42.55° N · 1.58° E
Andorra Tax Guide
EuropeLast verified September 2026Worldwide system
- Top income tax
- 10%
- Capital gains
- 10%
- Corporate
- 10%
- VAT / GST
- 4.5%
- Residency test
- 183 days
Progressive 0% to EUR 24,000 / 5% to EUR 40,000 / 10% above
In short
- Andorra combines a 10% top income tax with very low crime, fast fibre internet and mountain living between France and Spain.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: There is no airport, housing is scarce and expensive, and daily life runs in Catalan, Spanish and French.
Verified September 2026 · 2 sources
Recent changes
- 2026-11-10 correctionSources list cited a PwC Worldwide Tax Summaries page for Andorra that does not exist (the URL returns 404), so it was removed. The Govern d'Andorra tax link now points to its current address (impostos.ad redirects there). No tax figure changed.
Best for
- Corporate-friendly
10% corporate tax — competitive for founders and holding structures.
- Special regime available
Passive residency (residència sense activitat lucrativa) — Requires EUR 600,000 invested in Andorra (bond, property or business) plus a EUR 50,000 deposit with…
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
10% on gains generally. Gains on shareholdings under 25% are exempt. Real estate gains taxed on a sliding scale from 15% (year 1) to 0% after 10 years of ownership.
Wealth & Inheritance
Special Regimes
Practical Notes
A 10% ceiling on income, gains and corporate tax inside Europe, no wealth or inheritance tax, and a small, stable jurisdiction wedged between Spain and France. Not in the EU or the euro-area formally (uses the euro by agreement), so EU freedom-of-movement rules do not apply. Housing supply is tight and prices have climbed sharply with inflows of content creators and traders.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- 10% flat ceiling on personal and corporate income
- 4.5% IGI
- Passive residency by investment
Beyond tax
Living in Andorra
Andorra combines a 10% top income tax with very low crime, fast fibre internet and mountain living between France and Spain.
- Expat hub
- Andorra la Vella
- Monthly budget
- ~$3,200
- Climate
- Alpine, 10°C
- Time zone
- UTC+1
- Tax84
- Cost of living$$$
- Safety88
- Healthcare82
- English45
- Internet240 Mbps
- Warm climate25
- Residency access40
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- Passive residency€600,000 invested in Andorra plus a €50,000 deposit, and 90 days a year of presence
- Active residencyWork for or run a company in Andorra, with 183 days a year of presence
Watch out: There is no airport, housing is scarce and expensive, and daily life runs in Catalan, Spanish and French.
See how Andorra ranks for remote workers, retirees and familiesData Sources
Last verified: September 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in Andorra?
+
Andorra has a top personal income tax rate of 10%. The tax structure is: Progressive 0% to EUR 24,000 / 5% to EUR 40,000 / 10% above. See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in Andorra?
+
Andorra uses a worldwide system for foreign income. Worldwide income taxed at the same 0/5/10% scale, with foreign tax credits and 20+ double-tax treaties (Spain, France, Portugal, Luxembourg, UAE among them).
What are the residency requirements for Andorra?
+
Tax residency in Andorra generally requires 183 days of physical presence. 183 days, or centre of economic interests in Andorra. Passive residency permits require only 90 days of presence.. Always verify current rules with official sources.
Is there a wealth tax in Andorra?
+
No, Andorra does not have a wealth tax. No wealth tax
What is the corporate tax rate in Andorra?
+
The corporate tax rate in Andorra is 10%. 10% standard; 2% effective for qualifying holding companies on participation income; new companies pay 5% on the first EUR 50,000 in their first 3 years
Is there capital gains tax in Andorra?
+
Tax Atlas records a capital gains tax rate of 10% for Andorra. 10% on gains generally. Gains on shareholdings under 25% are exempt. Real estate gains taxed on a sliding scale from 15% (year 1) to 0% after 10 years of ownership. Verify your situation with a qualified adviser.
Does Andorra have an inheritance tax?
+
No, Andorra does not levy an inheritance or estate tax according to the data. No inheritance, estate or gift tax.
What is the VAT or sales tax rate in Andorra?
+
The standard VAT / GST rate in Andorra is 4.5%. 4.5% IGI (general indirect tax) standard — among the lowest in Europe; 9.5% on banking and financial services; 1% on food and books.
US citizen moving to Andorra? Read this first.
Andorra's mid-range personal tax rate (10%) makes the FEIE-vs-FTC choice less obvious for US citizens.
- •If your earned income is at or below the ~$130k FEIE cap and your local effective rate is low, FEIE may dominate. If income is significantly above the cap, FTC usually wins.
- •Both can be combined on different income streams in the same year, but FEIE once revoked cannot be re-elected for 5 years without IRS consent — choose carefully.
- •Self-employment tax is owed in full — Andorra has no totalization agreement with the US.
- •Investment income (dividends, capital gains): taxed by Andorra at local rates, then FTC offsets the US side.
The Atlas · membership by intake
Is Andorra right for you? Get a plan built around you.
Answer 12 quick questions and the Atlas builds your personal dossier: whether Andorra actually fits you, where your company should sit, the regimes you could qualify for and the traps for your situation.
Want Andorra rate alerts?
Get the 2026 cheat sheet (all jurisdictions, one page) plus an email when Andorra changes its tax rates or residency rules.
No spam. One email when rates materially change. Unsubscribe in one click.
Related on TaxAtlas
- Is this the right country for you?4-question quiz scores 53 countries against your situation
- 2026 Global Tax Cheat SheetSide-by-side comparison of all 53 jurisdictions
- 2026 international tax changesRecent updates affecting jurisdictions like this one
- Get help with a Andorra moveRequest a response within 1–2 business days