Belgium ranks among the heaviest tax regimes in Europe for labour and capital; Andorra among the lightest. For a Belgian, the gap is significant — but making the move successfully requires an authentic, well-prepared relocation. Here is the full picture.
The tax gap : income and capital
In Belgium, the personal income tax (IPP) reaches 50 % at the marginal rate, with additional municipal surcharges (≈ 7 %), giving an effective rate of nearly 53 %. Dividends bear a 30 % withholding tax, corporate tax stands at 25 %, VAT at 21 %, and 2026 introduced a new capital gains tax on financial assets. In Andorra : a maximum of 10 % on both income and corporate profits, 0 % on Andorran-source dividends, no wealth or inheritance tax, and IGI at 4.5 %.
The comparison, figure by figure
| Tax | Andorra | Belgium |
|---|---|---|
| Income tax (max) | 10 % | ~53 % (IPP + municipal) |
| Corporate tax | 10 % | 25 % |
| Dividends | 0 % (Andorran source) | 30 % (withholding tax) |
| Capital gains on financial assets | Andorran regime (low) | New tax 2026 |
| VAT / IGI | 4.5 % | 21 % |
| Inheritance tax (direct line) | None | 3 % → 30 % (up to 80 % outside the family) |
| Indicative 2026 rates. In Belgium, inheritance tax and certain levies vary by Region. | ||
A genuine relocation, without a bilateral treaty
An important point : there is no tax treaty in force between Belgium and Andorra. The key to a successful transition therefore lies in a clean break from Belgian tax residency and the establishment of genuine Andorran residency — actually living there and having one's centre of interests there. Properly prepared, your move is solid and unassailable : this is precisely what we orchestrate, step by step.
The verdict : for whom ?
For a Belgian with high income, a company or significant assets, the gap with Andorra is considerable — without leaving Europe. The condition : a genuine and carefully managed relocation. At that price, the transition is as secure as it is advantageous.
Key takeaways
- Belgium : IPP ~53 %, dividends 30 %, ISOC 25 %, VAT 21 %, inheritance up to 80 %
- Andorra : 10 % max, 0 % dividends/wealth/inheritance, IGI 4.5 %
- New Belgian capital gains tax in 2026
- No treaty : a clean break from Belgian residency is essential
- All this whilst remaining in Europe, a few hours from home
Want to quantify your gain? We model your situation and build your Andorran tax residency. Also see all the tax advantages of Andorra.
