In brief: Andorra vs Spain: the useful comparison.
- Is there a tax treaty between Spain and Andorra? Yes. A double-taxation agreement between Spain and Andorra has been in force since 2016.
- What is the income tax gap between Andorra and Spain? Spanish IRPF ranges, by region, from 45% (Madrid) to 54% (Valencian Community), with 50% in Catalonia, compared with a maximum of 10% in Andorra.
- Does Spain have a wealth tax, unlike Andorra? Yes. Spain applies the Patrimonio wealth tax and the solidarity levy on large fortunes.
Short answers by Andorre Gestoria, a French-speaking tax and wealth advisory firm in Canillo (RLG CAPITAL, SL). Details, figures and sources in the article — updated 15 October 2026.
Spain and Andorra share a border, a language (Catalan) and close ties — but not the same tax system. For a heavily taxed Spanish resident, Andorra represents a credible alternative, all the more so because a tax treaty governs the transition. Here is the full comparison.
The tax gap: income and wealth
In Spain, IRPF combines a state scale (24.5 % at most) and a regional scale: the top marginal rate ranges from 45 % in Madrid to 50 % in Catalonia and 54 % in the Valencian Community. On top of that come the wealth tax (Impuesto sobre el Patrimonio) and the solidarity tax on large fortunes, a VAT (IVA) at 21 % and a corporate tax at 25 %. 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 %.
Andorra vs Spain: the tax comparison, figure by figure
| Tax | Andorra | Spain |
|---|---|---|
| Income tax (max) | 10 % | 45 % to 54 % (depending on the region) |
| Corporate tax | 10 % | 25 % (15 % start-ups) |
| Dividends / savings income | 0 % (Andorran source) | 19 % → 30 % (base ahorro) |
| VAT / IGI | 4.5 % | 21 % |
| Wealth tax | None | Patrimonio + large fortunes levy |
| Inheritance tax | None | Variable by region |
| Indicative 2026 rates. In Spain, wealth and inheritance taxes depend heavily on the autonomous community. | ||
An organised transition via the 2015 treaty
Spain and Andorra are bound by a double-taxation agreement (in force since 2016). It allocates taxing rights and provides certainty for the transition. The key remains the same: establishing genuine Andorran residency — actually living there and relocating one's centre of interests. Properly prepared, your move is solid and reassuring; this is precisely what we orchestrate for you.
Andorra or Spain: the verdict, for whom?
For a high-income or high-net-worth Spanish taxpayer, Andorra substantially reduces the tax burden — just a few kilometres from Catalonia, within a treaty-based framework. The condition: a genuine and well-prepared relocation.
Key takeaways
- Spain: IRPF up to ~54 %, wealth tax + large fortunes levy, IVA 21 %
- Andorra: 10 % max, 0 % dividends/wealth/inheritance, IGI 4.5 %
- Double-taxation treaty in force (2016)
- Transition secured by genuine Andorran residency
- A few kilometres from Catalonia, linked to the EU by a customs union limited to industrial goods
Want to quantify your gain? We model your situation and build your Andorran tax residency. Also see the tax advantages of Andorra.
