Income Tax in Andorra

Andorra’s income tax is deliberately simple. Residents pay 0 percent on the first €24,000 of general income, 5 percent between €24,000 and €40,000, and 10 percent above €40,000. Savings income has a €3,000 annual exemption before a flat 10 percent applies. Non-residents generally pay 10 percent 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.

Resident income tax - IRPF

• Brackets on general income: 0 percent up to €24,000, 5 percent from €24,000 to €40,000, 10 percent above €40,000. The 5 percent 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 percent.
• Dividends: dividends from Andorran companies received by residents are exempt from IRPF. Foreign-company dividends are typically taxed at 10 percent unless a treaty or relief applies.
• Capital gains on Andorran real estate: taxed under a separate real-estate gains tax that declines with holding period and can reach 0 percent after long holding.
• Filing obligation highlights: residents must 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 percent on Andorran-source income such as employment exercised in Andorra, local services and Andorran real-estate rents.
• Rents: the IRNR base on property rentals commonly applies a 20 percent reduction to gross rent before the 10 percent rate.
• 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.
• Administration: the IRPF rate is 10 percent at the top bracket. The 5 percent band is achieved through an equivalent relief between €24,000 and €40,000.

Simple examples

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

What we handle vs what you handle

• We handle: residency and non-residency checks, treaty analysis at a high level, registration and filings, and coordination with your bank or employer on withholdings.
• You handle: providing identity and residence evidence, income statements, bank certificates for interest, and dividend or rental documentation.

Notes and scope

This page summarises the IRPF and IRNR mechanics that matter to buyers, renters and new residents. Real-estate gains tax, corporate tax and social security are covered on separate pages. Always confirm your specific situation before you commit.