Tax System
Andorran taxation
in detail
Andorra has a legal, transparent tax system recognised by the OECD. Far from being a tax haven in the pejorative sense, the Principality simply offers some of the lowest tax rates in Europe, the result of a deliberate economic policy.
CIT is 10% for all companies. Personal income tax is tiered: 0% up to €24,000, 5% between €24,000 and €40,000, and 10% above €40,000. IGI (equivalent of VAT) is 4.5%, more than 4 times lower than standard European rates.
Key rates and exemptions
- Corporate Income Tax (CIT): 10% flat rate
- Personal income tax: 0% (€0–24k) · 5% (€24–40k) · 10% (+€40k)
- IGI (Andorran VAT): 4.5%
- Dividends from Andorran companies: exempt for residents
- Stock market capital gains: exempt
- Investment and savings income: first €3,000 exempt
- Wealth tax: 0%
- Inheritance tax: 0%
- Reduced CIT (intellectual/industrial property): 2%
- UCITS / SICAVs: 0%
- Real estate capital gains: 10% (with reductions based on holding period)
Andorra has signed tax treaties with France (2015) and Spain (2016). These treaties prevent double taxation and set the rules for tax residency. MCA Assessors analyses the impact of these treaties on your personal situation during the initial consultation.
Transparency
A transparent country, aligned with OECD standards
The Andorra of 2026 is not an opaque “tax haven”: it is a cooperative jurisdiction with tax treaties with France, Spain, Portugal, Luxembourg and the United Kingdom, among others — combining low taxation with full international compliance.
What this means for you: settling in Andorra is fully defensible before your bank, the tax authorities of your home country and your partners.
- 2010
First tax information exchange agreements (TIEA)
- 2015
Tax treaty with France in force
- 2016
Tax treaty with Spain · joined the BEPS framework (OECD)
- 2018
Automatic exchange of financial information (CRS)
- 2023
Positive Moneyval evaluation (anti-money laundering)
Myths and realities about Andorra
“Banking secrecy is absolute”
Andorra has automatically exchanged financial information with more than 95 jurisdictions since 2018 (CRS standard).
“You pay no tax there”
The country has a complete, modern tax system — simply with low, clear rates validated by the OECD.
“You can be resident on paper”
No. Tax residency requires real presence (183 days or more) and an effective life in the country. We only build solid projects with genuine substance.
Our commitment: real, compliant and lasting structures. Nothing else.
Confidential Consultation
Let's discuss your
relocation to Andorra
A first confidential exchange, with no commitment. Reply within 48 working hours with an assessment of your situation.