Key Takeaways
- Andorra levies real income (10%), corporate (10%) and consumption (4.5%) tax.
- It requires economic substance — real activity, a resident director.
- Banking secrecy has ended; it reports automatically under the OECD Common Reporting Standard.
- It is on no EU or OECD blacklist and has a network of double-tax treaties.
- It is a low-tax jurisdiction, not a secrecy one — which is why a genuine move holds up and a paper one does not.
No, Andorra is not a tax haven in the technical sense. It levies real income tax (up to 10%), corporate tax (10%) and VAT (4.5%), files with the OECD, exchanges bank-account information automatically under the Common Reporting Standard, has ended banking secrecy, and is on no EU or OECD blacklist. It is a low-tax country with substance requirements — which is exactly why it works for people who genuinely move there and not for those who want an address of convenience.
What “tax haven” actually means
The term has a loose popular meaning (“low tax”) and a technical one. Technically, a tax haven combines several features: near-zero taxes, no requirement of real economic activity, strict secrecy, and no meaningful exchange of information with other governments. Andorra fails that test on most counts.
Where Andorra stands on each test
| Test | Classic tax haven | Andorra |
|---|---|---|
| Income tax | 0% | Up to 10% personal, 10% corporate |
| Consumption tax | Often none | 4.5% IGI, with filing obligations |
| Economic substance | Not required | Required — real office, activity, resident director |
| Banking secrecy | Strong | Ended; automatic information exchange since 2018 |
| CRS / OECD exchange | Minimal | Full participant in the Common Reporting Standard |
| Double-tax treaties | Few | Network including Spain, France, Portugal, Luxembourg, the Netherlands and others |
| EU list of non-cooperative jurisdictions | Often listed | Not listed |
How Andorra got here
Until around 2010, Andorra did look like a haven: no income tax, tight bank secrecy, little cooperation. Over the past 15 years it deliberately dismantled that model — introducing personal income tax in 2015, signing information-exchange agreements, joining the CRS, and building a treaty network — in order to stay off blacklists and keep its financial sector able to operate internationally. The 2026 Omnibus Law, which raised residency thresholds and tightened compliance, is the latest step in the same direction.
So why do people still move there?
Because “not a tax haven” is not the same as “not tax-efficient.” A 10% ceiling on income, 0% on wealth, inheritance and most capital gains, and 4.5% VAT is a large, legal saving for someone coming from a 45–50% country — provided they genuinely relocate. The substance and transparency rules are a feature, not a bug: they mean the arrangement holds up under scrutiny from your former tax authority.
The line that matters
Andorra rewards a real move — living there, spending the required days, shifting your economic and personal life. It does not reward a paper move. The people who get into trouble are those who kept a home, a business and a family in Spain or France while claiming Andorran residency. Do it properly and it is robust; do it as a fiction and it is not.
Frequently asked questions
Is Andorra a tax haven?
Not technically. It levies real taxes, requires economic substance, has ended banking secrecy, exchanges financial information automatically under the CRS, and is on no EU or OECD blacklist. It is a low-tax jurisdiction, not a secrecy jurisdiction.
Does Andorra report to other countries’ tax authorities?
Yes. Andorra is a full participant in the OECD Common Reporting Standard and automatically exchanges bank-account information with partner countries.
Is Andorra on the EU blacklist?
No. Andorra is not on the EU list of non-cooperative tax jurisdictions.
Can I save tax by moving to Andorra?
Yes, substantially, if you genuinely become resident — income tax caps at 10% and there is no wealth or inheritance tax. A paper move without actually relocating does not work and creates risk.
Last reviewed: 3 September 2026. General information, not tax advice; international tax rules and lists change and this page may become out of date. Speak to our team.
