top of page

New Changes in Rental Regulations and their Impact on Short Term Rental in Andorra


The government has recently introduced the "Bill on Stimulus Measures and Stability of the Housing Rental Market," an initiative that brings significant changes to the rental market. In this article, we will focus on how these changes might affect Vacation Rentals a rapidly growing sector.


Apartament de lloguer per a turistes com a exemple de 'Habitatge d'ús turístic
Image of a tourist apartment.

New Rules for Rental Contracts


According to the new bill, tenants can request an extension of existing rental contracts throughout the year 2024. This extension will be four years for contracts formalized in 2015 or earlier, with a maximum rent increase of 4% plus the CPI from the previous year. For more recent contracts, the terms for extension and rent increase will vary.


What Does This Mean for Short Term Rentals?


One of the additional measures in the bill is the extension of a temporary ban on new licenses for Tourist Use (HUT) in apartments and studios, including the 5-star category. This could mean greater stability and less competition in the tourist rental market in the short term.


Exceptions and Special Clauses


The bill introduces certain exceptions. For instance, forced extensions will not apply to contracts with a rent higher than 2,000 euros per month. Additionally, exceptions are introduced for rental contracts for regular and permanent residence subscribed to by individuals with a residence permit without lucrative activity.


Conclusion


The new bill introduces significant changes to the rental market that could impact Vacation Rentals in Andorra. While the initiative aims to give more power to tenants and stabilize the market, it also introduces restrictions that could affect owners of properties meant for tourist rental.


Comments


bottom of page