Quick answer
Andorra taxes its residents on worldwide income in 2026, but lightly: personal income tax is 0% up to €24,000, 5% to €40,000 and 10% above. Corporate tax is 10%, the IGI sales tax is 4.5%, and there is no wealth, inheritance or gift tax. Social security is the largest cost for many workers.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Check my tax setup →You're weighing Andorra as your next base, or you've just arrived and want the full picture. This page explains every major Andorran tax in 2026, how residence works, and where to go next for the details.
Andorra tax landscape in 2026: the key figures
| Tax | 2026 rate or rule |
|---|---|
| Personal income tax (IRPF) | 0% to €24,000; 5% to €40,000; 10% above |
| Capital gains (individuals) | Max 10%; share gains often exempt below a 25% stake |
| Corporate income tax (IS) | 10% |
| IGI (sales tax, like VAT) | 4.5% standard |
| Social security (CASS), employees | 6.5% employee + 15.5% employer |
| Non-resident income tax (IRNR) | 10% general rate |
| Wealth, inheritance, gift tax | None |
| Tax residence test | More than 183 days, or main economic interests in Andorra |
Is this guide for you?
Read on if you…
- are thinking of moving to Andorra and want one clear overview;
- run or plan a business in Andorra;
- want to compare Andorra with Spain, Portugal or Italy.
Probably not your case if you…
- only visit Andorra for skiing or shopping – you won't be tax resident;
- need a ruling on a complex structure – this page is the map, not the advice.
How does the Andorran tax system work?
Andorra built a modern income tax system only recently. Corporate tax arrived in 2012 and personal income tax in 2015. Before that, the country had no direct taxes at all.
Residence decides everything
You are tax resident in Andorra if either is true in a calendar year:
- you spend more than 183 days in Andorra; or
- your main business or economic interests – the centre of your professional and financial life – are in Andorra.
Your spouse and minor children living in Andorra also point towards residence. Details in tax residency in Andorra.
Worldwide, not territorial
Residents are taxed on worldwide income. Andorra is not a territorial system: foreign salary, dividends and gains count. Non-residents pay only on Andorran-source income, through the IRNR.
Foreign tax paid can usually be credited, especially under Andorra's treaties.
What are the main taxes in Andorra?
| Tax | Who pays | 2026 rate | Notes |
|---|---|---|---|
| IRPF – personal income tax | Resident individuals | 0% / 5% / 10% | First €24,000 tax-free |
| Savings income | Residents | 10% | First €3,000 exempt |
| Capital gains – movable assets | Residents | Up to 10% | Under-25% stakes in shares often exempt |
| Real estate gains | Sellers | Up to 15%, falling with time | Separate tax |
| IS – corporate tax | Companies | 10% | Credits for investment and jobs |
| IGI – indirect tax | Consumers | 0%–9.5% | 4.5% standard |
| ITP – property transfer tax | Buyers | 4% | Shared with parishes |
| CASS – social security | Employees, employers, self-employed | 22% total on salaries | Self-employed pay on a fixed base |
| IRNR – non-residents | Non-residents | 10% general | Dividends often 0% |
| Wealth / inheritance / gift | – | None | Heirs abroad may pay at home |
Income tax in practice
Honestly? The bands are simple. On €60,000 of net income you pay €2,800. On €150,000 you pay €11,800. Deductions exist for pension contributions, housing and dependants. See personal tax deductions and benefits in Andorra.
Capital gains and crypto
Gains are taxed at a maximum of 10%. Portfolio shares can be exempt below a 25% stake. Andorra also regulates digital assets since 2022. Read capital gains tax in Andorra and cryptocurrency taxes in Andorra.
Indirect and local taxes
IGI at 4.5% is among Europe's lowest sales taxes. Property buyers pay ITP, sellers pay the property gains tax, and each parish charges small yearly taxes. All covered in specific taxes in Andorra.
Are there special regimes for newcomers?
No special expat regime exists – and none is needed, as everybody pays at most 10%. The real "incentives" are the residence routes:
- Passive residence – for people living from investments. Requires €600,000 invested in Andorra and a €47,500 deposit with the INAF, and 90 days a year of presence.
- Active residence – for self-employed people and company owners, with a refundable deposit and 183 days of presence.
- International professional – for consultants whose clients are mostly abroad.
Compare them in tax incentives for expats and digital nomads in Andorra.
Moving in and moving out
Moving in
- Choose your residence route and apply to the immigration department.
- Find housing – rental supply is tight, so start early.
- Register with the CASS and the tax department.
- Cut residence ties with your old country, and file its exit return.
The step-by-step plan is in the practical guide to obtaining tax residency in Andorra.
Moving out
Andorra has no general exit tax for individuals. You still need to file your final IRPF return, settle CASS and recover your INAF deposit. See the practical guide to ceasing tax residency in Andorra.
Treaties
Andorra has double tax treaties with Spain, France, Portugal, Luxembourg, the UAE and others. They decide which country taxes what when both claim you. See international tax treaties of Andorra.
Running a business in Andorra
Most foreign founders use a Societat Limitada (SL) – a limited company with minimum capital of €3,000. Foreign shareholders usually need foreign investment authorisation. Compare the options in legal forms of business in Andorra.
Companies pay 10% corporate tax on profit. Credits for investment and job creation can lower it further. Read corporate income taxes in Andorra and business expenses in Andorra for what you can deduct.
Here's the catch. A company run from Spain or France is taxed there, whatever its Andorran registration says. Management must really happen in Andorra.
What about tax compliance?
Andorra exchanges bank data under the OECD's CRS and fines late or wrong filings. Large-scale evasion is a crime. The bigger risk for newcomers is fake residency – Spain checks people registered in Andorra closely. Details in tax fraud regulations of Andorra.
How does Andorra compare with its neighbours?
| Andorra | Spain | Portugal | Italy | |
|---|---|---|---|---|
| Top income tax rate | 10% | Around 45–54% | 48% + surcharges | 43% + local surcharges |
| Corporate tax | 10% | 25% | 19% | 24% + IRAP |
| Standard VAT / sales tax | 4.5% | 21% | 23% | 22% |
| Wealth tax | None | Yes, regional | No | On foreign assets only |
Go deeper with the Spain tax landscape overview, the Portugal tax landscape overview and the Italy tax landscape overview.
Example – Tom and Clara, a remote couple moving from Lyon
Tom earns €90,000 as a self-employed developer; Clara earns €30,000 as a translator. In Andorra in 2026, Tom's IRPF is €800 + €5,000 = €5,800. Clara's is €300. Together: €6,100 of income tax, before deductions. Their CASS contributions add a fixed monthly amount each. In France, the same household would have paid far more in income tax and social charges combined.
Tom and Clara's move touched five taxes. Yours probably does too.
Get a full check of your Andorra tax setup.
Check my tax setup →Common mistakes (and what they cost)
- Thinking Andorra is territorial → foreign income goes undeclared, triggering fines and interest.
- Keeping the family home in Spain or France → your old country can still claim you as resident.
- Forgetting the CASS → social security can cost more than income tax for freelancers.
- Running an Andorran company from abroad → it becomes taxable where it is really managed.
- Buying property without checking non-resident rules → unexpected levies or conditions at signing.
Andorra tax guides
Every Andorra guide on Heavnn University, in one list:
- Tax residency in Andorra – the 183-day and economic-interests tests explained.
- Practical guide to obtaining your tax residency in Andorra – permits, steps and timing for your move.
- Practical guide to ceasing your tax residency in Andorra – how to leave cleanly.
- Personal tax deductions and benefits of Andorra – what lowers your IRPF bill.
- Capital gains tax in Andorra – shares, funds, crypto and property gains.
- Cryptocurrency taxes in Andorra – trading, staking and the digital assets law.
- Specific taxes in Andorra – IGI, property transfer tax and parish taxes.
- Tax incentives for expats and digital nomads in Andorra – residence routes compared.
- Legal forms of business in Andorra – SL, SA and self-employment.
- Corporate income taxes in Andorra – the 10% rate and credits.
- Business expenses in Andorra – what you can deduct.
- International tax treaties of Andorra – who taxes what across borders.
- Tax fraud regulations of Andorra – penalties, CRS and residency checks.
Frequently asked questions
What is the income tax rate in Andorra in 2026?
Personal income tax in Andorra is 0% on the first €24,000 of taxable income, 5% between €24,000 and €40,000, and 10% above €40,000. Savings income is taxed at 10% after a €3,000 exemption. There is no wealth, inheritance or gift tax, which keeps the overall burden low.
Does Andorra tax worldwide income?
Yes. Tax residents of Andorra are taxed on their worldwide income, including foreign salaries, dividends and capital gains. Andorra is not a territorial system. Foreign tax paid can usually be credited, especially where a double tax treaty applies. Non-residents are taxed only on Andorran-source income.
How do I become tax resident in Andorra?
You become tax resident if you spend more than 183 days in Andorra in a calendar year, or if your main business or economic interests are there. You first need a residence permit, such as passive, active or international professional residence, and then must really live in Andorra and cut ties with your old country.
What is the corporate tax rate in Andorra?
Corporate income tax is 10% on profit in 2026. Companies can reduce it with credits for investment and job creation. Dividends paid by an Andorran company to resident shareholders are generally exempt from personal income tax, so profit is taxed once at company level.
Is Andorra a tax haven?
Andorra has low taxes but is no longer a secrecy jurisdiction. It has had income taxes since 2015, exchanges bank data automatically under the OECD's CRS since 2018, and has signed double tax treaties with Spain, France, Portugal and others. Residence must be genuine, or neighbouring countries can still tax you.
Does Andorra have VAT?
Andorra has IGI, a general indirect tax that works like VAT. The standard rate is 4.5% in 2026, with reduced rates of 0%, 1% and 2.5% for essentials and a 9.5% rate for some banking services. Businesses charge it on their sales and pay it to the tax department.
Related guides
- Tax residency in Andorra
- Capital gains tax in Andorra
- Corporate income taxes in Andorra
- Tax incentives for expats in Andorra
- Portugal tax landscape overview
- Spain tax landscape overview
- Italy tax landscape overview
- 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)
- CASS – Andorran social security
- OECD – Tax
- PwC Worldwide Tax Summaries – Andorra
This guide is general information, not personalised tax advice. See how we research and review.
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