IRPF — Personal income tax
0 % up to €24,000, 5 % from €24,000 to €40,000, 10 % above that. A general allowance of €3,000 (plus €750 per child) further reduces the bill.
Effective rate often < 7 %
Tax Benefits · Andorra
The tax benefits of Andorra:
The tax benefits of Andorra:
10% corporate tax, 0–10% IRPF, 0% inheritance tax.
One of Europe's most favourable tax environments: corporate and personal income tax capped at 10 %, tax-free dividends, no wealth tax, no inheritance tax. We put it to work for you.
Andorra’s tax benefits in 2026, in brief
- Companies: corporate tax 10% (25% in France), IGI 4.5% (VAT 20%), Andorran-source dividends exempt (31.4% flat tax in France).
- Individuals: IRPF (guide in French) 0% up to €24,000, ≈5% up to €40,000, 10% above (French top marginal rate: 45%); capital gains and crypto 10% maximum.
- Wealth: no wealth tax, no inheritance or gift tax in Andorra (IFI up to 1.5% and inheritance tax of 45% in the direct line, up to 60%, in France).
- Condition: genuine tax residency (more than 183 days or centre of economic interests), recognised by the France–Andorra treaty of 2 April 2013.
Andorre Gestoria — French-speaking tax and wealth advisory firm, Canillo (RLG CAPITAL, SL). 2026 rates, up to date as of 15 October 2026.
Andorra
Keep what you earn
Why is Andorran taxation so advantageous?
Discuss my tax situation
Why is Andorran taxation so advantageous?
Less tax, more wealth.
Andorra combines some of Europe's lowest tax rates with the stability and credibility of a transparent, treaty-compliant European jurisdiction. The result: at the same income level, you retain significantly more — and pass it on with no inheritance tax.
Unbeatable rates
Corporate and personal income tax capped at 10 %, IGI at 4.5 %, dividends from Andorran sources tax-exempt.
No wealth or inheritance tax
No wealth tax, no inheritance tax, no gift tax: your assets remain entirely intact.
A stable, recognised framework
A European jurisdiction, fully transparent (CRS) and bound by more than 20 tax treaties.
Andorran taxes
Three taxes. All low.
Andorra's tax system comes down to a few straightforward figures — and that is precisely the point. Here are the three pillars.
IS — Corporate income tax
A flat rate of 10 %, one of the lowest in Europe. Reduced regimes exist for new business activities and holding structures.
Andorran dividends tax-freeIGI — The VAT equivalent
The lowest standard rate in Europe, alongside rates of 0 %, 1 %, 2.5 % and 3.5 %, and an increased rate of 9.5 % for banking.
4.5 % vs 20 % in France
Andorra vs France
Taxes in Andorra vs France: the difference, figure by figure.
At a comparable income level, the gap can reach tens of percentage points. We model your exact situation during the first consultation.
| Tax | France | PrincipalityAndorra |
|---|---|---|
| Personal income tax (max) | 45 %+ | 10 % |
| Corporate income tax | 25 % | 10 % |
| Dividends (Andorran source) | 31.4 % (flat tax) | 0 % |
| VAT / IGI | 20 % | 4.5 % |
| Wealth tax | IFI up to 1.5 % | None |
| Inheritance tax | 45 % in the direct line, up to 60 % | 0 % |
| Indicative rates currently in force. The Franco-Andorran tax treaty of 2 April 2013 eliminates double taxation. | ||
What Andorra does not tax
No wealth tax, no inheritance tax, no gift tax: the luxury of not being taxed.
Beyond low rates, it is the complete absence of certain taxes that truly transforms your wealth position.
Wealth tax
No equivalent of the IFI: your assets are never taxed simply for being owned.
0 % every yearInheritance & gift tax
No inheritance tax, whatever the amount. No gift tax either — only a gift of Andorran real estate outside the close family (beyond the 3rd degree of kinship) is subject to the property transfer tax.
Transfer freelyLong-term capital gains
Real estate capital gains decrease with the holding period, eventually falling to zero.
0 % after 10 years
Andorra's tax landscape in 2026
Andorra in 2026: a mature tax jurisdiction,
Andorra in 2026: a mature tax jurisdiction,
still unmatched in Europe.
Andorra has left the grey lists, signed more than twenty tax treaties and adopted automatic exchange of information. It is now a fully credible jurisdiction — and still one of the most tax-efficient in Europe.
The 2026 adjustments do not change the fundamentals.
Law 2/2026 raised the passive residency investment threshold to €1,000,000 (or €400,000 in the Housing Fund) — the former €600,000 threshold, still shown on many websites, has no longer applied since 22 January 2026 — and adjusted the tax on foreign real estate investment. With a minimum effective corporate tax rate of 3% (Law 5/2023), Andorra’s tax advantage remains unmatched in Europe: we calibrate your situation to the current framework to get the most out of it.
Frequently asked questions
Andorra's tax system: your questions answered.
What taxes do you pay in Andorra?
Essentially three: IRPF (personal income tax, capped at 10 %), IS (corporate tax, 10 %) and IGI (the VAT equivalent, 4.5 %). There is no wealth tax and no inheritance or gift tax.
What are the personal income tax (IRPF) bands in Andorra?
0 % up to €24,000 of annual income, 5 % between €24,000 and €40,000, then 10 % above that. With the €3,000 personal allowance, the effective rate frequently stays below 7 %.
Are dividends taxed in Andorra?
Dividends from Andorran sources are exempt from personal income tax. Once the company has paid its 10 % corporate tax, distributed profits are not taxed again at the level of the resident shareholder.
Is there a wealth tax or inheritance tax in Andorra?
No. Andorra has no wealth tax, no inheritance tax and no gift tax, regardless of the amount involved — only a gift of Andorran real estate outside the close family is subject to the property transfer tax. This is a major advantage for wealth planning.
Is Andorra a tax haven?
No. It is a low-tax European jurisdiction that is fully transparent (automatic exchange of information) and bound by more than twenty tax treaties. Low taxation, fully above board.
Do I need to live in Andorra to benefit from these advantages?
For personal taxation (IRPF), yes: you need to establish your tax residency there. For corporate taxation, your Andorran company must be genuinely managed from Andorra: a company run from France is taxable in France (France–Andorra tax treaty, art. 4). We determine the most advantageous structure for your situation.
Take the next step: explore our tax advisory & optimisation service, learn how to invest in real estate or incorporate your company in Andorra.
