The Government of Andorra will allocate six million to rent subsidies for households that spend more than 30% of their income, with a ceiling of 5,500

Households that allocate more than30% and up to more than 36% of the income to pay the rentdepending on their income, they will be able to take advantage of the new temporary aid program to promote theaffordable housing. The measure was announced yesterday by the Minister of Housing, Conxita Marsolat the press conference after the council of ministersand will have an initial allocation of six million euros in the 2027 budget, with an expandable nature.

The measure will not be limited to the contracts affected by the end of the forced extension. Any home with a lease for habitual and permanent residence that meets the conditions will be able to access it. The requirements include proving income of between 1.2 and 3.5 times the minimum wage, not having another home in Andorra and not exceed an asset equivalent to ten times the minimum annual salary. It will also be necessary to prove fifteen years of legal, effective and permanent uninterrupted residence in the country, with exceptions justified by studies, work or health reasons. The adults in the family unit must work for themselves or others, also with the exceptions established by the regulations.

30% the limit for those who pay between 1.2 and 1.5 times the minimum wage

The program establishes a progressive system so that the effort undertaken by each household varies according to their economic capacity. Families with incomes between 1.2 and 1.5 times the minimum wage can receive the subsidy when the rent exceeds 30% of their income. The threshold rises to 31.5% for those between 1.5 and 2 minimum wages; 33% between 2 and 2.5; to 34.5% between 2.5 and 3, and to 36% for households with incomes between 3 and 3.5 minimum wages.

40% maximum that will have to be paid for the mortgage fee

Applications can be submitted from November 1. The grants will have economic effects from January 1, 2027will be paid monthly and will have a duration of twelve months, extendable if the conditions continue to be met. The program will initially be in effect until 2030 and, in any case, at least until the public housing stock reach 1,500 floors.

36% limits to households with income up to 3.5 minimum salaries

The aim is for the administration to cover part of the difference between the effort that is considered acceptable and the effective price of the rent. The aid, however, will not be unlimited: the calculation will be based on the price per square meter established for the public housing stock in each parish, increased by 20%. Government thus raises the program as a extension of the effects of the public park to the private marketwithout replacing the rent subsidy it already manages Social Affairs. marsol gave as an example the case of a young man who receives 2,000 euros per month and pays 1,000 euros for a 100 square meter flat in Andorra la Vella. Being in the first section, he would only have to take up to 30% of the income, that is, 600 euros, and he could receive 400 euros of monthly aid. In this case, the rent limit used to calculate the subsidy would be 1,284 euros.

The program will also be extended to families with a high mortgage burden. People who have bought their first regular home and use more than 40% of their income to pay the capital and interest on the loan can apply for the aid, as long as the purchase price of the property and its annexes does not exceed 600,000 euros.