Income Tax in Andorra

Residents and non-residents - what you actually pay

Income tax in Andorra is deliberately simple. Residents pay 0% on the first €24,000 of general income, 5% between €24,000 and €40,000, and 10% above €40,000. Savings income has a €3,000 annual exemption, then a flat 10% applies. Non-residents generally pay 10% on Andorran-source income. Dividends from Andorran companies are exempt for residents. The filing season typically runs from 1 April to 30 September. Figures are current to November 2025.

If you plan to move to Andorra, read this alongside our Residency in Andorra guide so your tax position and residency route work together. If you are also buying property in Andorra, see property buying costs in Andorra for the buyer taxes and fees on purchase.

Resident income tax - IRPF

• Brackets on general income: 0% up to €24,000, 5% from €24,000 to €40,000, 10% above €40,000. The 5% band is applied via an equivalent relief capped at €800.
• Savings and investments: the first €3,000 of savings income per year is exempt. Above that, savings income is taxed at 10%.
• Dividends: dividends from Andorran companies received by residents are exempt. Foreign-company dividends are typically taxed at 10% unless a treaty or relief applies.
• Capital gains on Andorran property: taxed under a separate property gains tax that declines with holding period and can reach 0% after long holding.
• Filing obligation highlights: residents typically file if general income is at least €24,000, or if non-withheld savings income exceeds €3,000, or if they have economic activity or capital gains.

Non-resident income tax - IRNR

• Standard rate: 10% on Andorran-source income such as employment exercised in Andorra, local services and Andorran property rents.
• Rents: the IRNR base on rentals commonly applies a 20% reduction to gross rent before the 10% rate. See property renting costs in Andorra if you are planning to rent.
• Passive income: dividends and bank interest paid to non-residents are generally exempt from IRNR under current rules.
• Treaties: double tax treaties may change who taxes specific income and reduce or eliminate withholdings.

Withholding, filing window and administration

• Employers and payers in Andorra usually withhold and pay over the correct rate on employment and certain IRNR payments.
• Annual return window for residents: 1 April to 30 September for the prior tax year.
• The top IRPF rate is 10%. The 5% band is achieved through an equivalent relief between €24,000 and €40,000.

Simple examples

• Resident salary €60,000: 0% on €24,000, 5% on €16,000 (€800), 10% on €20,000 (€2,000). Total €2,800 (average 4.67%).
• Resident savings interest €5,000: €3,000 exempt, €2,000 taxed at 10% (€200).
• Non-resident rental €2,000 per month: base after 20% reduction €1,600, IRNR at 10% (€160 per month).

What we handle vs what you handle

• We handle: high-level checks (resident vs non-resident), practical registration and filings where relevant, and coordination with your bank or employer on withholding mechanics.
• You handle: providing identity and residence evidence, income statements, and supporting documents for interest, dividends or rental income.

Notes and scope: This page summarises the IRPF and IRNR mechanics that matter to buyers, renters and new residents. Always confirm your specific situation before you commit.

Planning your timeline? Use this alongside Residency in Andorra and Move to Andorra so tax, residency and practical setup stay aligned.