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.
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
Keep what you earn
Less tax,
Discuss my tax situation
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, with reduced rates (1 % on food and books, 2.5 % on culture and dining).
→ 4.5 % vs 20 % in France
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) | 30 % (flat tax) | 0 % |
| VAT / IGI | 20 % | 4.5 % |
| Wealth tax | IFI up to 1.5 % | None |
| Inheritance tax | Up to 45 % | 0 % |
| Indicative rates currently in force. The Franco-Andorran tax treaty of 2 April 2013 eliminates double taxation. | ||
What Andorra does not 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, no gift tax — no cap, no kinship condition.
→ Transfer freelyLong-term capital gains
Real estate capital gains decrease with the holding period, eventually falling to zero.
→ 0 % after 12 years
Andorra's tax landscape in 2026
A mature jurisdiction,
A mature jurisdiction,
still unmatched.
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 has raised certain thresholds (passive residency, tax on foreign real estate investment) and introduced a minimum effective corporate tax rate. Andorra's tax advantage remains unmatched in Europe: we calibrate your situation precisely to the current framework to extract maximum benefit.
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 or the family relationship. 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, it is sufficient to incorporate a company in Andorra. 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.