Relocation tax guideMoving to Andorra: Taxes for Expats 2026
Andorra runs some of Europe's lowest taxes: personal income tax tops out at 10%, corporate tax is 10%, the indirect tax (IGI) is 4.5%, and there is no wealth, gift, or inheritance tax. There is no special expat regime - the low flat rates are simply the system. Residency requires a permit with a minimum stay plus an investment or deposit. (Andorra is outside PwC's Worldwide Tax Summaries; figures here use cited specialist sources.)
Wedged in the Pyrenees between France and Spain, Andorra offers a tax profile far below either neighbour: a 10% income-tax ceiling, no wealth or inheritance tax, and a low consumption tax. There is no special regime to elect - the rates apply to everyone resident. This guide explains the system, how it compares with France and Spain, and the residence permits.
Andorra: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 10%Standard rate (2% on qualifying intellectual-property income; 0% for qualifying holding companies) | Andorra tax guide (Andorra Insiders)as of 2026-06-23 |
| Top personal income tax | 10%Top band; 0% up to EUR 24,000, 5% from EUR 24,000-40,000, 10% above EUR 40,000 | Andorra tax guide (Andorra Insiders)as of 2026-06-23 |
| VAT / GST (standard) | 4.5%IGI (general indirect tax) standard rate | Andorra tax guide (Andorra Insiders)as of 2026-06-23 |
| Capital gains | VariesSecurities gains exempt for holdings under 25% (or held over 10 years), otherwise 10%; real-estate gains taxed on a sliding scale that decreases with the holding period | Andorra tax guide (Andorra Insiders)as of 2026-06-23 |
| Inheritance / wealth tax | NoNo inheritance, gift, or wealth tax | Andorra tax guide (Andorra Insiders)as of 2026-06-23 |
When you become a tax resident
Andorra grants tax residency through a residence permit. Active (work) permits and passive (non-lucrative) permits both require a minimum physical presence in Andorra and, for passive residents, an investment in Andorran assets plus a refundable deposit with the financial authority. Residents are then taxed on worldwide income at the low Andorran rates.
Source: Govern d'Andorra - residency and immigration (as of 2026-06-24).
Europe's low-tax microstate
Andorra's personal income tax is banded at 0% up to EUR 24,000, 5% from EUR 24,000 to 40,000, and 10% above - so the ceiling is 10%. Corporate tax is also 10%, and the IGI consumption tax is just 4.5%, the lowest VAT-equivalent in Europe. There is no wealth tax, no gift tax, and no inheritance tax.
Capital gains are treated specifically: gains on securities are exempt where the holding is under 25% (or held more than ten years), and otherwise taxed at up to 10%; real-estate gains are taxed on a sliding scale that falls the longer you hold. None of this is a special regime - the low rates apply to all residents.
Residence permits: active and passive
There is no tax break to elect, but you do need a residence permit. Active residence is for those working or running a business in Andorra; passive (non-lucrative) residence is for the financially independent and requires investing in Andorran assets and lodging a refundable deposit with the financial authority, plus a minimum number of days in the country each year. The permit, not a special status, is the gateway to Andorra's low rates.
Before you move: what to weigh
- Passive residence requires an investment in Andorran assets and a refundable deposit, plus a minimum stay - the rates are low but entry has conditions.
- Securities capital gains are exempt under a 25% holding (or over 10 years), otherwise up to 10%; real-estate gains taper with holding period.
- There is no wealth, gift, or inheritance tax - a major contrast with neighbouring France and Spain.
- US citizens remain taxable by the US on worldwide income wherever they live; confirm filing obligations.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Andorra.
What are Andorra's tax rates?
Personal income tax is banded - 0% up to EUR 24,000, 5% to EUR 40,000, and 10% above - so it tops out at 10%. Corporate tax is 10% and the IGI consumption tax is 4.5%. There is no wealth, gift, or inheritance tax. The low rates apply to all residents; there is no special regime to elect.
Does Andorra have wealth or inheritance tax?
No - Andorra levies no wealth tax, no gift tax, and no inheritance tax, a sharp contrast with neighbouring France and Spain. Income tax tops out at 10% and the IGI consumption tax is 4.5%. Capital gains on securities are often exempt; real-estate gains taper with the holding period.
How do you become an Andorra resident?
Through a residence permit. Active permits are for those working or running a business there; passive (non-lucrative) permits require investing in Andorran assets and lodging a refundable deposit with the financial authority, plus a minimum stay each year. The permit is the gateway to Andorra's low tax rates.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Andorra as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.