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.
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, 0% inheritance tax and 0% gift tax. Your legacy remains entirely yours.
Personal Income Tax (IRPF)
* If your spouse or stable partner lives with you and has no work, business or rental income, the €24,000 tax-free minimum rises to €40,000. If they have some, it rises to €40,000 minus that income, but never below €24,000.
Top rates across Europe
See how much you could save compared to other major European jurisdictions.
Top marginal rates for 2026. Andorra's 10% is a ceiling, not a flat rate — the first €24,000 is exempt.
Are you an Andorran tax resident?
A residence permit and tax residency are two different things, and the difference decides which of the rates on this page apply to you. You become an Andorran tax resident when you spend more than 183 days of the calendar year in Andorra, or when the main centre of your economic interests sits here. A passive resident who stays at the 90-day minimum is normally not an Andorran tax resident.
As an Andorran tax resident
- Worldwide income is taxed in Andorra, at a maximum of 10%.
- Salary, business profits, rental income and investment income all fall in scope.
- Tax already paid abroad is credited under Andorra's double taxation treaties.
- You can request a certificate of tax residence to claim that relief in your former country.
- Foreign pensions are taxable here as income, subject to the treaty in point — public service pensions are usually taxed by the paying state.
If you are not a tax resident
- Only Andorran-source income is taxed, under IRNR, at a flat 10%.
- The 10% ceiling does not reach your foreign income — that stays taxable where you are resident.
- The holding-period relief on Andorran property gains does not apply; the flat 10% does.
Capital gains and savings income
Most portfolio investors pay nothing on share disposals. Property is where the rate depends on how long you have held it.
- Shares, holding under 25%
- 0%
- Shares, holding over 25% held 10 years or more
- 0%
- Shares, holding over 25% held under 10 years
- 10%
- Andorran property sold within 2 years
- 15%
- Andorran property, relief tapering to nil at 10 years
- 10% → 0%
- Crypto-asset gains
- 10%
- Savings income — first €3,000 each year
- 0%
The 15% on a quick sale is the 10% rate plus a 5% speculative surcharge. The tapering relief is for resident individuals not carrying on an economic activity — companies and non-residents pay a flat 10% whatever the holding period.
IGI in full
Andorra's VAT equivalent has five rates, not one. The headline 4.5% is the standard rate.
- 0%
- Residential rent, CASS-reimbursed medicines, and certain health and education services
- 1%
- Food and drink for human consumption other than alcohol, books, newspapers and magazines
- 2.5%
- Passenger transport, cultural services, ski passes, works of art and antiques
- 4.5%
- Standard rate — everything not otherwise specified
- 9.5%
- Banking and financial services
Social security (CASS)
CASS is not a tax, but it is the other mandatory cost of working in Andorra, and it buys the healthcare that passive residents must insure privately.
- Employee
- 6.5% of gross salary
- Employer
- 15.5% of gross salary
- Self-employed
- 22% of a chosen base, ≈ €140–€775 per month
The self-employed choose a base between 25% and 137.5% of the reference salary (€2,560.99 in 2025), so the monthly figure moves with the base you elect.
Double taxation, and how Andorra avoids it
Inside Andorra
Corporate profits are taxed at 10% and dividends distributed to Andorran residents are taxed at 0%. The total burden on business profit is therefore capped at 10%: taxed once, at the company, and never again in your hands.
Across borders
Andorra has 22 double taxation treaties in force. They decide which country taxes what, and they are the mechanism that credits foreign tax against your Andorran bill.
In force
Spain · France · Portugal · Luxembourg · Liechtenstein · Malta · Cyprus · San Marino · Hungary · Czechia · Croatia · Monaco · Iceland · Netherlands · United Arab Emirates · Estonia · South Korea · United Kingdom · Lithuania · Montenegro · Latvia · Romania
Signed or ratified, entering into force
Austria · Bulgaria
If you own property here
Buying, holding, letting and selling are each taxed differently, and the buyer's residency status changes the first line.
- Transfer tax on purchase
- 4% — 1% to the state, 3% to the comú
- Foreign investment in real estate
- 6% on a first dwelling, 10% on each additional one, on top of the transfer tax
- Rental income
- 10% under IRPF as capital income
- Letting at scale
- Treated as an economic activity above €100,000 of rents or six let properties
- Annual local taxes
- Each comú sets its own modest property and household charges
Selling follows the capital gains rules above: 15% inside two years, tapering to 0% at ten for resident individuals without an economic activity.
If you run a company here
The corporate side is straightforward, but it is not a letterbox regime — the company has to be real and administered from Andorra.
- Corporate tax (IS)
- 10% on profits
- Dividends to Andorran residents
- 0%, so profits are taxed once
- International holding regime
- Exemption on qualifying foreign dividends and participations
- IGI
- Register, charge and file monthly, quarterly or half-yearly by regime
Effective management and genuine activity in Andorra are conditions of the regime, not formalities, and they are what the tax office looks at first.
Low tax, not secrecy
Andorra adopted the OECD Common Reporting Standard in Law 19/2016, in force since January 2017, and made its first automatic exchange of financial account data in September 2018 with 41 jurisdictions. Exchange is now activated with around 73, the EU member states among them. The rates on this page are low; the account behind them is visible to your home tax authority.
The filing calendar
Andorran taxes are self-assessed against fixed deadlines, not rolling ones.
- IRPF — personal income tax
- 1 April to 30 September, for the previous year
- IS — corporate tax, Model 200
- Within 25 working days after six months from year end: 1–25 July on a calendar year
- IGI — indirect tax
- Monthly, quarterly or half-yearly, according to your regime
Filing is also what produces your certificate of tax residence, issued by the Departament de Tributs i de Fronteres — the document your former country will ask for before granting treaty relief.
Frequently Asked Questions
Does living in Andorra make me an Andorran tax resident?
Not automatically. You become an Andorran tax resident by spending more than 183 days of the calendar year in Andorra, or by having the main centre of your economic interests there. A residence permit alone, including passive residency at its 90-day minimum, does not make you one.
What is the personal income tax rate in Andorra?
Andorra's personal income tax (IRPF) is capped at 10%. The first €24,000 of income is tax-free, income between €24,001 and €40,000 is taxed at 5%, and income above €40,000 is taxed at 10%.
Does Andorra have a wealth tax?
No. Andorra has 0% wealth tax, 0% inheritance tax and 0% gift tax. Capital gains on shareholdings below 25% are exempt; Andorran property is taxed at 15% if sold within two years, tapering to 0% after ten years.
What is the VAT rate in Andorra?
Andorra's VAT equivalent, called IGI (Impost General Indirecte), is set at just 4.5% — the lowest in Europe. This significantly reduces the cost of living and business operations.
Are dividends taxed in Andorra?
Dividends distributed by Andorran companies to Andorran residents are taxed at 0%. Combined with the 10% corporate tax, the total tax burden on business profits is capped at 10%.
How does Andorra compare to Spain and France for income tax?
On a €150,000 income, Andorran IRPF is roughly €11,500. The same income on the 2026 scales is roughly €39,500 in France, €55,900 in Spain and €64,200 in the Netherlands, before the deductions and credits each country allows.
Andorran Tax Glossary
IRPF
Impost sobre la Renda de les Persones Físiques. Personal income tax: 0% to €24,000, 5% to €40,000, 10% above.
IS
Impost de Societats. Corporate tax at a flat 10%, with special regimes for international holding activity.
IRNR
Impost sobre la Renda dels No-Residents. A flat 10% on Andorran-source income earned by people who are not tax resident here.
IGI
Impost General Indirecte. Andorra's VAT, standard rate 4.5%, with 0%, 1%, 2.5% and 9.5% rates for specific supplies.
CDI
Conveni per evitar la doble imposició. A double taxation treaty; Andorra has 22 in force.
Dividends
Dividends paid by Andorran companies to Andorran residents are taxed at 0%, so business profits are not taxed twice.
Plusvàlua
A capital gain. On Andorran property the rate falls with the holding period, reaching 0% after ten years.
CASS
Caixa Andorrana de Seguretat Social. The public healthcare and social security system, funded by contributions, not by tax.
AFA
Autoritat Financera Andorrana. The financial regulator, and the body that receives the €50,000 residency contribution.
Comú
The administration of each of the seven parishes, which levies its own local taxes on property and business activity.
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 a €50,000 non-refundable contribution and €12,000 per dependent. Foreign buyers also pay 6% tax on a first dwelling, 10% on each additional one.
Housing Fund
Reduced €400,000 real estate component if directed to the National Housing Fund.
This page is a guide, not advice. Andorran rules change — three of the figures above moved in 2026 alone — and your own position depends on facts this page cannot see: your nationality, where you have been resident, the treaty that applies to you and how your assets are held. Do not rely on it as a final source of truth.
Rates and thresholds on this page were verified against Llei 2/2026 and the Andorran tax code on 4 September 2026. General information, not tax advice — confirm your own position with an adviser before acting.
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