Quick answer
Andorra's main specific taxes in 2026 are IGI, a VAT-style sales tax at 4.5% standard; a 4% property transfer tax; a tax on property gains that falls with holding time; and small parish (comú) taxes. There is no wealth, inheritance or gift tax, so your recurring bill stays low.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
Heavnn
Stay tax compliant, wherever you work
Answer a few questions and get a clear plan for your own situation.
Find my savings →You live in Andorra, or plan to, and you keep hearing that taxes are "low". True – but there are still a handful of specific taxes that hit what you buy, own and sell. After reading, you'll know each one, what it costs in 2026, and how to keep it small legally.
Andorra specific taxes in 2026: the key figures
| Tax | Who pays | Rate or amount in 2026 |
|---|---|---|
| IGI (general indirect tax, like VAT) | Consumers, via businesses | 4.5% standard; 0%, 1%, 2.5% and 9.5% special rates |
| ITP (property transfer tax) | Buyer of real estate | 4% of the price |
| Tax on real estate capital gains | Seller of real estate | Up to 15%, falling with holding time; 0% after a long holding |
| Parish (comú) taxes | Residents, owners, businesses | Small annual amounts set by each of the 7 parishes |
| Excise duties on fuel, tobacco, alcohol | Built into retail prices | Much lower than in Spain or France |
| Wealth tax | – | None |
| Inheritance and gift tax | – | None |
Is this guide for you?
Read on if you…
- are moving to Andorra and want a full picture of the "small" taxes;
- plan to buy or sell a flat or house in Andorra;
- run a business that charges or pays IGI.
Probably not your case if you…
- only want income tax rates – start with the Andorra tax landscape overview;
- need the tax on shares or crypto gains – see capital gains tax in Andorra.
What is IGI and how much is it?
IGI stands for impost general indirecte – Andorra's version of VAT. Businesses add it to their prices and pay it over to the tax department. You, as a consumer, simply pay it at the till.
The standard rate is 4.5%, one of the lowest sales taxes in Europe. For comparison, Spain's standard VAT is 21%.
| IGI rate | Typical scope |
|---|---|
| 0% | Healthcare, education, residential rent, many financial and insurance services |
| 1% | Food, water, books, newspapers, some cultural services |
| 2.5% | Transport of passengers and some cultural activities |
| 4.5% | Standard rate: most goods and services |
| 9.5% | Banking and financial services that are not exempt |
Do you need to register for IGI?
If you sell goods or services from Andorra, usually yes. You register with the tax department and file periodic returns. Small businesses file less often, typically every six months or yearly.
Good news: if you sell services to clients abroad, those services are often outside the scope of Andorran IGI. The place-of-supply rules decide this, so check each contract type.
What do you pay when you buy or sell property?
Property is where Andorra's specific taxes add up. Two taxes matter.
When you buy: ITP
The impost sobre transmissions patrimonials (ITP) is a transfer tax on the purchase price. The rate is 4%, shared between the national government and the parish where the property sits. The buyer pays it at signing, before the notary.
Here's the catch. Andorra has been tightening rules on real estate bought by non-residents to cool housing prices. Recent laws added extra levies or conditions for some foreign buyers. Ask the notary for the exact amount before you sign.
When you sell: the property gains tax
Andorra taxes gains on real estate with a dedicated tax, the impost sobre les plusvàlues en les transmissions patrimonials immobiliàries. In plain words: a tax on the profit when you sell property.
The rate depends on how long you owned it. Short holdings pay up to 15%. The rate falls each year you keep the property and reaches 0% after a long holding period. Selling your main home can also be exempt under conditions.
Which local and parish taxes will you see?
Andorra has seven parishes, each run by a comú (local council). Each comú sets small annual taxes. Expect three types:
- Foc i lloc – a household tax for residents. It is usually a modest yearly amount.
- Property tax – a yearly tax for owners, based on surface area or value.
- Business tax (radicació) – a yearly fee for any business or professional, based on premises size and activity.
The amounts are small compared with Spain's IBI or France's taxe foncière. Still, they arrive as separate bills, so diarise them.
Are there excise duties, tourist taxes or car taxes?
Yes, but they are light.
- Excise duties. Fuel, tobacco and alcohol carry consumption taxes, but at levels well below neighbouring countries. That's why fuel and tobacco are cheaper than in Spain or France.
- Customs limits. When you leave Andorra by road, Spanish and French customs apply strict allowances. Bringing more than the allowance into the EU means EU taxes and fines.
- Tourist tax. Some parishes charge a per-night tax on accommodation.
- Vehicle tax. A yearly circulation tax is paid to your parish.
What taxes does Andorra not have?
This is the part most newcomers love. Andorra has no wealth tax, no inheritance tax and no gift tax. You can pass assets to your children without an Andorran transfer bill.
One warning. If your heirs live in Spain or France, their country may tax what they inherit. The absence of tax in Andorra doesn't protect them. Compare with the Spain tax landscape overview, where inheritance tax is set by each region.
Example – Marc, a freelance developer moving from Barcelona
Marc buys a €450,000 flat in Escaldes-Engordany in 2026. He pays 4% ITP: €18,000. Each month he spends about €1,500 on goods and services; at a blended IGI of 3.5%, that's roughly €630 a year in sales tax. His parish taxes come to a few hundred euros. Had he bought the same flat in Barcelona, transfer tax alone would have been €45,000 at 10%. He also has no wealth tax to file, ever.
Marc's tax bill has four small pieces. Yours probably has more.
Get your full Andorra setup reviewed and see where you can save.
Find my savings →Common mistakes (and what they cost)
- Forgetting IGI registration when you start invoicing → back-payment of the tax you should have charged, plus surcharges and interest.
- Selling property too early → the gains tax is at its highest in the first years, so a quick flip can cost up to 15% of the profit.
- Assuming no inheritance tax anywhere → heirs living in Spain or France may still pay tax at home, sometimes at high rates.
- Ignoring EU customs allowances → goods seized at the border and fines on top.
- Missing parish tax bills → late surcharges and problems when you renew your residence permit.
Before buying, also read the practical guide to obtaining tax residency in Andorra. Your residence status can affect which taxes and conditions apply. For a cross-border view, see specific taxes in Portugal and the overview of specific taxes in Spain.
Frequently asked questions
What is the IGI rate in Andorra in 2026?
The standard IGI rate is 4.5% in 2026. A super-reduced 1% applies to food, water and books, and 0% covers healthcare, education and residential rent. Banking services that are not exempt pay 9.5%. IGI works like VAT: businesses charge it and pay it to the tax department.
Does Andorra have a wealth tax or inheritance tax?
No. Andorra has no wealth tax, no inheritance tax and no gift tax in 2026. Assets pass to heirs without an Andorran tax bill. However, heirs who are resident in Spain, France or another country may owe inheritance tax there under their own country's rules, so plan with them in mind.
How much tax do you pay when buying property in Andorra?
The buyer pays the property transfer tax, ITP, at 4% of the price. It is shared between the government and the parish. Notary and registry fees come on top. Recent housing measures added conditions or extra levies for some non-resident buyers, so ask the notary for an exact figure before signing.
Is there a tax when you sell a house in Andorra?
Yes. The real estate gains tax applies to your profit. Short holdings pay up to 15%, and the rate falls each year you own the property until it reaches zero after a long holding. Your main home may be exempt under conditions. Check the current scale before you set a sale date.
What are comú taxes in Andorra?
Comú taxes are small annual taxes set by each of Andorra's seven parishes. They include a household tax for residents, a property tax for owners and a business establishment tax for companies and professionals. Amounts vary by parish but are modest compared with local property taxes in Spain or France.
Do I need to charge IGI to foreign clients?
Often not. Services supplied to clients located outside Andorra are frequently outside the scope of Andorran IGI under the place-of-supply rules. Goods exported are also generally relieved. Check each type of contract, keep proof of where your client is established, and register for IGI anyway if you trade from Andorra.
Related guides
- Andorra tax landscape overview: every tax in one page
- Capital gains tax in Andorra on shares, funds and crypto
- How to obtain tax residency in Andorra
- Corporate income tax in Andorra
- Specific taxes in Portugal compared
- Overview of specific taxes in Spain
- All country tax guides
Sources
- Departament de Tributs i de Fronteres – Govern d'Andorra
- Govern d'Andorra – official portal
- Butlletí Oficial del Principat d'Andorra (BOPA)
- Consell General – legislation
- PwC Worldwide Tax Summaries – Andorra
This guide is general information, not personalised tax advice. See how we research and review.
Low taxes still need the right setup.
Let Heavnn check your Andorra tax position and find your savings.
Start with Heavnn →
