Key Takeaways
- There is no double-taxation convention between Sweden and Andorra, so nothing settles a dispute if both countries claim you as resident.
- Sweden keeps you fully liable to tax after you leave if you keep an essential connection there, under chapter 3, sections 3 and 7 of the Income Tax Act.
- Chapter 3, section 19 lets Sweden tax gains on shares sold after you leave, and with no treaty nothing narrows it.
- Llei 2/2026 set passive residency at a €1,000,000 investment, or €400,000 through the Housing Fund, plus a definitive €50,000 payment to the AFA.
- The Swedish half of this move needs a Swedish adviser; the figures on this page are Andorran only.
Sweden and Andorra have no double-taxation convention. Moving to Andorra from Sweden therefore means moving without a treaty tie-breaker if both countries claim you as resident, and without a treaty limit on how long Sweden can tax gains on shares you owned while you lived there. The move still works — Andorra caps personal income tax (IRPF) at 10% — but leaving Sweden is not the same as leaving Swedish tax.
No tax treaty between Sweden and Andorra
Andorra has 22 conventions to avoid double taxation in force. Sweden is not one of them. What the two countries share is information: an agreement to exchange tax information on request, signed on 24 February 2010 and in force since 11 February 2011, plus automatic exchange of financial account data under Andorra’s agreement with the European Union.
| Mechanism | Under a double-taxation convention | Sweden and Andorra today |
|---|---|---|
| Tie-breaker if both countries claim you as resident | Yes: permanent home, centre of vital interests, habitual abode | None |
| Limit on Swedish tax on later share gains | Usually narrowed by the treaty | None: Swedish domestic law applies in full |
| Ceiling on Swedish tax on income you leave behind | Yes | None |
| Exchange of tax information | Yes | Yes: on request since 2011, and automatic through the EU–Andorra agreement |
Leaving Sweden does not end Swedish tax liability
Under chapter 3, section 3 of the Swedish Income Tax Act (inkomstskattelagen, SFS 1999:1229), you remain fully liable to Swedish tax after you leave if you keep an essential connection (väsentlig anknytning) there. Section 7 of the same chapter lists what counts: Swedish citizenship, how long you lived in Sweden, a home in Sweden fit for year-round use, family in Sweden, and business or economic ties to the country.
For Swedish citizens and long-term residents, the burden of proof is reversed for a period after departure: you must show that the connection has ended. The year-round home is the factor that most often keeps people inside Swedish tax.
The rule that follows your shares
Chapter 3, section 19 of the Income Tax Act lets Sweden tax a capital gain on shares and similar holdings sold by someone who has left, if they lived in Sweden at any point in the year of the sale or in a set number of calendar years before it. It covers Swedish shares, and foreign shares acquired while you were fully liable in Sweden. Treaties often narrow this rule; with Andorra there is none, so it applies as written.
Sweden has also studied replacing it with a tax on unrealised gains at departure (committee directive Dir. 2022:45). That is a study, not a law, but check where it stands before a large disposal.
Swedish income you leave behind
- Pensions and Swedish salary. Paid to someone who lives abroad, they are generally taxed in Sweden under the special income tax for non-residents (SINK, SFS 1991:586).
- Dividends from Swedish companies. They carry Swedish withholding tax under the Withholding Tax Act (kupongskattelagen, SFS 1970:624). Treaties usually reduce it; there is no treaty to reduce it for an Andorran resident.
The periods, rates and thresholds behind these Swedish rules are deliberately absent: the official Swedish texts could not be consulted for this article.
What Andorra asks of you
Llei 2/2026, del 22 de gener — the second Omnibus Law, published in the BOPA on 12 February 2026 — sets the current conditions for both routes.
| Requirement | Passive residency | Active residency |
|---|---|---|
| Investment in Andorran assets | €1,000,000, or €400,000 through the Housing Fund | An Andorran company you hold more than 34% of |
| If that investment is property | Unit value above €800,000 | Not applicable |
| Payment to the AFA | €50,000, definitive | €50,000, definitive |
| Each dependant | €12,000, definitive | Not applicable |
| Days in Andorra a year | 90 | 183 |
What Andorra taxes once you are resident
Under Law 5/2014 on Personal Income Tax, the first €24,000 of income is untaxed, the band to €40,000 is taxed at 5%, and income above that at 10%. Company profit is taxed at 10% under Law 95/2010 on Corporate Income Tax. With no treaty, there is no guarantee that Andorra will credit Swedish tax paid on income you keep in Sweden.
How to sequence the move
- Take Swedish advice on essential connection, your Swedish home and chapter 3, section 19 before you sell shares or leave.
- Apply for the Andorran permit and, for active residency, set up the company.
- Report the move to Skatteverket and keep evidence of the date and of your new home.
- Request an Andorran tax residency certificate once you qualify. It is the document Sweden will ask for.
Frequently asked questions
Is there a double-taxation treaty between Sweden and Andorra?
No. Sweden is not on Andorra’s list of conventions. The two countries have only an agreement to exchange tax information on request, in force since 11 February 2011, which has no tie-breaker and no ceiling on Swedish tax.
Can Sweden tax my share gains after I move to Andorra?
Yes, for a period. Under chapter 3, section 19 of the Swedish Income Tax Act, gains on shares sold after you leave can stay taxable in Sweden if you lived there during a set number of calendar years before the sale. With no treaty, nothing narrows that rule.
Do I stop paying Swedish tax the day I leave?
Not necessarily. Sweden can keep treating you as fully liable to tax if you keep an essential connection there, such as a year-round home, family or business ties. Swedish citizens carry the burden of showing that the connection has ended for a period after they leave.
How much do I have to invest for Andorran passive residency?
Since Llei 2/2026, €1,000,000 in Andorran assets, or €400,000 through the Housing Fund, plus a definitive €50,000 payment to the AFA and €12,000 for each dependant.
Will Skatteverket find out about my Andorran bank account?
Yes. Andorra exchanges financial account information automatically with EU member states, Sweden included, under its agreement with the European Union, and the 2010 bilateral agreement covers requests on top of that.
Last reviewed: 12 October 2026. General information, not legal or tax advice. The Swedish rules here are described by instrument only; take the periods and rates from a Swedish tax professional before you leave. Speak to our team.
