Andorra Tax Rates
Andorra is a small principality between France and Spain that has developed into a low-tax jurisdiction. The country introduced its first income tax in 2015 at a maximum rate of 10%, with a 10% corporate tax rate and a 4.5% general indirect tax (IGI). Andorra does not levy wealth, inheritance, or capital gains taxes, making it attractive for high-net-worth individuals and entrepreneurs.
Top Income Tax Rate
10%
Corporate Tax Rate
10%
VAT / Sales Tax
4.5%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
Andorra introduced personal income tax (IRPF) in 2015. Rates are 0% up to €24,000, 5% from €24,001 to €40,000, and 10% above €40,000. This makes Andorra one of the lowest-tax jurisdictions in Europe for individuals. Capital gains and investment income are taxed separately at 10% (with significant exemptions).
| Income Range | Tax Rate |
|---|---|
| €0 – €24K | 0% |
| €24K – €40K | 5% |
| €40K+ | 10% |
Corporate Tax
Andorra levies corporate income tax (IS - Impost de Societats) at 10%. International trading companies and holding companies may benefit from an 80% exemption on qualifying income, resulting in an effective rate of 2%. New companies in priority sectors may also benefit from reduced rates.
Standard Rate
10%
Capital Gains Tax
Capital gains are technically included in income tax at 10%, but extensive exemptions apply. Gains on assets held for more than 10 years are fully exempt. The effective capital gains burden is minimal or zero for long-term holders.
Rate
0%
VAT / Sales Tax
Andorra applies a general indirect tax (IGI - Impost General Indirecte) at 4.5%, far lower than EU VAT rates. Reduced rates of 2.5% and 1% apply to essential goods and services. This low consumption tax contributes to Andorra's attractive cost of living.
Standard Rate
4.5%
Cryptocurrency Tax
Cryptocurrency gains in Andorra are subject to the 10% income tax rate. Long-term holdings (10+ years) would be exempt under the general capital gains exemption. Andorra has been positioning itself as a digital innovation hub.
Tax Treaties
Andorra has a growing but still small treaty network of approximately 10 double taxation agreements. The country has been actively expanding its treaty network since introducing income taxation in 2015.
Treaty Network
10
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Andorra
See how much you could save by moving here from your current country.
+$11K
Tax in United States
$24K
24.4% effective
Tax in Andorra
$13K
13.3% effective
You Save
45.4%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
