Andorran Tax Guide
Maximize your savings with Europe's most efficient fiscal system.
Personal Income Tax (IRPF)
Andorra offers one of the lowest personal income tax rates in the world, capped at just 10%.
Corporate Tax (IS)
A flat 10% rate on profits, with special regimes for international holding companies. Dividends are taxed at 0% for residents.
VAT (IGI)
At 4.5%, Andorra has the lowest VAT in Europe, significantly reducing the cost of living and business operations.
Wealth & Inheritance
0% wealth tax and 0% inheritance tax. Your legacy remains entirely yours.
Personal Income Tax (IRPF)
* For married couples, the 0% threshold increases to €40,000.
Andorra vs. Europe
See how much you could save compared to other major European jurisdictions.
No Double Taxation
No Double Taxation
Andorra's tax system is designed for efficiency and transparency. While corporate profits are taxed at 10%, dividends distributed to Andorran residents are taxed at 0%. This means the total tax burden on business profits is capped at 10%, ensuring you are never double-taxed on the same income at both corporate and personal levels.
Andorran Tax Glossary
Dividends
Dividends distributed by Andorran companies to Andorran residents are taxed at 0%, ensuring corporate profits are not double-taxed at the personal level.
IRPF
Impost sobre la Renda de les Persones Físiques. Personal income tax, capped at 10%.
IS
Impost de Societats. Corporate tax, typically 10% with various exemptions for international activities.
IGI
Impost General Indirecte. Andorra's version of VAT, set at a standard rate of 4.5%.
CASS
Caixa Andorrana de Seguretat Social. The public healthcare and social security system.
AFA
Autoritat Financera Andorrana. The financial regulator overseeing banking and insurance.
Comú
Local district administration. Each of the 7 districts has its own Comú with specific local taxes.
Investment Rules
The Omnibus Law 2026 introduced new thresholds to ensure sustainable growth.
Active Residency
€50,000 non-refundable government contribution for company formation.
Passive Residency
€1,000,000 total investment including €800,000+ in real estate, plus €50,000 non-refundable contribution.
Housing Fund
Reduced €400,000 real estate component if directed to the National Housing Fund.
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