a monthly payment (rent) for the property.
On the other hand, the lessee (tenant) has the obligation to pay a fixed monthly rent and maintain the property as he found it. You also have the right for the home to be habitable and, consequently, to have all the necessary requirements and services to be able to live in it (such as heating, ventilation, electricity, etc. ).
But in order to establish a rental in Andorra, it is necessary to sign a rental contract. The first thing you should know is that the rental of housing is governed by the Andorra Urban Property Lease Law. This is the most important regulation for the real estate sector in the Principality. It is responsible for regulating relations between landlords and tenants within Andorra. Its main objective is to guarantee the rights and obligations of the parties involved in the rental of urban properties.
According to the provisions of this law, the rental in Andorra has as its object a habitable building that is intended for the habitual or permanent residence of the tenant, spouse, children or Other family. The period must be greater than 183 days per calendar year.
Every rental contract must contain a series of clauses in which, for example, the amount of the rent are determined, as well as all the particularities of the home .
One of the most important clauses is the one regarding the deadline, but you will be surprised to know that it is not mandatory to establish it. And according to Andorran legislation, when the contract does not have a specific duration, it is understood that it is signed for a period of four to five years. If the parties agree, the contract can be extended.
When the rental contract ends and the tenant remains in the home for 15 days and without the landlord’s opposition, it is understood that the agreement enters into tacit renewal. The term of the new contract will be for a period similar to the first contract signed.
Is bail mandatory in Andorra? As in Spain, the tenant must provide a deposit to the landlord, when it comes to the rental of a habitual and permanent home. But the deposit givencannot be more than two months’ rent. However, the bond is not mandatory, since the parties can replace it with a bank guarantee or any other type of guarantee.
Through the deposit it is possible to guarantee that the tenant complies with his contractual obligations, but also to repair possible damages for when the contractual relationship concludes. When the rental in Andorra ends, the owner of the property has the obligation to return it to the tenant, at the moment he receives the keys to the property back.
The contract can end when the tenant decides so, but as long as he notifies the owner of the home within a period of one month before leaving the property. If the tenant does not notify, then he must compensate the landlord with the payment of a monthly rent for each year that remains to fulfill the contract.
The rental amount must be paid as agreed in the contract. This amount must be paid monthly and always on the first five days of each month. It is important to note that the landlord cannot require advance payment of the rent.
Regarding the amount of the lease, this is determined by the lessor and, in addition, can be updated according to what is established in the contract.
If you are thinking about entering into a rental contract in Andorra, we will tell you some of the benefits of doing so. Andorra is a unique country and provides great advantages for those who want to live permanently in the Principality.
One of the main advantages of living in the Principality is its low taxes. Andorra offers residents an attractive tax regime, with low taxes and a stable tax system. This has meant that, in recent years, many businessmen and professionals who want to boost their income have established their administrative and tax residence in Andorra.
Andorra is characterized by its security and high quality of life. The Principality has a quality health and educational system, as well as a calm and peaceful environment. In addition, its strategic location between Spain and France allows easy access to other European countries.
If you want to rent in Andorra, we tell you that you do not need to have a residence permit. However, if you want to live permanently in the country, you must meet the corresponding immigration requirements.
By February 2023, rental properties had an average price of 17.44 euros per square meter. This represents an increase of 28.71% compared to May of the previous year. Although the Principality has very expensive options, we tell you that it is possible to rent more affordable properties, especially in less touristy areas.
Keep in mind that it will also be necessary to pay for services such as Internet, electricity, water, etc.
For those who are considering moving to the Principality, it is important to highlight that finding a home in Andorra may require some time and effort, especially in the areas with the most demand. Before you move, check out all your available options.
One of the big problems of the real estate sector in Andorra is that the supply is scarce, due to population growth, but also to the tourism sector. This is how the Principality decided, at the end of 2022, to suspend tourist licenses for two years. These licenses are subject to government approval, so right now it can be somewhat difficult to find a home for vacation rentals (long stay).