Income Tax in Andorra

Income tax in Andorra at a glance (2026)

This guide separates general income, savings, non-resident income and property gains. Work through the category that applies to you before using a headline rate for planning.

• Resident IRPF top rate: 10%
• Resident first bracket: 0% on the first EUR 24,000 of general income
• Resident savings allowance: EUR 3,000 per year exempt, then 10% flat
• Andorran-company dividends to residents: exempt
• Non-resident IRNR rate: 10% on Andorran-source income
• Filing window for residents: 1 April to 30 September for the previous tax year
• VAT (IGI): 4.5% standard rate, far below EU averages
• No wealth tax, no inheritance tax, no gift tax

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

Resident income tax in Andorra (IRPF)

IRPF is the personal income tax for Andorran tax residents. It applies to your worldwide income.

Savings and investment income

The first EUR 3,000 of savings income per year is exempt. Above that, savings income is taxed at a flat 10%. Savings income includes bank interest, bond coupons, and gains on financial instruments not classified as general income.

Dividends

Dividends from Andorran companies received by Andorran tax residents are exempt from IRPF. Foreign-company dividends are typically taxed at 10% unless a double tax treaty or specific relief applies. Andorra has treaties with France, Spain, Portugal, Luxembourg, Liechtenstein, the UAE, Malta, Cyprus and several others - the network is growing.

Capital gains

The former separate property capital-gains tax was repealed from 2024. Gains now fall within the relevant income-tax regime, with additional provisions for certain short-holding disposals. A sale does not automatically become tax-free after a fixed number of years. Ask an adviser to calculate the treatment for the seller, acquisition date and proposed sale.

Non-resident income tax in Andorra (IRNR)

IRNR is the income tax for non-residents on Andorran-source income.

• Standard rate: 10% on Andorran-source income (employment exercised in Andorra, local services, Andorran property rents)
• Property rentals: a 20% reduction is applied to gross rent before the 10% rate. Effective rate on gross rent is 8%
• Passive income: dividends and bank interest paid to non-residents are generally exempt from IRNR
• Treaties: double tax treaties may change who taxes specific income and reduce or eliminate withholdings

If you are renting out an Andorran property as a non-resident landlord, see property renting costs in Andorra for the full picture.

Worked examples

Examples assume the stated amounts are net general income before the personal minimum and band relief, with no other reductions, deductions or credits. They are not calculations from gross salary or take-home-pay estimates. Savings and non-resident rental examples use their own stated assumptions.

Resident general net income: EUR 60,000

• 0% on the first EUR 24,000 = EUR 0
• 5% on the next EUR 16,000 = EUR 800
• 10% on the remaining EUR 20,000 = EUR 2,000
• Total IRPF: EUR 2,800 (average rate 4.67%)

Resident general net income: EUR 100,000

• 0% on the first EUR 24,000 = EUR 0
• 5% band relief capped at EUR 800
• 10% on the remaining EUR 60,000 = EUR 6,000
• Total IRPF: EUR 6,800 (average rate 6.8%)

Resident savings interest EUR 5,000

• EUR 3,000 exempt
• 10% on EUR 2,000 = EUR 200
• Total tax on savings income: EUR 200

Non-resident landlord, EUR 2,000 per month gross rent

• 20% reduction applied to gross rent: taxable base EUR 1,600
• 10% IRNR on EUR 1,600 = EUR 160 per month
• Annual IRNR: EUR 1,920

Tax residency in Andorra - how it is determined

Andorran domestic tax-residence tests include spending more than 183 days in the calendar year in Andorra or having the principal centre of economic interests here. Family presumptions and applicable treaty tie-breakers can also matter. An immigration permit alone does not settle your tax position. Review the departure country’s rules, travel record, homes and economic connections together before deciding where income is taxable.

If you are uncertain, see the residency vs tax residency section on our Andorra residency guide.

Withholding, filing window and administration

• Employers and Andorran payers usually withhold and pay over the correct rate on employment and certain IRNR payments
• The annual return window for residents is 1 April to 30 September for the prior tax year
• Returns are filed online via the Andorran tax administration portal
• Tax identification number (NRT) is required and is issued at residency or at first relevant tax event
• The 5% band on IRPF is delivered through an equivalent relief mechanism rather than a literal 5% line on the return

Other Andorran taxes (in brief)

• IGI: standard 4.5%, special 2.5%, reduced 1%, super-reduced 0% and increased 9.5% for specified banking and financial services. The 9.5% rate is not a reduced rate.
• Corporate tax (IS): 10% standard rate
• Property transfer tax (ITP) on purchase: 4% headline (split 1% government, 3% comu/parish) - see property buying costs
• The former separate property capital-gains tax was repealed from 2024. Gains now fall within the relevant income-tax regime, with additional provisions for certain short-holding disposals. A sale does not automatically become tax-free after a fixed number of years. Ask an adviser to calculate the treatment for the seller, acquisition date and proposed sale.
• Wealth tax, inheritance tax, gift tax: none
• Social security (CASS): applies to active residents and employees - not strictly a tax but worth budgeting alongside IRPF

Andorra tax vs Spain, France and the UK

Compare the tax treatment of your actual income, deductions and social contributions. Headline rates alone do not establish the saving from a move; regional rules and special categories can change the result.

A move should work financially and practically. Compare your expected net position alongside housing, healthcare, social security and the requirements of your residency route.

Frequently asked questions

What is the income tax rate in Andorra?

The standard IRPF rate is 10%. For general net income, the EUR 24,000 personal minimum and a capped relief produce the familiar 0%, effective 5% and 10% bands. Savings income has separate rules and a EUR 3,000 minimum. Distinguish these calculations from gross salary, social-security contributions and any tax payable abroad.

Is Andorra a tax haven?

Andorra has a low-tax system but also tax filing, banking transparency and international information-exchange obligations. A bank account or residence permit does not remove reporting duties in another country. Check the treaties and rules that apply to your income and residence.

How much is income tax in Andorra for a EUR 100,000 salary?

The simplified example produces EUR 6,800 on EUR 100,000 of general net income before the personal minimum and band relief, assuming no other adjustments. A EUR 100,000 gross salary is not necessarily that taxable amount; contributions, deductions and credits can change the result.

Do non-residents pay income tax in Andorra?

Yes, non-residents pay IRNR at 10% on Andorran-source income (employment, local services, property rents). Property rents get a 20% reduction before the 10% rate, so the effective rate on gross rent is 8%. Dividends and bank interest paid to non-residents are generally exempt.

Does Andorra have capital gains tax?

The former separate property capital-gains tax was repealed from 2024. Gains now fall within the relevant income-tax regime, with additional provisions for certain short-holding disposals. A sale does not automatically become tax-free after a fixed number of years. Ask an adviser to calculate the treatment for the seller, acquisition date and proposed sale.

Are dividends taxed in Andorra?

Dividends from Andorran companies received by Andorran tax residents are exempt. Foreign-company dividends are typically taxed at 10% unless a treaty or relief applies. Dividends paid to non-residents from Andorran companies are generally exempt from IRNR.

Does Andorra have a wealth tax or inheritance tax?

No. Andorra has no wealth tax, no inheritance tax and no gift tax.

What is the VAT rate in Andorra?

IGI: standard 4.5%, special 2.5%, reduced 1%, super-reduced 0% and increased 9.5% for specified banking and financial services. The 9.5% rate is not a reduced rate.

When do I file my Andorran tax return?

The annual return window for residents is 1 April to 30 September for the previous tax year. Returns are filed online via the Andorran tax administration portal.

How is tax residency in Andorra determined?

Andorran domestic tax-residence tests include spending more than 183 days in the calendar year in Andorra or having the principal centre of economic interests here. Family presumptions and applicable treaty tie-breakers can also matter. An immigration permit alone does not settle your tax position. Review the departure country’s rules, travel record, homes and economic connections together before deciding where income is taxable.

Does Andorra have double tax treaties?

Yes. Andorra has treaties with France, Spain, Portugal, Luxembourg, Liechtenstein, the UAE, Malta, Cyprus and several others. The network is growing. Treaties affect who taxes which income and may reduce or eliminate withholdings.

What is the corporate tax rate in Andorra?

The standard corporate tax rate is 10%. Exemptions, reliefs and special regimes have specific eligibility conditions; do not assume that an international business or holding company automatically qualifies for a lower rate.

How INVICO helps with Andorran tax planning

• High-level checks: resident vs non-resident, what your worldwide profile means in Andorra
• Practical registration and filings where relevant
• Coordination with your bank and employer on withholding mechanics
• Alignment with your residency route and move-in setup so tax, residency and practical setup do not contradict each other

For complex international structures we work alongside specialist Andorran tax advisors and your existing advisors abroad. We confirm the practical envelope; specialists handle the detailed tax engineering.

Notes and scope

This guide explains the main tax categories for buyers, renters and people planning a move. Use the examples to understand the calculation, then obtain a personal assessment covering income categories, deductions, residence and any treaty before acting. Tax and immigration decisions should be planned together.

Next step

Use this page alongside residency in Andorra and move to Andorra so tax, residency and practical setup stay aligned.